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UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWashington, D.C.
20549

FORM 10-K

(Mark One)

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

For the fiscal year ended December 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) 932-0353Registrant's telephone number,
including area code

Securities registered pursuant to Section 12(b) of the Act:
NONE.

Securities registered pursuant to Section 12(g) of the Act:
Common Stock, $0.001 Par Value Per Share.

Indicate by check mark if the registrant is a well-known
seasoned issuer, as defined by Rule 405 of the Securities Act.[__]Yes [X]No

Indicate by check mark if the registrant is not required to file
reports pursuant to Section 13 or Section 15(d) of the Act.[__]Yes
[X]No

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 Regulation
S-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 if disclosure of delinquent filers
pursuant to Item 405 of Regulation S-K (s229.405 of this chapter) is not
contained herein, and will not be contained, to the best of registrants
knowledge, in definitive proxy or information statements incorporated by
reference in Part III of this Form 10-K or any amendment to this Form 10-K.
[__]

Indicate by check mark whether the registrant is a large
accelerated filer, an accelerated filer, a non-accelerated filer, 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 Act). [__]Yes [X]No

State the aggregate market value of the voting and non-voting
common equity held by non-affiliates computed by reference to the price at which
the common equity was last sold, or the average bid and asked price of such
common equity, as of the last business day of the registrants most recently
completed second fiscal quarter: $25,480,044 as of June 30,
2009,based on an average of the closing bid of $0.505 and
the closing ask of $0.55 as quoted by the OTC Bulletin Boardon that date.

Indicate the number of shares outstanding of each of the
registrants classes of common stock, as of the latest practicable date.
As of April 13, 2010, the Registrant had 121,934,442 shares of common
stock outstanding.

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|IRELAND INC.                        
|------------------------------------
|ANNUAL REPORT ON FORM 10-K          
|FOR THE YEAR ENDED DECEMBER 31, 2009
|TABLE OF CONTENTS                   

|           |             |                                                                                                                          | PAGE
|---------- | ----------- | ------------------------------------------------------------------------------------------------------------------------ | ----
|PART I     |             | 3                                                                                                                       
|           | ITEM 1.     | BUSINESS.                                                                                                                | 3   
|           | ITEM 1A.    | RISK FACTORS.                                                                                                            | 8   
|           | ITEM 2.     | PROPERTIES.                                                                                                              | 11  
|           | ITEM 3.     | LEGAL
      PROCEEDINGS.                                                                                                 | 24  
|PART II    |             | 25                                                                                                                      
|           | ITEM 5.     | MARKET FOR
      REGISTRANTS COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER
      PURCHASES OF EQUITY SECURITIES | 25  
|           | ITEM 7.     | MANAGEMENT'S DISCUSSION AND
      ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS                              | 26  
|           | ITEM 8.     | FINANCIAL
      STATEMENTS AND SUPPLEMENTARY DATA                                                                        | 32  
|           | ITEM 9.     | CHANGES IN AND DISAGREEMENTS
      WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE.                              | 33  
|           | ITEM 9A(T). | CONTROLS AND
      PROCEDURES                                                                                            | 33  
|           | ITEM 9B.    | OTHER INFORMATION                                                                                                        | 34  
|PART III   |             | 35                                                                                                                      
|           | ITEM 10.    | DIRECTORS, EXECUTIVE
      OFFICERS AND CORPORATE GOVERNANCE.                                                            | 35  
|           | ITEM 11.    | EXECUTIVE
      COMPENSATION                                                                                             | 37  
|           | ITEM 12.    | SECURITY OWNERSHIP OF
      CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS                     | 39  
|           | ITEM 13.    | CERTAIN
      RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE                                          | 44  
|           | ITEM 14.    | PRINCIPAL ACCOUNTING FEES
      AND SERVICES                                                                             | 45  
|           | ITEM 15.    | EXHIBITS,
      FINANCIAL STATEMENT SCHEDULES.                                                                           | 45  
|SIGNATURES | 47         

2

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PART I

The information in this discussion contains forward-looking
statements. These forward-looking statements involve risks and uncertainties,
including statements regarding the Company's capital needs, business strategy
and expectations. Any statements contained herein that are not statements of
historical facts may be deemed to be forward-looking statements. In some cases,
you can identify forward-looking statements by terminology such as "may,"
"will," "should," "expect," "plan," "intend," "anticipate," "believe,"
"estimate, "predict," "potential" or "continue", the negative of such terms or
other comparable terminology. Actual events or results may differ materially. In
evaluating these statements, you should consider various factors, including the
risks described below, and, from time to time, in other reports the Company
files with the United States Securities and Exchange Commission (the SEC).
These factors may cause the Company's actual results to differ materially from
any forward-looking statement. The Company disclaims any obligation to publicly
update these statements, or disclose any difference between its actual results
and those reflected in these statements.

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

|ITEM 1. | BUSINESS.
|------- | ---------

General

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 19,738 acres of placer mineral claims, including a 378 acre Permitted Mine Area (58-acre mill site and mill facility, and 320-acre mine site). Our current permits 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 Area.  We also have a mineral lease covering, and the option to acquire, an additional 23,440 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. We also
owned a mineral property located in Clark County, Nevada known as the Ireland
Claim. However, we allowed the Ireland Claim to lapse on September 1, 2009 as
we did not consider it to be a core asset of our business.

Recent Corporate Developments

The following significant corporate developments occurred after
the completion of our fiscal quarter ended September 30, 2009:

2009 US Offering and 2009 Foreign Offering

On November 13, 2009, our Board of Directors decided to
unilaterally amend the terms of the warrants without the payment of any
additional consideration by the subscribers to our 2009 US Offering and 2009
Foreign Offering by:

| | (a) | extending the expiration date to June 30, 2013;
  and                                       
| | --- | --------------------------------------------------------------------------------------------
| |     |                                                                                             
| | (b) | amending the conditions under which we may exercise the
      warrant acceleration right by:
| |     |                                                                                             
| |     | (i)                                                                                         
| |     | (ii)                                                                                        

3

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The 2009 US Offering was a private placement offering of units
consisting of one share of our common stock and one half of one share purchase
warrant at a price of $0.45 per unit to accredited investors as such term is
defined under Regulation D of the Securities Act of 1933, as amended (the
Securities Act). The 2009 Foreign Offering consisted of a private placement
offering of units on the same terms as the 2009 US Offering to persons who were
not U.S. Persons as defined under Regulation S of the Securities Act. Each
full share purchase warrant issued in connection with the 2009 US Offering and
the 2009 Foreign Offering entitles the holder to purchase one additional share
of our common stock at a price of $0.75 per share.

On November 14, 2009, we issued 3,334,444 units under the 2009
US Offering and 700,000 units under the 2009 Foreign Offering. This represented
the fourth tranche of both the 2009 US Offering and the 2009 Foreign Offering.
Upon the issuance of these units, the 2009 US Offering and the 2009 Foreign
Offering were closed. We agreed to pay a total of $286,526 and issue a total of
272,882 warrants as commissions under the 2009 US Offering and 2009 Foreign
Offering.

Amendment to 2007 Warrants

In November 2009, our Board of Directors unilaterally amended
the terms of the outstanding warrants (the 2007 Warrants) issued by us
pursuant to our US and foreign private placement offerings completed in 2007
(the 2007 US Offering and the 2007 Foreign Offering respectively) without
the payment of any additional consideration by the holders thereof. The 2007
Warrants were amended as follows:

| | (a) | the exercise price of the 2007 Warrants was reduced from
      $1.00 per share to $0.75 per share;                 
| | --- | -------------------------------------------------------------------------------------------------------------------
| |     |                                                                                                                    
| | (b) | the expiration date of the 2007 Warrants was extended
      from June 30, 2012 to June 30, 2013; and               
| |     |                                                                                                                    
| | (c) | the conditions under which we are permitted to accelerate
      the expiration of the 2007 Warrants was amended by:
| |     |                                                                                                                    
| |     | (i)                                                                                                                
| |     |                                                                                                                    
| |     | (ii)                                                                                                               

Warrants Issued  for Consulting Services

Subsequent to our fiscal quarter ended September 30, 2009, we issued the following securities in consideration for  consulting services:

| | (a) | On December 17, 2009, we issued warrants to purchase up to 200,000 shares of our common stock at a price of $0.55 per share, expiring on December 17, 2012 to certain consultants.  These warrants were issued at an aggregate price of $20,000 in addition to the consultants’ agreement to provide services to us for a fee of $13,000 per month.  50,000 of the warrants were vested at the date of grant, with the remaining warrants vesting at a rate of 10,000 warrants per month to March 1, 2010, with the remaining 120,000 warrants vesting on April 1, 2010.  The consultants provided representations that they are accredited investors as that term is defined in Regulation D of the Securities Act.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| | (b) | On December 24, 2009, we agreed to issue 300,000 warrants
      exercisable at a price of $0.75 per share and expiring on December 31,
      2014 in exchange for certain consulting services. 60,000 of the warrants
      granted vested and became exercisable on December 31, 2009. An additional
      30,000 warrants will vest and become exercisable at the end of each of our
      fiscal quarters beginning with our fiscal quarter ending March 31, 2010
  and ending with our fiscal quarter ending December 31, 2011. Any warrants that have not yet vested will immediately vest upon any of the following events:                                                                                   

4

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| | (i)  | The acquisition of more than 50% of the Companys
      outstanding shares of common stock by any person other than an affiliate
      of the Company, an entity controlled by or under common control with an
      affiliate of the Company or a wholly owned subsidiary of the company;
      or
| | ---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |      |                                                                                                                                                                                                                                                                                                    
| | (ii) | The sale by the Company of a greater than 50% interest in
      the Columbus Project.                                                                                                                                                                                                              

Upon termination of the services
agreement, any warrants that have not vested will immediately terminate while
any vested warrants shall continue to be exercisable as set out above. We may
accelerate the expiration date of these warrants at any time after June 30, 2010
if:

| | (i)  | the volume weighted average price (VWAP) for our shares
      on the principal market on which they trade is above $4.50 per share for
      twenty consecutive trading days; and                       
| | ---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |      |                                                                                                                                                                                                           
| | (ii) | the average daily trading volume for our shares on the
      principal market on which they trade during those twenty consecutive
      trading days is equal to or greater than 0.2% of our free
  float.

The consultant provided
representations that he is an accredited investor as that term is defined in
Regulation D of the Securities Act.

| | (c) | On January 7, 2010, we agreed to issue 3,300,000 warrants
      exercisable at a price of $0.75 per share expiring on June 30, 2013 to a
      separate consultant. The warrants will vest at a rate of 825,000 warrants
      every six months beginning June 30, 2010 and ending December 31, 2011. Any
      warrants that have not yet vested will immediately vest upon any of the
      following events:                                                                                                                                                                                                      
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| |     | (i)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| |     | (ii)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| |     | (iii)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| |     | Upon termination of the services agreement, any warrants
      that have not vested will immediately terminate while any vested warrants
      shall continue to be exercisable as set out above. We may accelerate the
      expiration date of these warrants at any time after June 30, 2010
    if:                                                                                                                                                                                                                                                                                                              
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| |     | (i)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| |     | (ii)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| |     | This consultant provided representations that he is not a
      U.S. person as that term is defined in Regulation S of the Securities
      Act.                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| | (d) | On February 19, 2010, we agreed to issue 500,000 warrants
      exercisable at a price of $0.75 per share and expiring on June 30, 2013 in
      exchange for certain consulting services. 125,000 of the warrants granted
      vested and became exercisable on March 31, 2010. An additional 125,000
      warrants will vest and become exercisable at the end of each of our fiscal
  quarters beginning with our fiscal quarter ending June 30, 2010 and ending with our fiscal quarter ending December 31, 2010. Any warrants that have not yet vested will immediately vest upon any of the following events:

5

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| | (i)  | The acquisition of more than 50% of the Companys
      outstanding shares of common stock by any person other than an affiliate
      of the Company, an entity controlled by or under common control with an
      affiliate of the Company or a wholly owned subsidiary of the company;
      or
| | ---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |      |                                                                                                                                                                                                                                                                                                    
| | (ii) | The sale by the Company of a greater than 50% interest in
      the Columbus Project.                                                                                                                                                                                                              

Upon termination of the services
agreement, any warrants that have not vested will immediately terminate while
any vested warrants shall continue to be exercisable as set out above. We may
accelerate the expiration date of these warrants at any time after June 30, 2010
if:

| | (i)  | the volume weighted average price (VWAP) for our shares
      on the principal market on which they trade is above $4.50 per share for
      twenty consecutive trading days; and                       
| | ---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |      |                                                                                                                                                                                                           
| | (ii) | the average daily trading volume for our shares on the
      principal market on which they trade during those twenty consecutive
      trading days is equal to or greater than 0.2% of our free
  float.

The consultant provided
representations that he is an accredited investor as that term is defined in
Regulation D of the Securities Act.

January 2010 US and Foreign Private Placements

In January 2010, we issued an aggregate of 11,035,000 Units at
a price of $0.45 per Unit in separate private placement offerings made to
accredited and foreign investors for total proceeds of $4,965,750. Each Unit
offered was comprised of one share of our common stock and one-half of one share
purchase warrant, with each full share purchase warrant entitling the holder to
purchase an additional share of our common stock at an exercise price of $0.75
per share, expiring June 30, 2013. We may accelerate the expiration date for the
warrants after June 30, 2010 if the volume weighted average price (VWAP) for
the shares on our principal market exceeds $4.50 per share for twenty
consecutive trading days, and the average daily trading volume for our common
stock on our principal market during those twenty trading days is not less than
0.2% of our free float. We agreed to pay $6,300 and issue 6,000 share purchase
warrants as finders fees for the units subscribed for by foreign investors.

Compensation Increases to Executive Officers

On February 23, 2010, our Board of Directors approved an
increase in the compensation payable to Douglas D.G. Birnie, our Chief Executive
Officer, President and Secretary, from $108,000 per year to $225,000 per year,
retroactive to January 1, 2010. The compensation payable to Mr. Birnie is paid
to a limited liability company of which Mr. Birnie is the sole member. We do not
have a written compensation contract with Mr. Birnie or his limited liability
company.

On February 26, 2010, our Board of Directors approved an
increase in the compensation to Robert D. McDougal, our Chief Financial Officer
and Treasurer, from $48,000 per year to $84,000 per year, retroactive to January
1, 2010. We do not have a written compensation contract with Mr. McDougal.

Vice President of Finance and Administration

On March 8, 2010, we appointed David Z. Strickler, Jr. as our
Vice President of Finance and Administration. We have agreed to pay Mr.
Strickler an annual salary of $150,000 per year. In addition, we granted to Mr.
Strickler options to purchase 200,000 shares of our common stock at an exercise
price of $0.82 per share. The options granted to Mr. Strickler vest at a rate of
25,000 options per fiscal quarter, beginning on March 31, 2010, and expire five
years after the particular vesting date.

6

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A summary of Mr. Stricklers business experience is provided
under Item 10 of this Annual Report on Form 10-K.

Competition

We are a mineral resource exploration and development company.
We compete with other mineral resource exploration and development companies for
the acquisition of new mineral properties, the services of contractors,
equipment and financing. Many of the mineral resource exploration and
development companies with whom we compete may have greater access to a limited
supply of qualified technical personnel and contractors and to specialized
equipment needed in the exploration, development and operation of mineral
properties. This could have an adverse effect on our ability to explore and
develop our properties in a timely manner. In addition, because many of our
competitors are more established and have a longer operating history than us,
they may have greater access to promising mineral properties.

In addition, many of our competitors have greater financial
resources than us. Accordingly, these competitors may be able to spend greater
amounts on acquisitions of mineral properties of merit, on exploration of their
mineral properties and on development of their mineral properties. In addition,
they may be able to afford greater geological expertise in the targeting and
exploration of mineral properties. This may make our competitors more attractive
to potential investors and could adversely impact our ability to obtain
additional financing if and when needed.

Government Regulations

The mining industry in the United States is highly regulated.
We intend to secure all necessary permits for the exploration of the Columbus
Project and the Red Mountain Project and, if development is warranted on the
properties, will file final plans of operation prior to starting any mining
operations. The consulting geologists that we hire are experienced in conducting
mineral exploration activities and are familiar with the necessary governmental
regulations and permits required to conduct such activities. As such, we expect
that our consulting geologists will inform us of any government permits that we
will be required to obtain prior to conducting any planned activities on the
Columbus Project and the Red Mountain Project. We are not able to estimate the
full costs of complying with environmental laws at this time since the full
nature and extent of our proposed mining activities cannot be determined until
we complete our exploration program.

If we enter into the development or production stages of any
mineral deposits found on our mineral properties, of which there are no
assurances, the cost of complying with environment laws, regulations and
permitting requirements will be substantially greater than in the exploration
phases because the impact on the project area is greater. Permits and
regulations will control all aspects of any mineral deposit development or
production program if the project continues to those stages because of the
potential impact on the environment. Examples of regulatory requirements
include:

- Water discharge will have to meet water standards;
- Dust generation will have to be minimal or otherwise re-mediated;
- Dumping of material on the surface will have to be re-contoured and
  re-vegetated;
- An assessment of all material to be left on the surface will need to be
  environmentally benign;
- Ground water will have to be monitored for any potential contaminants;
- The socio-economic impact of the project will have to be evaluated and if
  deemed negative, will have to be re-mediated; and,
- There will have to be a report of the potential impact of the work on the
  local fauna and flora.

Employees

As of the date of this Annual Report, other than our officers
and directors, we have nine full-time employees. We do not have any part-time
employees.

Research and Development Expenditures

We have not incurred any research or development expenditures
since our incorporation.

7

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|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 operation.

Although we have installed the leach circuit of the onsite
pilot production module for the Columbus Project, there is no assurance that
this project is commercially feasible.

We have begun testing and optimizing the onsite pilot
production module at 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. 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.

We will likely require additional financing to complete our
exploration and development programs for our mineral projects.

We expect to spend approximately $7,325,000 on the exploration
and development of our Columbus and Red Mountain Projects and the general costs
of operating and maintaining our business and mineral properties during our 2010
fiscal year and the first quarter of 2011. We currently have sufficient capital
resources to pay for the anticipated costs of operating our business and
completing our 2010 exploration and development plans. However, the actual costs
of completing those programs could be greater than anticipated and we may need
additional financing sooner than anticipated. In addition, based on our current
budget estimates, we expect to need additional financing to proceed with our
exploration and development programs beyond the first quarter of 2011.

Our ability to obtain future 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 our
common stock, our existing stockholders will experience dilution.

The most likely source of future financing presently available
to us is through the sale of shares 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 mineral 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.

In order to maintain the rights to our mineral properties,
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 the rights to our mineral projects, 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 our mineral properties. A failure by us
to meet the annual maintenance requirements under federal and state laws could
cause our mineral rights to lapse.

8

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

Prior to exiting the 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.

The search for valuable minerals as a business is extremely
risky. Although we have been encouraged by the results of the exploration work
conducted by us to date, further exploration work is required before proven or
probable reserves can be established, and there are no assurances that we will
be able to establish any proven or probable reserves. Exploration for minerals
is a speculative venture, necessarily involving substantial risk. The
expenditures to be made by us 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.

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

The search for valuable minerals involves numerous hazards. As
a result, when conducting 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 establish proven or probable reserves on our
mineral claims, we may not be able to successfully reach commercial
production.

We anticipate using a low cost, high volume surface dredge
operation to mine the Columbus Project. Our pre-feasibility program for the
Columbus Project is designed to test and optimize our planned mining process for
the Columbus Project. There is no assurance that this pre-feasibility program
will result in a decision to enter into commercial production. In addition,
expanding our production facilities to accommodate commercial operations is
expected to require substantially more financial resources than what we
currently have available to us.

There is a risk that we will not be able to obtain such
financing if and when needed.

9

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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.

We are subject to compliance with government regulations.
The costs of complying with these regulations may change without notice, and may
increase the anticipated cost of our exploration and development
programs.

There are several government regulations that materially
restrict the exploration of minerals. We will 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.

In addition, 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.

If we decide to pursue commercial production, we may be subject
to an environmental review process that may delay or prohibit commercial
production.

Our planned method for mining the Columbus Project is not
expected to generate any significant long term environmental impact. However, we
have not yet had a comprehensive environmental review conducted on our planned
mining operations for the Columbus Project.

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 do not approve our
mine or if the costs of compliance with government regulation adversely affected
the commercial viability of the proposed mine.

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 Bulletin 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 Securities
Exchange Act of 1934 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.

10

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If we are, or were, a U.S. real property holding
corporation, non-U.S. holders of our common stock or other security convertible
into our common stock could be subject to U.S. federal income tax on the gain
from the sale, exchange, or other disposition of such security.

If we are or ever have been a U.S. real property holding
corporation (a USRPHC) under the Foreign Investment Real Property Tax Act of
1980, as amended (FIRPTA) and applicable United States Treasury regulations
(collectively, the FIRPTA Rules), unless an exception described below applies,
certain non-U.S. investors in our common stock (or options or warrants for our
common stock) would be subject to U.S. federal income tax on the gain from the
sale, exchange or other disposition of shares of our common stock (or such
options or warrants), and such non-U.S. investor would be required to file a
United States federal income tax return. In addition, the purchaser of such
common stock, option or warrant would be required to withhold from the purchase
price an amount equal to 10% of the purchase price and remit such amount to the
U.S. Internal Revenue Service.

In general, under the FIRPTA Rules, a company is a USRPHC if
its interests in U.S. real property comprise at least 50% of the fair market
value of its assets. If we are or were a USRPHC, so long as our common stock is
regularly traded on an established securities market (as defined under the
FIRPTA Rules), a non-U.S. holder who, actually or constructively, holds or held
no more than 5% of our common stock is not subject to U.S. federal income tax on
the gain from the sale, exchange, or other disposition of our common stock under
FIRPTA. In addition, other interests in equity of a USRPHC may qualify for this
exception if, on the date such interest was acquired, such interests had a fair
market value no greater than the fair market value on that date of 5% of our
common stock. Any of our common stockholders (or owners of options or warrants
for our common stock) that are non-U.S. persons and own or anticipate owning
more than 5% of our common stock (or, in the case of options or warrants, of a
value greater than the fair market value of 5% of our common stock) should
consult their tax advisors to determine the consequences of investing in our
common stock (or options or warrants). We have not conducted a formal analysis
of whether we are or have ever been a USRPHC. We do not believe that we are or
have ever been a USRPHC. However, if we later determine that we were a USRPHC,
then we believe that we would have ceased to be a USRPHC as of June 1, 2005 and
that non-U.S. holders would not be subject to FIRPTA with respect to a sale,
exchange, or other disposition of shares of our common stock (or options or
warrants) after June 1, 2010.

