---

UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWashington, D.C. 20549

FORM 10-Q

(Mark One)

[X]  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2009

[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

For the transition period from ________ to  ________

Commission File Number000-50033

IRELAND INC.(Exact name
of registrant as specified in its charter)

|NEVADA                                                               | 91-2147049                          
|-------------------------------------------------------------------- | ------------------------------------
|(State or other jurisdiction of incorporation or
      organization) | (I.R.S. Employer Identification No.)
|                                                                     |                                     
|2441 West Horizon Ridge Parkway, Suite 100                           |                                     
|Henderson, Nevada                                                    | 89052                               
|(Address of principal executive offices)                             | (Zip Code)                          

(702) 932-0353(Registrant's telephone number,
including area code)

Not Applicable(Former name, former
address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the Securities
Exchange Act of 1934 during the preceding 12 months (or for such shorter period
that the registrant was required to file such reports), and (2) has been
subject to such filing requirements for the past 90 days. [X]Yes[   ]No

Indicate by check mark whether the registrant has submitted
electronically and posted on its corporate Web site, if any, every
Interactive Data File required to be submitted and posted pursuant to Rule 405
of RegulationS-T (s. 232.405 of this chapter) during the preceding 12 months
(or for such shorter period that the registrant was required to submit and
post such files. [   ]Yes    [   ]No

Indicate by check mark whether the registrant is a large
accelerated filer, an accelerated filer, a non-acceleratedfiler, or a
smaller reporting company. See the definitions of large accelerated filer,
accelerated filer and smaller reporting company in Rule 12b-2 of the
Exchange Act.

Large
      accelerated filer [    ]
    Accelerated
      filer                     
      [   ]Non-accelerated
      filer   [    ] (Do not check if a smaller
      reporting company)
    Smaller reporting company[X]


Indicate by check mark whether the registrant is a shell company
(as defined in Rule 12b-2 of the Exchange Act). [   ]Yes    [X]No

Indicate the number of shares outstanding of each of the
issuer's classes of common stock, as of the latest practicable date:
As of May 11, 2009, the Registrant had 97,010,087 shares of common stockoutstanding.

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PART I - FINANCIAL INFORMATION

ITEM
1.             
 FINANCIAL STATEMENTS.

The accompanying unaudited financial statements have been
prepared in accordance with the instructions to Form 10-Q and Rule 8-03 of
Regulation S-X, and, therefore, do not include all information and footnotes
necessary for a complete presentation of financial position, results of
operations, cash flows, and stockholders' equity in conformity with generally
accepted accounting principles. In the opinion of management, all adjustments
considered necessary for a fair presentation of the results of operations and
financial position have been included and all such adjustments are of a normal
recurring nature. Operating results for the three months ended March 31, 2009
are not necessarily indicative of the results that can be expected for the year
ending December 31, 2009.

As used in this Quarterly Report, the terms we, us, our,
Ireland, and the Company mean Ireland Inc. and its subsidiaries, unless
otherwise indicated. All dollar amounts in this Quarterly Report are expressed
in U.S. dollars, unless otherwise indicated.

2

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|IRELAND INC.                     
|---------------------------------
|(AN EXPLORATION STAGE ENTERPRISE)
|CONSOLIDATED BALANCE SHEETS      
|(UNAUDITED)                      

|                                                            |   | March 31,
      2009 |   |   | December 31, 2008 |  
|----------------------------------------------------------- | - | -------------------- | - | - | ----------------- | -
|                                                            |   |                      |   |   |                   |  
|ASSETS                                                      |  
|                                                            |   |                      |   |   |                   |  
|Current assets                                              |   |                      |   |   |                   |  
|Cash                                                        | $ | 1,502,075            |   | $ | 2,565,823         |  
|Refunds receivable                                          |   | 52,114               |   |   | 27,394            |  
|Prepaid expenses                                            |   | 167,849              |   |   | 141,335           |  
|                                                            |   |                      |   |   |                   |  
|Total current
      assets                                  |   | 1,722,038            |   |   | 2,734,552         |  
|                                                            |   |                      |   |   |                   |  
|Property and equipment, net                                 |   | 3,558,348            |   |   | 3,378,177         |  
|Mineral properties                                          |   | 31,948,053           |   |   | 31,948,053        |  
|Reclamation bonds                                           |   | 908,368              |   |   | 933,088           |  
|Deposits                                                    |   | 22,200               |   |   | 22,200            |  
|                                                            |   |                      |   |   |                   |  
|Total non-current assets                                    |   | 36,436,969           |   |   | 36,281,518        |  
|                                                            |   |                      |   |   |                   |  
|Total assets                                                | $ | 38,159,007           |   | $ | 39,016,070        |  
|                                                            |   |                      |   |   |                   |  
|LIABILITIES AND STOCKHOLDERS' EQUITY                        |  
|                                                            |   |                      |   |   |                   |  
|Current liabilities                                         |   |                      |   |   |                   |  
|Accounts payable                                            | $ | 157,816              |   | $ | 89,543            |  
|Accounts payable - related party                            |   | 58,811               |   |   | 50,417            |  
|Accrued payroll and related
      taxes                     |   | 16,645               |   |   | 11,799            |  
|Due to related party                                        |   | 23,290               |   |   | 23,290            |  
|                                                            |   |                      |   |   |                   |  
|Total current liabilities                                   |   | 256,562              |   |   | 175,049           |  
|                                                            |   |                      |   |   |                   |  
|Long-term liabilities                                       |   |                      |   |   |                   |  
|Accrued reclamation and
      remediation costs             |   | 275,338              |   |   | 275,338           |  
|Deferred tax liability                                      |   | 8,739,123            |   |   | 9,066,600         |  
|                                                            |   |                      |   |   |                   |  
|Total long-term liabilities                                 |   | 9,014,461            |   |   | 9,341,938         |  
|                                                            |   |                      |   |   |                   |  
|Total liabilities                                           |   | 9,271,023            |   |   | 9,516,987         |  
|                                                            |   |                      |   |   |                   |  
|Stockholders' equity                                        |   |                      |   |   |                   |  
|Common stock, $0.001 par
      value; 400,000,000 shares    |   |                      |   |   |                   |  
|authorized, 97,010,087 shares,
      issued and outstanding |   | 97,010               |   |   | 97,010            |  
|Additional paid-in capital                                  |   | 36,062,017           |   |   | 36,059,449        |  
|Accumulated deficit during exploration stage                |   | (7,271,043           | ) |   | (6,657,376        | )
|                                                            |   |                      |   |   |                   |  
|Total stockholders' equity                                  |   | 28,887,984           |   |   | 29,499,083        |  
|                                                            |   |                      |   |   |                   |  
|Total liabilities and
      stockholders' equity            | $ | 38,159,007           |   | $ | 39,016,070        |  

See Accompanying Notes to these Consolidated Financial
  Statements 
  F-1

---

|IRELAND INC.                         
|-------------------------------------
|(AN EXPLORATION STAGE ENTERPRISE)    
|CONSOLIDATED STATEMENTS OF OPERATIONS
|(UNAUDITED)                          

|                                                   |   |                            |   |   |                |   |   | For the period from |  
|-------------------------------------------------- | - | -------------------------- | - | - | -------------- | - | - | ------------------- | -
|                                                   |   |                            |   |   |                |   |   | February 20, 2001   |  
|                                                   |   |                            |   |   |                |   |   | (Date of Inception) |  
|                                                   |   | For the three months ended |   |   | Through        |  
|                                                   |   | March 31, 2009             |   |   | March 31, 2008 |   |   | March 31, 2009      |  
|                                                   |   |                            |   |   |                |   |   |                     |  
|                                                   |   |                            |   |   |                |   |   |                     |  
|Revenue                                            | $ | -                          |   | $ | -              |   | $ | -                   |  
|                                                   |   |                            |   |   |                |   |   |                     |  
|Operating expenses                                 |   |                            |   |   |                |   |   |                     |  
|Mineral exploration and evaluation expenses        |   | 587,706                    |   |   | 196,392        |   |   | 4,163,816           |  
|Mineral exploration and
      evaluation           |   |                            |   |   |                |   |   |                     |  
|expenses - related party                           |   | 105,000                    |   |   | 105,000        |   |   | 1,631,314           |  
|General and administrative                         |   | 230,221                    |   |   | 316,326        |   |   | 2,565,205           |  
|Depreciation                                       |   | 10,834                     |   |   | 2,639          |   |   | 31,193              |  
|Mineral and property holding
      costs           |   | 15,000                     |   |   | 36,000         |   |   | 365,500             |  
|Mineral and property holding costs -               |   |                            |   |   |                |   |   |                     |  
|reimbursed to
      related party                  |   | -                          |   |   | -              |   |   | 295,000             |  
|Write-off of mineral rights                        |   | -                          |   |   | -              |   |   | 14,000              |  
|                                                   |   |                            |   |   |                |   |   |                     |  
|Total operating expenses                           |   | 948,761                    |   |   | 656,357        |   |   | 9,066,028           |  
|                                                   |   |                            |   |   |                |   |   |                     |  
|Loss from operations                               |   | (948,761                   | ) |   | (656,357       | ) |   | (9,066,028          | )
|                                                   |   |                            |   |   |                |   |   |                     |  
|Other income (expense)                             |   |                            |   |   |                |   |   |                     |  
|Interest income                                    |   | 7,743                      |   |   | 73,206         |   |   | 273,040             |  
|Interest expense                                   |   | (126                       | ) |   | -              |   |   | (126                | )
|                                                   |   |                            |   |   |                |   |   |                     |  
|Total other income (expense)                       |   | 7,617                      |   |   | 73,206         |   |   | 272,914             |  
|                                                   |   |                            |   |   |                |   |   |                     |  
|Loss before income taxes                           |   | (941,144                   | ) |   | (583,151       | ) |   | (8,793,114          | )
|                                                   |   |                            |   |   |                |   |   |                     |  
|Income tax benefit                                 |   | 327,477                    |   |   | 143,985        |   |   | 1,522,071           |  
|                                                   |   |                            |   |   |                |   |   |                     |  
|Net loss                                           | $ | (613,667                   | ) | $ | (439,166       | ) | $ | (7,271,043          | )
|                                                   |   |                            |   |   |                |   |   |                     |  
|                                                   |   |                            |   |   |                |   |   |                     |  
|Loss per common share - basic and diluted          | $ | (0.01                      | ) | $ | (0.00          | ) |   |                     |  
|                                                   |   |                            |   |   |                |   |   |                     |  
|Weighted average common shares outstanding
      - |   |                            |   |   |                |   |   |                     |  
|Basic and diluted                                  |   | 97,010,087                 |   |   | 91,152,895     |   |   |                     |  

See Accompanying Notes to these Consolidated Financial
  Statements 
  F-2

---

|IRELAND INC.                                  
|----------------------------------------------
|(AN EXPLORATION STAGE ENTERPRISE)             
|CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY
|(UNAUDITED)                                   

|                                     |  |              |  |   |            |  |   |                 |  |   | Accumulated    |   |   |            |  
|------------------------------------ |  | ------------ |  | - | ---------- |  | - | --------------- |  | - | -------------- | - | - | ---------- | -
|                                     |  |              |  |   |            |  |   |                 |  |   | Deficit During |   |   | Total      |  
|                                     |  | Common Stock |  |   | Additional |  |   | Exploration     |  |   | Stockholders'  |  
|                                     |  | Shares       |  |   | Amount     |  |   | Paid-in Capital |  |   | Stage          |   |   | Equity     |  
|                                     |  |              |  |   |            |  |   |                 |  |   |                |   |   |            |  
|Balance, December 31, 2008           |  | 97,010,087   |  | $ | 97,010     |  | $ | 36,059,449      |  | $ | (6,657,376     | ) | $ | 29,499,083 |  
|                                     |  |              |  |   |            |  |   |                 |  |   |                |   |   |            |  
|Amortization of stock options issued |  |              |  |   |            |  |   |                 |  |   |                |   |   |            |  
|to employee over vesting period      |  | -            |  |   | -          |  |   | 2,568           |  |   | -              |   |   | 2,568      |  
|                                     |  |              |  |   |            |  |   |                 |  |   |                |   |   |            |  
|Net loss, March 31, 2009             |  | -            |  |   | -          |  |   | -               |  |   | (613,667       | ) |   | (613,667   | )
|                                     |  |              |  |   |            |  |   |                 |  |   |                |   |   |            |  
|Balance, March 31, 2009              |  | 97,010,087   |  | $ | 97,010     |  | $ | 36,062,017      |  | $ | (7,271,043     | ) | $ | 28,887,984 |  

See Accompanying Notes to these Consolidated Financial
  Statements 
  F-3

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|IRELAND INC.                         
|-------------------------------------
|(AN EXPLORATION STAGE ENTERPRISE)    
|CONSOLIDATED STATEMENTS OF CASH FLOWS
|(UNAUDITED)                          

