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UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWashington, D.C.
20549

___________

FORM 10-Q

[ x ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF
  THE 
  SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD 
  ENDEDJUNE 30, 2008.

[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OF 15 (d) OF THESECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD 
  FROM ___________ TO _________.

REVETT MINERALS INC.(Exact
name of small business issuer in its charter)

|**Canada**                                     | **Not Applicable**               
|---------------------------------------------- | ---------------------------------
|(State or other jurisdiction of incorporation) | (IRS Employer Identification No.)

**11115 East Montgomery, Suite G Spokane Valley, Washington 99206**
  (Address of principal executive offices)

Registrants telephone number: (509) 921-2294

Indicate by check mark whether 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 a 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 is a large
accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller
reporting company. See definition of large accelerated filer, accelerated
filer and smaller reporting company in rule 12b-2 of the Exchange Act. (Check
One)

|Large accelerated filer [ ] | Accelerated filer [ ]        
|--------------------------- | -----------------------------
|Non-accelerated filer [ ]   | Smaller reporting company [X]

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

At August 14, 2008 75,002,702shares of common stock were
issued and outstanding.

1

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|Revett Minerals Inc.       
|---------------------------
|Form 10-Q                  
|QUARTER ENDED June 30, 2008
|                           
|INDEX                      

|                                     |                | PAGE                                                                                             
|------------------------------------ | -------------- | -------------------------------------------------------------------------------------------------
|PART
      I  FINANCIAL INFORMATION |               
|                                     | ITEM
      1.  | FINANCIAL
      STATEMENTS                                                                       
|                                     | ITEM
      2.  | MANAGEMENTS
      DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
      OPERATIONS
|                                     | ITEM
      3.  | QUANTITATIVE
      AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK AND HEDGING
ACTIVITIES          
|                                     | ITEM
      4.  | CONTROLS
      AND PROCEDURES                                                                    
|PART II  OTHER
      INFORMATION    |               
|                                     | ITEM
      1.  | LEGAL
      PROCEEDINGS                                                                          
|                                     | ITEM
      1A. | RISK
      FACTORS                                                                               
|                                     | ITEM
      2.  | UNREGISTERED
      SALES OF EQUITY SECURITIES AND USE OF PROCEEDS                                
|                                     | ITEM
      3.  | DEFAULTS
      UPON SENIOR SECURITIES                                                            
|                                     | ITEM
      4.  | SUBMISSION
      OF MATTERS TO A VOTE OF SECURITY HOLDERS                                        
|                                     | ITEM
      5.  | OTHER
      INFORMATION                                                                          
|                                     | ITEM
      6.  | EXHIBITS                                                                                         
|SIGNATURES                           | 41            

2

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Part I  Financial Information

Item 1. Financial Statements (unaudited)

|Revett Minerals
      Inc. and Subsidiaries
|-------------------------------------------
|                                           
|Contents                                   

|                                                      | Page
|----------------------------------------------------- | ----
|FINANCIAL STATEMENTS:                                 |     
|Consolidated
      balance sheets                     | 4   
|Consolidated
      statements of operations           | 5   
|Consolidated
      statements of cash flow            | 6   
|Consolidated
      statements of shareholders equity | 7   
|Notes to consolidated financial statements            | 8-20

3

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|Revett Minerals Inc.                                   
|-------------------------------------------------------
|Consolidated Balance Sheets                            
|at June 30, 2008 and December 31, 2007                 
|(expressed in thousands of United States
      dollars)
|(unaudited)                                            