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. | PROPERTIES.
|------- | -----------

We currently lease office space located at Suite 100, 2441 W. Horizon Ridge Parkway, Henderson, NV 89052 at a rate of $4,625 per month.  The lease terms expired on August 31, 2008, and we continue to rent the existing space on a month-to-month basis.

We currently own an interest in, or rights to, two mineral
projects that we refer to as the Columbus Project and the Red Mountain
Project.

THE COLUMBUS PROJECT

The Columbus Project is a sediment hosted gold and silver
exploration project located in western Nevada. It is comprised of 296 mining and
millsite claims which cover 43,178 acres and an additional 80 acres of private
land, for a total of 43,258 acres. We currently own a 100% stake in 149 of the
claims (which we refer to as the CSM Claims), with rights to an additional 147
peripheral claims (which we refer to as the DDB Claims).

11

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LOCATION

The mineral claims that make up the Columbus Project are
located in the Columbus Salt Marsh, Esmeralda County, Nevada, northwest of
Coaldale Junction, approximately 50 miles west of Tonopah (Fig. 1) halfway
between Las Vegas and Reno. Access is from the junction of US6 and Nevada
Highway 95, approximately 10 miles north of Coaldale Junction, to a gravel road
westerly to the mill site and to the remains of the town of Columbus.

The Columbus Salt Marsh is an enclosed basin and is a dry lake
bed for the majority of the year. All surface drainage from a surrounding 360
square mile area flows into the Columbus Salt Marsh.



TITLE AND OWNERSHIP RIGHTS TO THE CSM CLAIMS AND THE DDB
CLAIMS

The CSM Claims are wholly owned by Columbus S.M., LLC (CSM).
CSM was a wholly owned subsidiary of Columbus Minerals Inc., which is a wholly
owned subsidiary of Ireland Inc. The DDB Claims are wholly owned by a mining
syndicate known as the DDB Syndicate. Lawrence E. Chizmar, Jr., a former member
of our Board of Directors (and a former director of Columbus Brine Inc. (CBI),
the former owner of CSM and the CSM claims) and a limited liability company
controlled by Douglas D.G. Birnie, our President and Chief Executive Officer,
and a member of our Board of Directors, are each the owners of a 1/8 interest in
the DDB Syndicate. The remaining members of the DDB Syndicate are made up of the
former officers and directors of CBI, the brother of a former officer and director of CBI, and certain
affiliates of Nanominerals Corp. (Nanominerals).

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Nanominerals is a significant
shareholder in our Company. Mr. Birnie also owns a 3.5% interest in
Nanominerals. The DDB Claims were located by the DDB Syndicate in February 2007,
prior to Mr. Birnies, Nanominerals or Mr. Chizmars involvement with our
Company. Mr. Birnie also acquired his interest in Nanominerals prior to his
involvement with our Company.



We acquired our interest in the CSM Claims and the DDB Claims
from Nanominerals pursuant to an assignment by Nanominerals of its rights to
both the Columbus Project and the Red Mountain Project under the terms of two
letter agreements (the Columbus Letter Agreement and the Red Mountain Letter
Agreement, respectively). In August 2007, Nanominerals completed the assignment
of its rights and interests under both the Columbus Letter Agreement and the Red
Mountain Letter Agreement to us, in consideration for which we:

| | (a) | issued an aggregate of 30,000,000 shares of our common
      stock to Nanominerals and certain business associates of Nanominerals
      (including 1,200,000 shares to Robert D. McDougal, our current Chief
      Financial Officer, Treasurer and a member of our Board of
    Directors);
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |     |                                                                                                                                                                                                                                                                                              
| | (b) | granted Nanominerals a 5% royalty on any net smelter
      returns from either of the Columbus Project or the Red Mountain Project,
      or any other mineral projects that Nanominerals may assign or transfer to
      us in the future;                                                  
| |     |                                                                                                                                                                                                                                                                                              
| | (c) | assumed all of Nanominerals obligations under the
      Columbus Letter Agreement and the Red Mountain Letter Agreement;
  and                                                                                                                                                               
| |     |                                                                                                                                                                                                                                                                                              
| | (d) | agreed to reimburse Nanominerals for any properly
      documented expenditures made by it on either the Columbus Project or the
      Red Mountain Project.                                                                                                                                 

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In addition to the consideration paid by us, Lorrie Ann
Archibald, then our Chief Executive Officer, Treasurer and sole director, and
our principal shareholder, sold to Nanominerals 18,200,000 shares of our common
stock, being all of the shares of our common stock owned by Ms. Archibald at
that time, for an aggregate of $45,500. Mr. Birnie was appointed as our Chief
Executive Officer, President and Secretary, and Mr. McDougal was appointed as
our Chief Financial Officer pursuant to the terms our agreement with Nanominerals.

By December 2007, under the terms of the Columbus Letter
Agreement, we had earned a 15% operating interest in the Columbus Project
by:

| | (a) | paying a total $24,000 per month split amongst CSM, John
      T. Arkoosh (the former President and a former director of CBI) and William
      Maghan (a former director of CBI) until December 31, 2007; and
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |     |                                                                                                                                                                                                               
| | (b) | spending a total of $3,000,000 on examining, testing,
      exploring or developing the Columbus Project before December 31, 2007 (the
      CP Expenditures).                                              

In February 2008, we increased our ownership of the Columbus
Project to 100% by merging CBI with and into our wholly owned subsidiary
incorporated for the sole purpose of acquiring CBI, CBI Acquisition, Inc.
Subsequent to the completion of the merger, CBI Acquisition, Inc.s name was
changed to Columbus Minerals Inc. To complete the merger, we issued to the
former stockholders of CBI an aggregate of 10,440,087 shares of our common stock
and share purchase warrants to acquire an additional 5,220,059 shares of our
common stock. The warrants issued are exercisable at a price of $2.39 per share
and expire on February 19, 2013. After August 19, 2010, if our common stock
trades at an average price of 150% of the exercise price of the warrants over a
period of 20 consecutive trading days, than we may accelerate the expiration
date to a date that is 30 days after the date that we send notice of our
intention to exercise the acceleration right. The warrants issued to the former
stockholders of CBI provide the holder with a cashless exercise right. In
addition, we agreed to honor the terms of an option previously granted by CBI to
one of its former stockholders, and to extend that option to June 29, 2010. As a result, this person may exercise an option to purchase 79,719 shares of our common stock at a price of $1.36 per share on or before June 29, 2010.

After completing the acquisition of CBI, we acquired CBIs
rights under the terms of a mining lease that CBI entered into with the DDB
Syndicate in November 2007 (the DDB Agreement). The DDB Agreement provides us
with a 5 year lease on the DDB Claims, ending on November 29, 2012, with an
option to purchase the DDB Claims at anytime during the lease period. During the
year ended December 31, 2008, we paid the DDB Syndicate $130,000 under the terms
of the DDB Agreement, and we must pay the DDB Syndicate rental payments of
$30,000 per year, payable on June 30, 2009, 2010 and 2011 respectively in order
to maintain our lease rights. Under the option rights provided under the DDB
Agreement, we may purchase the DDB Claims by either:

| | (a) | paying the DDB Syndicate the purchase price of $400,000,
      less any rental payments previously made prior to exercise of the option
      right; or
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------
| |     |                                                                                                                                                        
| | (b) | paying the DDB Syndicate $10, plus granting the DDB
      Syndicate a royalty of 2% of net smelter returns on the DDB
  Claims.                        

ACCESS AND INFRASTRUCTURE

The Columbus Project contains an existing mill site with power
generator sets and an onsite fresh water well. Water used for processing is
available from existing wells located on the surrounding basin (the Columbus
Basin). There is also a high voltage grid located at the Candelaria Mines,
approximately three miles from the Columbus Project.

Permits have been obtained for the extraction of precious metals and the production of calcium carbonate from an area of interest consisting of approximately 378 acres, including millsite, roads and mineable acreage.

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HISTORY

The Columbus area has had mining activity for over 100 years.
Silver was discovered in 1863 in the area of the Candelaria Mine, to the
northwest of the Columbus Basin. These deposits were mined intermittently by
different companies through 1999, producing large quantities of silver and minor
gold. Salt was first mined in the Columbus Salt Marsh in 1864, followed by borax
in 1871. Precious metals were thought to exist in the basin sediments as early
as the late 19th century but no production is documented. Mining
ceased in the Columbus Marsh around the beginning of the 20th
century.

The Columbus Project is located in an area that has
historically been known as a well mineralized region. A silver and gold mining
operation known as the Candelaria Mine is located approximately five miles
northwest of the Columbus Project. The Round Mountain project is a gold
operation located approximately 60 miles northeast of the Columbus Project. The
Clayton Valley Brine Project, a lithium extraction project, is located
approximately 25 miles southeast of the Columbus Project.

GEOLOGY

The Columbus Project covers a flat enclosed basin with a
surface composed of salt deposits and is primarily devoid of vegetation. Older
sediments, which host the silver deposits of Candelaria, underlie several
sequences of volcanic rocks, with the youngest being the 15Ma Gilbert Andesite.
The region has undergone older thrust faulting, which hosts the Candelaria
deposits, and later extensional faulting as a result of movement along the
Walker Lane. The Columbus Basin is a one of several structural basins in the
region caused by right lateral movement along the Walker Lane and the subsequent
clockwise rotation and oblique extensional down dropping of the blocks within
this structural domain.

EXPLORATION AND DEVELOPMENT ACTIVITIES CONDUCTED ON THE
COLUMBUS PROJECT TO DATE

Surface Sampling Program and Initial Metallurgical
Work

Near surface basin sediment samples were taken in late 2006 and
early 2007 and analyzed by Arrakis Inc. (Arrakis), an independent engineering
lab based in Denver, Colorado. Sixty four surface samples, four shallow boring
samples, and a bulk sample were taken and analyzed using a four acid total
digestion and atomic absorption analysis. Samples were analyzed for Au, Ag, Cu,
and Fe. This work led to the discovery of a 5,000 acre surface gold anomaly in
the northwestern part of the basin. This gold anomaly is the primary focus of
current exploration and development work. The Permitted Mine Area (320 acres) is
situated in the north end of this zone.

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Drilling Program



An 18-hole hollow stem auger drill program was undertaken in Q3
2007 in the Permitted Mine Area to establish mineral potential at depth. Samples
were 18 in length, taken every 10 with a split spoon sampler. Material was
analyzed by Arrakis using a 3-acid modified version of aqua regia. A split was
analyzed by CBI staff at the onsite facility using a standard fire assay and it
was found that standard fire assay was ineffective. Repeated firing of the slag
showed that various amounts of the metals remained in the slag after each
firing.

Encouraging results warranted a second drill program, managed
by independent consultants McEwen Geological LLC (McEwen), which took place in
Q2-Q3 2008, consisting of 39 widely spaced holes and a total of just less than
10,000 feet using sonic drilling technology. Twenty five holes were drilled in
the A program, 14 holes in the B program. For this program, holes were
drilled to a maximum depth of 400. The sonic drilling resulted in continuous
sample material, therefore providing an improved representation of each drill
interval. Samples were sent to Arrakis and AuRIC Metallurgical Laboratories
(AuRIC) for analysis under chain of custody protocols.

A follow up drilling program was initiated in Q2 of 2009 to
delineate mineralized zones and further define the extent of gold and silver
mineralization potential in the project area. Fifty eight holes, for a total of
15,270 feet, were drilled as a follow up to the ~10,000 feet drilled in 2008.
Sample intervals were changed from 10 to 20 because of the homogeneity of the
sample material. Again, the drill material was stored in polyethylene bags in
the onsite core facility. Samples were submitted to AuRIC for
caustic fusion analysis under chain of custody protocols. In addition, 211 clay
samples were taken at various depths for density determinations.

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MODELING RESULTS

The following discussion is based upon geologic and
mineralization modeling prepared for us by McEwen.

Geologic Model

The lakebed clay varies in color, moisture content, texture,
and organic content. Because of the wide drill hole spacing, it is not possible
to correlate between individual clay units. At present, the clay will not be
sub-classified and will be referred to as a single unit. Average dry bulk
density of the clay, taken from the 200+ samples, is 1.423
tonnes/m3.

Along the western edge of the project area, alluvial material
occurs as fans which descend beneath the clay toward the center of the basin.
The depth to this sand was gridded and contoured. This information is very
useful for determining where this sand unit might be encountered during future
drilling. In general, changes in sand depth parallel the basin.

Mineralization Model

Results from the computer generated mineralization model
developed by McEwen were used to determine zones of potentially economic metal
concentration. Seven distinct zones were identified for further evaluation.
These zones will be prioritized by us for further exploration and development
based on their spatial distribution, overall estimated metal content, and
proximity to the existing facilities. All results are reported in total Au
equivalent (AuE), calculated using the formula Au(opt)+0.013Ag(opt)=AuE(opt)
(based on $900/oz Au and $12/oz Ag). A head grade cutoff value of 0.03opt was
chosen based on recent metallurgical results from AuRIC.

Zone
    Million tons (short)
    Sample Grade (AuE opt)S North
    83.5
    0.038S South
    29.5
    0.035A West
    44.5
    0.042A East
    42.0
    0.037B Central
    63.4
    0.045C West
    24.5
    0.037C East
    56.5
    0.042TOTAL
    343.9
    0.040


Of all seven zones identified to date, four are laterally
continuous and three are two dimensional. Zones S South, B Central, and C West
are two dimensional and the confidence for mineralization estimation is less
than for the other zones. The most favorable zone is the S North zone. This zone
is a mixed sand/clay zone. The assay results for the sand are for the most part
>0.02opt, with a high value of 0.055opt AuE. Zone S South is also in the sand
unit, with consistently high assay. Even though zone S South is two dimensional,
it is highly likely that these zones are contemporaneous and this southern zone
is of exploration significance.

Zone A West could be thought of as an eastern extension of the
S North zone. It is comprised of clay and is two dimensional with lateral
extension to the south side. It appears that the trend of the blocks >0.03opt
dips to the east, with the anomalous values becoming deeper. This is, however, a
function of the vertical exaggeration and just an expression of the natural
topography. It is presently thought that this zone is along the trend of an
inferred northwesterly subsurface structure. This zone is distinguished from the
S North zone by the absence of sand above 100 depth.

Zone A East is laterally continuous, with a void between the
southern and northern blocks. It is of lower concentrations and shows moderate
potential. Zones B Central and C West are both two dimensional, with no lateral
extension. At this time, not enough information exists to determine if these
zones are of potentially sufficient concentration, thus placing them of lowest
priority.

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Zone C East is, like A West, laterally continuous in a single
block to the north. It contains a similar average concentration, larger tonnage
potential, and is open to the east and south. This makes it of interest for
continued exploration. However, because of its location and distance from the
existing infrastructure, it is lower in priority than the A West zone.



2010 Drill Program

Our 2010 drill program is being designed to determine the grade
and tonnage consistency between the drill holes in the mineralized zones of most
economic interest with the goal of upgrading the mineralization estimates for
inclusion in the project pre-feasibility study. Drilling is expected to be
focused around the Zone S North, Zone A West and Zone S South areas based on our
working geologic model, average assay results within those areas and the
proximity of those areas to our Permitted Mine Area. We expect to begin the
process of obtaining exploratory drill permits in Q2 of 2010.

Analytical Methodology

All reported drill results were determined by caustic fusion
assay and analysis of the extracted metal for gold and silver. Sampling and
analyses were conducted by qualified independent professionals, under chain of
custody procedures, and included blind labeling of samples, the insertion of
blanks, standard reference material and repeats to ensure the quality of
results.

Independent metallurgists engaged in extensive research and
testing before they determined the best pyrometallurgical and hydrometallurgical
methodologies for extracting gold and silver from the organic carbon rich clays
at the Columbus Project.

Caustic fusion is a standard pyrometallurgical method used for
rock dissolution and subsequent analysis. A caustic fusion protocol was selected
as the preferred method for head grade assays, because it has proven to be very effective in liberating and collecting gold and silver,
as metal-in-hand, from the Columbus organic carbon rich clays. Independent work
has shown that conventional fire assaying, another standard pyrometallurgical
method, extracts extremely low gold and silver values from the Columbus Project
material.

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Thiosulphate leaching is a relatively new, environmentally
friendly, hydrometallurgical method for extracting gold and silver from ores.
Again, independent work has shown that thiosulphate leaching, followed by resin
or carbon extraction, has been very effective in bench and pilot scale tests for
the extraction of gold and silver, as metalin-hand, at the Columbus Project.
Aqua regia and cyanide leaching tests proved ineffective and resulted in
extremely low gold and silver extraction. It is the thiosulphate leach system
that is currently being installed onsite to prove the feasibility of the
Columbus Project.

As mentioned previously, the entombment of the precious metals
in the organic carbon and clays at the Columbus Project can cause problems of
detection by many methods of analysis. The Nevada Bureau of Mines and Geology
(NBMG) recently reported they found no economically significant amounts of gold
and silver in five surface samples from the Columbus Salt Marsh using a variety
of assay methods. These results are consistent with the values initially found
by our independent consultants using similar methods. However, further research
and testing led to the development of a caustic fusion protocol, a thiosulphate
leach process and, more recently, a modified fire assay method that did extract
economically significant values of gold and silver as metal-in-hand, from
samples where conventional fire assay, aqua regia leach and cyanide leach
extracted very low values.

The best assay of any geological sample is by quantifying the
extracted metal. That is why we and our consultants rely only on extracted gold
and silver as metal-in-hand for reporting assay results. Both the caustic
fusion and the thiosulphate leach provide metal-in-hand and, together with the
quality assurances and quality controls of the drill program, we and our
consultants are confident of the results that we have reported.

Pilot and Bench Scale Leach Test Results

In the first quarter of 2009, AuRIC conducted a pilot scale
leach test on 1,738 pounds of material extracted from our Permitted Mine Area by
Arrakis under chain of custody protocols. 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 AuE. Upon completion of the test,
the precious metal beads were delivered to us.

In the second quarter of 2009, AuRIC conducted bench scale
leach tests on composite drill samples taken from Zone B Central by McEwen. The
tested materials were composited from previously submitted and analyzed drill
samples taken during our 2008 drilling program. The results of these bench scale
leach tests were consistent with the results obtained from the bulk leach test
conducted on materials extracted from the Permitted Mine Area in the first
quarter of 2009.

In the third quarter of 2009, AuRIC conducted additional bench
scale leach tests and a pilot scale leach test on samples taken from Zone B
Central by McEwen. The bulk materials for the pilot scale test assayed 0.070 opt
Au and 0.302 opt Ag, or 0.074 opt AuE. The pilot scale leach test on those
material extracted 0.066 opt Au and 0.181 opt Ag, or 0.068 opt AuE. The
extracted precious metals were then collected on activated carbon and processed
to produce Au and Ag bullion for a net extraction of 0.060 opt Au and 0.168 opt
Ag, or 0.062 opt AuE. This represents leach extraction of 92.4% of AuE into
solution and 84.1% of AuE as metal in hand.

All bench scale leach tests were conducted on composite samples
taken from the Permitted Mine Area or the 2008 and 2009 drill programs. AuRIC
created 5.5 pound composites for each of the mineralized intervals tested. The
composites were then assayed using a caustic fusion technique, and then leached.
The leach results indicate that the mineralogy of the Permitted Mine Area and
Zone B Central are consistent with each other.

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Parameter / Zone
    Test Size
      (lbs)
    Head Grade (opt
      AuE)
    AuE Recovered into
      Solution (opt)
    % Recovered into
      Solution
    AuE Recovered as
      Metal (opt)1
    % Recovered as
      MetalPermitted Mine Area
    1,738
    0.062
    0.053
    85.9%
    0.043
    69.6%S
      South  S1B Composite
    5.5
    0.041
    0.037
    89.9%
    n/a
    n/aB
      Central  S9B Composite
    5.5
    0.074
    0.066
    89.8%
    n/a
    n/aB
      Central  S12B Composite
    5.5
    0.057
    0.046
    81.3%
    n/a
    n/aB
      Central  S12B Composite
    5.5
    0.057
    0.054
    94.0%
    n/a
    n/aB
      Central  S9B
    5.5
    0.074
    0.055
    74.7%
    n/a
    n/aB
      Central  S9B
    1.8
    0.074
    0.058
    78.7%
    n/a
    n/aB
      Central  S9B
    2,000
    0.074
    0.068
    92.4%
    0.062
    84.1%


We are continuing to work on optimizing the leach and
extraction process in order to maximize precious metal extraction rates.

Pilot Plant Installation and Surface Dredge
Operations

Our pilot production plant was installed in the Permitted Mine
Area by Arrakis is October 2008. The precious metals leach extraction circuit
was recently added to the onsite pilot plant and is currently being tested and
optimized. The pilot production process consists of a pilot scale production and
processing circuit that we are using to test the commercial viability of mining
and extracting precious metals the Columbus Project. We currently have a
production permit from Nevada Division of Environmental Protection that allows
us to produce calcium carbonate and extract precious metals at the Permitted
Mine Area at a rate of up to 792,000 tons per year.



__________________________1 Bench Scale Tests
are too small to be recovered as metal with resins or activated carbon.

20

---

We are currently using a low cost surface dredge mining method
at the Permitted Mine Area. The clays are mined by dredge and handled as a
slurry throughout the production process. Once the clays have been slurried, we
use thiosulfate leaching and carbon-in-pulp for extraction of the precious
metals. This mining process has, to date, proven to be very successful and is
our preferred method of mining as the cost per ton is low. The final extraction
method is expected to involve leaching chemicals to recover the minerals from
the materials. In March 2010, we completed the installation of the leach
circuit. The metallurgical data generated from operating the leach plant will be
used in the pre-feasibility study for the project.

Readers are cautioned that, although we believe that the
results of our exploration activities to date have been sufficiently positive to
proceed with the installation and operation of a pilot processing facility at
the Columbus Project millsite, we have not yet established any probable or
proven reserves. Additional exploration work will be required before probable or
proven reserves can be established. There are no assurances that the results of
our pre-feasibility and technical programs will result in a decision to enter
into commercial production.

THE RED MOUNTAIN PROJECT

The Red Mountain Project is a potential gold, silver and
tungsten project that consists of 60 mineral claims covering approximately 7,500
acres, all located in San Bernardino County and Kern County, California. Title
to these mineral claims is currently recorded in the names of a number of
individuals who, together, make up a mining syndicate known as Red Mountain
Mining (RMM). We have been notified that some of the claims making up the Red
Mountain Project may conflict with other existing mineral claims and other
property rights covering the location of the project. We intend to work with RMM
to in order to resolve these issues.