|                                                           |   |                            |   |   |                |   |   | For the period from |  
|---------------------------------------------------------- | - | -------------------------- | - | - | -------------- | - | - | ------------------- | -
|                                                           |   |                            |   |   |                |   |   | February 20, 2001   |  
|                                                           |   |                            |   |   |                |   |   | (Date of inception) |  
|                                                           |   | For the three months ended |   |   | through        |  
|                                                           |   | March 31, 2009             |   |   | March 31, 2008 |   |   | March 31, 2009      |  
|CASH FLOWS FROM OPERATING ACTIVITIES                       |   |                            |   |   |                |   |   |                     |  
|Net loss                                                   | $ | (613,667                   | ) | $ | (439,166       | ) | $ | (7,271,043          | )
|Adjustments to reconcile loss from operating               |   |                            |   |   |                |   |   |                     |  
|to net cash used in operating
      activities:            |   |                            |   |   |                |   |   |                     |  
|Depreciation                                               |   | 10,834                     |   |   | 2,639          |   |   | 31,193              |  
|Write-off
      of mineral rights                          |   | -                          |   |   | -              |   |   | 14,000              |  
|Consulting accrual                                         |   | -                          |   |   | -              |   |   | 15,000              |  
|Stock
      based expenses                                 |   | 2,568                      |   |   | 7,407          |   |   | 1,558,643           |  
|Changes in operating assets and liabilities:               |   |                            |   |   |                |   |   |                     |  
|Prepaid
      expenses                                     |   | (12,959                    | ) |   | (208,121       | ) |   | (304,369            | )
|Other assets                                               |   | -                          |   |   | -              |   |   | (2,200              | )
|Reclamation deposit                                        |   | -                          |   |   | -              |   |   | (949,762            | )
|Mineral property
      acquisition costs                   |   | -                          |   |   | (180,568       | ) |   | (1,022,663          | )
|Accounts
      payable and accrued liabilities             |   | 89,327                     |   |   | 66,190         |   |   | 137,484             |  
|Deferred income taxes                                      |   | (327,477                   | ) |   | (143,985       | ) |   | (1,522,071          | )
|Accrued
      reclamation and remediation costs            |   | -                          |   |   | -              |   |   | 275,338             |  
|                                                           |   |                            |   |   |                |   |   |                     |  
|Net cash used in operating activities                      |   | (851,374                   | ) |   | (895,604       | ) |   | (9,040,450          | )
|                                                           |   |                            |   |   |                |   |   |                     |  
|CASH FLOW FROM INVESTING ACTIVITIES                        |   |                            |   |   |                |   |   |                     |  
|Purchase of property and equipment                         |   | (212,374                   | ) |   | (202,549       | ) |   | (2,461,862          | )
|                                                           |   |                            |   |   |                |   |   |                     |  
|Net cash used in investing activities                      |   | (212,374                   | ) |   | (202,549       | ) |   | (2,461,862          | )
|                                                           |   |                            |   |   |                |   |   |                     |  
|CASH FLOW FROM FINANCING ACTIVITIES                        |   |                            |   |   |                |   |   |                     |  
|Proceeds from stock issuance                               |   | -                          |   |   | 1,000          |   |   | 13,239,750          |  
|Stock issuance costs                                       |   | -                          |   |   | -              |   |   | (243,653            | )
|Proceeds from borrowings from related
      party          |   | -                          |   |   | -              |   |   | 8,290               |  
|                                                           |   |                            |   |   |                |   |   |                     |  
|Net cash provided by financing
      activities            |   | -                          |   |   | 1,000          |   |   | 13,004,387          |  
|                                                           |   |                            |   |   |                |   |   |                     |  
|NET CHANGE IN CASH                                         |   | (1,063,748                 | ) |   | (1,097,153     | ) |   | 1,502,075           |  
|                                                           |   |                            |   |   |                |   |   |                     |  
|CASH AT BEGINNING OF PERIOD                                |   | 2,565,823                  |   |   | 8,759,605      |   |   | -                   |  
|                                                           |   |                            |   |   |                |   |   |                     |  
|CASH AT END OF PERIOD                                      | $ | 1,502,075                  |   | $ | 7,662,452      |   | $ | 1,502,075           |  
|                                                           |   |                            |   |   |                |   |   |                     |  
|                                                           |   |                            |   |   |                |   |   |                     |  
|                                                           |   |                            |   |   |                |   |   |                     |  
|SUPPLEMENTAL INFORMATION                                   |   |                            |   |   |                |   |   |                     |  
|                                                           |   |                            |   |   |                |   |   |                     |  
|Interest Paid                                              | $ | 126                        |   | $ | -              |   | $ | 126                 |  
|                                                           |   |                            |   |   |                |   |   |                     |  
|Income Taxes Paid                                          | $ | -                          |   | $ | -              |   | $ | -                   |  
|                                                           |   |                            |   |   |                |   |   |                     |  
|Non-cash investing and financing
      activities:         |   |                            |   |   |                |   |   |                     |  
|                                                           |   |                            |   |   |                |   |   |                     |  
|Assets acquired for common stock and
      warrants issued |   |                            |   |   |                |   |   |                     |  
|for mineral properties                                     | $ | -                          |   | $ | 21,359,351     |   | $ | 21,584,351          |  
|                                                           |   |                            |   |   |                |   |   |                     |  
|Net deferred tax liability assumed                         | $ | -                          |   | $ | 10,261,194     |   | $ | 10,261,194          |  

See Accompanying Notes to these Consolidated Financial
  Statements 
  F-4

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|IRELAND INC.                              
|------------------------------------------
|(AN EXPLORATION STAGE ENTERPRISE)         
|NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|(UNAUDITED)                               

|1. | DESCRIPTION OF BUSINESS, HISTORY AND SUMMARY OF
      SIGNIFICANT POLICIES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|-- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|   | Basis of presentation The accompanying unaudited
      financial statements have been prepared in accordance with Securities and
      Exchange Commission requirements for interim financial statements.
      Therefore, they do not include all of information and footnotes required
      by accounting principles generally accepted in the United States for
      complete financial statements. The financial statements should be read in
      conjunction with the Form 10-K for the year ended December 31, 2008 of
      Ireland Inc. (the Company).                                                                                                                                                                                                                                                                                  
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|   | The interim financial statements present the balance
      sheets, statements of operations, stockholders equity, and cash flows of
      the Company. The financial statements have been prepared in accordance
      with accounting principles generally accepted in the United
      States.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|   | These financial statements have been prepared by the
      Company without audit, and include all adjustments (which consist solely
      of normal recurring adjustments) which, in the opinion of management, are
      necessary for a fair presentation of financial position and results of
      operations. Certain information and footnotes disclosure normally included
      in financial statements prepared in accordance with generally accepted
      accounting principles have been condensed or omitted, although the Company
      believes that the disclosures are adequate to make the information
      presented not misleading. It is suggested that these financial statements
      be read in conjunction with the Companys audited financial statements and
      the notes thereto for the year ended December 31, 2008.
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|   | Description of business The Company is
      considered an exploration stage company since its formation and the
      Company has not yet realized any revenues from its planned operations. The
      Company is primarily focused on the acquisition and exploration of mining
      properties. Upon identification of commercially minable reserves, the
      Company expects to actively prepare the site for its extraction and enter
      the development stage.                                                                                                                                                                                                                                                                                                                                                                            
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|   | History The Company was incorporated on February
      20, 2001 under the laws of the State of Nevada under the name Merritt
      Ventures Corp. On December 19, 2005, the Company changed its name to
      Ireland Inc.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|   | Going concern- The accompanying financial
      statements have been prepared assuming the Company will continue as a
      going concern.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|   | The Company incurred cumulative net losses of $7,271,043
      from operations as of March 31, 2009, and has no revenue. The future of
      the Company is dependent upon its ability to obtain financing and upon
      future profitable operations from the development of its mineral
      properties. Management has plans to seek additional capital through
      private placements and public offerings of its common stock. The financial
      statements do not include any adjustments relating to the recoverability
      and classification of recorded assets, or the amounts of and
      classification of liabilities that might be necessary if the Company is
      unable to continue as a going concern.                                                                                                                     
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|   | Principles of consolidation The consolidated
      financial statements include the accounts of the Company and its
      wholly-owned subsidiaries, CBI Acquisition, Inc. (CBIA) (including its
      wholly-owned single-member LLC subsidiary Columbus Salt Marsh LLC (CSM))
      and Rand Metals LLC (Rand). Significant intercompany accounts and
      transactions have been eliminated.                                                                                                                                                                                                                                                                                                                                                                                                                                                      

F-5

---

|IRELAND INC.                              
|------------------------------------------
|(AN EXPLORATION STAGE ENTERPRISE)         
|NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|(UNAUDITED)                               

|1. | DESCRIPTION OF BUSINESS, HISTORY AND SUMMARY OF
      SIGNIFICANT POLICIES(continued)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|   | Exploration costs- Mineral exploration costs are
      expensed as incurred.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|   | Mineral rights- The Company capitalizes
      acquisition and option costs of mineral property rights. The amount
      capitalized represents fair value at the time the mineral rights were
      acquired.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|   | The Company capitalizes acquisition and option costs
        of mineral rights as tangible assets. Upon commencement of commercial
        production, the mineral rights will be amortized using the unit-of-production
        method over the life of the mineral rights. If the Company does not continue
        with exploration after the completion of the feasibility study, the mineral
        rights will be expensed at that time.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|   | Mineral property acquisition costs Costs of
      acquiring mining properties are capitalized upon acquisition. Mine
      development costs incurred either to develop new ore deposits, to expand
      the capacity of mines, or to develop mine areas substantially in advance
      of current production are also capitalized once proven and probable
      reserves exist and the property is a commercially mineable property. Costs
      incurred to maintain current production or to maintain assets on a standby
      basis are charged to operations. Costs of abandoned projects are charged
      to operations upon abandonment. The Company evaluates the carrying value
      of capitalized mining costs and related property and equipment costs, to
      determine if these costs are in excess of their recoverable amount
      whenever events or changes in circumstances indicate that their carrying
      amounts may not be recoverable. The periodic evaluation of carrying value
      of capitalized costs and any related property and equipment costs are
      based upon expected future cash flows and/or estimated salvage value in
      accordance with Statement of Financial Accounting Standards (SFAS) No.
      144, Accounting for Impairment or Disposal of Long-Lived
      Assets.
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|   | Property and equipment Property and equipment is
      stated at cost less accumulated depreciation. Depreciation is provided
      principally on the straight-line method over the estimated useful lives of
      the assets, which are generally 3 to 39 years. The cost of repairs and
      maintenance is charged to expense as incurred. Expenditures for property
      betterments and renewals are capitalized. Upon sale or other disposition
      of a depreciable asset, cost and accumulated depreciation are removed from
      the accounts and any gain or loss is reflected in other income
      (expense).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|   | The Company periodically evaluates whether events and
      circumstances have occurred that may warrant revision of the estimated
      useful life of property and equipment or whether the remaining balance of
      property and equipment should be evaluated for possible impairment. If
      events and circumstances warrant evaluation, the Company uses an estimate
      of the related undiscounted cash flows over the remaining life of the
      property and equipment in measuring their recoverability.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|   | Impairment of long-lived assets The Company
      reviews and evaluates long-lived assets for impairment when events or
      changes in circumstances indicate the related carrying amounts may not be
      recoverable. The assets are subject to impairment consideration under SFAS
      No. 144 if events or circumstances indicate that their carrying amount
      might not be recoverable. As of March 31, 2009 exploration on these
      properties is progressing in accordance with the Companys plan of
      operations and no events or circumstances have happened to indicate the
      related carrying values of the properties may not be recoverable. When the
      Company determines a SFAS 144 impairment analysis should be done, the
      analysis will be performed using the rules of EITF 04-03, Mining Assets:
      Impairment and Business Combinations.                                                                                                                                                                                                                                                                                                                                                                                                                                         

F-6

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|IRELAND INC.                              
|------------------------------------------
|(AN EXPLORATION STAGE ENTERPRISE)         
|NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|(UNAUDITED)                               

|1. | DESCRIPTION OF BUSINESS, HISTORY AND SUMMARY OF
      SIGNIFICANT POLICIES(continued)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|   | Various factors could impact the Companys ability to
      achieve forecasted production schedules. Additionally, commodity prices,
      capital expenditure requirements and reclamation costs could differ from
      the assumptions the Company may use in cash flow models used to assess
      impairment. The ability to achieve the estimated quantities of recoverable
      minerals from exploration stage mineral interests involves further risks
      in addition to those factors applicable to mineral interests where proven
      and probable reserves have been identified, due to the lower level of
      confidence that the identified mineralized material can ultimately be
      mined economically.                                                                                                                                                                                                                                                                                                                                                  
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|   | Material changes to any of these factors or assumptions
      discussed above could result in future impairment charges to
      operations.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|   | Reclamation and remediation costs (asset retirement
      obligation)- The Company accrued costs associated with environmental
      remediation obligations in accordance with Statement of Financial
      Accounting Standards (SFAS) No. 143, Accounting for Asset Retirement
      Obligations. In accordance with SFAS No. 143, the Company records a
      liability for the present value of the estimated environmental remediation
      costs in the period in which the liability is incurred and becomes
      determinable, with an offsetting increase in the carrying amount of the
      associated asset. The liability will be accreted and the asset will be
      depreciated over the life of the related assets. Adjustments for changes
      resulting from the passage of time and changes to either the timing or
      amount of the original present value estimate underlying the obligation
      will be made. As reclamation work is performed or liabilities are
      otherwise settled, the recorded amount of the liability is
      reduced.
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|   | The Company accrues costs associated with environmental
      remediation obligation when it is probable that such costs will be
      incurred and they are reasonably estimable. Estimates for reclamation and
      other closure costs are prepared in accordance with SFAS No. 5 Accounting
      for Contingencies, or Statement of Position 96-1 Environmental
      Remediation Liabilities. Costs of future expenditures for environmental
      remediation are not discounted to their present value unless subject to a
      contractually obligated fixed payment schedule. Such costs are based on
      managements current estimate of amounts to be incurred when the
      remediation work is performed, within current laws and
      regulations.                                                                                                                                                                                                                                                                                                        
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|   | Future reclamation and environmental-related expenditures
      are difficult to estimate, in many circumstances, due to the early stage
      nature of investigations, and uncertainties associated with defining the
      nature and extent of environmental contamination and the application of
      laws and regulations by regulatory authorities and changes in reclamation
      or remediation technology. The Company periodically reviews accrued
      liabilities for such reclamation and remediation costs as evidence becomes
      available indicating that the liabilities have potentially changed.
      Changes in estimates are reflected in the statement of operations in the
      period an estimate is revised.                                                                                                                                                                                                                                                                                                                                      
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|   | Accruals for reclamation and environmental matters
      totaled $275,338 at March 31, 2009 and December 31, 2008. The Company is
      in the exploration stage and is unable to determine the estimated timing
      of these expenditures relating to these accruals at this time. It is
      reasonably possible the ultimate cost of reclamation and remediation could
      change in the future, and that changes to these estimates could have a
      material effect on future operating results as new information becomes
      known. For additional information, see Note 11.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        

F-7

---

|IRELAND INC.                              
|------------------------------------------
|(AN EXPLORATION STAGE ENTERPRISE)         
|NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|(UNAUDITED)                               

|1. | DESCRIPTION OF BUSINESS, HISTORY AND SUMMARY OF
      SIGNIFICANT POLICIES(continued)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|   | Fair value of financial instruments The
      Companys financial instruments consist of accounts payable and accrued
      liabilities. The carrying value of these financial instruments
      approximates their fair value based on their liquidity or their short-term
      nature. The Company is not exposed to significant interest or credit risk
      arising from these financial instruments.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|   | Revenue recognition- Revenues are recognized
      during the period in which the revenues are earned. Costs and expenses are
      recognized during the period in which they are incurred.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|   | Use of estimates- The preparation of financial
      statements in conformity with generally accepted accounting principles
      requires management to make estimates and assumptions that affect the
      reported amounts of assets and liabilities, and disclosure of contingent
      assets and liabilities at the date of the financial statements, and the
      reported amounts of revenues and expenses for the reporting period. Actual
      results could differ from these estimates.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|   | Earnings (loss) per share- The Company follows
      SFAS No. 128, Earnings Per Share and SFAS No. 150, Accounting for
      Certain Financial Instruments with Characteristics of Both Liabilities and
      Equity, which establish standards for the computation, presentation and
      disclosure requirements for basic and diluted earnings per share for
      entities with publicly-held common shares and potential common stock
      issuances. Basic earnings (loss) per share are computed by dividing net
      income by the weighted average number of common shares outstanding. In
      computing diluted earnings per share, the weighted average number of
      shares outstanding is adjusted to reflect the effect of potentially
      dilutive securities, such as stock options and warrants. Common stock
      equivalent shares are excluded from the computation if their effect is
      antidilutive. Weighted average of common stock equivalents, which include
      stock options and warrants to purchase common stock, on March 31, 2009 and
      2008 that were not included in the computation of diluted EPS, because the
      effect would be antidilutive, were 19,335,428 and 16,336,336,
      respectively.
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|   | Expenses of offering- The Company accounts for
      specific incremental costs directly to a proposed or actual offering of
      securities as a direct charge against the gross proceeds of the
      offering.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|   | Income taxes The Company accounts for income
      taxes under SFAS No. 109, Accounting for Income Taxes using the
      liability method, recognizing certain temporary differences between the
      financial reporting basis of the Companys liabilities and assets and the
      related income tax basis for such liabilities and assets. This method
      generates either a net deferred income tax liability or asset for the
      Company, as measured by the statutory tax rates in effect. The Company
      derives its deferred income tax provision or benefit by recording the
      change in either the net deferred income tax liability or asset balance
      for the year. The Company records a valuation allowance against any
      portion of those deferred income tax assets when it believes, based on the
      weight of available evidence, it is more likely than not that some portion
      or all of the deferred income tax will not be
      realized.                                                                                                                                                                                                                                                                