RIGHTS TO THE RED MOUNTAIN PROJECT

We acquired our rights to the Red Mountain Project on August
14, 2007, pursuant to an assignment to us by Nanominerals of its rights and
interests under the Red Mountain Letter Agreement between it and RMM. For a
description of the consideration paid by us to Nanominerals in exchange for the
assignment of its rights under the Red Mountain Letter Agreement, as well as its
rights under the Columbus Letter Agreement, please see our description of the
Columbus Project, provided above, and below at Item 13. Certain Relationships
and Related Transactions, and Director Independence.

The Red Mountain Letter Agreement provides that we are to:

| | (a) | pay $5,000 per month to RMM until December 31,
    2011;                                                                                                                
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |     |                                                                                                                                                                         
| | (b) | spend a total of $200,000 by December 31, 2008 on
      examining, testing, exploring or developing the Red Mountain Project (the
      RMP Phase 1 Expenditures); and
| |     |                                                                                                                                                                         
| | (c) | spend a total of $1,000,000 by December 31, 2011 on
      examining, testing, exploring or developing the Red Mountain Project (the
      RMP Phase 2 Expenditures).  

For each $100,000 spent by us on the RMP Phase 1 or RMP Phase 2
Expenditures, we will earn a 5% interest in the Red Mountain Project (or a
proportionate fractional interest for expenditures in denominations of less than
$100,000). We will earn a maximum 60% interest in the Red Mountain Project if we
spend the full $1,200,000 of the RMP Phase 1 and RMP Phase 2 Expenditures by the
deadlines set out above.

In addition, at any time, we may acquire a 100% interest in the
Red Mountain Project (the RM Acquisition Rights) by:

| | (a) | paying and issuing to RMM the following consideration:
| | --- | ------------------------------------------------------
| |     |                                                       
| |     | (i)                                                   

21

---

| |     | (ii)                                                                                                                                      | between 280,000 and 5,600,000 shares of our common stock,
      with the actual number of shares to be issued to be determined by dividing
      $1,400,000 by the Acquisition Price (defined below);                                                                                  
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |     |                                                                                                                                           |                                                                                                                                                                                                                                                                                        
| |     | (iii)                                                                                                                                     | for every four shares issued under (a)(ii), we will be
      required to issue one share purchase warrant to acquire one additional
      share of our common stock at a price per share equal to 125% of the
      Acquisition Price, for a period of two years; and                  
| |     |                                                                                                                                           |                                                                                                                                                                                                                                                                                        
| | (b) | if the Red Mountain Project achieves commercial
      production, paying and issuing to RMM the following additional
      consideration:
| |     |                                                                                                                                           |                                                                                                                                                                                                                                                                                        
| |     | (i)                                                                                                                                       | an additional $100,000 in cash;                                                                                                                                                                                                                                                        
| |     |                                                                                                                                           |                                                                                                                                                                                                                                                                                        
| |     | (ii)                                                                                                                                      | between 480,000 and 9,600,000 additional shares of our
      common stock, with the actual number of additional shares to be issued to
      be determined by dividing $2,400,000 by the Acquisition Price;
  and                                                                      
| |     |                                                                                                                                           |                                                                                                                                                                                                                                                                                        
| |     | (iii)                                                                                                                                     | for every four additional shares issued under (b)(ii), we
      will be required to issue one additional share purchase warrant to acquire
      one additional share of our common stock at a price per share equal to
      125% of the Acquisition Price, for a period of two
years.

The Acquisition Price to be used to calculate the aggregate
number of shares and share purchase warrants to be issued to RMM under the terms
of the Red Mountain Letter Agreement will be the average closing price of our
common stock during the 60 days prior to the acquisition date, provided,
however, that the Acquisition Price shall not be lower than $0.25 and shall not
be greater than $5.00.

As of December 31, 2009, the date of our most recently
available financial statements, we had spent $619,292 on the Red Mountain
Project, meaning that, as of December 31, 2009, we owned a 30.6% interest in the
project.

LOCATION AND ACCESS

The Red Mountain Project is located at the base of Red
Mountain, which is 27 miles south of Ridgecrest in San Bernardino County and
Kern County, California, approximately 75 miles northeast of Los Angeles. The
Red Mountain Project can be accessed by using a gravel road that bisects the
project from northwest to southeast.

The Red Mountain Project does not contain any useable
infrastructure other than a water well.

22

---



HISTORY

The Red Mountain Project is east of and adjacent to the Rand
Mining District, initially discovered in 1894. The Rand Mining District was
mined off and on until just recently for gold, silver and tungsten. The majority
of the mines in the area consisted of small independent operations. There is
currently no commercial mining occurring on the Red Mountain Project site.

GEOLOGY

The area surrounding the Red Mountain Project is highly
mineralized with recorded production of gold, silver and tungsten.

Nanominerals had Arrakis review the Red Mountain Project,
including the existing reports on work previously done by RMM. RMM has excavated
over 100 test pits at the project site and has gravity concentrated the bulk
samples taken from these pits. The results of RMMs tests show values ranging
from less than 0.01 troy ounces of gold per ton to over 1.00 troy ounces of gold
per ton. Those test results reportedly show an average of 0.06 opt. Arrakis
reported that the grades were similar to other grades that have been reported in
the area on similar mine sites.

Based on their review of the existing reports and a field visit
to the Red Mountain Project site, Arrakis has recommended that we proceed with
an exploration program to verify the reported gold grades in RMMs studies and
to test the recoverability in order to assess the economic viability of the Red
Mountain Project.

CURRENT EXPLORATION

Our exploration and development program for the Red Mountain
Project currently consists of a drilling and sampling program. Currently the Red
Mountain Project is not in active development. We have set a budget of $240,000
for the exploration and development program at Red Mountain in 2010. However
this program is contingent on certain milestones being achieved at our lead
project, the Columbus Project. We have reallocated funds originally budgeted towards the Red Mountain Project in
order to provide us with maximum flexibility in achieving our technical
milestones at our lead project.

23

---

|ITEM 3. | LEGAL PROCEEDINGS.
|------- | ------------------

We are not a party to any other legal proceedings and, to our
knowledge; no other legal proceedings are pending, threatened or
contemplated.

24

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PART II

|ITEM 5. | MARKET FOR REGISTRANTS COMMON EQUITY,
      RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY
      SECURITIES.
|------- | -------------------------------------------------------------------------------------------------------------------------

MARKET INFORMATION

Quotations for our common stock were entered on the OTC
Bulletin Board under the symbol "IREL" beginning on May 8, 2006. Our symbol was
changed to IRLD on April 25, 2007 upon completion of our 4-for-1 stock split.
The following is the high and low bid information for our common stock during
each fiscal quarter of our last two fiscal years.

2009
    
    
    2008High
    
    
    Low
    
    
    High
    
    
    LowFirst quarter ended March 31
    $
    0.71
    
    $
    0.21
    
    $
    2.05
    
    $
    1.35Second quarter ended June 30
    $
    0.69
    
    $
    0.41
    
    $
    1.45
    
    $
    0.60Third quarter ended September 30
    $
    0.55
    
    $
    0.30
    
    $
    0.98
    
    $
    0.31Fourth quarter ended December 31
    $
    0.51
    
    $
    0.32
    
    $
    0.50
    
    $
    0.10


Quotations entered on the OTC Bulletin Board reflect
inter-dealer prices, without retail mark-up, markdown or commission and may not
represent actual transactions.

PENNY STOCK RULES

The SEC has adopted rules that regulate broker-dealer practices
in connection with transactions in penny stocks. Penny stocks are generally
equity securities with a price of less than $5.00, other than securities
registered on certain national securities exchanges or quoted on the NASDAQ
system, provided that current price and volume information with respect to
transactions in such securities is provided by the exchange or system. The penny
stock rules require a broker-dealer, prior to a transaction in a penny stock not
otherwise exempt from those rules, to deliver a standardized risk disclosure
document prepared by the SEC, which:

| | (a) | contains a description of the nature and level of risk in
      the market for penny stocks in both public offerings and secondary
      trading;                                                                                        
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (b) | contains a description of the broker's or dealer's duties
      to the customer and of the rights and remedies available to the customer
      with respect to a violation of such duties or other requirements of
      securities laws;
| | (c) | contains a brief, clear, narrative description of a
      dealer market, including bid and ask prices for penny stocks and the
      significance of the spread between the bid and ask price;                                           
| | (d) | contains a toll-free telephone number for inquiries on
      disciplinary actions;                                                                                                                                                       
| | (e) | defines significant terms in the disclosure document or
      in the conduct of trading in penny stocks; and                                                                                                                             
| | (f) | contains such other information and in such form as the
      SEC shall require by rule or regulation.                                                                                                                                   

The broker-dealer also must, prior to effecting any transaction
in a penny stock, provide the customer with:

| | (a) | bid and offer quotations for the penny stock;                                                                                                                                 
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (b) | the compensation of the broker-dealer and its salesperson
      in the transaction;                                                                                           
| | (c) | the number of shares to which such bid and ask prices
      apply, or other comparable information relating to the depth and liquidity
      of the market for such stock; and
| | (d) | monthly account statements showing the market value of
      each penny stock held in the customer's account.                                                                 

In addition, the penny stock rules require that, prior to a
transaction in a penny stock that is not otherwise exempt from those rules, the
broker-dealer must:

| | (a) | make a special written determination that the penny stock
      is a suitable investment for the purchaser; and                                      
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------
| | (b) | receive from the purchaser his or her written
      acknowledgement of receipt of the determination and a written agreement to
      the transaction.

25

---

These disclosure requirements may have the effect of reducing
the trading activity in the secondary market for our common stock and therefore
stockholders may have difficulty selling those securities.

REGISTERED HOLDERS OF OUR COMMON STOCK

As of April 13, 2010, there were 188 registered holders of
record of our common stock. We believe that a large number of stockholders hold
stock on deposit with their brokers or investment bankers registered in the name
of stock depositories.

DIVIDENDS

We have not declared any dividends on our common stock since
our inception and we do not expect to declare any dividends in the foreseeable
future. We expect to spend any funds legally available for the payment of
dividends on the development of our mineral properties. There are no dividend
restrictions that limit our ability to pay dividends on our common stock in our
Articles of Incorporation or bylaws. Chapter 78 of the Nevada Revised Statutes
(the NRS), does provide certain limitations on our ability to declare
dividends. Section 78.288 of Chapter 78 of the NRS prohibits us from declaring
dividends where, after giving effect to the distribution of the dividend:

| | (a) | we would not be able to pay our debts as they become due
      in the usual course of business; or                                                                                                                                                                                                                                                                                                                                                        
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                           
| | (b) | except as may be allowed by our Articles of
      Incorporation, our total assets would be less than the sum of our total
      liabilities plus the amount that would be needed, if we were to be
      dissolved at the time of the distribution, to satisfy the preferential
      rights upon dissolution of stockholders who may have preferential rights
      and whose preferential rights are superior to those receiving the
      distribution.

RECENT SALES OF UNREGISTERED SECURITIES

During the fiscal year ended December 31, 2009, we sold a total
of 13,889,355 Units at a price of $0.45 per Unit under our 2009 US Offering and
our 2009 Foreign Offering.

In January 2010, we sold an aggregate of 11,035,000 Units at a
price of $0.45 per Unit under our 2010 US Offering and our 2010 Foreign
Offering.

Details of our 2009 and 2010 US and foreign offerings is
provided under Item 7 of this Annual Report on Form 10-K.

ITEM 7.
    MANAGEMENT'S DISCUSSION AND
      ANALYSIS OF FINANCIAL CONDITION AND
      RESULTS OF OPERATIONS.


PLAN OF OPERATION

During our 2010 fiscal year, we intend to proceed with our
exploration and development programs for the Columbus Project and the Red
Mountain Project.

The Columbus Project

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

|(a) | Determining Project Mineralization: The goal of
      the drilling program is to determine whether there is sufficient
      mineralization at the Columbus Project for economic viability. Our 2008
      and 2009 drill programs for the Columbus Project were conducted with a
      wide drill hole spacing (~1/4 mile x 1⁄2 mile) in order to determine the
      boundaries of mineralization in the previously identified area of interest
      covering approximately 5,000 acres. Our 2010 drill program is being
      designed to determine the grade and tonnage consistency between the drill holes in
      mineralized zones outlined to date. The goal of this program is to upgrade
      the mineralization estimates for inclusion in the project feasibility
  study.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

26

---

|(b) | Project Feasibility: We currently have a production permit for the Columbus Project.  The production permit allows us to extract precious metals and produce calcium carbonate on the 378 acre (320 acre mine site and 58 acres of mill sites) Permitted Mine Area located at the Columbus Project at a mine rate of up to 792,000 tons per year.  We have recently installed a precious metals leach extraction circuit at our onsite pilot plant. We are currently conducting testing and optimization of the leach circuit. Once testing and process optimization are completed, we expect to commence continuous operations of the pilot plant as part of our technical program goal of establishing economic feasibility.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|    | 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.                                                                                                                                                                                                                                                                                                    
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|    | 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 $5,220,000 on our
exploration and development program for the Columbus Project during our 2010
fiscal year.

The Red Mountain Project

Sampling and Drilling Program: Our exploration and
development program for the Red Mountain Project currently consists of a
Drilling and Sampling program. Currently the Red Mountain Project is not in
active development. We have set budget of $240,000 for Drilling and Sampling at
Red Mountain in 2010; however this program is contingent on certain milestones
being achieved at our lead project, the Columbus Project. We have reallocated
funds originally budgeted towards the Red Mountain Project in order to provide
us with maximum flexibility in achieving our technical milestones at our lead
project.

Cash Requirements

We have budgeted for the following expenditures for our 2010
fiscal year:

Columbus Projecto
    
    Property Payments
    
    $
    130,000o
    
    Drilling Program and Resource
      Estimates
    
    
    2,155,000o
    
    Pilot Plant / Project Feasibility
    
    
    2,935,000Total for Columbus Project
    
    $
    5,220,000Red
      Mountain Projecto
    
    Property Acquisition and
      Maintenance Costs
    
    $
    90,000o
    
    Sampling Exploration Program
    
    
    150,000Total for Red Mountain Project
    
    $
    240,000General
      and AdministrationTotal for General and Administration
    
    $
    1,865,000Total Cash Expenditures
    
    $
    7,325,000


As of December 31, 2009, we had cash in the amount of
$3,651,015 and a working capital surplus of $3,468,456. In January 2010, we sold
an aggregate of 11,035,000 Units at a price of $0.45 per Unit under our 2010 US
Offering and our 2010 Foreign Offering for total proceeds of $4,965,750. As a
result, we currently have sufficient capital to pay for the anticipated costs of
our exploration and development programs for our 2010 fiscal year and the first
fiscal quarter of 2011. However, actual costs could be greater than we have
anticipated and we have no additional financing arrangements in place.

27

---

RESULTS OF OPERATIONS

Summary of Year End Results

|                   |   | Year Ended December 31, |  
|------------------ | - | ----------------------- | -
|                   |   |                         |  
|                   |   | 2009                    |  
|Revenue            | $ | -                       |  
|Operating expenses |   | (4,962,226              | )
|Interest income    |   | 17,763                  |  
|Interest expense   |   | (2,255                  | )
|Income tax benefit |   | 1,698,066               |  
|Net loss           | $ | (3,248,652              | )

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.

Expenses

The major components of our expenses for the years ended
December 31, 2009 and 2008 are outlined in the table below:

|                                                                  |   | Year Ended December 31, | 
|----------------------------------------------------------------- | - | ----------------------- | 
|                                                                  |   |                         | 
|                                                                  |   |                         | 
|                                                                  |   | 2009                    | 
|Mineral exploration and evaluation
      expenses                 | $ | 3,158,132               | 
|Mineral exploration and evaluation expenses  related
      party |   | 520,831                 | 
|General and administrative                                        |   | 1,177,632               | 
|Depreciation                                                      |   | 45,631                  | 
|Mineral and property holding costs                                |   | 60,000                  | 
|Total operating expenses                                          | $ | 4,962,226               | 

Our operating expenses for the year ended December 31, 2009
decreased as compared to our December 31, 2008 fiscal year. The decrease in
operating expenses was due to expense deferral pending receipt of additional
project funding.

The item Mineral exploration and evaluation expenses  related
party represents (a) amounts paid or reimbursed to Nanominerals for exploration
work conducted on the Columbus and Red Mountain Projects; and (b) amounts paid
in respect of the DDB Claims to the DDB Syndicate, an entity owned by related
parties.

During our 2009 fiscal year, we incurred fees payable to
Nanominerals of $420,000 for technical and financing related services relating
primarily to the Columbus and Red Mountain Projects. In addition, we incurred
$100,831 in respect to reimbursable expenses paid for by Nanominerals. At
December 31, 2009, we were indebted to Nanominerals in the amount of $47,213 for
unpaid fees and reimbursable expenses.

28

---

During our 2009 fiscal year, we made $30,000 in rental payments
to the DDB Syndicate under the terms of our lease agreement for the DDB Claims.
The DDB Syndicate is a mining syndicate made up of a limited liability company
controlled by Douglas D.G. Birnie (our President, Chief Executive Officer and a
member of our Board of Directors), Lawrence E. Chizmar, Jr., a former member of
our Board of Directors (and a former director of CBI), three former officers,
directors and affiliates of CBI, and three companies affiliated with
Nanominerals. The $30,000 in rental payments made to the DDB Syndicate consisted
of $3,651 paid to each member of the DDB Syndicate, plus an additional $792 paid
to a company controlled by Mr. Birnie for the reimbursement of expenses related
to exploration work done on the DDB Claims.

We also had an outstanding balance for accrued compensation due
to Douglas D.G. Birnie (our President, Chief Executive Officer and a member of
our Board of Directors) in the amount of $9,000, payable to a company controlled
by Mr. Birnie.

The change in general and administrative expenses from 2008 to
2009 is primarily attributable to a combination of the fact that 2008 included
additional expenses related to the acquisition of the Columbus Project and to an
increase in 2009 in time and costs allocated to managing the Columbus
Project.

We anticipate that our operating expenses will 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         |   |                 |   |   |           |   |  |                       | 
|----------------------- | - | --------------- | - | - | --------- | - |  | --------------------- | 
|                        |   | At December 31, |  
|                        |   |                 |   |   |           |   |  | Percentage            | 
|                        |   | 2009            |   |   | 2008      |   |  | Increase / (Decrease) | 
|Current assets          | $ | 3,741,299       |   | $ | 2,734,552 |   |  | 36.8%                 | 
|Current liabilities     |   | (272,843        | ) |   | (175,049  | ) |  | 55.9%                 | 
|Working capital surplus | $ | 3,468,456       |   | $ | 2,559,503 |   |  | 35.5%                 | 

|Cash Flows                              |   |                         |   |   |            |  
|--------------------------------------- | - | ----------------------- | - | - | ---------- | -
|                                        |   | Year Ended December 31, |  
|                                        |   | 2009                    |   |   | 2008       |  
|Cash flows used in operating activities | $ | (4,611,805              | ) | $ | (4,165,066 | )
|Cash flows used in investing activities |   | (430,572                | ) |   | (2,029,716 | )
|Cash flows from financing activities    |   | 6,127,569               |   |   | 1,000      |  
|Net change in cash during period        | $ | 1,085,192               |   | $ | (6,193,782 | )

At December 31, 2009 we had a working capital surplus of
$3,468,456 as compared to a working capital surplus of $2,559,503 at December
31, 2008. The increase in our working capital surplus is primarily attributable
to the receipt of private placement funding in the third and fourth quarters of
2009.

The decrease in cash flows used for investing activities is due
to decreased equipment needs for our pilot production plant during the 2009
fiscal year.

Financing Requirements

We currently have sufficient financial resources to pay for the
expected costs of our exploration and development programs for fiscal 2010 and
the first quarter of fiscal 2011.

During our 2009 fiscal year, we sold a total of 13,889,355
Units under our 2009 US Offering and our 2009 Foreign Offering at a price of
$0.45 per Unit for total proceeds of $6,250,210. Each Unit offered under the
2009 US Offering and 2009 Foreign Offering consisted of one share of our common
stock and one-half of one share purchase warrant. As amended, the terms of each
full share purchase warrant entitles the holder to purchase one additional share of our common stock at a price of $0.75
per share for a period expiring on June 30, 2013. After June 30, 2010 we will
have the right to accelerate the expiration date of the warrants if:

29

---

| | (i)  | the volume weighted average price (VWAP) for our shares
      on the principal market on which they trade is above $4.50 per share for
      twenty consecutive trading days; and                       
| | ---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |      |                                                                                                                                                                                                           
| | (ii) | the average daily trading volume for our shares on the
      principal market on which they trade during those twenty consecutive
      trading days is equal to or greater than 0.2% of our free
  float.

Each subscriber under the 2009 US Offering represented that
they were an accredited investor as defined in Regulation D of the Securities
Act. Each subscriber under the 2009 Foreign Offering represented that they were
not US persons as defined in Regulation S of the Securities Act. We agreed to
pay a total of $286,526 and issue an aggregate of 272,881 warrants as
commissions in connection with our 2009 US Offering and 2009 Foreign
Offering.

In January 2010, we sold an aggregate of 11,035,000 Units at a
price of $0.45 per Unit in separate private placement offerings made to
accredited and foreign investors (the 2010 US Offering and the 2010 Foreign
Offering respectively) for total proceeds of $4,965,750. Each Unit offered was
comprised of one share of our common stock and one-half of one share purchase
warrant, with each full share purchase warrant entitling the holder to purchase
an additional share of our common stock at an exercise price of $0.75 per share,
expiring June 30, 2013. After June 30, 2010 we will have the right to accelerate
the expiration date of the warrants if:

| | (a) | the volume weighted average price (VWAP) for our shares
      on the principal market on which they trade is above $4.50 per share for
      twenty consecutive trading days; and                       
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |     |                                                                                                                                                                                                           
| | (b) | the average daily trading volume for our shares on the
      principal market on which they trade during those twenty consecutive
      trading days is equal to or greater than 0.2% of our free
  float.

We agreed to pay $6,300 and issue 6,000 share purchase warrants
as finders fees for the units subscribed for by foreign investors.

There is no assurance that the actual costs of our exploration
and development programs will not exceed our estimates. Furthermore, we may need
additional financing to proceed beyond our current exploration and development
plans. 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
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
disclosed in the notes to our audited financial statements included under Item 8
of this Annual Report.

30

---

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 the feasibility study, the mineral rights will be expensed at that
time.

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,
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. 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 Accounting Standards Codification (ASC) 360-10-35-15,
Impairment or Disposal of Long-Lived Assets.

Reclamation and Remediation Costs (Asset Retirement
Obligation)

We accrue costs associated with environmental remediation
obligations in accordance with ASC 410-20, Asset Retirement Obligations.
In accordance with ASC 410-20-25, Asset Retirement Obligations -
Recognition, 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 will be 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 ASC 450, Contingencies, or ASC 410-30-25,
Asset Retirement and Environmental Obligations -Recognition. 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
the exploration project and uncertainties associated with defining the nature
and extent of environmental disturbance 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 December 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 13 of the
financial statements included with this Annual Report.

31

---

|ITEM 8. | FINANCIAL STATEMENTS AND SUPPLEMENTARY
      DATA.
|------- | --------------------------------------------------

Index to Financial Statements:

Audited financial statements for the year ended December 31,
2009, including:

|1. | Report of Independent Registered Accounting Firm (Brown
      Armstrong Paulden McCown Starbuck Thornburgh & Keeter Accountancy
  Corporation);                               
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                               
|2. | Consolidated Balance Sheets as of December 31, 2009 and
  2008;                                                                                                               
|   |                                                                                                                                                                               
|3. | Consolidated Statements of Operations for the years ended
      December 31, 2009 and 2008 and the period on February 20, 2001 (date of
      inception) to December 31, 2009;
|   |                                                                                                                                                                               
|4. | Consolidated Statement of Stockholders Equity for the
      period from February 20, 2001 (date of inception) through December 31,
      2009; and                           
|   |                                                                                                                                                                               
|5. | Consolidated Statements of Cash Flows for the years ended
      December 31, 2009 and 2008 and the period on February 20, 2001 (date of
      inception) to December 31, 2009;
|   |                                                                                                                                                                               
|6. | Notes to Consolidated Financial
  Statements.                                                                                                                                 

32

---

BROWN ARMSTRONG 
ACCOUNTANCY CORPORATION



REPORT OF INDEPENDENT REGISTERED PUBLIC  ACCOUNTING FIRM

To the Board of Directors and
Stockholders of Ireland Inc.

We have audited the accompanying consolidated balance sheets of Ireland Inc. (An Exploration Stage Company) as of December 31, 2009 and 2008, and the related consolidated statements of operations, including inception cumulative data prospectively from February 20, 2001, stockholders’ equity, and cash flows for each of the years in the two-year period ended, and from inception to, December 31, 2009. Ireland Inc.’s management is responsible for these financial statements. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of Ireland Inc. (An Exploration Stage Company) as of December 31, 2009 and 2008, and the results of its operations, including inception cumulative data, and its cash flows for each of the years in the two-year period ended, and from inception to, December 31, 2009 in conformity with accounting principles generally accepted in the United States of America.

The accompanying consolidated financial statements have been prepared assuming the Company will continue as a going concern.  As described in Note 1 to the consolidated financial statements, the Company’s operating losses raise substantial doubt about its ability to continue as a going concern, unless the Company attains future profitable operations and/or obtains additional financing.  The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.

BROWN  ARMSTRONG
ACCOUNTANCY  CORPORATION



April 15, 2010
Bakersfield, California

F-1

---

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

|                                                                                                                                                                                              |   | December 31, 2009 |   |   | December 31, 2008 |  
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | - | ----------------- | - | - | ----------------- | -
|                                                                                                                                                                                              |   |                   |   |   |                   |  
|ASSETS                                                                                                                                                                                        |  
|                                                                                                                                                                                              |   |                   |   |   |                   |  
|Current assets                                                                                                                                                                                |   |                   |   |   |                   |  
|Cash                                                                                                                                                                                          | $ | 3,651,015         |   | $ | 2,565,823         |  
|Refunds receivable                                                                                                                                                                            |   | -                 |   |   | 27,394            |  
|Prepaid expenses                                                                                                                                                                              |   | 90,284            |   |   | 141,335           |  
|                                                                                                                                                                                              |   |                   |   |   |                   |  
|Total current assets                                                                                                                                                                          |   | 3,741,299         |   |   | 2,734,552         |  
|                                                                                                                                                                                              |   |                   |   |   |                   |  
|Property and equipment, net                                                                                                                                                                   |   | 3,763,118         |   |   | 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                                                                                                                                                                |   | 36,641,739        |   |   | 36,281,518        |  
|                                                                                                                                                                                              |   |                   |   |   |                   |  
|Total assets                                                                                                                                                                                  | $ | 40,383,038        |   | $ | 39,016,070        |  
|                                                                                                                                                                                              |   |                   |   |   |                   |  
|LIABILITIES AND STOCKHOLDERS'
      EQUITY                                                                                                                                                    |  
|                                                                                                                                                                                              |   |                   |   |   |                   |  
|Current liabilities                                                                                                                                                                           |   |                   |   |   |                   |  
|Accounts payable                                                                                                                                                                              | $ | 133,541           |   | $ | 89,543            |  
|Accounts payable - related
      party                                                                                                                                                        |   | 101,213           |   |   | 50,417            |  
|Accrued payroll and related taxes                                                                                                                                                             |   | 14,799            |   |   | 11,799            |  
|Due to related parties                                                                                                                                                                        |   | 23,290            |   |   | 23,290            |  
|                                                                                                                                                                                              |   |                   |   |   |                   |  
|Total current
      liabilities                                                                                                                                                               |   | 272,843           |   |   | 175,049           |  
|                                                                                                                                                                                              |   |                   |   |   |                   |  
|Long-term liabilities                                                                                                                                                                         |   |                   |   |   |                   |  
|Accrued reclamation and remediation costs                                                                                                                                                     |   | 275,338           |   |   | 275,338           |  
|Deferred tax liability                                                                                                                                                                        |   | 7,368,534         |   |   | 9,066,600         |  
|                                                                                                                                                                                              |   |                   |   |   |                   |  
|Total long-term
      liabilities                                                                                                                                                             |   | 7,643,872         |   |   | 9,341,938         |  
|                                                                                                                                                                                              |   |                   |   |   |                   |  
|Total
      liabilities                                                                                                                                                                       |   | 7,916,715         |   |   | 9,516,987         |  
|                                                                                                                                                                                              |   |                   |   |   |                   |  
|Commitments and contingencies - Note 12                                                                                                                                                       |   | -                 |   |   | -                 |  
|                                                                                                                                                                                              |   |                   |   |   |                   |  
|Stockholders' equity                                                                                                                                                                          |   |                   |   |   |                   |  
|Common stock, $0.001 par value;
      400,000,000 shares 
                 
      authorized, 110,899,442 and 97,010,087 shares, 
                       respectively, issued and outstanding |   | 110,898           |   |   | 97,010            |  
|Additional paid-in capital                                                                                                                                                                    |   | 42,099,453        |   |   | 36,059,449        |  
|Common stock subscribed                                                                                                                                                                       |   | 162,000           |   |   | -                 |  
|Accumulated deficit during
      exploration stage                                                                                                                                            |   | (9,906,028        | ) |   | (6,657,376        | )
|                                                                                                                                                                                              |   |                   |   |   |                   |  
|Total
      stockholders' equity                                                                                                                                                              |   | 32,466,323        |   |   | 29,499,083        |  
|                                                                                                                                                                                              |   |                   |   |   |                   |  
|Total
      liabilities and stockholders' equity                                                                                                                                              | $ | 40,383,038        |   | $ | 39,016,070        |  

See Accompanying Notes to these Consolidated Financial
  Statements 
  F-2

---

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

|                                                                                           |   |                    |   |   |                   |   |   | For the period from |  
|------------------------------------------------------------------------------------------ | - | ------------------ | - | - | ----------------- | - | - | ------------------- | -
|                                                                                           |   |                    |   |   |                   |   |   | February 20, 2001   |  
|                                                                                           |   |                    |   |   |                   |   |   | (Date of inception) |  
|                                                                                           |   | For the Year Ended |   |   | through           |  
|                                                                                           |   | December 31, 2009  |   |   | December 31, 2008 |   |   | December 31, 2009   |  
|                                                                                           |   |                    |   |   |                   |   |   |                     |  
|                                                                                           |   |                    |   |   |                   |   |   |                     |  
|Revenue                                                                                    | $ | -                  |   | $ | -                 |   | $ | -                   |  
|                                                                                           |   |                    |   |   |                   |   |   |                     |  
|Operating expenses                                                                         |   |                    |   |   |                   |   |   |                     |  
|Mineral exploration and evaluation expenses                                                |   | 3,158,132          |   |   | 3,229,212         |   |   | 6,734,242           |  
|Mineral exploration and
      evaluation 
              expenses -
      related party     |   | 520,831            |   |   | 550,000           |   |   | 2,047,145           |  
|General and administrative                                                                 |   | 1,177,632          |   |   | 1,575,730         |   |   | 3,512,616           |  
|Depreciation                                                                               |   | 45,631             |   |   | 19,687            |   |   | 65,990              |  
|Mineral and property holding costs                                                         |   | 60,000             |   |   | 81,000            |   |   | 410,500             |  
|Mineral and property holding
      costs - 
             reimbursed to related
      party |   | -                  |   |   | -                 |   |   | 295,000             |  
|Write-off of mineral rights                                                                |   | -                  |   |   | -                 |   |   | 14,000              |  
|                                                                                           |   |                    |   |   |                   |   |   |                     |  
|Total operating expenses                                                                   |   | 4,962,226          |   |   | 5,455,629         |   |   | 13,079,493          |  
|                                                                                           |   |                    |   |   |                   |   |   |                     |  
|Loss from operations                                                                       |   | (4,962,226         | ) |   | (5,455,629        | ) |   | (13,079,493         | )
|                                                                                           |   |                    |   |   |                   |   |   |                     |  
|Other income (expense)                                                                     |   |                    |   |   |                   |   |   |                     |  
|Interest income                                                                            |   | 17,763             |   |   | 145,108           |   |   | 283,060             |  
|Interest expense                                                                           |   | (2,255             | ) |   | -                 |   |   | (2,255              | )
|                                                                                           |   |                    |   |   |                   |   |   |                     |  
|Total other income (expense)                                                               |   | 15,508             |   |   | 145,108           |   |   | 280,805             |  
|                                                                                           |   |                    |   |   |                   |   |   |                     |  
|Loss before income taxes                                                                   |   | (4,946,718         | ) |   | (5,310,521        | ) |   | (12,798,688         | )
|                                                                                           |   |                    |   |   |                   |   |   |                     |  
|Income tax benefit                                                                         |   | 1,698,066          |   |   | 1,194,594         |   |   | 2,892,660           |  
|                                                                                           |   |                    |   |   |                   |   |   |                     |  
|Net loss                                                                                   | $ | (3,248,652         | ) | $ | (4,115,927        | ) | $ | (9,906,028          | )
|                                                                                           |   |                    |   |   |                   |   |   |                     |  
|                                                                                           |   |                    |   |   |                   |   |   |                     |  
|Loss per common share - basic and diluted                                                  | $ | (0.03              | ) | $ | (0.04             | ) |   |                     |  
|                                                                                           |   |                    |   |   |                   |   |   |                     |  
|Weighted average common shares outstanding
      - 
      basic and diluted                |   | 100,165,208        |   |   | 97,010,087        |   |   |                     |  

See Accompanying Notes to these Consolidated Financial
  Statements 
  F-3

---

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

|                                                                                                                                                                                   |  |              |  |   |            |  |   |                 |   |   |             |  |   | Accumulated    |   |   |           |  
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ------------ |  | - | ---------- |  | - | --------------- | - | - | ----------- |  | - | -------------- | - | - | --------- | -
|                                                                                                                                                                                   |  |              |  |   |            |  |   |                 |   |   | Common      |  |   | Deficit During |   |   | Total     |  
|                                                                                                                                                                                   |  | Common Stock |  |   | Additional |  |   | Stock           |   |   | Exploration |  |   | Stockholders'  |  
|                                                                                                                                                                                   |  | Shares       |  |   | Amount     |  |   | Paid-in Capital |   |   | Subscribed  |  |   | Stage          |   |   | Equity    |  
|Balance, February 20, 2001                                                                                                                                                         |  | -            |  | $ | -          |  | $ | -               |   | $ | -           |  | $ | -              |   | $ | -         |  
|Issuance of common stock for cash, 
      $0.001 per share                                                                                                                         |  | 20,000,000   |  |   | 20,000     |  |   | (15,000         | ) |   | -           |  |   | -              |   |   | 5,000     |  
|Issuance of common stock for cash, 
      $0.0025 per share                                                                                                                        |  | 8,000,000    |  |   | 8,000      |  |   | 12,000          |   |   | -           |  |   | -              |   |   | 20,000    |  
|Issuance of common stock for cash, 
      $0.025 per share                                                                                                                         |  | 1,750,000    |  |   | 1,750      |  |   | 42,000          |   |   | -           |  |   | -              |   |   | 43,750    |  
|Net loss                                                                                                                                                                           |  | -            |  |   | -          |  |   | -               |   |   | -           |  |   | (16,045        | ) |   | (16,045   | )
|Balance, December 31, 2001                                                                                                                                                         |  | 29,750,000   |  |   | 29,750     |  |   | 39,000          |   |   | -           |  |   | (16,045        | ) |   | 52,705    |  
|Net loss                                                                                                                                                                           |  | -            |  |   | -          |  |   | -               |   |   | -           |  |   | (49,313        | ) |   | (49,313   | )
|Balance, December 31, 2002                                                                                                                                                         |  | 29,750,000   |  |   | 29,750     |  |   | 39,000          |   |   | -           |  |   | (65,358        | ) |   | 3,392     |  
|Net loss                                                                                                                                                                           |  | -            |  |   | -          |  |   | -               |   |   | -           |  |   | (32,516        | ) |   | (32,516   | )
|Balance, December 31, 2003                                                                                                                                                         |  | 29,750,000   |  |   | 29,750     |  |   | 39,000          |   |   | -           |  |   | (97,874        | ) |   | (29,124   | )
|Net loss                                                                                                                                                                           |  | -            |  |   | -          |  |   | -               |   |   | -           |  |   | (51,000        | ) |   | (51,000   | )
|Balance, December 31, 2004                                                                                                                                                         |  | 29,750,000   |  |   | 29,750     |  |   | 39,000          |   |   | -           |  |   | (148,874       | ) |   | (80,124   | )
|Issuance of common stock for cash, 
      $0.025 per share                                                                                                                         |  | 6,800,000    |  |   | 6,800      |  |   | 163,200         |   |   | -           |  |   | -              |   |   | 170,000   |  
|Net loss                                                                                                                                                                           |  | -            |  |   | -          |  |   | -               |   |   | -           |  |   | (54,025        | ) |   | (54,025   | )
|Balance, December 31, 2005                                                                                                                                                         |  | 36,550,000   |  |   | 36,550     |  |   | 202,200         |   |   | -           |  |   | (202,899       | ) |   | 35,851    |  
|Net loss                                                                                                                                                                           |  | -            |  |   | -          |  |   | -               |   |   | -           |  |   | (95,279        | ) |   | (95,279   | )
|Balance, December 31, 2006                                                                                                                                                         |  | 36,550,000   |  |   | 36,550     |  |   | 202,200         |   |   | -           |  |   | (298,178       | ) |   | (59,428   | )
|Issue of common stock to 
      Nanominerals Corp. for a deed
      of 
      assignment to the option interests 
      in the Columbus and the Red
      Mountain 
      projects |  | 30,000,000   |  |   | 30,000     |  |   | 195,000         |   |   | -           |  |   | -              |   |   | 225,000   |  
|Issuance of stock options for 
      3,720,000
      shares of common stock 
      to officers and consultants                                                                     |  | -            |  |   | -          |  |   | 6,817           |   |   | -           |  |   | -              |   |   | 6,817     |  
|Issuance of common stock for cash 
      Reg. S - Private
      Placement, 
      $0.65 per share                                                                                  |  | 2,016,000    |  |   | 2,016      |  |   | 1,308,384       |   |   | -           |  |   | -              |   |   | 1,310,400 |  

See Accompanying Notes to these Consolidated Financial
  Statements 
  F-4

---

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

|                                                                                                                                                |  |              |  |  |            |  |  |                 |  |  |             |  |  | Accumulated    |   |  |            |  
|----------------------------------------------------------------------------------------------------------------------------------------------- |  | ------------ |  |  | ---------- |  |  | --------------- |  |  | ----------- |  |  | -------------- | - |  | ---------- | -
|                                                                                                                                                |  |              |  |  |            |  |  |                 |  |  | Common      |  |  | Deficit During |   |  | Total      |  
|                                                                                                                                                |  | Common Stock |  |  | Additional |  |  | Stock           |  |  | Exploration |  |  | Stockholders'  |  
|                                                                                                                                                |  | Shares       |  |  | Amount     |  |  | Paid-in Capital |  |  | Subscribed  |  |  | Stage          |   |  | Equity     |  
|Issuance of common stock for cash 
      Reg.
      D - Private Placement, 
      $0.65 per share, net of $34,125 
      commission             |  | 2,250,000    |  |  | 2,250      |  |  | 1,426,125       |  |  | -           |  |  | -              |   |  | 1,428,375  |  
|Issuance of common stock for cash 
      Reg. D - Private
      Placement, 
      $0.65 per share, net of $98,053 
      commission             |  | 3,962,000    |  |  | 3,962      |  |  | 2,473,285       |  |  | -           |  |  | -              |   |  | 2,477,247  |  
|Issuance of common stock for cash 
      Reg.
      S - Private Placement, 
      $0.65 per share, net of $29,575 
      commission             |  | 3,150,500    |  |  | 3,151      |  |  | 2,015,100       |  |  | -           |  |  | -              |   |  | 2,018,251  |  
|Issuance of common stock for cash 
      Reg. D - Private
      Placement, 
      $0.65 per share                                               |  | 2,000,000    |  |  | 2,000      |  |  | 1,298,000       |  |  | -           |  |  | -              |   |  | 1,300,000  |  
|Issuance of common stock for cash 
      Reg.
      S - Private Placement, 
      $0.65 per share, net of $39,358 
      commission             |  | 1,895,000    |  |  | 1,895      |  |  | 1,190,497       |  |  | -           |  |  | -              |   |  | 1,192,392  |  
|Issuance of stock options for 
      75,000 shares of common
      stock 
      to employee amortized over 
      vesting period                |  | -            |  |  | -          |  |  | 9,876           |  |  | -           |  |  | -              |   |  | 9,876      |  
|Issuance of common stock for cash 
      Reg.
      D - Private Placement, 
      $0.65 per share, net of $4,550 
      commission              |  | 3,600,000    |  |  | 3,600      |  |  | 2,331,850       |  |  | -           |  |  | -              |   |  | 2,335,450  |  
|Issuance of common stock for cash 
      Reg. S - Private
      Placement, 
      $0.65 per share, net of $37,992 
      commission             |  | 1,126,500    |  |  | 1,126      |  |  | 693,107         |  |  | -           |  |  | -              |   |  | 694,233    |  
|Issuance of stock options for 
      100,000
      shares of common stock 
      to consultant                                                  |  | -            |  |  | -          |  |  | 84,624          |  |  | -           |  |  | -              |   |  | 84,624     |  
|Net loss                                                                                                                                        |  | -            |  |  | -          |  |  | -               |  |  | -           |  |  | (2,243,271     | ) |  | (2,243,271 | )
|Balance, December 31, 2007                                                                                                                      |  | 86,550,000   |  |  | 86,550     |  |  | 13,234,865      |  |  | -           |  |  | (2,541,449     | ) |  | 10,779,966 |  
|Issuance of common stock 
      for cash, $0.05 per share 
      from exercise of options                                                       |  | 20,000       |  |  | 20         |  |  | 980             |  |  | -           |  |  | -              |   |  | 1,000      |  
|Issuance of common stock in 
      connection
      with the acquisition 
      to the former shareholders of CBI, 
      $1.92 per
      share |  | 10,440,087   |  |  | 10,440     |  |  | 19,989,560      |  |  | -           |  |  | -              |   |  | 20,000,000 |  

See Accompanying Notes to these Consolidated Financial
  Statements 
  F-5

---

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

|                                                                                                                                               |  |              |  |  |            |  |  |                 |   |  |             |  |  | Accumulated    |   |  |            |  
|---------------------------------------------------------------------------------------------------------------------------------------------- |  | ------------ |  |  | ---------- |  |  | --------------- | - |  | ----------- |  |  | -------------- | - |  | ---------- | -
|                                                                                                                                               |  |              |  |  |            |  |  |                 |   |  | Common      |  |  | Deficit During |   |  | Total      |  
|                                                                                                                                               |  | Common Stock |  |  | Additional |  |  | Stock           |   |  | Exploration |  |  | Stockholders'  |  
|                                                                                                                                               |  | Shares       |  |  | Amount     |  |  | Paid-in Capital |   |  | Subscribed  |  |  | Stage          |   |  | Equity     |  
|Fair value of share purchase warrants 
      issued in connection with the 
      acquisition of CBI                                           |  | -            |  |  | -          |  |  | 1,359,351       |   |  | -           |  |  | -              |   |  | 1,359,351  |  
|Amortization of stock options 
      issued to employee over 
      vesting period                                                             |  | -            |  |  | -          |  |  | 41,978          |   |  | -           |  |  | -              |   |  | 41,978     |  
|Effect of modification of stock 
      options
      issued to a nonemployee 
      former shareholder of CBI                                  |  | -            |  |  | -          |  |  | 19,935          |   |  | -           |  |  | -              |   |  | 19,935     |  
|Amortization of stock options 
      issued to director over 
      vesting period                                                             |  | -            |  |  | -          |  |  | 16,307          |   |  | -           |  |  | -              |   |  | 16,307     |  
|Effect of stock option forfeiture                                                                                                              |  | -            |  |  | -          |  |  | (21,012         | ) |  | -           |  |  | -              |   |  | (21,012    | )
|Effect of modification of stock 
      options issued to
      officers, director, 
      and consultant                                       |  | -            |  |  | -          |  |  | 1,417,485       |   |  | -           |  |  | -              |   |  | 1,417,485  |  
|Net loss                                                                                                                                       |  | -            |  |  | -          |  |  | -               |   |  | -           |  |  | (4,115,927     | ) |  | (4,115,927 | )
|Balance, December 31, 2008                                                                                                                     |  | 97,010,087   |  |  | 97,010     |  |  | 36,059,449      |   |  | -           |  |  | (6,657,376     | ) |  | 29,499,083 |  
|Amortization of stock options and warrants 
      issued to a director, employee and 
      consultants over vesting period                    |  | -            |  |  | -          |  |  | 88,323          |   |  | -           |  |  | -              |   |  | 88,323     |  
|Issuance of share purchase warrants for
      200,000 shares of common
      stock 
      to a consultant                                      |  | -            |  |  | -          |  |  | 20,000          |   |  | -           |  |  | -              |   |  | 20,000     |  
|Issuance of common stock for cash 
      Reg.
      S - Private Placement, 
      $0.45 per share, net of $1,063 
      financing
      costs  |  | 400,000      |  |  | 400        |  |  | 178,537         |   |  | -           |  |  | -              |   |  | 178,937    |  
|Issuance of common stock for cash 
      Reg. D - Private
      Placement, 
      $0.45 per share, net of $22,940
      financing costs        |  | 863,800      |  |  | 863        |  |  | 364,907         |   |  | -           |  |  | -              |   |  | 365,770    |  
|Issuance of common stock for cash 
      Reg.
      S - Private Placement, 
      $0.45 per share, net of $39,107 
      financing
      costs |  | 1,546,111    |  |  | 1,546      |  |  | 655,097         |   |  | -           |  |  | -              |   |  | 656,643    |  
|Issuance of common stock for cash 
      Reg. D - Private
      Placement, 
      $0.45 per share, net of $1,062 
      financing costs        |  | 400,000      |  |  | 400        |  |  | 178,538         |   |  | -           |  |  | -              |   |  | 178,938    |  
|Issuance of common stock for cash 
      Reg.
      D - Private Placement,                                                                     |  |              |  |  |            |  |  |                 |   |  |             |  |  |                |   |  |            |  