F-8

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|IRELAND INC.                              
|------------------------------------------
|(AN EXPLORATION STAGE ENTERPRISE)         
|NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|(UNAUDITED)                               

|1. | DESCRIPTION OF BUSINESS, HISTORY AND SUMMARY OF
      SIGNIFICANT POLICIES (continued)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|-- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|   | On July 13, 2006, the FASB issued interpretation No. 48,
      Accounting for Uncertainty in Income Taxes  An Interpretation of FASB
      Statement No. 109 (FIN 48). FIN 48 clarifies the accounting for
      uncertainty in income taxes recognized in an entitys financial statements
      in accordance with SFAS No. 109, and prescribes a recognition threshold
      and measurement attributes for financial statement disclosure of tax
      positions taken or expected to be taken on a tax return. Under FIN 48, the
      impact of an uncertain income tax position on the income tax return must
      be recognized at the largest amount that is more-likely-than-not to be
      sustained upon audit by the relevant taxing authority. An uncertain income
      tax position will not be recognized if it has less than 50% likelihood of
      being sustained. Additionally, FIN 48 provides guidance on de-recognition,
      classification, interest and penalties, accounting in interim periods, and
      disclosure and transition. The Company adopted the provision of FIN 48 on
      January 1, 2007, which did not have any impact on the consolidated
      financial statements.                                                                                                                                                                                                                                                                                                 
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|   | For acquired properties, that do not constitute a
      business as defined in EITF 98-03 Determining Whether a Nonmonetary
      Transaction Involves Receipt of Productive Assets or of a Business,
      deferred income tax liability is recorded on GAAP basis over income tax
      basis using statutory federal and state rates. The resulting estimated
      future federal and state income tax liability associated with the
      temporary difference between the acquisition consideration and the tax
      basis is computed in accordance with EITF 98-11 and SFAS 109, and is
      reflected as an increase to the total purchase price which is then applied
      to the underlying acquired assets in the absence of there being a goodwill
      component associated with the acquisition transactions in accordance with
      EITF 98-11 and SFAS 109.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|   | Stock-based compensation- On December 16, 2004,
      the FASB issued SFAS No. 123R, Share- Based Payment, which replaces SFAS
      No. 123, Accounting for Stock-Based Compensation and supersedes APB
      Opinion No. 25, Accounting for Stock Issued to Employees. SFAS No. 123R
      requires all share-based payments to employees, including grants of
      employee stock options, to be recognized in the financial statements based
      on the grant date fair value of the award. Under SFAS No. 123R, the
      Company must determine the appropriate fair value model to be used for
      valuing share-based payments, the amortization method for compensation
      cost and the transition method to be used at date of adoption. The
      transition methods include prospective and retroactive adoption options.
      Under the retroactive option, prior periods may be restated either as of
      the beginning of the year of adoption or for all periods presented. The
      prospective method requires that compensation expense be recorded for all
      unvested stock options and restricted stock at the beginning of the first
      quarter of adoption of SFAS No. 123R, while the retroactive methods would
      record compensation expense for all unvested stock options and restricted
      stock beginning with the first period restated. The Company adopted the
      requirements of SFAS No. 123R for the fiscal year beginning after December
      31, 2004.

F-9

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|IRELAND INC.                              
|------------------------------------------
|(AN EXPLORATION STAGE ENTERPRISE)         
|NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|(UNAUDITED)                               

|1. | DESCRIPTION OF BUSINESS, HISTORY AND SUMMARY OF
      SIGNIFICANT POLICIES (continued)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|-- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|   | New accounting pronouncements In April 2009,
      FASB Staff Position (FSP) No. FAS 107-1 and APB 28-1 was issued to amend
      SFAS No. 107, Disclosures about Fair Value of Financial Instruments, to
      require disclosures about fair value of financial instruments for interim
      reporting period as well as in annual financial statements. This FSP also
      amends APB Opinion No. 28, Interim Financial Reporting, to require those
      disclosures in summarized financial information at interim reporting
      periods. FSP No. 107-1 and APB 28-1 is effective for interim reporting
      periods ending after June 15, 2009. Adoption of this guidance is not
      expected to have a material impact on the Companys consolidated financial
      statements.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|   | In April 2009, FSP No. FAS 157-4, Determining Fair Value
      When the Volume and Level of Activity for the Asset or Liability Have
      Significantly Decreased and Identifying Transactions That Are Not
      Orderly, was issued to provide additional guidance for estimating the
      fair value in accordance with SFAS No. 157, Fair Value Measurements,
      when the volume and level of activity for the asset or liability have
      significantly decreased. This FSP also provides guidance on identifying
      circumstances that indicate a transaction is not orderly. FSP No. 157-4 is
      effective for interim and annual reporting periods ending after June 15,
      2009, and shall be applied prospectively. Adoption of this guidance is not
      expected to have a material impact on the Companys consolidated financial
      statements.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|   | In April 2009, FSP No. 141(R)-1, Accounting for Assets
      Acquired and Liabilities Assumed in a Business Combination That Arise from
      Contingencies. This FSP amends the guidance in FASB Statement No. 141 to
      require that assets acquired and liabilities assumed in a business
      combination that arise from contingencies be recognized at fair value if
      fair value can be reasonably estimated. If fair value of such asset or
      liability cannot be reasonable estimated, the asset or liability would
      generally be recognized in accordance with FASB Statement No. 5,
      Accounting for Contingencies, and FASB Interpretation (FIN) No. 14,
      Reasonable Estimation of the Amount of a Loss. This FSP eliminates the
      requirements to disclose an estimate of the range of outcomes of
      recognized contingencies at the acquisition date. This FSP also requires
      that contingent consideration arrangements of an acquiree assumed by the
      acquirer in a business combination be treated as contingent consideration
      of the acquirer and should be initially and subsequently measured at fair
      value in accordance with Statement 141R. This FSP is effective for assets
      and liabilities arising from contingencies in business combinations for
      which the acquisition date is on or after the beginning of the first
      annual reporting period beginning on or after December 15, 2008. The
      adoption of this statement had little or no effect on the Companys
      consolidated financial position, results of operations, and
      disclosures.
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|   | In December 2008, the FASB issued FSP No. FAS 132(R)-1,
      Employers Disclosures about Post- Retirement Benefit Plan Assets (FSP
      FAS 132(R)-1), which amends FASB Statement No. 132 Employers
      Disclosures about Pensions and Other Post-Retirement Benefits (FAS
      132), to provide guidance on an employers disclosures about plan assets
      of a defined benefit pension or other post- retirement plan. The objective
      of FSP FAS 132(R)-1 is to require more detailed disclosures about
      employers plan assets, including employers investment strategies, major
      categories of plan assets, concentrations of risk within plan assets, and
      valuation techniques used to measure the fair value of plan assets. FSP
      FAS 132(R)-1 is effective for the Companys fiscal year beginning January
      1, 2009. Upon initial application, the provisions of this FSP are not
      required for earlier periods that are presented for comparative purposes.
      The adoption of this statement had little or no effect on the Companys
      consolidated financial position, results of operations, and
      disclosures.                                                                                                                                                                                                                                                                                                                                                                                                                                                                      

F-10

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|IRELAND INC.                              
|------------------------------------------
|(AN EXPLORATION STAGE ENTERPRISE)         
|NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|(UNAUDITED)                               

|1. | DESCRIPTION OF BUSINESS, HISTORY AND SUMMARY OF
      SIGNIFICANT POLICIES (continued)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|-- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|   | In November 2008, the EITF reached consensus on Issue No.
      08-6, Equity Method Investment Accounting Considerations (EITF 08-6),
      which clarifies the accounting for certain transactions and impairment
      considerations involving equity method investments. The intent of EITF
      08-6 is to provide guidance on (i) determining the initial carrying value
      of an equity method investment, (ii) performing an impairment assessment
      of an underlying indefinite-lived intangible asset of an equity method
      investment, (iii) accounting for an equity method investees issuance of
      shares, and (iv) accounting for a change in an investment from the equity
      method to the cost method. EITF 08-6 is effective for the Companys fiscal
      year beginning January 1, 2009 and is to be applied prospectively. The
      adoption of this statement had little or no effect on the Companys
      consolidated financial position, results of operations, and
      disclosures.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|   | In June 2008, the EITF reached consensus on Issue No.
      07-5, Determining Whether an Instrument (or Embedded Feature) Is Indexed
      to an Entitys Own Stock (EITF 07-5). EITF 07-5 clarifies the
      determination of whether an instrument (or an embedded feature) is indexed
      to an entitys own stock, which would qualify as a scope exception under
      FASB Statement No. 133, Accounting for Derivative Instruments and Hedging
      Activities (FAS 133). EITF 07-5 is effective for the Companys fiscal
      years beginning January 1, 2009. Early adoption for an existing instrument
      is not permitted. The adoption of this statement had little or no effect
      on the Companys consolidated financial position, results of operations,
      and disclosures.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|   | In May 2008, the FASB issued FSP No. APB 14-1,
      Accounting for Convertible Debt Instruments That May Be Settled in Cash
      upon Conversion (Including Partial Cash Settlement) (FSP APB 14-1). FSP
      APB 14-1 applies to convertible debt instruments that, by their stated
      terms, may be settled in cash (or other assets) upon conversion, including
      partial cash settlement, unless the embedded conversion option is required
      to be separately accounted for as a derivative under FAS 133. Convertible
      debt instruments within the scope of FSP APB 14-1 are not addressed by the
      existing APB 14. FSP APB 14-1 requires that the liability and equity
      components of convertible debt instruments within the scope of FSP APB
      14-1 be separately accounted for in a manner that reflects the entitys
      nonconvertible debt borrowing rate. This requires an allocation of the
      convertible debt proceeds between the liability component and the embedded
      conversion option (i.e., the equity component). The difference between the
      principal amount of the debt and the amount of the proceeds allocated to
      the liability component will be reported as a debt discount and
      subsequently amortized to earnings over the instruments expected life
      using the effective interest method. FSP APB 14-1 is effective for the
      Companys fiscal year beginning January 1, 2009 and will be applied
      retrospectively to all periods presented. The adoption of this statement
      had little or no effect on the Companys consolidated financial position,
      results of operations, and disclosures.
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|   | In April 2008, the FASB issued FSP No. FAS 142-3,
      Determination of the Useful Life of Intangible Assets (FSP 142-3)
      which amends the factors that should be considered in developing renewal
      or extension assumptions used to determine the useful life of a recognized
      intangible asset under FASB Statement No. 142, Goodwill and Other
      Intangible Assets (FAS 142). The intent of this FSP is to improve the
      consistency between the useful life of a recognized intangible asset under
      FAS 142 and the period of expected cash flows used to measure the fair
      value of the asset under FASB Statement No. 141, Business Combinations
      (FAS 141). FSP 142-3 is effective for the Companys fiscal year
      beginning January 1, 2009 and will be applied prospectively to intangible
      assets acquired after the effective date. The adoption of this statement
      had little or no effect on the Companys consolidated financial position,
      results of operations, and disclosures.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  

F-11

---

|IRELAND INC.                              
|------------------------------------------
|(AN EXPLORATION STAGE ENTERPRISE)         
|NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|(UNAUDITED)                               

|1. | DESCRIPTION OF BUSINESS, HISTORY AND SUMMARY OF
      SIGNIFICANT POLICIES (continued)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|-- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|   | The FASB issued FASB Staff Position (FSP) FAS 157-3,
      Determining the Fair Value of a Financial Asset When the Market for that
      Asset Is Not Active. The FSP clarifies the application of FASB Statement
      No. 157, Fair Value Measurements, in a market that is not active and
      provides an example to illustrate key considerations in determining the
      fair value of a financial asset when the market for that financial asset
      is not active. The FSP is effective October 10, 2008, and for prior
      periods for which financial statements have not been issued. Revisions
      resulting from a change in the valuation technique or its application
      should be accounted for as a change in accounting estimate following the
      guidance in FASB Statement No. 154, Accounting Changes and Error
      Corrections. However, the disclosure provisions in Statement 154 for a
      change in accounting estimate are not required for revisions resulting
      from a change in valuation techniques or its application. The adoption of
      this statement had no material effect on the Companys consolidated
      financial position, results of operations, and disclosures.
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|   | On March 19, 2008, the FASB issued SFAS No. 161,
      Disclosures About Derivative Instruments and Hedging Activities. This
      statement is intended to improve financial reporting about derivative
      instruments and hedging activities by requiring enhanced disclosures. This
      statement is effective for financial statements issued for fiscal years
      and interim periods beginning after November 15, 2008, with early
      application encouraged. The adoption of this statement had little or no
      effect on the Companys consolidated financial position, results of
      operations, and disclosures.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|   | In February 2008, the FASB staff issued Staff Position
      No. 157-2 Effective Date of FASB Statement No. 157 (FSP FAS 157-2).
      FSP FAS 157-2 delayed the effective date of SFAS 157 for nonfinancial
      assets and nonfinancial liabilities, except for items that are recognized
      or disclosed at fair value in the financial statements on a recurring
      basis (at least annually). The provisions of FSP FAS 157-2 are effective
      for the Companys fiscal year beginning January 1, 2009. SFAS 157 defines
      fair value, establishes a framework for measuring fair value in generally
      accepted accounting principles, and expands disclosures about fair value
      measurements. The adoption of this statement had little or no effect on
      the Companys consolidated financial position, results of operations, and
      disclosures.                                                                                                                                                                                                                                                                                                                                                    
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|   | In December 2007, the FASB issued Statement of Financial
      Accounting Standard No. 141(R) (SFAS 141(R)), Business Combinations,
      which amends SFAS No. 141, and provides revised guidance for recognizing
      and measuring identifiable assets and goodwill acquired, liabilities
      assumed, and any noncontrolling interest in the acquiree. It also provides
      disclosure requirements to enable users of the financial statements to
      evaluate the nature and financial effects of the business combination.
      SFAS 141(R) is effective for the Companys fiscal year beginning January
      1, 2009 and is to be applied prospectively. The adoption of this statement
      had little or no effect on the Companys consolidated financial position,
      results of operations, and disclosures.                                                                                                                                                                                                                                                                                                                                                                                                     
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|   | In December 2007, the FASB issued Statement of Financial
      Accounting Standard No. 160 (SFAS 160), Noncontrolling Interests in
      Consolidated Financial Statements - an amendment of ARB No. 51 which
      establishes accounting and reporting standards pertaining to ownership
      interests in subsidiaries held by parties other than the parent, the
      amount of net income attributable to the parent and to the noncontrolling
      interest, changes in a parents ownership interest, and the valuation of
      any retained noncontrolling equity investment when a subsidiary is
      deconsolidated. SFAS 160 also establishes disclosure requirements that
      clearly identify and distinguish between the interests of the parent and
      the interests of the noncontrolling owners. SFAS 160 is effective for the
      Companys fiscal year beginning January 1, 2009. The adoption of this
      statement had little or no effect on the Companys consolidated financial
      position, results of operations, and disclosures.                                                                                                                                                              