See Accompanying Notes to these Consolidated Financial
  Statements 
  F-6

---

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

|                                                                                                                                                |  |              |  |   |            |  |   |                 |  |   |             |   |   | Accumulated    |   |   |             |  
|----------------------------------------------------------------------------------------------------------------------------------------------- |  | ------------ |  | - | ---------- |  | - | --------------- |  | - | ----------- | - | - | -------------- | - | - | ----------- | -
|                                                                                                                                                |  |              |  |   |            |  |   |                 |  |   | Common      |   |   | Deficit During |   |   | Total       |  
|                                                                                                                                                |  | Common Stock |  |   | Additional |  |   | Stock           |  |   | Exploration |   |   | Stockholders'  |  
|                                                                                                                                                |  | Shares       |  |   | Amount     |  |   | Paid-in Capital |  |   | Subscribed  |   |   | Stage          |   |   | Equity      |  
|$0.45 per share, net of $17,351 
      financing costs                                                                                          |  | 730,000      |  |   | 730        |  |   | 310,419         |  |   | -           |   |   | -              |   |   | 311,149     |  
|                                                                                                                                                |  |              |  |   |            |  |   |                 |  |   |             |   |   |                |   |   |             |  
|Issuance of common stock for cash 
      Reg.
      S - Private Placement, 
      $0.45 per share, net of $180,296 
      financing
      costs |  | 5,915,000    |  |   | 5,915      |  |   | 2,475,539       |  |   | -           |   |   | -              |   |   | 2,481,454   |  
|                                                                                                                                                |  |              |  |   |            |  |   |                 |  |   |             |   |   |                |   |   |             |  
|Issuance of common stock for cash 
      Reg.
      D - Private Placement, 
      $0.45 per share, net of $20,145 
      financing
      costs  |  | 3,334,444    |  |   | 3,334      |  |   | 1,477,021       |  |   | (63,000     | ) |   | -              |   |   | 1,417,355   |  
|                                                                                                                                                |  |              |  |   |            |  |   |                 |  |   |             |   |   |                |   |   |             |  
|Issuance of common stock for cash 
      Reg.
      S - Private Placement, 
      $0.45 per share, net of $22,677 
      financing
      costs  |  | 700,000      |  |   | 700        |  |   | 291,623         |  |   | -           |   |   | -              |   |   | 292,323     |  
|                                                                                                                                                |  |              |  |   |            |  |   |                 |  |   |             |   |   |                |   |   |             |  
|Common stock subscribed                                                                                                                         |  | -            |  |   | -          |  |   | -               |  |   | 225,000     |   |   |                |   |   | 225,000     |  
|                                                                                                                                                |  |              |  |   |            |  |   |                 |  |   |             |   |   |                |   |   |             |  
|Net loss                                                                                                                                        |  | -            |  |   | -          |  |   | -               |  |   | -           |   |   | ( 3,248,652    | ) |   | ( 3,248,652 | )
|                                                                                                                                                |  |              |  |   |            |  |   |                 |  |   |             |   |   |                |   |   |             |  
|Balance, December 31, 2009                                                                                                                      |  | 110,899,442  |  | $ | 110,898    |  | $ | 42,099,453      |  | $ | 162,000     |   | $ | ( 9,906,028    | ) | $ | 32,466,323  |  

See Accompanying Notes to these Consolidated Financial
  Statements 
  F-7

---

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

|                                                                                                               |   |                    |   |   |                   |   |   | For the period from |  
|-------------------------------------------------------------------------------------------------------------- | - | ------------------ | - | - | ----------------- | - | - | ------------------- | -
|                                                                                                               |   |                    |   |   |                   |   |   | February 20, 2001   |  
|                                                                                                               |   |                    |   |   |                   |   |   | (Date of inception) |  
|                                                                                                               |   | For the Year Ended |   |   | through           |  
|                                                                                                               |   | December 31, 2009  |   |   | December 31, 2008 |   |   | December 31, 2009   |  
|CASH FLOWS FROM OPERATING ACTIVITIES                                                                           |   |                    |   |   |                   |   |   |                     |  
|Net loss                                                                                                       | $ | (3,248,652         | ) | $ | (4,115,927        | ) | $ | (9,906,028          | )
|Adjustments to reconcile loss from
      operating 
           to net cash used in operating
      activities: |   |                    |   |   |                   |   |   |                     |  
|Depreciation                                                                                                   |   | 45,631             |   |   | 19,687            |   |   | 65,990              |  
|Write-off
      of mineral rights                                                                              |   | -                  |   |   | -                 |   |   | 14,000              |  
|Consulting accrual                                                                                             |   | -                  |   |   | -                 |   |   | 15,000              |  
|Stock
      based expenses                                                                                     |   | 88,323             |   |   | 1,454,758         |   |   | 1,644,398           |  
|Changes in operating assets and liabilities:                                                                   |   |                    |   |   |                   |   |   |                     |  
|Refunds
      receivable                                                                                       |   | 27,394             |   |   | -                 |   |   | 27,394              |  
|Prepaid expenses                                                                                               |   | 51,051             |   |   | (141,387          | ) |   | (240,359            | )
|Other
      assets                                                                                             |   | -                  |   |   | -                 |   |   | (2,200              | )
|Reclamation deposit                                                                                            |   | 24,720             |   |   | (128,762          | ) |   | (925,042            | )
|Mineral
      property acquisition costs                                                                       |   | -                  |   |   | (188,791          | ) |   | (1,022,663          | )
|Accounts payable and
      accrued liabilities                                                                 |   | 97,794             |   |   | (145,388          | ) |   | 145,951             |  
|Deferred
      income taxes                                                                                    |   | (1,698,066         | ) |   | (1,194,594        | ) |   | (2,892,660          | )
|Accrued reclamation and
      remediation costs                                                                |   | -                  |   |   | 275,338           |   |   | 275,338             |  
|                                                                                                               |   |                    |   |   |                   |   |   |                     |  
|Net cash used in operating activities                                                                          |   | (4,611,805         | ) |   | (4,165,066        | ) |   | (12,800,881         | )
|                                                                                                               |   |                    |   |   |                   |   |   |                     |  
|CASH FLOW FROM INVESTING ACTIVITIES                                                                            |   |                    |   |   |                   |   |   |                     |  
|Purchase of property and equipment                                                                             |   | (430,572           | ) |   | (2,029,716        | ) |   | (2,680,060          | )
|                                                                                                               |   |                    |   |   |                   |   |   |                     |  
|Net cash used in investing activities                                                                          |   | (430,572           | ) |   | (2,029,716        | ) |   | (2,680,060          | )
|                                                                                                               |   |                    |   |   |                   |   |   |                     |  
|CASH FLOW FROM FINANCING ACTIVITIES                                                                            |   |                    |   |   |                   |   |   |                     |  
|Proceeds from stock issuance                                                                                   |   | 6,250,210          |   |   | 1,000             |   |   | 19,489,960          |  
|Proceeds from option issuance                                                                                  |   | 20,000             |   |   | -                 |   |   | 20,000              |  
|Stock issuance costs                                                                                           |   | (304,641           | ) |   | -                 |   |   | (548,294            | )
|Common stock subscribed                                                                                        |   | 162,000            |   |   | -                 |   |   | 162,000             |  
|Proceeds from borrowings from related
      party                                                              |   | -                  |   |   | -                 |   |   | 8,290               |  
|                                                                                                               |   |                    |   |   |                   |   |   |                     |  
|Net cash provided by financing
      activities                                                                |   | 6,127,569          |   |   | 1,000             |   |   | 19,131,956          |  
|                                                                                                               |   |                    |   |   |                   |   |   |                     |  
|NET CHANGE IN CASH                                                                                             |   | 1,085,192          |   |   | (6,193,782        | ) |   | 3,651,015           |  
|                                                                                                               |   |                    |   |   |                   |   |   |                     |  
|CASH AT BEGINNING OF PERIOD                                                                                    |   | 2,565,823          |   |   | 8,759,605         |   |   | -                   |  
|                                                                                                               |   |                    |   |   |                   |   |   |                     |  
|CASH AT END OF PERIOD                                                                                          | $ | 3,651,015          |   | $ | 2,565,823         |   | $ | 3,651,015           |  
|                                                                                                               |   |                    |   |   |                   |   |   |                     |  
|                                                                                                               |   |                    |   |   |                   |   |   |                     |  
|                                                                                                               |   |                    |   |   |                   |   |   |                     |  
|SUPPLEMENTAL INFORMATION                                                                                       |   |                    |   |   |                   |   |   |                     |  
|                                                                                                               |   |                    |   |   |                   |   |   |                     |  
|Interest paid                                                                                                  | $ | 2,255              |   | $ | -                 |   | $ | 2,255               |  
|                                                                                                               |   |                    |   |   |                   |   |   |                     |  
|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-8

---

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

|1. | DESCRIPTION OF BUSINESS, HISTORY AND SUMMARY
      OF SIGNIFICANT POLICIES
|-- | --------------------------------------------------------------------------

Basis of presentation- These
  financial statements and related notes are presented in accordance with accounting
  principles generally accepted in the United States. The Companys fiscal
  year-end is December 31.

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 since date of inception of $9,906,028 from operations as of December 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, Columbus Minerals Inc. (CMI) (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.
  Effective November 30, 2009, the Companys wholly-owned subsidiary, CBI
  Acquisition, Inc. changed its name to Columbus Minerals Inc.

F-9

---

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

|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 Accounting Standards Codification (ASC) 360-10-35-15, 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 range from 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 ASC 360-10-35-17, Measurement of an Impairment Loss, if events or circumstances indicate
  that their carrying amount might not be recoverable. As of December 31, 2009
  exploration progress is on target with the Companys exploration and evaluation
  plan and no events or circumstances have happened to indicate the related carrying
  values of the properties may not be recoverable. When the Company determines
  that an impairment analysis should be done, the analysis will be performed using
  the rules of ASC 930-360-35, Asset Impairment, and 360-10-15-3 through
  15-5, Impairment or Disposal of Long-Lived Assets.

F-10

---

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

|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 ASC 410-20, Asset
    Retirement Obligations. In accordance with ASC 410-20-25, Asset Retirement
      Obligations -Recognition, 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 will be 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 ASC 450, Contingencies,
  or ASC 410-30-25, Asset Retirement and Environmental Obligations - Recognition.
  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 the exploration project, and uncertainties associated with defining
  the nature and extent of environmental disturbance 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 December 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 13.

F-11

---

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

|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 ASC 260, Earnings Per Share, and ASC 480, Distinguishing
    Liabilities from 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 December
  31, 2009 and 2008 that were not included in the computation of diluted EPS,
  because the effect would be antidilutive, were 21,094,051 and 18,626,459, 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 its income taxes in accordance with ASC 740, Income Taxes,
  which requires recognition of deferred tax assets and liabilities for future
  tax consequences attributable to differences between the financial statement
  carrying amounts of existing assets and liabilities and their respective tax
  bases and tax credit carry-forwards. Deferred tax assets and liabilities are
  measured using enacted tax rates expected to apply to taxable income in the
  years in which those temporary differences are expected to be recovered or settled.
  The effect on deferred tax assets and liabilities of a change in tax rates is
  recognized in income in the period that includes the enactment date.

For acquired properties that do not constitute
  a business as defined in ASC 805-10-55-4, Definition 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 ASC 740-10-25-51, Acquired Temporary Differences in Certain Purchase Transactions that are
    Not Accounted for as Business Combinations, 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.

F-12

---

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

|1. | DESCRIPTION OF BUSINESS, HISTORY AND SUMMARY
      OF SIGNIFICANT POLICIES(continued)
|-- | -------------------------------------------------------------------------------------

Stock-based compensation- The
  Company accounts for share based payments in accordance with ASC 718, Compensation
     Stock Compensation, which 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. In accordance with
  ASC 718-10-30-9, Measurement Objective  Fair Value at Grant Date,
  the Company estimates the fair value of the award using a valuation technique.
  For this purpose, the Company uses the Binomial Lattice option pricing model.
  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.
  The compensation cost is recognized over the requisite service period which
  is generally equal to the vesting period.

New accounting pronouncements-
  From time to time, new accounting pronouncements are issued by the FASB that
  are adopted by the Company as of the specified effective date. Unless otherwise
  discussed, management believes that the impact of recently issued standards
  did not or will not have a material impact on the Companys consolidated
  financial statements upon adoption.

Effective  July 1, 2009, the FASB (Financial Accounting Standards Board) Accounting  Standards Codification (ASC) (Topic 105, Generally Accepted Accounting Principles),  became the single source for authoritative nongovernmental U.S. generally accepted accounting  principles. Rules  and interpretive releases of the SEC under authority of federal securities laws  are also sources of authoritative US  GAAP for SEC  registrants.  The  ASC does not change US  GAAP, but is intended to  simplify user access to all authoritative US   GAAP by providing all the authoritative literature related to a particular  topic in one place. Effective September 15, 2009, all public filings of  the Company will reference the ASC as the sole source  of authoritative literature.

In  January 2010, the FASB issued ASU 2010-06, Improving Disclosures About Fair  Value Measurements, which requires reporting entities  to  make new disclosures about recurring or nonrecurring fair-value measurements  including significant transfers into and out of Level 1 and Level 2  fair-value measurements and information on purchases, sales, issuances, and  settlements on a gross basis in the reconciliation of Level 3 fair value  measurements. ASU 2010-6 is effective for annual reporting periods  beginning after December 15, 2009, except for Level 3 reconciliation  disclosures which are effective for annual periods beginning after  December 15, 2010. The Company does not have any assets or liabilities  classified as Level 3. As the update only pertains to disclosures, its adoption  is not expected to have an impact on the Company’s financial position, results  of operations, or cash flows.

In February 2010, the FASB issued ASU 2010-09, Subsequent Events (Topic  855), Amendment to Certain  Recognition and Disclosure Requirements, to remove the requirement for SEC  filers to disclose the date through which an entity has evaluated subsequent  events. This change removes potential conflicts with current SEC guidance and clarifies  the intended scope of the reissuance disclosure provisions. The update was  effective upon its date of issuance, February 24, 2010, and the Company has  adopted the amendments accordingly. As the update only pertained to  disclosures, it had no impact on the Company’s financial position, results of  operations, or cash flows upon adoption.

F-13

---

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

|2. | PREPAID EXPENSES
|-- | ----------------

Prepaid expenses at December 31, 2009
  and December 31, 2008 consisted of the following:

| |                      |   | December 31, |  |   | December 31, | 
| | -------------------- | - | ------------ |  | - | ------------ | 
| |                      |   | 2009         |  |   | 2008         | 
| |                      |   |              |  |   |              | 
| | Claims maintenance   | $ | 34,166       |  | $ | --           | 
| | Insurance policies   |   | 49,973       |  |   | 103,335      | 
| | Engineering services |   | 30           |  |   | 32,135       | 
| | Retainers            |   | 2,000        |  |   | 2,000        | 
| | Other                |   | 4,115        |  |   | 3,865        | 
| |                      |   |              |  |   |              | 
| |                      | $ | 90,284       |  | $ | 141,335      | 

|3. | PROPERTY AND EQUIPMENT                                                                                
|-- | ------------------------------------------------------------------------------------------------------
|   |                                                                                                       
|   | Property and equipment consisted of the following as
      of December 31, 2009 and December 31, 2008:

| |                               |   | December 31, |  |   | December 31, | 
| | ----------------------------- | - | ------------ |  | - | ------------ | 
| |                               |   | 2009         |  |   | 2008         | 
| |                               |   |              |  |   |              | 
| | Furniture and fixtures        | $ | 8,921        |  | $ | 8,921        | 
| | Computers and equipment       |   | 39,137       |  |   | 33,591       | 
| | Land                          |   | 30,000       |  |   | 30,000       | 
| | Site improvements             |   | 99,631       |  |   | 99,631       | 
| | Site equipment                |   | 231,035      |  |   | 99,997       | 
| | Vehicles                      |   | 23,595       |  |   | 23,595       | 
| | Construction in progress:     |   |              |  |   |              | 
| | Building                      |   | 500,000      |  |   | 500,000      | 
| | Site improvements             |   | 2,325,198    |  |   | 2,034,167    | 
| | Site equipment                |   | 571,591      |  |   | 568,634      | 
| |                               |   |              |  |   |              | 
| |                               |   | 3,829,108    |  |   | 3,398,536    | 
| | Less accumulated depreciation |   | 65,990       |  |   | 20,359       | 
| |                               |   |              |  |   |              | 
| |                               | $ | 3,763,118    |  | $ | 3,378,177    | 

Depreciation expense was $45,631 and
  $19,687 for the year ended December 31, 2009 and 2008, respectively.

F-14

---

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

|4. | 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.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|   | The Company has elected not to retain the Ireland Claim,
      by choosing not to pay the 2009 maintenance fee to Bureau of Land Management
      in August 2009, as it is not considered a core asset to the Companys
      business plan going forward.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|5. | COLUMBUS PROJECT                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|   | As of December 31, 2007, the Company had earned a 15%
      interest in the Columbus Project 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 CMI, 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 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 CMI was the surviving merger entity.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  

F-15

---

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

|5. | COLUMBUS PROJECT(continued)
|-- | ---------------------------

The Company applied EITF 98-03 (which
  has been superseded by ASC 805-10-25-1) 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 ASC 805-10-55-4, and the Company recorded the acquisition as a purchase of
  assets.

As required by ASC 930-805-30, Mining
   Business Combinations  Initial Recognition, and ASC 740-10-25-49-55, Income Taxes  Overall  Recognition  Acquired Temporary
    Differences in Certain Purchase Transactions that are Not Accounted for as Business
    Combinations, 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.

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.