F-12

---

|IRELAND INC.                              
|------------------------------------------
|(AN EXPLORATION STAGE ENTERPRISE)         
|NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|(UNAUDITED)                               

|2. | PROPERTY AND EQUIPMENT                                                                             
|-- | ---------------------------------------------------------------------------------------------------
|   |                                                                                                    
|   | Property and equipment consisted of the following as of
      March 31, 2009 and December 31, 2008:

| |                               |   | March 31, |  |   | December 31, | 
| | ----------------------------- | - | --------- |  | - | ------------ | 
| |                               |   | 2009      |  |   | 2008         | 
| |                               |   |           |  |   |              | 
| | Furniture and fixtures        | $ | 8,921     |  | $ | 8,921        | 
| | Computers and equipment       |   | 34,122    |  |   | 33,591       | 
| | Land                          |   | 30,000    |  |   | 30,000       | 
| | Site improvements             |   | 99,631    |  |   | 99,631       | 
| | Site equipment                |   | 99,997    |  |   | 99,997       | 
| | Vehicles                      |   | 23,595    |  |   | 23,595       | 
| | Construction in progress:     |   |           |  |   |              | 
| | Building                      |   | 500,000   |  |   | 500,000      | 
| | Site
      improvements       |   | 2,221,684 |  |   | 2,034,167    | 
| | Site equipment                |   | 571,591   |  |   | 568,634      | 
| |                               |   |           |  |   |              | 
| |                               |   | 3,589,541 |  |   | 3,398,536    | 
| | Less accumulated depreciation |   | 31,193    |  |   | 20,359       | 
| |                               |   |           |  |   |              | 
| |                               | $ | 3,558,348 |  | $ | 3,378,177    | 

|   | Depreciation expense was $10,834 and $2,639 for the three
      months ended March 31, 2009 and 2008, respectively.                                                                                                                                                                                        
|-- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                            
|3. | IRELAND CLAIM                                                                                                                                                                                                                                                                                              
|   |                                                                                                                                                                                                                                                                                                            
|   | On November 30, 2004, the Company entered into a mineral
      property purchase agreement to acquire a 100% undivided interest in one
      mineral claim located in the Yellow Pine Mining District in Clark County,
      Nevada, known as the Ireland Claim, for a total consideration of
      $6,000.
|   |                                                                                                                                                                                                                                                                                                            
|   | The Company has not determined whether the mineral claim
      contains mineralized material and has consequently written off all mineral
      rights acquisition costs to operations during the previous financial
      periods.                                                                        

F-13

---

|IRELAND INC.                              
|------------------------------------------
|(AN EXPLORATION STAGE ENTERPRISE)         
|NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|(UNAUDITED)                               

|4. | COLUMBUS PROJECT                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|-- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|   | As of December 31, 2007, the Company had earned a 15%
      interest by satisfying its option agreement requirements and had the right
      to merge with the corporation holding the remaining 85% interest in the
      Columbus Project in Esmeralda County, Nevada.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|   | Pursuant to the option assignment agreement dated March
      30, 2007, as amended August 8, 2007, the Company granted a 5% net smelter
      return royalty to Nanominerals Corp (NMC), one of the principal
      stockholders of the Company.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|   | On February 20, 2008, the Company, through its
      wholly-owned subsidiary CBIA, acquired a 100% interest in the Columbus
      Project, including an option for additional mining claims, by way of
      merger with the owner of the Columbus Project, Columbus Brine Inc. (CBI).
      Under the terms of the Merger Agreement, the Company issued an aggregate
      of 10,440,087 shares of its common stock, and 5,220,059 share purchase
      warrants to the former shareholders of CBI. Each share purchase warrant
      issued by the Company entitles the holder to purchase one additional share
      of the Companys common stock at a price of $2.39 per share for a period
      of 5 years. This acquisition supersedes the option agreement.
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|   | The following table reflects the recorded purchase
      consideration for the Columbus Project:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    

|Purchase price:                           |   |            | 
|----------------------------------------- | - | ---------- | 
|Common stock issued                       | $ | 20,000,000 | 
|Fair value of warrants issued             |   | 1,359,351  | 
|Acquisition costs                         |   | 600,000    | 
|                                          |   |            | 
|Total purchase price                      |   | 21,959,351 | 
|                                          |   |            | 
|Net deferred income tax liability assumed |   | 10,261,194 | 
|                                          |   |            | 
|                                          | $ | 32,220,545 | 

In accordance with EITF 04-03 paragraph
  2 and EITF 98-11 the purchase price of $32 million was allocated to the assets
  acquired and liabilities assumed, based on their respective fair values at the
  date of acquisition. The purchase price allocated to the real properties was
  based on fair market values determined using an independent real estate
  appraisal firm (Arden Salvage Company) and the fair value of the remaining
  assets acquired and liabilities assumed were based on managements best
  estimates taking into account all available information at the time.

F-14

---

|IRELAND INC.                              
|------------------------------------------
|(AN EXPLORATION STAGE ENTERPRISE)         
|NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|(UNAUDITED)                               

|4. | COLUMBUS PROJECT(continued)                                               
|-- | --------------------------------------------------------------------------
|   |                                                                           
|   | The following table reflects the components of the
      Columbus Project:

|Allocation of acquisition cost:                            |   |            |  
|---------------------------------------------------------- | - | ---------- | -
|Mineral properties (including deferred tax
      liability |   |            |  
|assumed of
      $10,261,194)                              | $ | 31,948,053 |  
|Property, plant and equipment                              |   | 202,430    |  
|Deposits                                                   |   | 44,720     |  
|Cash                                                       |   | 6,570      |  
|Prepaid expenses                                           |   | 24,925     |  
|Accounts payable                                           |   | (6,153     | )
|                                                           |   |            |  
|Total                                                      | $ | 32,220,545 |  

Pursuant to the terms of the
  acquisition of CBI, the Company issued an aggregate of 10,440,087 shares of
  common stock and 5,220,059 share purchase warrants to the former shareholders of
  CBI. Each share purchase warrant issued by the Company entitles the holder to
  purchase one additional share of the Companys common stock at a price of $2.39
  per share for a period of 5 years. Each warrant provides the holder with a
  cashless right of exercise. If the holder chooses to utilize this cashless
  exercise right, the total number of shares that the holder will be entitled to
  exercise will be determined by the following formula: [(A B )C] ÷ Awhere:

A = the average closing price of the
  Companys common stock during the five trading days prior to exercise.

B = the exercise price of $2.39.

C = the maximum number of shares of the
  Companys common stock issuable upon exercise of the warrants.

If the holder chooses to utilize the
  cashless exercise right, the holder must do so with respect to all of the
  unexercised warrants held by him.

The Company will have the right to
  accelerate the expiration date of the warrants at any time after August 19, 2010
  if the average closing price of the Companys common stock over any 20
  consecutive trading days is equal to or greater than 150% of the exercise price.
  If the Company exercises this acceleration right, the expiration date for the
  warrants will be accelerated to 30 days after the Company sends out notice that
  it is exercising the acceleration right.

The Company estimated the fair value of
  warrants issued in connection with the acquisition of CBI using the Binomial
  Lattice pricing model.

The Company applied EITF 98-03 with
  regard to the acquisition of the Columbus Project. The Company determined that
  the acquisition of the Columbus Project did not constitute an acquisition of a
  business, as that term is defined in EITF 98-03, and the Company recorded the
  acquisition as a purchase of assets.

F-15

---

|IRELAND INC.                              
|------------------------------------------
|(AN EXPLORATION STAGE ENTERPRISE)         
|NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|(UNAUDITED)                               

|4. | COLUMBUS PROJECT(continued)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|-- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|   | The Company believes the acquisition of the Columbus
      Project was beneficial because it provides for 100% ownership of the
      properties and fosters greater opportunity to finance and further develop
      the project.                                                                                                                                                                                                                                                                                                                                                                                                                                             
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|   | This merger was treated as a statutory merger for tax
      purposes whereby, CBIA was the surviving merger entity.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|5. | RED MOUNTAIN PROJECT                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|   | The Red Mountain Project located in San Bernardino,
      California is subject to an underlying option assignment agreement dated
      March 15, 2007. Under the terms of this agreement, to earn a 60% interest,
      the Company is required to pay $5,000 per month until December 31, 2011
      and spend an aggregate of $1,200,000 in additional qualifying expenditures
      by December 31, 2011.                                                                                                                                                                                                                                                                 
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|   | The Company may at any time during the life of the Red
      Mountain Project, earn a 100% interest, by paying $100,000, issuing shares
      of common stock with an aggregate value of $1,400,000 and issuing share
      purchase warrants to purchase up to an additional 25% of the number of
      shares of common stock to be issued. If the project achieves commercial
      production, the Company will be required to pay an additional $100,000,
      issue shares of common stock with an aggregate value of $2,400,000 and
      issue share purchase warrants to purchase up to an additional 25% of the
      number of shares of common stock to be issued.
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|   | Pursuant to the option assignment agreement dated March
      30, 2007, as amended August 8, 2007, the Company granted a 5% net smelter
      return royalty to NMC.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|6. | STOCKHOLDERS EQUITY                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|   | During the three months ended March 31, 2009, the
      Companys stockholders equity consisted of amortization of stock based
      compensation over vesting period.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        

F-16

---

|IRELAND INC.                              
|------------------------------------------
|(AN EXPLORATION STAGE ENTERPRISE)         
|NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|(UNAUDITED)                               

|7. | STOCK OPTION PLAN AND WARRANTS                                                                                                                                                                                                                                                                                                                                                                                                                                  
|-- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|   | On March 27, 2007, the Board of Directors adopted the
      2007 Stock Incentive Plan (the Plan). Under the terms of the Plan,
      options to purchase up to 6,000,000 shares of the common stock of the
      Company, subject to an increase each quarter equal to 15% of the increase
      in the total number of outstanding shares during the previous quarter, may
      be granted to officers, directors, employees and eligible
      consultants.
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|   | Expenses for the three months ended March 31, 2009 and
      2008 related to the granting and vesting of stock options were $2,568 and
      $7,407, respectively and are included in general and administrative
      expense and mineral exploration and evaluation expense.                                                                                                                                                                                  
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|   | Stock options During the three months ended
      March 31, 2009, the Company did not grant stock options. As of March 31,
      2009 stock options outstanding totaled 3,954,719 with a weighted average
      exercise price of $0.15 per share.                                                                                                                                                                                                             
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|   | The following table summarizes the Companys stock option
      activity for the three months ended March 31,
      2009:                                                                                                                                                                                                                                                                                                                                       

| |                             |  |           |  |   | Weighted       | 
| | --------------------------- |  | --------- |  | - | -------------- | 
| |                             |  | Number of |  |   | Average        | 
| |                             |  | Shares    |  |   | Exercise Price | 
| |                             |  |           |  |   |                | 
| | Balance, December 31, 2008  |  | 3,954,719 |  | $ | 0.15           | 
| | Options granted and assumed |  | --        |  |   | --             | 
| | Options expired             |  | --        |  |   | --             | 
| | Options forfeitures         |  | --        |  |   | --             | 
| | Options exercised           |  | --        |  |   | --             | 
| |                             |  |           |  |   |                | 
| | Balance, March 31, 2009     |  | 3,954,719 |  | $ | 0.15           | 

The Company utilizes the Binomial
  Lattice pricing model to estimate the fair value of options granted. The Company
  believes this model provides the best estimate of fair value due to its ability
  to incorporate inputs that change over time, such as volatility and interest
  rates, and to allow for actual exercise behavior of option holders.

F-17

---

|IRELAND INC.                              
|------------------------------------------
|(AN EXPLORATION STAGE ENTERPRISE)         
|NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|(UNAUDITED)                               

|7. | STOCK OPTION PLAN AND WARRANTS(continued)                                                                                                                            
|-- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                      
|   | The following table summarizes the status of the
      Companys unvested shares as of March 31, 2009 and changes during the
      three months ended March 31, 2009:

| |                                |  |           |  |   | Weighted Average | 
| | ------------------------------ |  | --------- |  | - | ---------------- | 
| |                                |  | Number of |  |   | Grant Date       | 
| |                                |  | Shares    |  |   | Fair
      Value | 
| |                                |  |           |  |   |                  | 
| | Unvested, December 31, 2008    |  | 37,500    |  | $ | 0.52             | 
| | Options granted                |  | --        |  |   | --               | 
| | Options vested                 |  | --        |  |   | --               | 
| | Options forfeited              |  | --        |  |   | --               | 
| |                                |  |           |  |   |                  | 
| | Unvested, March
      31, 2009 |  | 37,500    |  | $ | 0.52             | 

As of March 31, 2009, there was $4,269
  of total unrecognized compensation cost related to unvested stock options. This
  cost is expected to be fully recognized in 2009.

Stock options/warrants During
  the three months ended March 31, 2009 the Company did not grant any stock
  warrants.