F-16

---

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

|5. | COLUMBUS PROJECT(continued)                                                                     
|-- | ------------------------------------------------------------------------------------------------
|   |                                                                                                 
|   | The following table reflects the recorded purchase consideration
      for the Columbus Project:

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


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)
      $
      31,948,053Property, plant and equipment
      
      202,430Deposits
      
      44,720Cash
      
      6,570Prepaid expenses
      
      24,925Accounts payable
      
      (6,153
      )Total
      $
      32,220,545


F-17

---

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

|6. | 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.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           

F-18

---

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

|7. | PRIVATE PLACEMENTS
|-- | ------------------

During the year ended December 31, 2009,
  the Company completed the following private placements:

| | a) | On November 14, 2009, the Company completed a private
      placement offering for gross proceeds of $315,000 to non-US persons in
      reliance of Regulation S promulgated under the Securities Act of 1933.
      A total of 700,000 units were issued at a price of $0.45. Each unit sold
      consisted of one share of the Companys common stock and one-half
      of one share purchase warrants. Each whole share purchase warrant entitles
      the holder to purchase one additional share of the Companys common
      stock at a price of $0.75 per share for a period expiring June 30, 2013.
      The Company incurred commissions payable to agents in connection with
      the Offering private placement in the amount of $22,050 in cash and issued
      warrants to purchase up to 21,000 shares of common stock. The warrants
      have an expiration date of June 30, 2013 and an exercise price of $0.75
      per share. Financing costs related to this offering were $627.                                                                                                                                                                                                                                                                                                                         
| | -- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
| | b) | On November 14, 2009, the Company completed a private
      placement offering for gross proceeds of $1,500,500 to US accredited investors
      pursuant to Rule 506 of Regulation D promulgated under the Securities
      Act of 1933. A total of 3,334,444 units were issued at a price of $0.45.
      Each unit sold consisted of one share of the Companys common stock
      and one-half of one share purchase warrants. Each whole share purchase
      warrant entitles the holder to purchase one additional share of the Companys
      common stock at a price of $0.75 per share for a period expiring June
      30, 2013. The Company incurred commissions payable to agents in connection
      with the Offering private placement in the amount of $17,150 in cash and
      issued warrants to purchase up to 16,333 shares of common stock. The warrants
      have an expiration date of June 30, 2013 and an exercise price of $0.75
      per share. Financing costs related to this offering were $2,995. As of
      December 31, 2009, $63,000 of proceeds from this private placement offering
      was recorded as subscriptions receivable. This subscription is due from
      Mark Brennan, one of the Companys independent directors. Subsequent to year end, the subscription was paid in full.
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
| | c) | On October 9, 2009, the Company completed a private
      placement offering for gross proceeds of $2,661,750 to non-US persons
      in reliance of Regulation S promulgated under the Securities Act of 1933.
      A total of 5,915,000 units were issued at a price of $0.45. Each unit
      sold consisted of one share of the Companys common stock and one-half
      of one share purchase warrants. Each whole share purchase warrant entitles
      the holder to purchase one additional share of the Companys common
      stock at a price of $0.75 per share for a period expiring June 30, 2013.
      The Company incurred commissions payable to agents in connection with
      the Offering private placement in the amount of $174,983 in cash and issued
      warrants to purchase up to 166,650 shares of common stock. The warrants
      have an expiration date of June 30, 2013 and an exercise price of $0.75
      per share. Financing costs related to this offering were $5,313.                                                                                                                                                                                                                                                                                                                   

F-19

---

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

|7. | PRIVATE PLACEMENTS - (continued)
|-- | --------------------------------

| | d) | On October 9, 2009, the Company completed a private
      placement offering for gross proceeds of $328,500 to US accredited investors
      pursuant to Rule 506 of Regulation D promulgated under the Securities
      Act of 1933. A total of 730,000 units were issued at a price of $0.45.
      Each unit sold consisted of one share of the Companys common stock
      and one-half of one share purchase warrants. Each whole share purchase
      warrant entitles the holder to purchase one additional share of the Companys
      common stock at a price of $0.75 per share for a period expiring June
      30, 2013. The Company incurred commissions payable to agents in connection
      with the Offering private placement in the amount of $16,695 in cash and
      issued warrants to purchase up to 15,900 shares of common stock. The warrants
      have an expiration date of June 30, 2013 and an exercise price of $0.75
      per share. Financing costs related to this offering were $656.
| | -- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
| | e) | On September 2, 2009, the Company completed a private
      placement offering for gross proceeds of $695,750 to non-US persons in
      reliance of Regulation S promulgated under the Securities Act of 1933.
      A total of 1,546,111 units were issued at a price of $0.45. Each unit
      sold consisted of one share of the Companys common stock and one-half
      of one share purchase warrants. Each whole share purchase warrant entitles
      the holder to purchase one additional share of the Companys common
      stock at a price of $0.75 per share for a period expiring June 30, 2013.
      The Company incurred commissions payable to agents in connection with
      the Offering private placement in the amount of $35,000 in cash and issued
      warrants to purchase up to 33,333 shares of common stock. The warrants
      have an expiration date of June 30, 2013 and an exercise price of $0.75
      per share. Financing costs related to this offering were $4,107.            
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
| | f) | On September 2, 2009, the Company completed a private
      placement offering for gross proceeds of $180,000 to US accredited investors
      pursuant to Rule 506 of Regulation D promulgated under the Securities
      Act of 1933. A total of 400,000 units were issued at a price of $0.45.
      Each unit sold consisted of one share of the Companys common stock
      and one-half of one share purchase warrants. Each whole share purchase
      warrant entitles the holder to purchase one additional share of the Companys
      common stock at a price of $0.75 per share for a period expiring June
      30, 2013. There was no commission paid to agents in connection with this
      offering. Financing costs related to this offering were $1,062.                                                                                                                                                                                                                                                

F-20

---

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

|7. | PRIVATE PLACEMENTS - (continued)
|-- | --------------------------------

| | g) | On August 14, 2009, the Company completed a private placement offering for gross proceeds of $180,000 to non-US persons in reliance of Regulation S promulgated under the Securities Act of 1933. A total of 400,000 units were issued at a price of $0.45. Each unit sold consisted of one share of the Company’s common stock and one-half of one share purchase warrants.  Each whole share purchase warrant entitles the holder to purchase one additional share of the Company’s common stock at a price of $0.75 per share for a period expiring June 30, 2013. The warrants have an expiration date of June 30, 2013 and an exercise price of $0.75 per share. There was no commission paid or payable to agents in connection with this offering.  Financing costs related to this offering were $1,063.                                         
| | -- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| | h) | On August 14, 2009, the Company completed a private placement offering for gross proceeds of $388,710 to US accredited investors pursuant to Rule 506 of Regulation D promulgated under the Securities Act of 1933. A total of 863,800 units were issued at a price of $0.45. Each unit sold consisted of one share of the Company’s common stock and one-half of one share purchase warrants.  Each whole share purchase warrant entitles the holder to purchase one additional share of the Company’s common stock at a price of $0.75 per share for a period expiring June 30, 2013.  The Company incurred commissions payable to agents in connection with the Offering private placement in the amount of $20,648 in cash and issued warrants to purchase up to 19,665 shares of common stock. Financing costs related to this offering were $2,292.

During the year ended December 31, 2008,
  the Company completed the following private placement:

| | a) | On February 20, 2008, 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 in connection with the acquisition.
      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 of 5 years.
| | -- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Warrants associated with the 2009 and
  2008 equity issuances do not constitute a registration payment arrangement.

F-21

---

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

|7. | PRIVATE PLACEMENTS - (continued)                                                                                       
|-- | -----------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                        
|   | A summary of investor warrant activity for the years
      ended December 31, 2009 and December 31, 2008 is as follows:

| |                                                      |  | Number of  |  |   | Exercise          | 
| | ---------------------------------------------------- |  | ---------- |  | - | ----------------- | 
| |                                                      |  | Shares     |  |   | Price             | 
| |                                                      |  |            |  |   |                   | 
| | Outstanding and exercisable, December 31, 2007       |  | 10,160,650 |  | $ | 0.75              | 
| | Granted                                              |  | 5,220,059  |  |   | 2.39              | 
| | Exercised                                            |  | --         |  |   | --                | 
| | Forfeited/expired                                    |  | --         |  |   | --                | 
| | Outstanding and exercisable, December 31, 2008       |  | 15,380,709 |  | $ | 0.75  - 2.39      | 
| | Granted                                              |  | 7,217,648  |  |   | 0.75              | 
| | Exercised                                            |  | --         |  |   | --                | 
| | Forfeited/expired                                    |  | --         |  |   | --                | 
| |                                                      |  |            |  |   |                   | 
| | Outstanding and exercisable,
      December 31, 2009 |  | 22,598,357 |  | $ | 0.75
      - 2.39 | 

The table above does not include warrants
  issued to employees, non-employee directors and consultants as they are included
  under Share Based Payments below.

Amendment of Private Placement Warrants- On November 13, 2009, the Company made several amendments to certain of
  its outstanding common stock purchase warrants. The warrants that were amended
  were issued in connection with the 2009 US and Foreign Private Placement Offering
  warrants and the 2007 US and Foreign Private Placement Offering warrants.

The 2009 US and Foreign Private Placement
  Offering warrants were amended to extend the expiration date from June 30, 2012
  to June 30, 2013 and by amending the conditions under which the Company may
  exercise the expiration date acceleration rights by increasing the minimum volume
  weighted average trading price threshold from $3.00 per share for 20 consecutive
  trading days to $4.50 per share for 20 consecutive trading days; and by requiring
  that the average daily trading volume for the Companys common stock during
  the 20 consecutive trading days referred to above be not less then 0.2% of the
  Companys free float during such 20 consecutive trading days.

The 2007 US and Foreign Private Placement Offering warrants were amended to extend the expiration date from June 30, 2012 to June 30, 2013, reduce the exercise price from $1.00 per share to $0.75 per share and by amending the conditions under which the Company may exercise the expiration date acceleration rights by increasing the minimum volume weighted average trading price threshold from $3.50 per share for 20 consecutive trading days to $4.50 per share for 20 consecutive trading days; and by requiring that the average daily trading volume for the Company’s common stock during the 20 consecutive trading days referred to above be not less then 0.2% of the Company’s free float during such 20 consecutive trading days.

On June 17, 2009, the Company extended
  the expiration date for the outstanding warrants issued by the Company under
  its foreign and US private placement offerings completed in 2007 to June 30,
  2012. No other changes were made with respect to the terms and conditions of
  the warrants.

The Company determined that the amendments
  to the private placement warrants which were originally issued as part of equity
  transactions did not result in an expense to the Company. The warrants were
  not a component to any debt transaction, registration agreement or services
  rendered to the Company.

F-22

---

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

|7. | PRIVATE PLACEMENTS - (continued)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|-- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|   | Subsequent Private Placement- The
      Company completed the following private placement subsequent to December
      31, 2009:                                                                                                                                                                                                                                                                                                                                                                                                      
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|   | a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|8. | SHARE BASED COMPENSATION                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|   | 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.                                                                      
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|   | The Company utilizes the Binomial Lattice
      pricing model to estimate the fair value of options and warrants granted
      in exchange for services. 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. The Company used the following
      assumptions to estimate the fair value of the options granted as follows:

| |                         |  | 2009              |  |  | 2008             | 
| | ----------------------- |  | ----------------- |  |  | ---------------- | 
| |                         |  |                   |  |  |                  | 
| | Dividend yield          |  | --                |  |  | --               | 
| | Expected volatility     |  | 112.87% - 137.02% |  |  | 56.13% to 61.08% | 
| | Risk-free interest rate |  | 1.27% to 3.33%    |  |  | 1.80% to 2.95%   | 
| | Expected life (years)   |  | 3 to 6.50 years   |  |  | 2 to 6 years     | 

The expected life represents the weighted-average
  period the awards are expected to remain outstanding and is a derived output
  of the Binomial Lattice model. The expected life is impacted by all of the underlying
  assumptions and calibration of the Companys model. The Binomial Lattice
  model estimates the probability of exercise as a function of these two variables
  based on the entire history of exercises and cancellations on all past grants
  made by the Company.

For grants awarded during 2009, the expected
  volatility is based on the historical volatility levels of the Companys
  common stock. For awards granted prior to 2009, the Company estimated expected
  volatility using a representative peer group average, because of limited historical
  equity transactions of the Company. The risk-free interest rate is based on
  the implied yield available on U.S. Treasury zero-coupon issues over equivalent
  lives of the options.

F-23

---

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

|8. | SHARE BASED COMPENSATION - (continued)                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|-- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|   | Expenses for the years ended December 31, 2009 and 2008, related to the granting and vesting of share based payments were $88,323 and $34,705, respectively and are included in general and administrative expense and mineral exploration and evaluation expense. During the year ended December 31, 2008, the Company also recorded $1,417,485 in stock option modification expense for two officers, a director and a consultant. No such stock option modifications occurred in the year ended December 31, 2009.
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|   | During the year ended December 31, 2009, the
      Company granted stock options and warrants as follows:                                                                                                                                                                                                                                                                                                                                                                                                            
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|   | a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|   | b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|   | c)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|   | d)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   

F-24

---

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

|8. | SHARE BASED COMPENSATION - (continued)                                                                                                    
|-- | ------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                           
|   | During the year ended December 31, 2008, the
      Company granted stock options as follows:                                              
|   |                                                                                                                                           
|   | a)                                                                                                                                        
|   |                                                                                                                                           
|   | The following table summarizes the Companys
      stock option and warrant activity for the years ended December 31, 2009
      and 2008:

| |                                  |  | Number of |  |   | Weighted       | 
| | -------------------------------- |  | --------- |  | - | -------------- | 
| |                                  |  | Shares    |  |   | Average        | 
| |                                  |  |           |  |   | Exercise Price | 
| |                                  |  |           |  |   |                | 
| | Balance, December 31, 2007       |  | 3,875,000 |  | $ | 0.13           | 
| | Options granted and assumed      |  | 79,719    |  |   | 1.36           | 
| | Options expired                  |  | --        |  |   | --             | 
| | Options forfeited                |  | --        |  |   | --             | 
| | Options exercised                |  | --        |  |   | --             | 
| |                                  |  |           |  |   |                | 
| | Balance, December 31, 2008       |  | 3,954,719 |  | $ | 0.15           | 
| |                                  |  |           |  |   |                | 
| | Options granted and assumed      |  | 770,000   |  |   | 0.60           | 
| | Options expired                  |  | --        |  |   | --             | 
| | Options forfeitures              |  | --        |  |   | --             | 
| | Options exercised                |  | --        |  |   | --             | 
| |                                  |  |           |  |   |                | 
| | Balance, December
      31, 2009 |  | 4,724,719 |  | $ | 0.23           | 

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

Exercise PriceEquals, Exceedsor
      
      
      WeightedNumber of Options
      
      is Less than Mkt.
      
      
      Average
      
      
      Range of
      
      
      Weightedand Warrants
      
      Price of Stock
      
      
      Exercise
      
      
      Exercise
      
      
      Average FairGranted
      
      on Grant Date
      
      
      Price
      
      
      Price
      
      
      ValueDuring 2009270,000
      
      Equals
      
      
      $ 0.48
      
      
      $ 0.48
      
      
      $ 0.39500,000
      
      Exceeds
      
      
      $ 0.67
      
      
      $ 0.55 to $ 0.75
      
      
      $ 0.43--
      
      Less Than
      
      
      --
      
      
      $   -- to $   --
      
      
      $     --


F-25

---

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

|8. | SHARE BASED COMPENSATION  (continued)                                                                                      
|-- | ----------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                             
|   | The following table summarizes information about options
      and warrants granted during the year ended December 31, 2008:

Exercise PriceEquals, ExceedsNumber of Options
      
      or
      
      
      Weightedand Warrants
      
      is Less than Mkt.
      
      
      Average
      
      
      Range of
      
      
      WeightedGranted
      
      Price of Stock
      
      
      Exercise
      
      
      Exercise
      
      
      Average FairDuring 2008
      
      On
        Grant Date
      
      
      Price
      
      
      Price
      
      
      Value--
      
      Equals
      
      
      $     --
      
      
      $  -- to $  --
      
      
      $     --79,719
      
      Exceeds
      
      
      $ 1.36
      
      
      $ 1.36
      
      
      $ 0.25--
      
      Less Than
      
      
      $     --
      
      
      $  -- to $  --
      
      
      $     --


The following table summarizes the status
  of the Companys unvested options and warrants as of December 31, 2008
  and changes during the year ended December 31, 2009:

| |                                   |  |           |   |   | Weighted Average | 
| | --------------------------------- |  | --------- | - | - | ---------------- | 
| |                                   |  | Number of |   |   | Grant Date       | 
| |                                   |  | Shares    |   |   | Fair
      Value | 
| |                                   |  |           |   |   |                  | 
| | Unvested, December 31, 2008       |  | 37,500    |   | $ | 0.55             | 
| | Granted                           |  | 720,000   |   |   | 0.41             | 
| | Vested                            |  | (217,500  | ) |   | 0.31             | 
| | Forfeited                         |  | --        |   |   | --               | 
| |                                   |  |           |   |   |                  | 
| | Unvested, December
      31, 2009 |  | 540,000   |   | $ | 0.46             | 

As of December 31, 2009, there was $240,674
  of total unrecognized compensation cost related to unvested stock options and
  warrants. This cost is expected to be fully recognized as follows: 2010 - $166,215 and
  2011 - $74,459.

The above tables do not include warrants
  issued in private placements which are discussed in Note 7.

Subsequent Issuance of Share Based
  Compensation After the year ended December 31, 2009, the Company
  issued the following warrants:

| | a) | On January 7, 2010, the Company issued 3,300,000 warrants
      under a consulting agreement. Under the agreement, the consultant will
      provide financing assistance to the Company through December 31, 2011.
      The warrants have an expiration date of June 30, 2013 and an exercise
      price of $0.75 per share. The warrants vest 25% on June 30, 2010, 25%
      on December 31, 2010, 25% on June 30, 2011 and 25% on December 31, 2011.
      After June 30, 2010, the Company will have the right to accelerate the
      expiration date of the vested warrants if the volume weighted average
      trading price for the shares is above $4.50 per share for twenty consecutive
      trading days.
| | -- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

F-26

---

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

|8. | SHARE BASED COMPENSATION - (continued)                                                                                                                                                                                                          
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                 
|   | b)                                                                                                                                                                                                                                              
|   |                                                                                                                                                                                                                                                 
|   | c)                                                                                                                                                                                                                                              
|   |                                                                                                                                                                                                                                                 
|9. | WARRANTS AND OPTIONS                                                                                                                                                                                                                            
|   |                                                                                                                                                                                                                                                 
|   | The following table summarizes all of the Companys
      stock option and warrant activity for the years ended December 31, 2009
      and 2008, including private placement warrants and share based payment
      stock options and warrants:

| |                                  |  | Number of  |  |   | Weighted       | 
| | -------------------------------- |  | ---------- |  | - | -------------- | 
| |                                  |  | Shares     |  |   | Average        | 
| |                                  |  |            |  |   | Exercise Price | 
| |                                  |  |            |  |   |                | 
| | Balance, December 31, 2007       |  | 14,035,650 |  | $ | 0.58           | 
| | Options granted and assumed      |  | 5,299,778  |  |   | 1.53           | 
| | Options expired                  |  | --         |  |   | --             | 
| | Options forfeited                |  | --         |  |   | --             | 
| | Options exercised                |  | --         |  |   | --             | 
| |                                  |  |            |  |   |                | 
| | Balance, December 31, 2008       |  | 19,335,428 |  | $ | 1.07           | 
| |                                  |  |            |  |   |                | 
| | Options granted and assumed      |  | 7,987,648  |  |   | 0.74           | 
| | Options expired                  |  | --         |  |   | --             | 
| | Options forfeitures              |  | --         |  |   | --             | 
| | Options exercised                |  | --         |  |   | --             | 
| |                                  |  |            |  |   |                | 
| | Balance, December
      31, 2009 |  | 27,323,076 |  | $ | 0.97           | 

F-27

---

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

|10. | 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
      December 31, 2009 and 2008:                                          

| |                                                       |   | December 31, |   |   | December 31, |  
| | ----------------------------------------------------- | - | ------------ | - | - | ------------ | -
| |                                                       |   | 2009         |   |   | 2008         |  
| |                                                       |   |              |   |   |              |  
| | Income tax benefit based on statutory tax rate        | $ | (1,731,342   | ) | $ | (1,858,683   | )
| | Non-deductible and other                              |   | 2,865        |   |   | 3,572        |  
| | Change in valuation allowance                         |   | 30,411       |   |   | (123,061     | )
| | Rate change                                           |   | --           |   |   | (22,419      | )
| | Release of valuation allowance related to acquisition |   | --           |   |   | 805,997      |  
| |                                                       |   |              |   |   |              |  
| | Income tax benefit                                    | $ | (1,698,066   | ) | $ | (1,194,594   | )

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

| |                                   |   | December 31, |   |   | December 31, |  
| | --------------------------------- | - | ------------ | - | - | ------------ | -
| |                                   |   | 2009         |   |   | 2008         |  
| | Deferred income tax assets:       |   |              |   |   |              |  
| |                                   |   |              |   |   |              |  
| | Net operating loss carryforward   | $ | 3,698,657    |   | $ | 2,000,591    |  
| | Option compensation               |   | 575,539      |   |   | 544,626      |  
| | Reclamation and remediation costs |   | 96,368       |   |   | 96,368       |  
| |                                   |   |              |   |   |              |  
| | Gross deferred income tax asset   |   | 4,370,564    |   |   | 2,641,585    |  
| | Valuation allowance               |   | (669,590     | ) |   | (639,179     | )
| |                                   |   |              |   |   |              |  
| |                                   |   | 3,700,974    |   |   | 2,002,406    |  
| | Deferred income tax liabilities:  |   |              |   |   |              |  
| |                                   |   |              |   |   |              |  
| | Property, plant and equipment     |   | 2,317        |   |   | 1,815        |  
| | Acquisition related liabilities   |   | 11,067,191   |   |   | 11,067,191   |  
| |                                   |   |              |   |   |              |  
| | Net deferred income tax liability | $ | 7,368,534    |   | $ | 9,066,600    |  

A valuation allowance for deferred tax
  related to option compensation, accrued reclamation and remediation costs 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 December 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.

F-28

---

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

|10. | INCOME TAXES - (continued)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|    | 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 ASC 740 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.                                                                                                                                                                                                                                                                                                              
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|    | The Company had cumulative net operating losses of approximately
      $10,567,591 and $5,713,176 as of December 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.                                                                                                                                                                                                                                        
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|    | 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 2006. 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-29

---

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

|11. | PROPERTY RENTAL AGREEMENTS AND LEASES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|    | The Company through its subsidiary CMI 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, 2010
      $
      30,000June 30, 2011
      
      30,000$
      60,000


The Company had made $30,000 in rental
  payments during the year ended December 31, 2009, which consists of $3,651 in
  payments to each of the eight owners of DDB Syndicate including reimbursement
  of expenses of $792 to a company controlled by Douglas D.G. Birnie.

|12. | 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 $55,500 and $46,125 for the year ended December 31, 2009
      and 2008, respectively.                                                                                                                                                                      
|    |                                                                                                                                                                                                                                                                                                                                      
|    | Columbus Project- 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. The Columbus Project is
      further discussed in Note 5.        
|    |                                                                                                                                                                                                                                                                                                                                      
|    | Red Mountain Project- 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. The Red Mountain
      Project is further discussed in Note 6.