The following table summarizes
  information about options/warrants activity during the three months ended March
  31, 2009:

| |                                      |  |            |  |   | Weighted       | 
| | ------------------------------------ |  | ---------- |  | - | -------------- | 
| |                                      |  | Number of  |  |   | Average        | 
| |                                      |  | Shares     |  |   | Exercise Price | 
| |                                      |  |            |  |   |                | 
| | Balance, December 31, 2008           |  | 19,335,428 |  | $ | 1.20           | 
| | Options/warrants granted and assumed |  | --         |  |   | --             | 
| | Options/warrants expired             |  | --         |  |   | --             | 
| | Options/warrants forfeitures         |  | --         |  |   | --             | 
| | Options/warrants exercised           |  | --         |  |   | --             | 
| |                                      |  |            |  |   |                | 
| | Balance, March 31, 2009              |  | 19,335,428 |  | $ | 1.20           | 

F-18

---

|IRELAND INC.                              
|------------------------------------------
|(AN EXPLORATION STAGE ENTERPRISE)         
|NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|(UNAUDITED)                               

|8. | INCOME TAXES                                                                                                                          
|-- | --------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                       
|   | The Company is a Nevada corporation and is subject to
      federal income taxes. Nevada does not impose a corporate income
      tax.
|   |                                                                                                                                       
|   | The income tax benefit consisted of the following at
      March 31, 2009 and 2008,                                                   

| |                                                             |   | March 31, 2009 |   |   | March 31, 2008 |  
| | ----------------------------------------------------------- | - | -------------- | - | - | -------------- | -
| |                                                             |   |                |   |   |                |  
| | Income tax benefit based on statutory tax
      rate        | $ | (329,400       | ) | $ | (204,101       | )
| | Non-deductible and other                                    |   | 384            |   |   | 1,449          |  
| | Change in valuation allowance                               |   | 1,539          |   |   | (724,911       | )
| | Rate change                                                 |   | --             |   |   | (22,419        | )
| | Release of valuation allowance related to
      acquisition |   | --             |   |   | 805,997        |  
| |                                                             |   |                |   |   |                |  
| | Income tax benefit                                          | $ | (327,477       | ) | $ | (143,985       | )

Significant components of the Companys
  net deferred income tax assets and liabilities at March 31, 2009 and December
  31, 2008 were as follows:

| |                                   |   | March 31,  |   |   | December 31, |  
| | --------------------------------- | - | ---------- | - | - | ------------ | -
| |                                   |   | 2009       |   |   | 2008         |  
| | Deferred income tax assets:       |   |            |   |   |              |  
| |                                   |   |            |   |   |              |  
| | Net operating loss carryforward   | $ | 2,328,068  |   | $ | 2,000,591    |  
| | Option compensation               |   | 545,525    |   |   | 544,626      |  
| | Reclamation and remediation costs |   | 96,368     |   |   | 96,368       |  
| |                                   |   |            |   |   |              |  
| | Gross deferred income tax asset   |   | 2,969,961  |   |   | 2,641,585    |  
| | Valuation allowance               |   | (640,718   | ) |   | (639,179     | )
| |                                   |   |            |   |   |              |  
| |                                   |   | 2,329,243  |   |   | 2,002,406    |  
| | Deferred income tax liabilities:  |   |            |   |   |              |  
| |                                   |   |            |   |   |              |  
| | Property, plant & equipment       |   | 1,175      |   |   | 1,815        |  
| | Acquisition related liabilities   |   | 11,067,191 |   |   | 11,067,191   |  
| |                                   |   |            |   |   |              |  
| | Net deferred income tax liability | $ | 8,739,123  |   | $ | 9,066,600    |  

A valuation allowance for deferred tax
  related to option compensation was established for net deferred tax assets not
  allocated to offset acquisition related deferred tax liabilities due to the
  uncertainty of realizing these deferred tax assets based on conditions existing
  at March 31, 2009 and December 31, 2008.

Deferred income tax liability was
  recorded on GAAP basis over income tax basis using statutory federal rate with
  the corresponding increase in the purchase price allocation to the assets
  acquired.

The resulting estimated future federal
  income tax liability associated with the temporary difference between the
  acquisition consideration and the tax basis as computed in accordance with EITF
  98-11 and SFAS 109, is reflected as an increase to the total purchase price
  which has been applied to the underlying mineral and Columbus project assets in
  the absence of there being a goodwill component associated with the acquisition
  transactions in accordance with EITF 98-11 and SFAS 109.

F-19

---

|IRELAND INC.                              
|------------------------------------------
|(AN EXPLORATION STAGE ENTERPRISE)         
|NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|(UNAUDITED)                               

|8. | INCOME TAXES(continued)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|-- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|   | The Company had cumulative net operating losses of
      approximately $6,651,621 and $5,713,177 as of March 31, 2009 and December
      31, 2008, respectively for federal income tax purposes. Cumulative net
      operating losses from December 31, 2006 and previous years are effectively
      nil due to the annual limitation imposed by the Internal Revenue Code of
      1986 as a result of the ownership percentage change limitations. The net
      operating loss carryforwards will be expiring between 2027 and
      2029.                                                                                                                                                                                                                                            
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|   | As of January 1, 2007, the Company did not have any
      unrecognized tax benefits. The adoption of FIN 48 did not result in any
      cumulative effect adjustment to the January 1, 2007 balance of the
      Companys accumulated deficit. Upon adoption of FIN 48, the Company did
      not accrue for interest and penalties as there were no unrecognized tax
      benefits. If interest and penalties were to be assessed, we would charge
      interest to interest expense, and penalties to general and administrative
      expense. It is not anticipated that unrecognized tax benefits would
      significantly increase or decrease within 12 months of the reporting
      date.                                                                                     
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|   | The Company and its subsidiary file income tax returns in
      the United States. These tax returns are subject to examination by
      taxation authorities provided the years remain open under the relevant
      statues of limitations, which may result in the payment of income taxes
      and/or decrease its net operating losses available for carryforwards. The
      Company is no longer subject to income tax examinations by US federal tax
      authorities for years prior to 2005. While the Company believes its tax
      filings do not include uncertain tax positions, the results of potential
      examinations or the effect of changes in tax law cannot be ascertained at
      this time. The Company currently has no tax years under
      examination.

F-20

---

|IRELAND INC.                              
|------------------------------------------
|(AN EXPLORATION STAGE ENTERPRISE)         
|NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|(UNAUDITED)                               

|9. | PROPERTY RENTAL AGREEMENTS AND LEASES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|-- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|   | The Company through its subsidiary CBIA has a lease
      agreement for mining claims with DDB Syndicate, an entity owned by related
      parties, including Douglas D.G. Birnie, Chief Executive Officer of the
      Company, Mr. Chizmar, a former director of the Company, three former
      officers and directors of CBI, Geotech Mining Inc., Jack Corp. and Wiser
      Corp. Geotech Mining Inc., Jack Corp. and Wiser Corp. are affiliates of
      Nanominerals Corp.                                                                                                                                                                                                                                                                                                                                                                                                   
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|   | The DDB Syndicate has leased the DDB Claims to CSM, a
      wholly owned subsidiary of the Company. The mining lease agreement (the
      DDB Agreement), between the DDB Syndicate and CSM, provide CSM with a
      lease, extending for approximately 5 years, with an option to purchase the
      DDB Claims at any time during the lease period. To maintain the lease
      rights, CSM paid the DDB Syndicate $130,000 by June 30, 2008, with annual
      rental payments thereafter of $30,000 per year, payable on June 30, 2009,
      2010, and 2011 respectively. CSM may exercise its option to purchase the
      DDB Claims by paying a purchase price of $400,000, less any rental
      payments made by CSM prior to exercising the option, or paying the DDB
      Syndicate $10, plus the grant of a 2% royalty of net smelter returns on
      the DDB Claims.
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|   | The following table summarizes the rental payments under
      the mining lease agreement:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           

|June 30, 2009 | $ | 30,000 | 
|------------- | - | ------ | 
|June 30, 2010 |   | 30,000 | 
|June 30, 2011 |   | 30,000 | 
|              |   |        | 
|              | $ | 90,000 | 

|    | The Company had made $130,000 in rental payments during
      the year ended December 31, 2008, which consists of $13,416 in payments to
      each of the eight owners of DDB Syndicate including reimbursement of
      expenses of $22,670 to a company controlled by Douglas D.G.
      Birnie.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                    
|10. | COMMITMENTS AND CONTINGENCIES                                                                                                                                                                                                                                                                      
|    |                                                                                                                                                                                                                                                                                                    
|    | Lease obligations The Company rents office space
      in Henderson, Nevada. The lease terms expired on September 1, 2008 and the
      Company continues to rent the existing space under month-to-month terms
      for $4,625 per month.                                                       
|    |                                                                                                                                                                                                                                                                                                    
|    | Rental expense, resulting from this operating lease
      agreement, was $13,875 and $6,600 for the three months ended March 31,
      2009 and 2008, respectively.                                                                                                                                

F-21

---

|IRELAND INC.                              
|------------------------------------------
|(AN EXPLORATION STAGE ENTERPRISE)         
|NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|(UNAUDITED)                               

|11. | ENVIRONMENTAL AND RECLAMATION ACTIVITIES                                                                                               
|--- | ---------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                        
|    | The liabilities accrued for the reclamation and
      remediation costs at March 31, 2009 and December 31, 2008, were as
      follows:

| |                                                    |   | March 31, |  |   | December 31, | 
| | -------------------------------------------------- | - | --------- |  | - | ------------ | 
| |                                                    |   | 2009      |  |   | 2008         | 
| | Exploration properties:                            |   |           |  |   |              | 
| | Columbus                                           | $ | 275,338   |  | $ | 275,338      | 
| |                                                    |   |           |  |   |              | 
| | Reclamation and remediation costs,
      long-term | $ | 275,338   |  | $ | 275,338      | 

The activity in the accrued reclamation
  and remediation cost liability for the three months ended March 31, 2009, was as
  follows:

|Balance, December 31, 2008   | $ | 275,338 | 
|---------------------------- | - | ------- | 
|Accruals for estimated costs |   | --      | 
|                             |   |         | 
|Balance, March 31, 2009      | $ | 275,338 | 

|    | The Company maintains reclamation bonds with the Bureau
      of Land Management in the amount of $908,368 and $933,088 as of March 31,
      2009 and December 31, 2008, respectively.                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|12. | CONCENTRATION OF CREDIT RISK                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|    | The Company maintains its cash accounts in three
      financial institutions. Cash accounts at these financial institutions are
      insured by the Federal Deposit Insurance Corporation (FDIC) for up to
      $250,000 per financial institution. To date, the Company has not
      experienced a material loss or lack of access to its cash accounts;
      however, no assurance can be provided that access to the Companys cash
      accounts will not be impacted by adverse conditions in the financial
      markets. At March 31, 2009, the Company had deposits in excess of FDIC
      insured limits in the amount of $877,697.
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|13. | RELATED PARTY TRANSACTIONS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|    | During the three months ended March 31, 2009, the Company
      utilized the services of NMC to provide technical assistance and financing
      related activities. These services related primarily to the Columbus
      project and the Red Mountain project.                                                                                                                                                                                                                                                                                                                                                                                  
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|    | In addition to the above services, NMC provided dedicated
      use of its laboratory, instrumentation, milling equipment and research
      facilities. NMC provided invoices for these fees plus expenses.                                                                                                                                                                                                                                                                                                                                                                                                                                       
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|    | For the three months ended March 31, 2009, the Company
      incurred total fees and reimbursements of expenses to NMC of $105,000 and
      $9,948, respectively, for a total of $114,948.                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|    | At March 31, 2009, the Company had an outstanding balance
      due to NMC of $39,496. The Company also had an outstanding balance for
      accrued compensation to Douglas D.G. Birnie, its executive officer of
      $19,315 payable to a company wholly owned by Douglas D.G. Birnie. Accounts
      payable  related party totaled $58,811 as of March 31, 2009.                                                                                                                                                                                                                                                                            
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|    | The Company has the mining claim lease for the DDB Claims
      as further discussed in Note 9.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    

F-22

---

|IRELAND INC.                              
|------------------------------------------
|(AN EXPLORATION STAGE ENTERPRISE)         
|NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|(UNAUDITED)                               

|14. | CONCENTRATION OF ACTIVITY                                                                                                                                                                                                                                                                                    
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                              
|    | For the three months ended March 31, 2009, the Company
      purchased services from three major vendors Arrakis, Inc., AuRic
      Metallurgical Labs, LLC, and NMC that exceeded more than 10% of total
      purchases and amounted to approximately $341,750, $153,000, and $114,948,
      respectively.

F-23

---

ITEM
2.               MANAGEMENT'S
DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

Cautionary Statement Regarding Forward-Looking Statements

Certain statements contained in this Quarterly Report on Form
10-Q constitute "forward-looking statements. These statements, identified by
words such as plan, "anticipate, "believe, "estimate, "should, "expect"
and similar expressions include our expectations and objectives regarding our
future financial position, operating results and business strategy. These
statements reflect the current views of management with respect to future events
and are subject to risks, uncertainties and other factors that may cause our
actual results, performance or achievements, or industry results, to be
materially different from those described in the forward-looking statements.
Such risks and uncertainties include those set forth under the caption "Part II,
Item 1A. Risk Factors and elsewhere in this Quarterly Report on Form 10-Q. We
advise you to carefully review the reports and documents we file from time to
time with the United States Securities and Exchange Commission (the SEC),
particularly our periodic reports filed with the SEC pursuant to the Securities
Exchange Act of 1934 (the Exchange Act).

OVERVIEW

We are a minerals exploration and development company focused
on the discovery and extraction of precious metals from mineral deposits in the
Southwestern United States.

In February 2008, we acquired our lead project, a prospective
gold, silver and calcium carbonate property located in Esmeralda County, Nevada
that we call the Columbus Project. The Columbus Project consists of 19,680
acres of placer mineral claims, including a 380 acre permitted mine site
(60-acre mill site and mill facility, and 320-acre mine site). Our current
permits currently allow us to mine up to 792,000 tons per year to 40 feet in
depth for the purpose of extracting precious metals and calcium carbonate from
the permitted mine site. Results from our 2008 drilling program have also led us
to identify 3 new areas with significant mineralization. We also have a mineral
lease covering, and the option to acquire, an additional 22,640 acres of placer
mineral claims adjoining the current project area (the DDB Claims).

In addition to the Columbus Project, we own the right to
acquire a prospective gold, silver and tungsten property located in San
Bernardino County, California that we call the Red Mountain Project, and we
are the owners of a mineral property located in Clark County, Nevada known as
the Ireland Claim.

Recent Corporate Developments

2008 Drilling Program Results

During the first quarter of 2009, test results received from
independent consultants McEwen Geological LLC of Arvada, Colorado (McEwen)
from our 2008 drilling program led us to identify 3 new areas with significant
mineralization. The 2008 drilling program involved the drilling of 39 holes to
depths ranging from 200 to 400 feet below the surface. Over 1,000 samples were
collected by McEwen under Chain of Custody (COC) standards and delivered for
testing and analysis to independent consultants Arrakis Inc. of Denver, Colorado
(Arrakis) and independent consultants AuRIC Metallurgical Laboratories of Salt
Lake City, Utah (AuRIC). The drill samples were analyzed using a caustic
fusion technique, and the results reported were from the extracted precious
metals.

Based on these test results, we have expanded our original
mineralized area (Zone A) from 380 acres to 2,530, and subdivided the
mineralized areas of Zone A into three subsections: Zone A  Permitted Mine Area
(covering the 380 acre permitted mine site); Zone A  West (covering holes S1A
to S2A, and holes S8A to S11A); and Zone A  Central (covering holes S5A to S7A,
and S14A to S17A). In addition, we have identified a new area of significant
mineralization covering 1,068 acres located approximately 3 miles south of the
Zone A  Permitted Mine Area that we now call Zone B. Zone A and Zone B appear
to be unbounded on all sides.

3

---

Figure 1: Map of 2008 Drill Hole Locations and Mineralized
Zones



2008 Drilling Results  Zone A

A total of 25 contiguous holes were drilled next to the Zone A
 Permitted Mine Area. The weight mean average grade for the mineralized
intercepts identified in the 25 holes drilled was approximately 0.047 opt Au
equivalent.