F-30

---

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

|13. | ENVIRONMENTAL AND RECLAMATION ACTIVITIES                                                                                            
|--- | ------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                     
|    | The liabilities accrued for the reclamation and remediation
      costs at December 31, 2009 and December 31, 2008, were as follows:

| |                                              |   | December 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 year ended December 31, 2009, was as
  follows:

| | Balance, December 31, 2008   | $ | 275,338 | 
| | ---------------------------- | - | ------- | 
| | Accruals for estimated costs |   | --      | 
| |                              |   |         | 
| | Balance, December 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 December 31, 2009 and December 31, 2008, respectively.

|14. | 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. Additionally, through the financial institutions
      participation in the FDICs Transaction Account Guarantee Program,
      all non-interest bearing checking accounts are fully guaranteed by the
      FDIC for the entire amount in the account through December 31, 2009. Coverage
      under the Transaction Account Guarantee Program is in addition to and
      separate from the coverage available under the FDICs general deposit
      insurance rules.
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|    | The Company has never 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 December 31, 2009, the
      Company had deposits in excess of FDIC insured limits in the amount of
      $2,704,852.                                                                                                                                                                                                                                                                                                                                       

F-31

---

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

|15. | RELATED PARTY TRANSACTIONS                                                                                                                                                                                                                                                                                                                                                                      
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                                                                                 
|    | During the year ended December 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. NMC is the Companys largest shareholder,
      owning approximately 36% of the Companys outstanding common stock.                
|    |                                                                                                                                                                                                                                                                                                                                                                                                 
|    | 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 year ended December 31, 2009, the Company incurred
      total fees and reimbursements of expenses to NMC of $420,000 and $100,831,
      respectively, for a total of $520,831. At December 31, 2009, the Company
      had an outstanding balance due to NMC of $47,213.                                                                                                              
|    |                                                                                                                                                                                                                                                                                                                                                                                                 
|    | The Company also had an outstanding balance for accrued
      compensation to Douglas D.G. Birnie, its executive officer of $9,000 payable
      to a company wholly owned by Douglas D.G. Birnie. The Company has the
      mining claim lease for the DDB Claims as further discussed in Note 11.                                                                                             
|    |                                                                                                                                                                                                                                                                                                                                                                                                 
|    | Accounts payable  related party also includes
      $45,000 payable to two of the Companys independent directors for
      director compensation.                                                                                                                                                                                                                                             
|    |                                                                                                                                                                                                                                                                                                                                                                                                 
|    | Accounts payable  related party totaled $101,213
      as of December 31, 2009.                                                                                                                                                                                                                                                                                                                
|    |                                                                                                                                                                                                                                                                                                                                                                                                 
|    | Due to related parties includes amounts due to former officers of the Company. At December 31, 2009, the remaining amount of due to related parties was $23,290.                                                                                                                                                                                                                                
|    |                                                                                                                                                                                                                                                                                                                                                                                                 
|    | In connection with the private placement completed on
      November 14, 2009, Mark Brennan, one of the Companys independent
      directors, purchased 140,000 units of securities at an aggregate purchase
      price of $63,000, of which $63,000 was recorded as a subscription receivable
      as of December 31, 2009. Subsequent to year end, the subscription was
      paid in full.
|    |                                                                                                                                                                                                                                                                                                                                                                                                 
|    | The Company incurred fees in 2009 for services performed
      by one of its independent directors, Mark Brennan of $4,000 for executive
      search assistance. The Company did not utilize his services in prior years.                                                                                                                                                                      
|    |                                                                                                                                                                                                                                                                                                                                                                                                 
|16. | CONCENTRATION OF ACTIVITY                                                                                                                                                                                                                                                                                                                                                                       
|    |                                                                                                                                                                                                                                                                                                                                                                                                 
|    | For the year ended December 31, 2009, the Company purchased
      services from two major vendors Boart Longyear and NMC that exceeded more
      than 10% of total purchases and amounted to $1,127,283 and $510,007, respectively.                                                                                                                                                            

F-32

---

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

|17. | SUBSEQUENT EVENTS                                                                       
|--- | ----------------------------------------------------------------------------------------
|    |                                                                                         
|    | Subsequent to December 31, 2009, the Company
      completed the following transactions:
|    |                                                                                         
|    | a)                                                                                      
|    |                                                                                         
|    | b)                                                                                      
|    |                                                                                         
|    |                                                                                         
|    |                                                                                         
|    |                                                                                         

| | (a) | Subscriptions for 9,235,000 units were accepted, and
      the units issued, on January 8, 2010 for total proceeds of $4,155,750;
      and         
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------
| |     |                                                                                                                                                     
| | (b) | Subscriptions for an additional 1,600,000 units were
      accepted, and the units issued on, January 13, 2010 for total proceeds
      of $720,000.

This represents an over-allotment of
  835,000 units from the total number of units available for the US Offering as
  originally approved by the Companys directors on December 18, 2009. To
  account for the over-allotment, the Companys directors increased the number
  of units available under the US Offering.

The units were issued pursuant to the
  provisions of Rule 506 of Regulation D promulgated under the Securities Act
  of 1933 (the Securities Act). Each of the subscribers under the
  US Offering represented that they were accredited investors as defined under
  Regulation D of the Securities Act. The US Offering has now been closed. Prior
  to year end, $225,000 was received related to this financing and was recorded
  as subscriptions received.

Foreign Offering

On January 13, 2010, the Company also
  issued 200,000 units at a price of $0.45 per Unit for total proceeds of $90,000
  to a foreign investor pursuant to the provisions of Regulation S of the Securities
  Act. The Foreign Offering is now closed.

The Company has agreed to pay at total
  of $6,300 and issue a total of 6,000 share purchase warrants as a finders
  fee for the Foreign Offering.

F-33

---

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

|17. | SUBSEQUENT EVENTS -   (continued)
|--- | ---------------------------------
|    |                                  
|    | c)                               
|    |                                  
|    | d)                               

F-34

---

ITEM 9.
    CHANGES IN AND DISAGREEMENTS WITH
      ACCOUNTANTS ON ACCOUNTING AND FINANCIAL
      DISCLOSURE.


None.

|ITEM 9A(T). | CONTROLS AND PROCEDURES.
|----------- | ------------------------

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 December 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.

Management's Annual Report on Internal Control Over
Financial Reporting

Our management is responsible for establishing and maintaining
adequate internal control over financial reporting, as such term is defined in
Rules 13a-15(f) and 15d-15(f) under the Exchange Act, for the Company.

Our internal control over financial reporting includes those
policies and procedures that: (1) pertain to the maintenance of records that, in
reasonable detail, accurately and fairly reflect the transactions and
dispositions of our assets; (2) provide reasonable assurance that transactions
are recorded as necessary to permit preparation of financial statements in
accordance with generally accepted accounting principles, and that our receipts
and expenditures are being made only in accordance with authorizations of our
management and directors; and (3) provide reasonable assurance regarding
prevention or timely detection of unauthorized acquisition, use or disposition
of our assets that could have a material effect on the financial statements.

Under the supervision and with the participation of our Chief
Executive Officer and Chief Financial Officer, management conducted an
evaluation of the effectiveness of our internal control over financial
reporting, as of the Evaluation Date, based on the framework set forth in
Internal Control-Integrated Framework issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). Based on its evaluation under
this framework, management concluded that our internal control over financial
reporting was effective as of the Evaluation Date.

This annual report does not include an attestation report of
our registered public accounting firm regarding internal control over financial
reporting. Management's report was not subject to attestation by our registered
public accounting firm pursuant to temporary rules of the SEC that permit us to
provide only management's report in this annual report.

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 December 31, 2009 that have materially affected, or that are
reasonably likely to materially affect, our internal control over financial
reporting.

33

---

Limitations on the Effectiveness of Controls and
Procedures

Our management, including our Chief Executive Officer and the
Chief Financial Officer, do not expect that the 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.

|ITEM 9B. | OTHER INFORMATION.
|-------- | ------------------

None.

34

---

PART III

|ITEM 10. | DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE
      GOVERNANCE.
|-------- | -------------------------------------------------------------

Directors and Executive Officers

|Name                    | Age | Positions                                                       
|----------------------- | --- | ----------------------------------------------------------------
|Douglas D.G. Birnie     | 39  | President, Chief Executive
      Officer, Secretary and Director
|Robert D. McDougal      | 77  | Chief Financial Officer, Treasurer and Director                 
|David Z. Strickler, Jr. | 44  | Vice President of Finance and
      Administration              
|Michael A. Steele       | 52  | Director                                                        
|Mark H. Brennan         | 50  | Director                                                        

Douglas D.G. Birnie.Mr. Birnie was appointed as our
Chief Executive Officer, President and a member of our Board of Directors on
June 29, 2007. Mr. Birnie was also appointed as our Secretary on March 30, 2007.
Mr. Birnie was appointed as our President and Secretary, and as one of our
directors pursuant to the terms of our assignment agreement with Nanominerals.
Mr. Birnie graduated with a Bachelor of Commerce degree from the University of
British Columbia in 1994. In 1995, Mr. Birnie was a founder of Columbus Group
Communications Inc., a privately held internet solutions company. In 1998, Mr.
Birnie received the Ernst and Young Entrepreneur of the Year award and the
Business Development Bank of Canada Young Entrepreneur of the Year Award. During
his tenure at Columbus Group, Mr. Birnie held the positions of CFO and COO until
the company was acquired by TELUS Corp. in 2001. Mr. Birnie continued to work
for TELUS Corp. as Director  Strategic Planning with the e.Solutions department
until 2003.

Robert D. McDougal.Mr. McDougal was appointed as our
Chief Financial Officer on March 30, 2007 and has served as a member of our
Board of Directors since December 14, 2007. Mr. McDougal was also appointed as
our Treasurer on January 23, 2008. Mr. McDougal was appointed as our Chief
Financial Officer pursuant to the terms of our assignment agreement with
Nanominerals. Mr. McDougal is a Certified Public Accountant. He began practicing
public accounting in 1973 and established his own practice in 1981. The majority
of his practice is focused on mining and mining related clients including public
companies, private companies partnerships and individuals. Mr. McDougal was a
Director and Officer of GEXA Gold Corporation, a publicly traded mining company,
from 1985 to 2001. Mr. McDougal was one of the founders of Millennium Mining
Corporation, which was subsequently merged into Gold Summit Corporation, a
publicly traded company. He is the managing partner of GM Squared, LLC, which
holds numerous mining claims. He served on the Nevada Society of Certified
Public Accountants Committee on Natural Resources for seven years, four years as
chairman. Prior to this time Mr. McDougal spent 20 years in the United States
Air Force, retiring with the rank of Major. Mr. McDougal is currently a member
of the Board of Directors of Searchlight Minerals Corp.

David Z. Strickler, Jr. Mr. Strickler was appointed as
our Vice President of Finance and Administration on March 8, 2010. Mr. Strickler
has worked in the construction and real estate industries for 15 years with
expertise in both finance and operations. During the last 8 years, he served as
the Executive VP Finance for the leading luxury homebuilder in Las Vegas, with
operations involving between 80 and 120 employees. In addition, he owned and
operated an accounting services business and was an owner of a snowboard
manufacturing business. Mr. Strickler has a bachelor's degree in Accounting and
an MBA, concentration in Finance from the Pennsylvania State University.

Michael A. Steele.Mr. Steele was appointed as a member
of our Board of Directors on December 14, 2007. For the past 15 years, Mr.
Steele has been the president and director of Avonlea Investments Ltd., a
private company. From 1998 to 2000, Mr. Steele acted as the president of
International Menu Solutions Corp., a company formerly quoted on the OTC
Bulletin Board.

Mark H. Brennan.Mr. Brennan was appointed as a member
of our Board of Directors on June 24, 2009. Mr. Brennan has served as the
president of his own consulting firm, the Brennan Consulting Group, through
which he has managed a number of long-term, multi-year management and operations
consulting engagements in various business sectors. In addition to his ongoing
management consulting practice, Mr. Brennan has also founded and operated a number of private companies beginning in
the early 1990s.

35

---

Mr. Brennan is the founding chairman of the Vegas Valley
Angels, a non-profit organization of accredited investors whose purpose is to
search out, invest in, mentor and foster the development of new and developing
companies located in the southwestern United States. Mr. Brennan is also an
active member of the board of advisors for both the Nevada Center for
Entrepreneurship and Technology (NCET), and the University of Nevada Las Vegas
Center for Entrepreneurship. Mr. Brennan holds an MBA from the Harvard Business
School and a MA in Management from National University. Early in Mr. Brennans
career he served his country for eight years as a fighter pilot and instructor
pilot with the United States Air Force after earning his BS degree from the
United States Air Force Academy.

TERMS OF OFFICE

Our directors are appointed for a one-year term to hold office
until the next annual general meeting of our stockholders or until removed from
office in accordance with our bylaws. Our officers are appointed by our Board of
Directors and hold office until removed by the Board.

SIGNIFICANT EMPLOYEES AND CONSULTANTS

Nanominerals Corp.Nanominerals Corp. (Nanominerals)
is a private company controlled by its sole officer and director Dr. Charles A.
Ager. Nanominerals is our largest shareholder and acts as a consultant to us on
technical exploration and financial matters. In addition, Nanominerals owns a 5%
royalty interest on any net smelter returns from either the Columbus Project or
the Red Mountain Project.

Dr. Ager is an accomplished geophysical engineer with over
forty years experience in the mining industry, combining an extensive academic
background with international business development experience in the founding of
several successful mining enterprises. Dr. Ager earned a PhD in Geophysics and a
Master of Science (M.Sc) in Geophysics from the University of British Columbia.
Dr. Ager attended California State University in Sacramento, California for his
Bachelor of Arts in Math/Physics. He graduated with honors in 1968.

Throughout his career, Dr. Ager has been a trailblazer in the
mining industry. Dr. Ager has discovered and/or participated in the discovery of
numerous metal deposits throughout Canada and the United States. He is also the
developer and owner of a number of patents and intellectual property rights for
technological innovations in the mining field. Through Nanominerals, Dr. Ager
developed ways of using nanotechnology to discover several precious metal
deposits. Dr. Ager is also responsible for inventing the satellite/electron
microscope technology that has led to the identification of a new class of gold
deposits in the Southwestern United States. Some of the mineral deposits that
Dr. Ager was critically involved in as either developer or discoverer include
the Jamestown Gold Deposit & Mine in the Mother Lode District in Jamestown,
California; the Glendale Gold Deposits in the N. Glendale Basin in Clark County,
Nevada; the Eldorado Gold Deposit in the Eldorado Valley in Clark County,
Nevada; the Pine Tree Gold Deposit in the Mother Lode District in Mariposa
County, California; and the Rich Gulch Gold Deposit in the Mother Lode District
in Plumas County, California.

The Companys President and Chief Executive Officer, Douglas
D.G. Birnie, owns a 3.5% interest in NMC.

AUDIT COMMITTEE

Our audit committee is composed of Robert D. McDougal and
Michael A. Steele. Mr. McDougal is our audit committee financial expert as
defined by the applicable rules of the SEC. Mr. McDougal is not independent as
he also acts as our Chief Financial Officer and Treasurer. Mr. Steele is an
independent member of our Board of Directors.

CODE OF ETHICS

We adopted a Code of Ethics applicable to our officers and
directors which is a "code of ethics" as defined by applicable rules of the SEC.
If we make any amendments to our Code of Ethics other than technical,
administrative, or other non-substantive amendments, or grant any waivers,
including implicit waivers, from a provision of our Code of Ethics to our Chief
Executive Officer, Chief Financial Officer, or certain other finance executives,
we will disclose the nature of the amendment or waiver, its effective date and
to whom it applies in a current report on Form 8-K filed with the SEC. A copy of our
Code of Ethics was attached as an exhibit to our Annual Report filed with the
SEC on September 28, 2004.

36

---

SECTION 16(a) BENEFICIAL OWNERSHIP REPORTING
COMPLIANCE

Section 16(a) of the Exchange Act requires our executive
officers and directors, and persons who beneficially own more than 10% of our
equity securities (collectively, the Reporting Persons), to file reports of
ownership and changes in ownership with the SEC. Reporting Persons are required
by SEC regulation to furnish us with copies of all forms they file pursuant to
Section 16(a). Based on our review of the copies of such forms received by us,
other than as described below, no other reports were required for those
persons.

The following persons have, during our 2009 fiscal year, failed
to file, on a timely basis, the identified reports required by Section 16(a) of
the Exchange Act:

Name and Principal Position
    Number of Late Reports
    Transactions Not Timely Reported
    Known Failures to File a Required FormDouglas D.G. Birnie, President, Chief Executive
      Officer, Secretary & Director
    1
    1
    0


|ITEM 11. | EXECUTIVE COMPENSATION.
|-------- | -----------------------

COMPENSATION TO EXECUTIVE OFFICERS

The following table sets forth the total compensation paid or
accrued to our named executive officers, as that term is defined in Item
402(m)(2) of Regulation S-K during our last two completed fiscal years.

SUMMARY COMPENSATION
      TABLEName & Principal
      Position
    Year
    Salary ($)
    Bonus ($)
    Stock Awards ($)
    Option Awards ($)
    Non- Equity Incentive Plan
      Compen- sation ($)
    Nonqualified Deferred Compen-
      sation Earnings ($)
    All Other Compen- sation
      ($)
    Total ($)Douglas D.G. Birnie, CEO, President, Secretary,
      Director
    2009 2008
    $108,000(1)$108,000
    $0 $0
    $0 $0
    $0 $842,829
    $0 $0
    $0 $0
    $0 $0
    $108,000 $950,829Robert D. McDougal, CFO, Treasurer,
      Director
    2009 2008
    $48,000 $48,000
    $0 $0
    $0 $0
    $0 $191,552
    $0 $0
    $0 $0
    $0 $0
    $48,000 $239,552


|(1) | Represents consulting fees paid or accrued to a limited
      liability company of which Mr. Birnie is the sole member for services
      provided by Mr. Birnie as an executive officer and director of
    Ireland.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

37

---

OUTSTANDING EQUITY AWARDS AT FISCAL YEAR-END

The following table provides information concerning unexercised
options for each our named executive officers, as that term is defined in Item
402(m)(2) of Regulation S-K as of our fiscal year end of December 31, 2009.

Name and
      Principal Position
    Number of Securities
      Underlying Unexercised Options (#)
      Exercisable
    Number of Securities
      Underlying Unexercised Options (#)
      Unexercisable
    Equity Incentive Plan
      Awards: Number of Securities
      Underlying Unexercised Unearned Options
    Option
      Exercise Price
    Option
      Expiration DateDouglas D.G. Birnie CEO, President, Secretary &
      Director
    2,200,000
    --
    --
    $0.05
    March 30, 2012Robert D. McDougal CFO, Treasurer &
      Director
    500,000
    --
    --
    $0.05
    March 30, 2012


DIRECTOR COMPENSATION

The following table sets forth the compensation paid to our
directors during our December 31, 2009 fiscal year, other than directors who
were also named executive officers as that term is defined in Item 402(m)(2).
Compensation paid to directors who were also named executive officers during our
December 31, 2009 fiscal year is set out in the tables above.

Name
    Fees Earned or
      Paid in Cash(1) ($)
    Stock Awards
      ($)
    Option Awards
      ($)
    Non-Equity Incentive
      Plan Compensation ($)
    Nonqualified Deferred
      Compensation Earnings ($)
    All Other
      Compensation ($)
    Total ($)Michael A. Steele
    $37,000(2)
    $0
    $0
    $0
    $0
    $0
    $37,000Mark
      H. Brennan
    $31,000(3)
    $0
    $102,283(3)
    $0
    $0
    $4,000
    $137,283


| | (1) | From January 1, 2009 to June 30, 2009, we paid our
      independent directors $1,000 per day for each meeting attended in person,
      and $500 per day for each meeting attended by conference call. Effective
      July 1, 2009, we increased the compensation payable to our independent
      directors to $2,500 per month and the choice of either:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| |     | (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| |     | (b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| | (2) | During the year ended December 31, 2009, Mr. Steele
      elected not to receive any restricted stock awards or stock options to
      which he was entitled pursuant to our independent directors compensation
      policies. Mr. Steele was paid $15,000 in cash in lieu of any restricted
      stock awards or stock options to which he was entitled for the year ended
      December 31, 2009.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| | (3) | On August 11, 2009, we issued to Mr. Brennan options to
      purchase 250,000 shares of our common stock at an exercise price of $0.48
      per share. 50,000 of the options vested immediately upon their grant and
      an additional 50,000 options vested on December 31, 2009. The remaining
      150,000 options vest at a rate of 50,000 options every six months
      thereafter. These options were granted to Mr. Brennan in addition to the
      equity compensation he is entitled to as an independent member of our
      Board of Directors. During the year ended December 31, 2009, Mr. Brennan
      elected not to receive any restricted stock awards or stock options to
      which he was entitled pursuant to our independent directors compensation
      policies. Mr. Brennan was paid $15,000 in cash in lieu of any restricted
      stock awards or stock options to which he was entitled for the year ended
      December 31, 2009. On March 3, 2010, we agreed to issue to Mr. Brennan
      options to purchase 67,197 shares of our common stock at an exercise price
      of $0.81 per share, expiring March 2, 2015. These options were granted to
      Mr. Brennan in addition to any equity compensation he is entitled to as an
      independent member of our Board of Directors.

38

---

EMPLOYMENT CONTRACTS

We have no termination of employment or change-in-control
arrangements with any of our executive officers or directors.

On February 23, 2010, our Board of Directors approved an
increase in the compensation payable to Douglas D.G. Birnie, our Chief Executive
Officer, President and Secretary. Mr. Birnies compensation was increased from
$108,000 in 2009 to $225,000 per year, retroactive to January 1, 2010. The
compensation payable to Mr. Birnie is paid to a limited liability company of
which Mr. Birnie is the sole member. We do not have a written compensation
contract with Mr. Birnie or his limited liability company.

On February 26, 2010, our Board of Directors approved an
increase in the compensation to Robert D. McDougal, our Chief Financial Officer
and Treasurer from $48,000 in 2009 to $84,000 per year, retroactive to January
1, 2010. The Company does not have a written compensation contract with Mr.
McDougal.

David Z. Strickler, Jr.s employment contract entitles him to a
salary of $150,000 per year. In addition, we granted to Mr. Strickler options to
purchase 200,000 shares of our common stock at a price of $0.82 per share. The
options granted to Mr. Strickler vest at a rate of 25,000 options per fiscal
quarter, beginning March 31, 2010, and expire 5 years after the particular
vesting date.

|ITEM 12. | SECURITY OWNERSHIP OF CERTAIN BENEFICIAL
      OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS.
|-------- | -----------------------------------------------------------------------------------------------------

EQUITY COMPENSATION PLANS

The following table sets forth certain information concerning
all equity compensation plans previously approved by stockholders and all
previous equity compensation plans not previously approved by stockholders, as
of the most recently completed fiscal year.

Equity Compensation Plan Information

Plan Category
    Number of Securities to be Issued
      Upon Exercise of Outstanding Options, Warrants and Rights (a)
    Weighted-Average Exercise Price
      of Outstanding Options, Warrants and Rights (b)
    Number of Securities Remaining Available
      for Future Issuance Under Equity Compensation Plans (Excluding
      Securities Reflected in column (a)) (c)Equity Compensation Plans Approved By Security Holders
    None
    Not Applicable
    NoneEquity Compensation Plans Not Approved By Security
      Holders
    4,645,000(1)
    $0.21
    10,967,999(2)


| | (1) | Includes options and warrants to purchase an aggregate of
      600,000 shares of our common stock issued to consultants outside of our
      2007 Stock Incentive Plan (see below).
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (2) | Our 2007 Stock Incentive Plan contains provisions that
      automatically increase the number of shares available for issuance (see
      below).                                  

2007 Stock Incentive Plan

On March 27, 2007, we established our 2007 Stock Incentive Plan
(the 2007 Plan). The purpose of the 2007 Plan is to enhance the long-term
stockholder value of the Company by offering opportunities to our directors,
officers, employees and eligible consultants and any entity that directly or
indirectly is in control of or is controlled by the Company (a Related
Company) to acquire and maintain stock ownership in the Company in order to
give these persons the opportunity to participate in our growth and success, and
to encourage them to remain in our service or in the service of a Related
Company.

39

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The 2007 Plan is administered by our Board of Directors or by a
committee of two or more directors appointed by our Board of Directors (the
"Plan Administrator"). Subject to the provisions of the 2007 Plan, the Plan
Administrator has full and final authority to grant the awards of stock options
and to determine the terms and conditions of the awards and the number of shares
to be issued pursuant thereto. The 2007 Plan authorizes the grant of options
that are intended to qualify as incentive stock options under the Internal
Revenue Code of 1986 or nonqualified stock options.

All of our employees and members of our Board of Directors are
eligible to be granted options. Individuals who have rendered or are expected to
render advisory or consulting services to us are also eligible to receive
options so long as they do not provide capital raising services or promote or
maintain a market for our securities. Upon adoption, the maximum number of
shares of our common stock with respect to which options or rights could be
granted under the 2007 Plan to any participant was 6,000,000 shares. The 2007
Plan contains an automatic adjustment provision where the number of shares
authorized to be subjected to option grants increases on the first day of each
quarter beginning with the fiscal quarter commencing July 1, 2007 by the lesser
of the following amounts: (1) 15% of the total number of outstanding shares of
the Companys Common Stock, less any shares that were previously available under
the 2007 Plan an any shares available under any other stock option plan that we
may adopt; or (2) a lesser number of shares of Common Stock as may be determined
by our Board of Directors, subject to certain adjustments to prevent dilution.

The exact terms of the option granted are contained in an
option agreement between us and the person to whom such option is granted.
Eligible employees are not required to pay anything to receive options. The
exercise price for options intending to qualify as incentive stock options must
be no less than 100% of the fair market value of our common stock on the date of
grant. The exercise price for nonqualified stock options is determined by the
Plan Administrator but may not be less than 75% of the fair market value of our
common stock on the date of the grant. Fair market value for purposes of the
2007 Plan is calculated based on the price of our common stock during the 10
trading days prior to the grant date. An option holder may exercise options from
time to time, subject to vesting. Options will vest immediately upon death or
disability of a participant and upon certain change of control events.

The Plan Administrator may amend the 2007 Plan at any time and
in any manner, however no recipient of any award may, without his or her
consent, be deprived thereof or of any of his or her rights thereunder or with
respect thereto as a result of such amendment or termination.

The 2007 Plan terminates on March 27, 2017 unless sooner
terminated by action of our Board of Directors. No option is exercisable by any
person after such expiration. If an award expires, terminates or is canceled,
the shares of our Common Stock not purchased thereunder may again be made
available for issuance under the 2007 Plan.

We have not yet filed a registration statement under the
Securities Act of 1933 to register the shares of our common stock reserved for
issuance under the 2007 Plan.

Options and Warrants Granted to Consultants Outside of 2007
Plan

At the end of our 2009 fiscal year, we had agreed to issue the
following options and warrants outside of our 2007 Plan to certain consultants
in exchange for their services:

| | (a) | Options to purchase 100,000 shares of our common stock
      exercisable at a price of $1.75 per share, expiring on August 15,
    2017.                                                                                                                                                                                                                                                                                                                                                                                                                                  
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
| | (b) | Warrants to purchase up to 200,000 shares of our common
      stock at a price of $0.55 per share, expiring on December 17, 2012. 50,000
      of the warrants were vested at the date of grant, with the remaining
      warrants vesting at a rate of 10,000 warrants per month to March 1, 2010,
      with the remaining 120,000 warrants vesting on April 1, 2010.                                                                                                                                                                                                   
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
| | (c) | Warrants to purchase up to 300,000 shares of our common
      stock exercisable at a price of $0.75 per share, expiring on December 31,
      2014. 60,000 of these warrants vested and became exercisable on December
      31, 2009. An additional 30,000 warrants will vest and become exercisable
      at the end of each of our fiscal quarters beginning with our fiscal
  quarter ending March 31, 2010 and ending with our fiscal quarter ending December 31, 2011. Any warrants that have not yet vested will immediately vest upon any of the following events:

40

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| | (i)  | The acquisition of more than 50% of the Companys
      outstanding shares of common stock by any person other than an affiliate
      of the Company, an entity controlled by or under common control with an
      affiliate of the Company or a wholly owned subsidiary of the company;
      or
| | ---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |      |                                                                                                                                                                                                                                                                                                    
| | (ii) | The sale by the Company of a greater than 50% interest in
      the Columbus Project.                                                                                                                                                                                                              

Upon termination of the services
agreement, any warrants that have not vested will immediately terminate while
any vested warrants shall continue to be exercisable as set out above. We may
accelerate the expiration date of these warrants at any time after June 30, 2010
if:

| | (i)  | the volume weighted average price (VWAP) for our shares
      on the principal market on which they trade is above $4.50 per share for
      twenty consecutive trading days; and                       
| | ---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |      |                                                                                                                                                                                                           
| | (ii) | the average daily trading volume for our shares on the
      principal market on which they trade during those twenty consecutive
      trading days is equal to or greater than 0.2% of our free
  float.

| | (e) | Warrants to purchase up to 3,300,000 shares of our common
      stock exercisable at a price of $0.75 per share, expiring on June 30,
      2013. The warrants will vest at a rate of 825,000 warrants every six
      months beginning June 30, 2010 and ending December 31, 2011. Any warrants
      that have not yet vested will immediately vest upon any of the following
      events:                                                                                                                                                                                           
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| |     | (i)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| |     | (ii)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| |     | (iii)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| |     | Upon termination of the services agreement, any warrants
      that have not vested will immediately terminate while any vested warrants
      shall continue to be exercisable as set out above. We may accelerate the
      expiration date of these warrants at any time after June 30, 2010
    if:                                                                                                                                                                                                                                                                                 
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| |     | (i)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| |     | (ii)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| | (f) | Warrants to purchase 500,000 shares of our common stock,
      exercisable at a price of $0.75 per share and expiring on June 30, 2013.
      125,000 of the warrants granted vested and became exercisable on March 31,
      2010. An additional 125,000 warrants will vest and become exercisable at
      the end of each of our fiscal quarters beginning with our fiscal quarter
      ending June 30, 2010 and ending with our fiscal quarter ending December
      31, 2010. Any warrants that have not yet vested will immediately vest upon
      any of the following events:
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| |     | (i)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     

41

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| | (ii) | The sale by the Company of a greater than 50% interest in
      the Columbus Project.
| | ---- | -------------------------------------------------------------------------------------

Upon termination of the services
agreement, any warrants that have not vested will immediately terminate while
any vested warrants shall continue to be exercisable as set out above. We may
accelerate the expiration date of these warrants at any time after June 30, 2010
if:

| | (i)  | the volume weighted average price (VWAP) for our shares
      on the principal market on which they trade is above $4.50 per share for
      twenty consecutive trading days; and                       
| | ---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |      |                                                                                                                                                                                                           
| | (ii) | the average daily trading volume for our shares on the
      principal market on which they trade during those twenty consecutive
      trading days is equal to or greater than 0.2% of our free
  float.

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
MANAGEMENT

The following table sets forth certain information concerning
the number of shares of our common stock owned beneficially as of April 13, 2010
by: (i) each person (including any group) known to us to own more than five
percent (5%) of any class of our voting securities, (ii) each of our directors
and each of our named executive officers (as defined under Item 402(m)(2) of
Regulation S-K), and (iii) officers and directors as a group. Unless otherwise
indicated, the shareholders listed possess sole voting and investment power with
respect to the shares shown.

Title of Class
    Name and Address
      of Beneficial Owner
    Number of Shares of
      Common Stock
    Percentage of Common
      Stock(1)DIRECTORS AND OFFICERSCommon Stock
    Douglas D.G. Birnie Chief
      Executive Officer, President, Secretary and Director
    4,350,000(2)(direct and
      indirect)
    3.5%Common Stock
    Robert D. McDougal Chief
      Financial Officer, Treasurer and Director
    1,700,000(3)(direct)
    1.4%Common Stock
    David Z. Strickler, Jr. Vice
      President of Finance and Administration
    25,000(4)
    *Common Stock
    Michael Steele Director
    1,100,000(5)(direct and
      indirect)
    *Common Stock
    Mark H. Brennan Director
    387,197(6)(direct)
    *Common Stock
    All Officers and Directors as
      a Group (5 persons)
    7,562,197
    6.0%5%
      STOCKHOLDERSCommon Stock
    Nanominerals Corp. 3500
      Lakeside Court, Suite 206 Reno, NV 89509
    40,150,000(7)(direct)
    32.9%Common Stock
    Charles A. Ager 3500 Lakeside
      Court, Suite 206 Reno, NV 89509
    42,550,000(7)(direct and
      indirect)
    34.9%


* Less than 1%.

42

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|(1) | Under Rule 13d-3, a beneficial owner of a security
      includes any person who, directly or indirectly, through any contract,
      arrangement, understanding, relationship, or otherwise has or shares: (i)
      voting power, which includes the power to vote, or to direct the voting of
      shares; and (ii) investment power, which includes the power to dispose or
      direct the disposition of shares. Certain shares may be deemed to be
      beneficially owned by more than one person (if, for example, persons share
      the power to vote or the power to dispose of the shares). In addition,
      shares are deemed to be beneficially owned by a person if the person has
      the right to acquire the shares (for example, upon exercise of an option)
      within 60 days of the date as of which the information is provided. In
      computing the percentage ownership of any person, the amount of shares
      outstanding is deemed to include the amount of shares beneficially owned
      by such person (and only such person) by reason of these acquisition
      rights. As a result, the percentage of outstanding shares of any person as
      shown in this table does not necessarily reflect the persons actual
      ownership or voting power with respect to the number of shares of common
      stock actually outstanding. As of April 13, 2010, there were 121,934,442
      shares of our common stock issued and outstanding.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|(2) | The shares listed as beneficially owned directly by Mr.
      Birnie consists of: (i) 1,900,000 shares of our common stock held by Mr.
      Birnie; (ii) warrants to acquire 100,000 shares of our common stock at an
      exercise price of $0.75 per share until June 30, 2013; and (iii) options
      to acquire 2,200,000 shares of our common stock at an exercise price of
      $0.05 per share until March 30, 2012. The shares listed as beneficially
      owned indirectly by Mr. Birnie consists of (i) 100,000 shares of our
      common stock held by Dosa Consulting, LLC, a company controlled by Mr.
      Birnie; and (ii) warrants held by Dosa Consulting, LLC to acquire 50,000
      shares of our common stock at an exercise price of $0.75 per share until
      June 30, 2013. Mr. Birnie also owns a 3.5% interest in Nanominerals Corp.
      The shares listed as beneficially owned by Mr. Birnie do not include any
      part of the shares of our common stock owned by Nanominerals as Mr. Birnie
      does not have any voting or investment power over the shares owned by
      Nanominerals.                                                                                                                                                                                                                                                                                                                                                        
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|(3) | The shares listed as beneficially owned by Mr. McDougal
      consists of: (i) 1,200,000 shares of our common stock held by Mr.
      McDougal; and (ii) options to acquire 500,000 shares of our common stock
      at an exercise price of $0.05 per share until March 30, 2012.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|(4) | The shares listed as beneficially owned by Mr. Strickler
      consist of options to acquire shares of our common stock at an exercise
      price of $0.82 per share. On March 8, 2010, we granted 200,000 options to
      Mr. Strickler. These options vest at a rate of 25,000 options per fiscal
      quarter, beginning March 31, 2010, and expire 5 years after the particular
      vesting date. Mr. Strickler also owns options to acquire an additional
      175,000 shares of our common stock at a price of $0.82 per share that do
      not vest within the next 60 days, and have not been included in the number
      of shares listed as being beneficially owned by him. These options vest at
      a rate of 25,000 at the end of each of our fiscal quarters, beginning June
      30, 2010 and expire 5 years after the particular vesting date.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|(5) | The shares listed as beneficially owned directly by Mr.
      Steele consist of options to acquire 500,000 shares of our common stock at
      an exercise price of $0.05 per share until March 30, 2012. The shares
      listed as beneficially owned indirectly by Mr. Steele consists of (i)
      400,000 shares held by Avonlea Ventures #2 Inc. and (ii) warrants held by
      Avonlea Ventures #2 Inc. to acquire an additional 200,000 shares at a
      price of $0.75 per share. Mr. Steele owns a 50% interest in Avonlea
      Ventures #2 Inc.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|(6) | The shares listed as beneficially owned by Mr. Brennan
      consists of: (i) 150,000 shares of our common stock held by Mr. Brennan;
      (ii) warrants to purchase 70,000 shares of our common stock at an exercise
      price of $0.75 per share until June 30, 2013; (iii) options to acquire
      50,000 shares of our common stock at an exercise price of $0.48 per share
      expiring August 10, 2014; (iv) options to acquire 50,000 shares of our
      common stock at an exercise price of $0.48 per share expiring on December
      30, 2014; and (v) options to acquire 67,197 shares of our common stock at
      an exercise price of $0.81 per share until March 2, 2015. Mr. Brennan also
      owns options to acquire an additional 150,000 shares of our common stock
      at a price of $0.48 per share that do not vest within the next 60 days,
      and have not been included in the number of shares listed as being
      beneficially owned by him. These options vest at a rate of 50,000 every
      six months, beginning June 30, 2010 and expire 5 years after the
      particular vesting date.                                                                                                                                                                                                                                                                                                                                                    
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|(7) | The sole officer and director of Nanominerals is Dr.
      Charles A. Ager. In addition, pursuant to a shareholders agreement, Dr.
      Ager has control over a majority of the shareholder voting power of
      Nanominerals. As such, Dr. Ager has voting and dispositive power over the
      40,150,000 shares of our common stock listed as beneficially owned by
      Nanominerals and has listed those shares as being indirectly beneficially
      owned by him. Individually, Dr. Ager owns 2,100,000 shares of our common
      stock. Also included in the number of shares listed as being indirectly
      beneficially owned by Dr. Ager are 300,000 shares of our common stock
      owned by Dr. Agers wife. The shares owned by Dr. Ager and Mrs. Ager have
      not been included in the shares beneficially owned by Nanominerals. Mr.
      Birnie also owns a 3.5% interest in Nanominerals Corp. The shares listed
      as beneficially owned by Mr. Birnie have not been included in the shares
      beneficially owned by Nanominerals.                                                                                                                                                                                                                                                                                                                                                                                                                        

43

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CHANGES IN CONTROL

We are not aware of any arrangement which may result in a
change in control in the future.

ITEM 13.
    CERTAIN RELATIONSHIPS AND
      RELATED TRANSACTIONS, AND DIRECTOR
      INDEPENDENCE.


Except as disclosed below, none of the following parties has,
during our December 31, 2009 fiscal year, had any material interest, direct or
indirect, in any transaction with us or in any presently proposed transaction
that has or will materially affect us:

| | (a) | Any of our directors or officers;                                                                                                                                                                                                                                                                                                         
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (b) | Any person proposed as a nominee for election as a
      director;                                                                                                                                                                                                                                                                        
| | (c) | Any person who beneficially owns, directly or indirectly,
      more than 5% of our outstanding common stock; or                                                                                                                                                                                                                          
| | (d) | Any child, stepchild, parent, stepparent, spouse,
      sibling, mother-in-law, father-in-law, son-in-law, daughter-in-law,
      brother-in-law, sister-in-law of any person listed in (a) to (c), above,
      or any person (other than a tenant or employee) who shares the household
      of any person listed in (a) to (c), above.

DDB Claims

Mr. Chizmar, a former member of our Board of Directors, and a
limited liability company controlled by Douglas D.G. Birnie, our CEO, President
and Secretary, and a member of our Board of Directors, are each the owners of a
1/8 interest in the mining syndicate known as the DDB Syndicate. The former
officers and directors of CBI (other than Mr. Chizmar), and an affiliate of one
of those former officers and directors of CBI, collectively own a 3/8 interest
in the DDB Syndicate. The remaining 3/8 interest in the DDB Syndicate is
collectively owned by affiliates of Nanominerals Corp. (Nanominerals). Mr.
Birnie is also the owner of a 3.5% interest in Nanominerals. Mr. Birnie,
Nanominerals and Nanominerals affiliates acquired their respective interests in
the DDB Syndicate and the DDB Claims prior to his and their involvement with the
Company. Mr. Birnie acquired his interest in Nanominerals prior to their
involvement with the Company. On November 30, 2007, the DDB Syndicate leased the
DDB Claims to Columbus S.M. LLC (CSM), formerly a wholly owned subsidiary of
CBI, and now a wholly owned subsidiary of the Company. The mining lease
agreement (the DDB Agreement) between the DDB Syndicate and CSM provides CSM
with a lease, extending for approximately five years, with an option to purchase
the DDB Claims at any time during the lease period. In order to maintain its
lease rights, CSM must pay 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:

| | (a) | paying the DDB Syndicate a purchase price of $400,000,
      less any rental payments made by CSM prior to exercising the option;
    or
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------
| |     |                                                                                                                                         
| | (b) | paying the DDB Syndicate $10, plus the grant of a 2%
      royalty of net smelter returns on the DDB Claims.                            

As the owners of a 1/8 interest each in the DDB Syndicate, Mr.
Chizmar and a limited liability company controlled by Mr. Birnie are each
entitled to 1/8 of any amounts paid by us under the DDB Agreement. During the
year ended December 31, 2009, we paid a total of $30,000 to the DDB Syndicate
under the terms of the DDB Agreement.

Nanominerals Corp.

Nanominerals Corp. (Nanominerals) is the owner of 40,150,000
shares, or 32.9%, of our common stock. Nanominerals acts as a consultant to us
on technical exploration and financial matters. Mr. Birnie is the owner of a
3.5% interest in Nanominerals. Mr. Birnie acquired his interest in Nanominerals
prior to his and their involvement with our Company. During the year ended
December 31, 2009, we incurred fees totaling $420,000 due to Nanominerals for
services provided. In addition, during the year ended December 31, 2009, we
reimbursed Nanominerals a total of $100,831 in respect of expenses incurred by
Nanominerals in relation to our exploration and development activities on the Columbus Project
and the Red Mountain Project. At December 31, 2009, we had an outstanding
balance due to Nanominerals of $47,213.

44

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Affiliates of Nanominerals are also the owners of a 3/8
interest in the DDB Syndicate, which owns the DDB Claims as described above.

Participation in 2009 US Offering

Mark Brennan, a member of our Board of Directors, purchased 140,000 Units offered by us under our 2009 US Offering at a price of $0.45 per Unit.  A limited liability company of which Douglas D.G. Birnie, our CEO, President and Secretary, and also a member of our Board of Directors, is the sole member purchased 100,000 Units offered by us under our 2009 US Offering, also at a price of $0.45 per Unit.  Details of our 2009 US Offering are provided in Item 7 of this Annual Report.

DIRECTOR INDEPENDENCE

Our common stock is quoted on the OTC Bulletin Board
interdealer quotation system, which does not have director independence
requirements. In determining whether any of our directors are independent
directors, we have applied the definition for independence set out in NASDAQ
Rule 5605(a)(2). In applying this definition, we have determined that Michael A.
Steele and Mark H. Brennan are independent directors. Neither of Douglas D.G.
Birnie nor Robert D. McDougal qualifies as an independent member of our Board of
Directors.

|ITEM 14. | PRINCIPAL ACCOUNTING FEES AND SERVICES.
|-------- | ---------------------------------------

The aggregate fees billed for the two most recently completed
fiscal years for professional services rendered by the principal accountant for
the audit of our annual financial statements and review of the financial
statements included in our Quarterly Reports on Form 10-Q and services that are
normally provided by the accountant in connection with statutory and regulatory
filings or engagements for those fiscal periods were as follows:

|                   |   | Year Ended December 31, 2009 |  |   | Year Ended December 31, 2008 | 
|------------------ | - | ---------------------------- |  | - | ---------------------------- | 
|Audit Fees         | $ | 57,422                       |  | $ | 62,123                       | 
|Audit-Related Fees |   | Nil                          |  |   | Nil                          | 
|Tax Fees           |   | Nil                          |  |   | Nil                          | 
|All Other Fees     |   | Nil                          |  | $ | 21,572                       | 
|Total              | $ | 57,422                       |  | $ | 83,695                       | 

$21,572 in fees was billed by our principal accountant during
the year ended December 31, 2008 for the audit of Columbus Brine Inc. in
connection with our acquisition of that company.

Our audit committee reviewed the qualifications of Brown
Armstrong Paulden McCown Starbuck Thornburgh & Keeter Accountancy
Corporation, prior to engaging them as our auditors in accordance with Rule
2-01(c)(7)(i)(A).

|ITEM 15. | EXHIBITS, FINANCIAL STATEMENT SCHEDULES.
|-------- | ----------------------------------------

The following exhibits are either provided with this Annual
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.,         

45

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|Exhibit |                                                                                                                                                                                                                                      
|------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Number  | Description of Exhibit                                                                                                                                                                                                               
|        | 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.                                                                                                                                                                                                                
|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.         

46

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SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) 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: | April
      15, 2010 |  | By: | /s/
      Douglas D.G. Birnie                         
|      |                      |  |     | DOUGLAS D.G. BIRNIE                                   
|      |                      |  |     | Chief Executive Officer, President and
      Secretary
|      |                      |  |     | (Principal Executive Officer)                         
|      |                      |  |     |                                                       
|      |                      |  |     |                                                       
|      |                      |  |     |                                                       
|Date: | April
      15, 2010 |  | By: | /s/
      Robert D. McDougal                          
|      |                      |  |     | ROBERT D. MCDOUGAL                                    
|      |                      |  |     | Chief Financial Officer and Treasurer                 
|      |                      |  |     | (Principal Financial Officer)                         

Pursuant to the requirements of the Securities Exchange Act of
1934, this report has been signed below by the following persons on behalf of
the registrant and in the capacities and on the dates indicated.

|Date: | April
      15, 2010 |  | By: | /s/
      Douglas D.G. Birnie                         
|----- | -------------------- |  | --- | ------------------------------------------------------
|      |                      |  |     | DOUGLAS D.G. BIRNIE                                   
|      |                      |  |     | Chief Executive Officer, President and
      Secretary
|      |                      |  |     | Director                                              
|      |                      |  |     |                                                       
|      |                      |  |     |                                                       
|      |                      |  |     |                                                       
|Date: | April
      15, 2010 |  | By: | /s/
      Robert D. McDougal                          
|      |                      |  |     | ROBERT D. MCDOUGAL                                    
|      |                      |  |     | Chief Financial Officer and Treasurer                 
|      |                      |  |     | Director                                              
|      |                      |  |     |                                                       
|      |                      |  |     |                                                       
|      |                      |  |     |                                                       
|Date: | April
      15, 2010 |  | By: | /s/
      Michael A. Steele                           
|      |                      |  |     | MICHAEL A. STEELE                                     
|      |                      |  |     | Director                                              
|      |                      |  |     |                                                       
|      |                      |  |     |                                                       
|      |                      |  |     |                                                       
|Date: | April
      15, 2010 |  | By: | /s/
      Mark H. Brennan                             
|      |                      |  |     | MARK H. BRENNAN                                       
|      |                      |  |     | Director                                              

---