Hole ID1
    Depth Drilled
      (ft)
    Mineralized
      Interval2 (ft)
    Thickness (ft)
    Au (opt)
    Ag (opt)
    Au (opt)3
      EquivalentS1A
    195
    50
      to 150
    100
    0.038
    0.132
    0.039S2A
    202
    10
      to 40
    30
    0.032
    0.134
    0.03460
      to 100
    40
    0.031
    0.132
    0.031160
      to 202
    42
    0.049
    0.209
    0.052S3A
    201
    100
      to 140
    40
    0.027
    0.094
    0.028S4A
    404
    250
      to 404
    154
    0.037
    0.166
    0.039S5A
    201
    0
      to 70
    70
    0.033
    0.112
    0.034160
      to 201
    41
    0.036
    0.111
    0.038S6A
    200
    0
      to 60
    60
    0.037
    0.180
    0.035120
      to 170
    50
    0.045
    0.332
    0.049S7A
    400
    0
      to 20
    20
    0.052
    0.409
    0.057130
      to 170
    40
    0.038
    0.299
    0.042240
      to 400
    160
    0.027
    0.152
    0.029S8A
    201
    0
      to 201
    201
    0.049
    0.238
    0.052S9A
    404
    50
      to 404
    354
    0.062
    0.302
    0.066


______________________________________1 Holes
S20A to S22A did not contain sufficient samples above our cut off grade of 0.020
opt Au equivalent to define any mineralized intercepts. 2
Mineralized Intervals were determined using a 0.020 opt Au equivalent cut-off.
3 Au equivalent calculated using: $900/oz Au, $12/oz Ag.

4

---

Hole ID1
      Depth Drilled (ft)
      Mineralized Interval2
        (ft)
      Thickness (ft)
      Au (opt)
      Ag (opt)
      Au (opt)3 EquivalentS10A
      181
      0
        to 20
      20
      0.046
      0.214
      0.049110
        to 170
      60
      0.050
      0.382
      0.055S11A
      202
      40
        to 80
      40
      0.027
      0.137
      0.029S12A
      400
      60
        to 90
      30
      0.042
      0.238
      0.045130
        to 370
      240
      0.045
      0.272
      0.048S13A
      200
      100
        to 120
      20
      0.024
      0.133
      0.025S14A
      340
      0
        to 40
      40
      0.058
      0.413
      0.06390
        to 110
      20
      0.071
      0.465
      0.077S15A
      200
      0
        to 60
      60
      0.037
      0.295
      0.041150
        to 200
      50
      0.048
      0.374
      0.053S16A
      200
      0
        to 60
      60
      0.037
      0.270
      0.04100
        to 150
      50
      0.059
      0.396
      0.065S17A
      200
      0
        to 30
      30
      0.060
      0.568
      0.06760
        to 90
      30
      0.069
      0.725
      0.079S18A
      200
      150
        to 190
      40
      0.044
      0.367
      0.049S19A
      200
      0
        to 20
      20
      0.053
      0.350
      0.05790
        to 200
      110
      0.034
      0.231
      0.037S23A
      200
      60
        to 80
      20
      0.054
      0.389
      0.059130
        to 200
      70
      0.040
      0.302
      0.044S24A
      200
      170
        to 190
      20
      0.041
      0.341
      0.045S25A
      200
      20
        to 60
      40
      0.042
      0.223
      0.044Weight
        Mean Average for All Drill Hole Intercepts
      0.044
      0.257
      0.047


2008 Drilling Results  Zone B

A total of 14 holes were drilled in Zone B. Zone B is located
approximately 3 miles south of the Zone A  Permitted Mine Area. The weight mean
average grade for the mineralized intercepts identified in the 14 holes drilled
in Zone B was approximately 0.044 opt Au equivalent.

Hole ID
      Depth Drilled (ft)
      Mineralized Interval4
        (ft)
      Thickness (ft)
      Au (opt)
      Ag (opt)
      Au (opt)5 EquivalentS1B
      400
      10
        to 400
      390
      0.045
      0.234
      0.047S2B
      200
      50
        to 160
      110
      0.034
      0.179
      0.036S3B
      275
      90
        to 275
      185
      0.039
      0.237
      0.042S4B
      200
      170
        to 200
      30
      0.021
      0.093
      0.022S5B
      200
      50
        to 200
      150
      0.041
      0.167
      0.044S6B
      400
      240
        to 270
      30
      0.036
      0.206
      0.038310
        to 400
      90
      0.033
      0.181
      0.036S7B
      200
      0
        to 200
      200
      0.037
      0.160
      0.039S8B
      350
      0
        to 350
      350
      0.040
      0.187
      0.042S9B
      200
      0
        to 200
      200
      0.048
      0.244
      0.051S10B
      400
      0
        to 310
      310
      0.040
      0.254
      0.043360
        to 400
      40
      0.080
      0.265
      0.083S11B
      200
      0
        to 140
      140
      0.042
      0.224
      0.044S12B
      200
      0
        to 60
      60
      0.057
      0.318
      0.061150
        to 200
      50
      0.026
      0.095
      0.027S13B
      400
      0
        to 100
      100
      0.053
      0.246
      0.056170
        to 250
      80
      0.026
      0.102
      0.027290
        to 350
      60
      0.052
      0.252
      0.055S14B
      280
      80
        to 100
      20
      0.023
      0.138
      0.024140
        to 280
      140
      0.045
      0.231
      0.048Weight
        Mean Average for All Drill Hole Intercepts
      0.041
      0.212
      0.044


_______________________________________4Mineralized Intervals were determined using a 0.020 opt Au equivalent
cut-off. 5 Au Equivalent calculated using: $900/oz Au, $12/oz
Ag.

5

---

Bulk Leach Test Results  Zone A  Permitted Mine
Area

In the first quarter of 2009, AuRIC conducted a bulk leach test
on 1,738 pounds of material extracted from the Zone A  Permitted Mine Area by
Arrakis under COC standards. No mineral processing operations, such as crushing,
grinding, drying or screening, were performed on the sample prior to leaching.
The material was analyzed using a caustic fusion technique and reported head
grades of 0.055 ounces per ton (opt) gold (Au) and 0.520 opt silver (Ag). The
material was then leached, resulting in the extraction of 0.047 opt Au and 0.464
opt Ag into solution. The precious metals were subsequently collected on resins
and processed to produce Au and Ag bullion, for a net extraction of 0.038 opt Au
and 0.385 opt Ag. This represents leach extraction of 86.2% of Au into solution
and 69.1% of Au recovered as metal. This also represents leach extraction of
89.2% of Ag into solution and 74% of Ag recovered as metal. The overall
extraction was 0.043 opt Au equivalent. Upon completion of the test, the
precious metal beads were delivered to us. We will commission further testing in
order to optimize net metal recovery.

New Estimates of Material Extractable Using Surface
Dredge Operations

New operational cost estimates, results from our 2008 drilling
program and geological modeling by McEwen have led us to conclude that the
surface dredge mining method currently being used at our pilot production
facility being operated in the Zone A  Permitted Mine Area could economically
be used to mine to a depth of 200 feet. Based on this 200 foot depth, we have
estimated that up to 199.5 million (M) tons of material could potentially be
extracted from the newly identified mineralized areas Zone A  West, Zone A 
Central and Zone B. The average grade of all of the samples within this 199.5 M
tons approximates 0.041 opt Au equivalent.

Location
    Potentially Mineable
      Acres6
    Depth (ft)
    Thickness (ft)
    Potentially Minable
      MaterialZone
      A  Permitted Mine Area
    270
    3
      to 40
    37
    14.8
      M tonsZone
      A  West
    475
    0
      up to 200
    Up
      to 200
    50.0
      M tonsZone
      A  Central
    550
    0
      up to 90
    Up
      to 90
    41.5
      M tonsZone
      B  (Holes S7B to S13B)
    555
    0
      up to 200
    Up
      to 200
    108
      M tons


We believe that the sedimentary materials underlying the three
newly identified mineralized areas are substantially similar to the sedimentary
materials found in the Zone A  Permitted Mine Area where our pilot production
operation is located. The full extent of the mineralization in Zone A and Zone B
has yet to be determined by further drilling and drill sample analysis. There is
no assurance that the test results that we have received to date will be
indicative of actual extraction rates to be found throughout the Columbus
Project. Additional exploration work will be required before proven or probable
reserves can be established. We intend to conduct additional bench scale and
bulk sample tests in both Zone A and Zone B.

PLAN OF OPERATION

During our 2009 fiscal year, we intend to proceed with our
exploration and development programs for the Columbus Project and the Red
Mountain Project. To provide us with maximum financial flexibility, we have
elected to postpone the drilling program at the Red Mountain Project until 2010.
We continue to believe that the Red Mountain Project is an excellent prospect
for us.

Although we currently intend to retain the Ireland Claim, our
management has deprioritized our exploration program for the Ireland Claim based
on the progress and potential of the Columbus and Red Mountain Projects. As a
result, our exploration program for the Ireland Claim is expected to be delayed,
and may be delayed indefinitely.

_____________________________________6 Acreage
expected to be surface minable in an economical manner.

6

---

The Columbus Project

Our technical program for the Columbus Project has two primary
objectives: (a) to prove the mineral resources/minable reserves, and (b) to
determine the commercial feasibility of mining and extracting precious metals
from the project.

|a. | Determining Project Resources / Reserves: The goal
      of the drilling program is to determine whether there are sufficient
      reserves on the Columbus Project for economic viability. In the 2008 drill
      program, the holes were drilled to depths ranging from 200 feet to 400
      feet. We have completed drilling on, and received the results for, all 39
      holes, which are reported above. In 2009, subject to our ability to obtain
      permits and additional financing, we intend to conduct an additional
      drilling program for the Columbus Project that is expected to involve the
      drilling of additional exploratory holes.
|-- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|b. | Project Feasibility: We currently have a
      production permit from the Bureau of Land Management (the BLM) for the
      Columbus Project. The production permit allows us to extract precious
      metals and produce calcium carbonate on the 380 acre (320 acre mine site
      and 60 acres of mill sites) Zone A- Permitted Mine Area located at the
      Columbus Project at a mine rate of up to 792,000 tons per year. The mine
      site and mill sites are located in Zone A on the northern edge of the area
      of interest identified by our surface sampling program.                                                                          
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|   | We are currently using a dredge mining method to mine and
      transfer material to the pilot plant at the Columbus Project. The material
      is mined and handled as a slurry throughout the production process. This
      production process has, to date, proven to be very successful and is our
      preferred method of mining as the cost per ton of material mined is low.
      We are currently testing a number of pre- treatment methods before the
      material is leached. The purpose of the pre-treatment methods is to
      improve the results of the leaching process.                                                                      
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|   | The installation of our pilot production plant at the
      Columbus Project was completed in October 2008. We are continuing to make
      adjustments to the processing circuit in an effort to optimize precious
      metals recovery and to determine the economics of this process. Bench and
      bulk leach tests are being conducted at off-site facilities by independent
      consultants.                                                                                                                                                                                                                                                                
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|   | We anticipate that we will continue to operate our pilot
      production plant on an ongoing basis unless our production process is
      proven to be commercially unviable.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|   | If the operation of this pilot production facility proves
      to our satisfaction that the Columbus Project is economically viable, we
      will seek to expand the production process or construct additional
      production circuits within the mill site to increase production capacity.
      The production model for the Columbus Project is anticipated to be a low
      cost, high volume mining operation. A diagram and description outlining
      the pilot production process for the Columbus Project is attached as an
      exhibit to our Annual Report on Form 10-K for the year ended December 31,
      2008.                               
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|   | Readers are cautioned that, although we believe that
      the results of our exploration activities to date are sufficiently
      positive to proceed with the installation and operation of a pilot
      production circuit for the Columbus Project, we have not yet established
      any probable or proven reserves. There is no assurance that we will be
      able to establish that any commercially extractable ore reserves exist on
      the Columbus Project or that we will enter into commercial
      production.                                                                                                                                  

We anticipate spending approximately $4,500,000 on our
exploration and development program for the Columbus Project in 2009.

The Red Mountain Project

Sampling and Drilling Program: We initiated a surface
sampling program on the Red Mountain Project in 2008. We have postponed the
drilling program on the Red Mountain Project until we obtain additional
financing. See Financing Requirements.

We anticipate that we will spend approximately $120,000 on our
exploration program for the Red Mountain Project in 2009.

7

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Cash Requirements

We have budgeted for the following expenditures in 2009:

Columbus Project•
    Drilling Exploration Program and
      Obtaining Reserve Estimates
    $         
      1,970,000•
      Pre-feasibility and Feasibility Program
      2,412,796•
    Property Maintenance Costs
    130,0004,512,796•
    Contingency (@ 10%)
    451,280Total for Columbus Project
      $        4,964,076Red
      Mountain Project•
      Property Acquisition and Maintenance Costs
      $               75,000•
    Sampling Exploration Program
    45,000120,000•
    Contingency (@ 10%)
    12,000Total for Red Mountain Project
      $          132,000General
      and Administration•
      General and Administration
      $          
         787,910•
    Contingency (@ 10%)
    78,791Total for General and Administration
      $          866,701Total Cash Expenditures
    $      5,962,777


As of March 31, 2009, we had cash in the amount of $1,502,075
and a working capital surplus of $1,465,476. This amount is substantially less
than the total expenditures that we have budgeted for our 2009 fiscal year. We
estimate that our current financial resources are sufficient to allow us to meet
the anticipated costs of our exploration and development programs for the first
half of our 2009 fiscal year. However, actual costs could be greater than we
have anticipated. We will require additional financing in order to fully
complete our exploration and development plans for 2009. We do not currently
have any financing arrangements in place, and there are no assurances that we
will be able to obtain additional financing in an amount sufficient to meet our
needs or on terms that are acceptable to us.

RESULTS OF OPERATIONS

|Three Months Summary |   |                          |   |   |                |   |  |                       | 
|-------------------- | - | ------------------------ | - | - | -------------- | - |  | --------------------- | 
|                     |   | Three
      Months Ended |   |   | Percentage     |  
|                     |   | March 31, 2009           |   |   | March 31, 2008 |   |  | Increase / (Decrease) | 
|Revenue              | $ | -                        |   | $ | -              |   |  | n/a                   | 
|Operating Expenses   |   | (948,761                 | ) |   | (656,357       | ) |  | 44.5%                 | 
|Other Income         |   | 7,617                    |   |   | 73,206         |   |  | (89.6)%               | 
|Income Tax Benefit   |   | 327,477                  |   |   | 143,985        |   |  | 127.4%                | 
|Net Loss             | $ | (613,667                 | ) | $ | (439,166       | ) |  | 39.7%                 | 

Revenue

We have not earned any operational revenues since our inception
and we do not anticipate earning revenues until our mineral properties enter
into commercial production, of which there are no assurances. Our pilot
production plant at the Columbus Project is currently being operated for
pre-feasibility testing purposes only. We are currently in the exploration stage
of our business and we can provide no assurances that we will be able to
establish the existence of probable or proved mineral reserves on our
properties, or if such reserves are established, that we will be able to enter
into commercial production.

8

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Operating Expenses

Our operating expenses for the three months ended March 31,
2009 and 2008 consisted of the following:

|                                   |   | Three Months Ended |  |   | Percentage     | 
|---------------------------------- | - | ------------------ |  | - | -------------- | 
|                                   |   | March 31, 2009     |  |   | March 31, 2008 | 
|Mineral exploration and evaluation | $ | 587,706            |  | $ | 196,392        | 
|expenses                           |   |                    |  |   |                | 
|Mineral exploration and evaluation |   | 105,000            |  |   | 105,000        | 
|expenses  related party           |   |                    |  |   |                | 
|General and administrative         |   | 230,221            |  |   | 316,326        | 
|Depreciation                       |   | 10,834             |  |   | 2,639          | 
|Mineral and property holding costs |   | 15,000             |  |   | 36,000         | 
|Total Operating Expenses           | $ | 948,761            |  | $ | 656,357        | 

Operating expenses for our first fiscal quarter ended March 31,
2009 increased substantially as compared to our fiscal quarter ended March 31,
2008. The additional operating expenses are primarily expenses related to
amounts accrued for exploration and development work conducted on the Columbus
Project.

The item Mineral exploration and evaluation expenses  related
party represents amounts paid or reimbursed to Nanominerals Corp. for
exploration work conducted on the Columbus and Red Mountain Projects.
Nanominerals is our largest shareholder, owning approximately 41.4% of our
outstanding common stock.

During the fiscal quarter ended March 31, 2009, we incurred
fees payable to Nanominerals of $105,000 for technical and financing related
services relating primarily to the Columbus and Red Mountain Projects. In
addition, we incurred $9,948 in respect to reimbursable expenses paid for by
Nanominerals. At March 31, 2009, we were indebted to Nanominerals in the amount
of $39,496 for unpaid fees and reimbursable expenses.

We also had an outstanding balance for accrued compensation due
to Douglas D.G. Birnie (our President and Chief Executive Officer and a member
of our Board of Directors) in the amount of $19,315, payable to a company
controlled by Mr. Birnie.

The decrease in general and administrative expenses is
primarily attributable to a decrease in consulting fees and a reallocation of
executive and employee compensation to mineral exploration and evaluation
expenses. During the first quarter of 2009, our President and Chief Executive
Officer and our operations manager spent a large amount of time directly
managing our exploration and development activities at the Columbus Project. As
a result, a portion of their compensation was allocated to mineral exploration
and evaluation expenses instead of general and administrative.

We anticipate that our operating expenses will continue to
increase significantly as we pursue our exploration and development programs for
the Columbus Project and the Red Mountain Project.

LIQUIDITY AND CAPITAL RESOURCES

|Working Capital     |   |                         |   |   |                            |   |  |                       | 
|------------------- | - | ----------------------- | - | - | -------------------------- | - |  | --------------------- | 
|                    |   |                         |   |   |                            |   |  | Percentage            | 
|                    |   | At March
      31, 2009 |   |   | At December
      31, 2008 |   |  | Increase / (Decrease) | 
|Current Assets      | $ | 1,722,038               |   | $ | 2,734,552                  |   |  | (37.0)%               | 
|Current Liabilities |   | (256,562                | ) |   | (175,049                   | ) |  | 46.6%                 | 
|Working Capital     | $ | 1,465,476               |   | $ | 2,559,503                  |   |  | (42.7)%               | 

9

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|Cash Flows                                    |   |                    |   |   |                    |  
|--------------------------------------------- | - | ------------------ | - | - | ------------------ | -
|                                              |   | Three Months Ended |   |   | Three Months Ended |  
|                                              |   | March 31, 2009     |   |   | March 31, 2008     |  
|Cash Flows used in Operating
      Activities | $ | (851,374           | ) | $ | (895,604           | )
|Cash Flows used in Investing Activities       |   | (212,374           | ) |   | (202,549           | )
|Cash Flows from Financing
      Activities    |   | -                  |   |   | 1,000              |  
|Net Decrease in Cash During Period            | $ | (1,063,748         | ) | $ | (1,097,153         | )

At March 31, 2009 we had a working capital surplus of
$1,465,476 as compared to a working capital surplus of $2,559,503 at December
31, 2008. The decrease in our working capital surplus is primarily attributable
to the fact that: (i) we had no sources of revenue during the period; and (ii)
we incurred substantial expenses in the exploration and development of the
Columbus Project.

Financing Requirements

We anticipate that we will require additional financing by the
second half of our 2009 fiscal year if we are to complete our proposed
exploration and development programs for 2009. We do not currently have any
financing arrangements in place. There is no assurance that we will be able to
obtain additional financing when need or in an amount sufficient to meet our
needs or that such financings will be offered on terms that are acceptable to
our management. Our ability to obtain additional financing will be subject to a
number of factors, including the variability of market prices for gold and
silver, investor interest in our mineral projects, and the performance of equity
markets in general. These factors may make the timing, amount, terms or
conditions of additional financing unavailable to us. If we are not able to
obtain financing when needed or in an amount sufficient to enable us to complete
our programs, we may be required to adjust our exploration and development plans
depending upon our existing capital resources.

OFF-BALANCE SHEET ARRANGEMENTS

We have no significant off-balance sheet arrangements that have
or are reasonably likely to have a current or future effect on our financial
condition, changes in financial condition, revenues or expenses, results of
operations, liquidity, capital expenditures or capital resources that is
material to stockholders.

CRITICAL ACCOUNTING POLICIES

The preparation of financial statements in conformity with
United States generally accepted accounting principles requires our management
to make estimates and assumptions that affect the reported amount of assets and
liabilities and disclosure of contingent assets and liabilities at the date of
the financial statements and the reported amounts of revenues and expenses
during the reporting period. Actual results could differ from those estimates.
Our management routinely makes judgments and estimates about the effects of
matters that are inherently uncertain.

We have identified certain accounting policies, described
below, that are most important to the portrayal of our current financial
condition and results of operations. Our significant accounting policies are
also disclosed in the notes to our unaudited consolidated financial statements
for the three months ended March 31, 2009 included in this Quarterly Report on
Form 10-Q.

Mineral Rights

We capitalize acquisition and option costs of mineral property
  rights. The amount capitalized represents fair value at the time the mineral
  rights were acquired. We capitalize acquisition and option costs of mineral
  rights as tangible assets. Upon commencement of commercial production, the mineral
  rights will be amortized using the unit-of-production method over the life of
  the mineral rights. If we do not continue with exploration after the completion
  of a feasibility study, the mineral rights will be expensed at that time.

10

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Exploration Costs

Mineral exploration costs are expensed as incurred.

Mineral Property Acquisition Costs

Costs of acquiring mining properties are capitalized upon
acquisition. Mine development costs incurred either to develop new ore deposits,
expand the capacity of mines, or to develop mine areas substantially in advance
of current production are also capitalized once proven and probable reserves
exist and the property is a commercially mineable property. Costs incurred to
maintain current production or to maintain assets on a standby basis are charged
to operations. Costs of abandoned projects are charged to operations upon
abandonment. We evaluate the carrying value of capitalized mining costs and
related property and equipment costs, to determine if these costs are in excess
of their recoverable amount whenever events or changes in circumstances indicate
that their carrying amounts may not be recoverable. The periodic evaluation of
carrying value of capitalized costs and any related property and equipment costs
are based upon expected future cash flows and/or estimated salvage value in
accordance with Statement of Financial Accounting Standards (SFAS) No. 144,
Accounting for Impairment or Disposal of Long-Lived Assets.

Reclamation and Remediation Costs (Asset Retirement
Obligation)

We accrued costs associated with environmental remediation
obligations in accordance with Statement of Financial Accounting Standards
(SFAS) No. 143, Accounting for Asset Retirement Obligations. In accordance
with SFAS No. 143, we record a liability for the present value of the estimated
environmental remediation costs in the period in which the liability is incurred
and becomes determinable, with an offsetting increase in the carrying amount of
the associated asset. The liability will be accreted and the asset will be
depreciated over the life of the related assets. Adjustments for changes
resulting from the passage of time and changes to either the timing or amount of
the original present value estimate underlying the obligation will be made. As
reclamation work is performed or liabilities are otherwise settled, the recorded
amount of the liability is reduced.

We accrue costs associated with environmental remediation
obligation when it is probable that such costs will be incurred and they are
reasonably estimable. Estimates for reclamation and other closure costs are
prepared in accordance with SFAS No. 5 Accounting for Contingencies, or
Statement of Position 96-1 Environmental Remediation Liabilities. Costs of
future expenditures for environmental remediation are not discounted to their
present value unless subject to a contractually obligated fixed payment
schedule. Such costs are based on managements current estimate of amounts to be
incurred when the remediation work is performed, within current laws and
regulations.

Future reclamation and environmental-related expenditures are
difficult to estimate, in many circumstances, due to the early stage nature of
investigations, and uncertainties associated with defining the nature and extent
of environmental contamination and the application of laws and regulations by
regulatory authorities and changes in reclamation or remediation technology. We
periodically review accrued liabilities for such reclamation and remediation
costs as evidence becomes available indicating that the liabilities have
potentially changed. Changes in estimates are reflected in the statement of
operations in the period an estimate is revised.

Accruals for reclamation and environmental matters totaled
$275,338 at March 31, 2009 and December 31, 2008. We are in the exploration
stage and are unable to determine the estimated timing of these expenditures
relating to these accruals at this time. It is reasonably possible the ultimate
cost of reclamation and remediation could change in the future, and that changes
to these estimates could have a material effect on future operating results as
new information becomes known. For additional information, see Note 11 of the
financial statements included with this Quarterly Report on Form 10-Q.

**ITEM
3.****QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.**

Not Applicable.

11

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ITEM
4.              
CONTROLS AND PROCEDURES.

As of March 31, 2009, an evaluation was performed under the
supervision and with the participation of our management, including our Chief
Executive Officer (CEO) and Chief Financial Officer (CFO), of the
effectiveness of the design and operation of our disclosure controls and
procedures. These controls and procedures are based on the definition of
disclosure controls and procedures in Rule 13a-15(e) and Rule 15d-15(e)
promulgated under the Securities Exchange Act of 1934.

Based on that evaluation as of March 31, 2009, our management,
including the CEO and CFO concluded that our disclosure controls and procedures
were effective to ensure that the information required to be disclosed by us in
the reports that we file or submit under the Securities Exchange Act of 1934 is
recorded, processed, summarized and reported within the time periods specified
in SEC rules and forms.

Management, including our CEO and CFO, have concluded that our
disclosure controls and procedures provide reasonable assurance that the
controls and procedures will meet their desired control objectives. In designing
and evaluating our control system, management recognized that any control
system, no matter how well designed and operated, can provide only reasonable,
not absolute, assurance of achieving the desired control objectives. Further,
the design of a control system must reflect the fact that there are resource
constraints, and management necessarily was required to apply its judgment in
evaluating the cost-benefit relationship of possible controls and procedures.
Because of the inherent limitations in all control systems, no evaluation of
controls can provide absolute assurance that all control issues and instances of
fraud, if any that may affect our operations have been detected. These inherent
limitations include the realities that judgments in decision-making can be
faulty, and that breakdowns can occur because of simple error or mistake.

During the first quarter of 2009, there were no changes in the
Company's internal control over financial reporting that have materially
affected, or are reasonably likely to materially affect, the Company's internal
control over financial reporting.

Disclosure Controls and Procedures

We carried out an evaluation of the effectiveness of our
disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e)
and 15d-15(e)) as of March 31, 2009 (the Evaluation Date). This evaluation was
carried out under the supervision and with the participation of our Chief
Executive Officer and Chief Financial Officer. Based upon that evaluation, our
Chief Executive Officer and Chief Financial Officer concluded that our
disclosure controls and procedures were effective as of the Evaluation Date.

Disclosure controls and procedures are those controls and
procedures that are designed to ensure that information required to be disclosed
in our reports filed or submitted under the Exchange Act are recorded,
processed, summarized and reported within the time periods specified in the
SEC's rules and forms. Disclosure controls and procedures include, without
limitation, controls and procedures designed to ensure that information required
to be disclosed in our reports filed under the Exchange Act is accumulated and
communicated to management, including our Chief Executive Officer and Chief
Financial Officer, to allow timely decisions regarding required disclosure.

Changes in Internal Control Over Financial Reporting

As of the Evaluation Date, there were no changes in our internal
  control over financial reporting that occurred during the fiscal quarter ended
  March 31, 2009 that have materially affected, or that are reasonably likely
  to materially affect, our internal control over financial reporting.

Limitations on the Effectiveness of Controls and Procedures

Our management, including our Chief Executive Officer and the
Chief Financial Officer, do not expect that our controls and procedures will
prevent all potential error and fraud. A control system, no matter how well
conceived and operated, can provide only reasonable, not absolute, assurance
that the objectives of the control system are met.

12

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PART II - OTHER INFORMATION

ITEM
1.              
LEGAL PROCEEDINGS.

None.

ITEM
1A.             RISK
FACTORS.

The following are some of the important factors that could
affect our financial performance or could cause actual results to differ
materially from estimates contained in our forward-looking statements. We may
encounter risks in addition to those described below. Additional risks and
uncertainties not currently known to us, or that we currently deem to be
immaterial, may also impair or adversely affect our business, financial
condition or results of operations.

Although we have begun operation of a pilot production
module for the Columbus Project, there is no assurance that this project is
commercially feasible.

We have begun pilot production operations on the Columbus
Project. This pilot production module is part of our pre-feasibility study for
the Columbus Project, and is designed to evaluate the commercial viability of
the Columbus Project. There is no assurance that the results of our
pre-feasibility program will result in a decision to enter into commercial
production.

Additional exploration work is required before proved or
probable reserves can be established.

We intend to report the results of our exploration activities
promptly after those results have been received and analyzed by us. However,
there is no assurance that the test results reported by us will be indicative of
extraction rates throughout our mineral properties. We have not yet established
proved or probable reserves on the Columbus Project or on our other mineral
properties and additional exploration work will be required before proved or
probable reserves can be established.

If we do not obtain additional financing, we may not be able
to complete our exploration and development programs for our mineral projects.

We currently have sufficient financial resources to pay for the
anticipated costs of our exploration and development programs for the first half
of 2009. We will require additional financing in order to proceed with our
planned exploration and development programs beyond the first half of 2009. In
addition, the actual costs of completing those programs could be greater than we
have anticipated.

There is no assurance that we will be able to obtain additional
financing when needed or in an amount sufficient to meet our needs or that such
financings will be offered on terms that are acceptable to our management. Our
ability to obtain additional financing will be subject to a number of factors,
including the variability of market prices for gold and silver, investor
interest in our mineral projects, and the performance of equity markets in
general. These factors may make the timing, amount, terms or conditions of
additional financing unavailable to us. If we are not able to obtain financing
when needed or in an amount sufficient to enable us to complete our programs, we
may be required to scale back our exploration and development programs.

If we complete additional financings through the sale of
shares of our common stock, our existing stockholders will experience dilution.

The most likely source of future financing presently available
to us is through the issuance of our common stock. The only other anticipated
alternative for the financing of further exploration would be the offering by us
of an interest in our properties to be earned by another party or parties
carrying out further exploration thereof, which is not presently contemplated.
In addition, if our management decides to exercise the right to acquire a 100%
interest in the Red Mountain Project, we will be required to issue significantly
more shares of our common stock. Issuing shares of our common stock, for
financing purposes or otherwise, will dilute the interests of our existing
stockholders.

13

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In order to maintain our rights to the Columbus Project, Red
Mountain Project and Ireland Claim, we will be required to make annual filings
with federal and state regulatory agencies and/or be required to complete
assessment work on those properties.

In order to maintain our rights to the Columbus Project, Red
Mountain Project and Ireland Claim, we will be required to make annual filings
with federal and state regulatory authorities. Currently the amount of these
fees is nominal; however, these maintenance fees are subject to adjustment. In
addition, we may be required by federal and/or state legislation or regulations
to complete minimum annual amounts of mineral exploration work on the Columbus
Project, Red Mountain Project and Ireland Claim. A failure by us to meet the
annual maintenance requirements under federal and state laws could cause our
rights to the Columbus Project, Red Mountain Project and Ireland Claim to lapse.

Because we are an exploration stage company, we face a high
risk of business failure.

To date, our primary business activities have involved the
acquisition of mineral claims and the exploration and development on these
claims. We have not earned any revenues as of the date of this report. Potential
investors should be aware of the difficulties normally encountered by
exploration stage companies and the high rate of failure of such enterprises.
The likelihood of success must be considered in light of the problems, expenses,
difficulties, complications and delays encountered in connection with the
exploration of the mineral properties that we plan to undertake. These potential
problems include, but are not limited to, unanticipated problems relating to
exploration, and additional costs and expenses that may exceed current
estimates.

Because we anticipate our operating expenses will increase
prior to our earning revenues, we may never achieve profitability.

Prior to completion of our exploration stage, we anticipate
that we will incur increased operating expenses without realizing any revenues.
We therefore expect to incur significant losses into the foreseeable future. We
recognize that if we are unable to generate significant revenues from the
exploration of our mineral claims and the production of minerals thereon, if
any, we will not be able to earn profits or continue operations. There is no
history upon which to base any assumption as to the likelihood that we will
prove successful, and we may not be able to ever generate any operating revenues
or achieve profitable operations. If we are unsuccessful in addressing these
risks, our business will most likely fail.

Because of the speculative nature of exploration of mining
properties, there is substantial risk that no commercially exploitable minerals
will be found and our business will fail.

The search for valuable minerals as a business is extremely
risky. We may not find commercially exploitable reserves of gold or silver on
our mineral claims. Exploration for minerals is a speculative venture,
necessarily involving substantial risk. The expenditures to be made by us in the
upcoming exploration of our mineral projects may not result in the discovery of
commercial quantities of ore. Problems such as unusual or unexpected formations
and other conditions are involved in mineral exploration and often result in
unsuccessful exploration efforts. In such a case, we would be unable to complete
our business plan.

Because of the inherent dangers involved in mineral
exploration, there is a risk that we may incur liability or damages if and when
we conduct mineral exploration activities.

The search for valuable minerals involves numerous hazards. As
a result, if and when we conduct exploration activities we may become subject to
liability for such hazards, including pollution, cave-ins and other hazards
against which we cannot insure or against which we may elect not to insure. The
payment of such liabilities may have a material adverse effect on our financial
position.

Even if we discover commercial reserves of precious metals
on our optioned mineral claims, we may not be able to successfully reach
commercial production.

Our optioned mineral claims do not contain any known bodies of
ore. If our exploration programs are successful in discovering ore of commercial
tonnage and grade, we will require additional funds in order to

14

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place those mineral claims into commercial production. At this
time, there is a risk that we will not be able to obtain such financing as and
when needed.

Even if we can successfully reach commercial production, any
change to mining laws or regulations or levy of additional taxes in the future
may make our planned production process nonviable economically.

Several bills have been introduced by the US federal government
that would levy resource taxes on mineral exploration companies. Any levy of
additional taxes would have an adverse effect on our business. In addition, laws
and regulations governing the exploration of mineral properties and the mining
process are subject to change. Changes to mining laws and regulations that would
have the effect of increasing the cost of mineral exploration and mining
activities would adversely impact our business.

If we are unable to hire and retain key personnel, we may
not be able to implement our business plan and our business will fail.

Our success will largely depend on our ability to hire highly
qualified personnel with experience in geological exploration. These individuals
may be in high demand and we may not be able to attract the staff we need. In
addition, we may not be able to afford the high salaries and fees demanded by
qualified personnel, or may lose such employees after they are hired. Currently,
we have not hired any key personnel. An inability to hire key personnel when
needed could have a significant negative effect on our business.

Because our executive officers do not have formal training
specific to the technicalities of mineral exploration, there is a higher risk
our business will fail.

Our executive officers and directors do not have formal
training as geologists or in the technical aspects of management of a mineral
exploration company. Accordingly, we will have to rely on the technical services
of others trained in appropriate areas. If we are unable to contract for the
services of such individuals, it will make it difficult and maybe impossible to
pursue our business plan.

As we undertake exploration of our optioned mineral claims,
we will be subject to compliance with government regulation that may increase
the anticipated cost of our exploration program.

There are several government regulations that materially
restrict the exploration of minerals. We may be required to obtain work permits,
post bonds and perform remediation work for any physical disturbance to the land
in order to comply with these laws. While our planned exploration program
budgets for regulatory compliance, there is a risk that new regulations could
increase our costs of doing business and prevent us from carrying out our
exploration program.

Certain work to be performed on our mineral projects may
require us to apply for permits from federal, state or local regulatory bodies.

If our applications for permits from the relevant regulatory
bodies are denied, we may not be able to proceed with our exploration and
development programs as disclosed above, which could have a negative affect on
our business.

If we receive positive results from our exploration program
and we decide to pursue commercial production, we may be subject to an
environmental review process that may delay or prohibit commercial
production.

If the results of our geological exploration program indicate
commercially exploitable reserves, and we decide to pursue commercial production
of our mineral claims, we may be subject to an environmental review process
under environmental assessment legislation. Compliance with an environmental
review process may be costly and may delay commercial production. Furthermore,
there is the possibility that we would not be able to proceed with commercial
production upon completion of the environmental review process if government
authorities did not approve our mine or if the costs of compliance with
government regulation adversely affected the commercial viability of the
proposed mine.

15

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The market for our common stock is limited and investors may
have difficulty selling their stock.

Our shares are currently traded on the over the counter market,
with quotations entered for our common stock on the OTC Bulleting Board under
the symbol IRLD. However, the volume of trading in our common stock is
currently limited. As a result, holders of our common stock may have difficulty
selling their shares.

Because our common stock is a penny stock, stockholders may
be further limited in their ability to sell their shares.

Our shares constitute a penny stock under the Exchange Act and
are expected to remain classified as a penny stock for the foreseeable future.
Classification as a penny stock makes it more difficult for a broker-dealer to
sell the stock into a secondary market, which makes it more difficult for a
purchaser to liquidate his or her investment. Any broker-dealer engaged by the
purchaser for the purpose of selling his or her shares will be subject to Rules
15g-2 through 15g-9 of the Exchange Act. Rather than having to comply with these
rules, some broker-dealers will refuse to attempt to sell a penny stock.

No Assurance That Forward Looking Assessments Will Be
Realized.

Our ability to accomplish our objectives and whether or not we
are financially successful is dependent upon numerous factors, each of which
could have a material effect on the results obtained. Some of these factors are
in the discretion and control of management and others are beyond managements
control. The assumptions and hypothesis used in preparing any forward-looking
assessments contained herein are considered reasonable by management. There can
be no assurance, however, that any projections or assessments contained herein
or otherwise made by management will be realized or achieved at any level.

FOR ALL OF THE AFORESAID REASONS AND OTHERS SET-FORTH AND
NOT SET-FORTH HEREIN, AN INVESTMENT IN OUR SECURITIES INVOLVES A CERTAIN DEGREE
OF RISK. ANY PERSON CONSIDERING TO INVEST IN OUR SECURITIES SHOULD BE AWARE OF
THESE AND OTHER FACTORS SET-FORTH IN THIS REPORT AND IN THE OTHER REPORTS AND
DOCUMENTS THAT WE FILE FROM TIME TO TIME WITH THE SEC AND SHOULD CONSULT WITH
HIS/HER LEGAL, TAX AND FINANCIAL ADVISORS PRIOR TO MAKING AN INVESTMENT IN OUR
SECURITIES. AN INVESTMENT IN OUR SECURITIES SHOULD ONLY BE ACQUIRED BY PERSONS
WHO CAN AFFORD TO LOSE THEIR TOTAL INVESTMENT.

ITEM
2.              
UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.

None.

ITEM
3.              
DEFAULTS UPON SENIOR SECURITIES.

None.

ITEM
4.              
SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

None.

ITEM
5.              
OTHER INFORMATION.

None.

16

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ITEM
6.              
EXHIBITS.

The following exhibits are either provided with this Quarterly
Report or are incorporated herein by reference:

|Exhibit |  |                                                                                                                                                                                                                                            
|------- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Number  |  | Description of Exhibit                                                                                                                                                                                                                     
|3.1     |  | Articles of
        Incorporation.(1)                                                                                                                                                                                                      
|3.2     |  | Certificate of Amendment to
        Articles - Name Change from Merritt Ventures Corp. to Ireland Inc.(2)                                                                                                                                  
|3.3     |  | Certificate
        of Change  4-for-1 Stock Split.(3)                                                                                                                                                                                    
|3.4     |  | Bylaws.(1)                                                                                                                                                                                                                                 
|10.1    |  | 2007 Stock Incentive
        Plan.(4)                                                                                                                                                                                                      
|10.2    |  | Assignment Agreement dated for
        reference as of March 29, 2007, among Nanominerals Corp., the Company
        and Lorrie Archibald.(4)                                                                                              
|10.3    |  | Letter Agreement
        dated July 22, 2006 among Columbus Brine Inc., Columbus S.M. LLC and Nanominerals
        Corp., assigned to the Company by Nanominerals Corp.(11)                                                                
|10.4    |  | Letter Agreement dated March
        15, 2007 between Red Mountain Mining and Nanominerals Corp., assigned
        to the Company by Nanominerals Corp.(11)                                                                                
|10.5    |  | Agency Agreement
        dated effective as of June 19, 2007 between the Company and S & P
        Investors, Inc.(5)                                                                                                                      
|10.6    |  | Amendment Agreement to Assignment
        Agreement among the Company, Nanominerals Corp. and Lorrie Archibald,
        dated for reference as of August 8, 2007.(6)                                                                       
|10.7    |  | Consulting Agreement
        between the Company and RJ Falkner & Company, Inc., dated for reference
        as of November 5, 2007.(7)                                                                                                    
|10.8    |  | Consultant Non-Qualified Stock
        Option Agreement between the Company and R. Jerry Falkner, dated effective
        as of November 5, 2007.(7)                                                                                       
|10.9    |  | Agreement and
        Plan of Merger dated December 14, 2007 among the Company, Columbus Brine
        Inc., John T. Arkoosh, William Maghan and Lawrence E. Chizmar, Jr.(8)                                                               
|10.10   |  | Amendment Agreement to Agreement
        and Plan of Merger entered into on January 31, 2008 among the Company,
        CBI Acquisition, Inc., Columbus Brine Inc., John T. Arkoosh, William Maghan
        and Lawrence E. Chizmar, Jr.(9)
|10.11   |  | Mining Lease
        Agreement dated November 30, 2007 between DDB Syndicate and Columbus S.M.,
        LLC.(12)                                                                                                                           
|14.1    |  | Code of Ethics.(10)                                                                                                                                                                                                                        
|21.1    |  | List of Subsidiaries.(13)                                                                                                                                                                                                                  
|31.1    |  | Certification
        of Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley
        Act of 2002.                                                                                                                    
|31.2    |  | Certification
        of Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley
        Act of 2002.                                                                                                                    
|32.1    |  | Certification
        of Principal Executive Officer pursuant to 18 U.S.C. Section 1350, as
        adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.                                                                     
|32.2    |  | Certification
        of Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as
        adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.                                                                     
|99.1    |  | Diagram of Columbus Project
        Pilot Production Process.(13)                                                                                                                                                                          

|(1)  | Filed as an exhibit to our Registration Statement on Form
      SB-2 originally filed on April 18, 2002, as amended.              
|---- | ----------------------------------------------------------------------------------------------------------------------------------
|(2)  | Filed as an exhibit to our Annual Report on Form 10-KSB
      for the year ended December 31, 2005 filed on April 12, 2006.       
|(3)  | Filed as an exhibit to our Current Report on Form 8-K
      filed on April 30, 2007.                                              
|(4)  | Filed as an exhibit to our Annual Report on Form 10-KSB
      for the year ended December 31, 2006 filed on April 5, 2007.        
|(5)  | Filed as an exhibit to our Current Report on Form 8-K
      filed on June 21, 2007.                                               
|(6)  | Filed as an exhibit to our Current Report on Form 8-K
      filed on August 14, 2007.                                             
|(7)  | Filed as an exhibit to our Current Report on Form 8-K
      filed on November 9, 2007.                                            
|(8)  | Filed as an exhibit to our Current Report on Form 8-K
      filed on December 20, 2007.                                           
|(9)  | Filed as an exhibit to our Current Report on Form 8-K
      filed on February 6, 2008.                                            
|(10) | Filed as an exhibit to our Annual Report on Form 10-KSB
      for the year ended December 31, 2003, filed on September 28,
  2004.
|(11) | Filed as a Schedule to Exhibit 10.2.                                                                                              
|(12) | Filed as an exhibit to our Annual Report on Form 10-K for
      the year ended December 31, 2007 filed on March 31, 2008.         
|(13) | Filed as an exhibit to our Annual Report on Form 10-K for
      the year ended December 31, 2008 filed on March 26,
2009.         

17

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on its behalf by
the undersigned thereunto duly authorized.

|      |              |  |     | IRELAND INC.                                          
|----- | ------------ |  | --- | ------------------------------------------------------
|      |              |  |     |                                                       
|      |              |  |     |                                                       
|      |              |  |     |                                                       
|Date: | May 13, 2009 |  | By: | /s/ Douglas D.G. Birnie                               
|      |              |  |     | DOUGLAS D.G. BIRNIE                                   
|      |              |  |     | Chief Executive Officer,
      President and Secretary
|      |              |  |     | (Principal Executive Officer)                         
|      |              |  |     |                                                       
|      |              |  |     |                                                       
|      |              |  |     |                                                       
|      |              |  |     |                                                       
|Date: | May 13, 2009 |  | By: | /s/ Robert D. McDougal                                
|      |              |  |     | ROBERT D. MCDOUGAL                                    
|      |              |  |     | Chief Financial Officer and
      Treasurer           
|      |              |  |     | (Principal Financial Officer)                         

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