|                                                                             |   | June 30, 2008 |   |   | December 31, 2007 |  
|---------------------------------------------------------------------------- | - | ------------- | - | - | ----------------- | -
|                                                                             |   | (unaudited)   |   |   |                   |  
|Assets                                                                       |   |               |   |   |                   |  
|Current Assets                                                               |   |               |   |   |                   |  
|Cash and cash equivalents                                                    | $ | 13,106        |   | $ | 14,055            |  
|Short term investments                                                       |   | -             |   |   | 3,955             |  
|Accounts receivable                                                          |   | 3,941         |   |   | 970               |  
|Income taxes receivable                                                      |   | 50            |   |   | 1,250             |  
|Inventories (note 3)                                                         |   | 4,767         |   |   | 4,519             |  
|Prepaid expenses and deposits                                                |   | 601           |   |   | 498               |  
|Total current assets                                                         |   | 22,465        |   |   | 25,247            |  
|Mineral property, plant, equipment and mine development
      (net) (note 4) |   | 60,364        |   |   | 60,714            |  
|Restricted cash (note 5)                                                     |   | 7,538         |   |   | 7,386             |  
|Other long term assets                                                       |   | 1,197         |   |   | 1,264             |  
|                                                                             |   |               |   |   |                   |  
|Total assets                                                                 | $ | 91,564        |   | $ | 94,611            |  
|                                                                             |   |               |   |   |                   |  
|Liabilities and shareholders equity                                          |   |               |   |   |                   |  
|Current liabilities                                                          |   |               |   |   |                   |  
|Trade accounts payable                                                       | $ | 2,347         |   | $ | 1,985             |  
|Payroll liabilities                                                          |   | 1,062         |   |   | 806               |  
|Income, property and mining taxes                                            |   | 1,698         |   |   | 1,161             |  
|Concentrate settlement payable                                               |   | 416           |   |   | 526               |  
|Other accrued liabilities                                                    |   | 1,438         |   |   | 852               |  
|Current portion of long term debt                                            |   | 3,025         |   |   | 9,719             |  
|Total current liabilities                                                    |   | 9,986         |   |   | 15,049            |  
|                                                                             |   |               |   |   |                   |  
|Long-term portion of debt (note 6)                                           |   | 597           |   |   | 1,784             |  
|Reclamation and remediation liability (note
      9 (b))                     |   | 7,231         |   |   | 7,141             |  
|Future income taxes                                                          |   | 8,450         |   |   | 8,391             |  
|Total liabilities                                                            |   | 26,264        |   |   | 32,365            |  
|                                                                             |   |               |   |   |                   |  
|Non controlling interest                                                     |   | 9,072         |   |   | 8,175             |  
|                                                                             |   |               |   |   |                   |  
|                                                                             |   |               |   |   |                   |  
|Shareholders' equity                                                         |   |               |   |   |                   |  
|Preferred stock, no par value, unlimited
      authorized,                   |   |               |   |   |                   |  
|nil issued and outstanding                                                   |   |               |   |   |                   |  
|Common stock, no par value unlimited
      authorized,                       |   |               |   |   |                   |  
|75,002,702 (2007- 74,295,702) shares issued and outstanding                  |   | 56,871        |   |   | 56,315            |  
|Contributed surplus                                                          |   | 1,675         |   |   | 1,556             |  
|Deficit                                                                      |   | (2,318        | ) |   | (3,800            | )
|                                                                             |   | 56,228        |   |   | 54,071            |  
|                                                                             |   |               |   |   |                   |  
|Total liabilities and shareholders equity                                    | $ | 91,564        |   | $ | 94,611            |  

See accompanying notes to interim consolidated financial
statements.

4

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|Revett Minerals Inc.                                                                      
|------------------------------------------------------------------------------------------
|Consolidated Statements of Operations and Comprehensive
      Income                      
|Three and six months ended June 30, 2008 and
      2007                                   
|(expressed in thousands of United States dollars
      except share and per share amounts)
|(unaudited)                                                                               

|                                                            |   | Three month   |   |   | Three month   |   |   | Six month     |   |   | Six month     |  
|----------------------------------------------------------- | - | ------------- | - | - | ------------- | - | - | ------------- | - | - | ------------- | -
|                                                            |   | period ended  |   |   | period ended  |   |   | period ended  |   |   | period ended  |  
|                                                            |   | June 30, 2008 |   |   | June 30, 2007 |   |   | June 30, 2008 |   |   | June 30, 2007 |  
|                                                            |   |               |   |   |               |   |   |               |   |   |               |  
|                                                            |   |               |   |   |               |   |   |               |   |   |               |  
|Revenues                                                    | $ | 13,377        |   | $ | 15,903        |   | $ | 25,411        |   | $ | 26,619        |  
|Expenses:                                                   |   |               |   |   |               |   |   |               |   |   |               |  
|Cost of sales                                               |   | 9,515         |   |   | 8,758         |   |   | 17,793        |   |   | 16,307        |  
|Depreciation and amortization                               |   | 454           |   |   | 449           |   |   | 846           |   |   | 835           |  
|Exploration and development                                 |   | 958           |   |   | 625           |   |   | 1,310         |   |   | 1,100         |  
|General and administrative                                  |   | 1,389         |   |   | 1,064         |   |   | 2,375         |   |   | 2,039         |  
|Accretion of reclamation and remediation
      liability    |   | 148           |   |   | 162           |   |   | 295           |   |   | 323           |  
|                                                            |   | 12,464        |   |   | 11,058        |   |   | 22,619        |   |   | 20,604        |  
|Income from operations                                      |   | 913           |   |   | 4,845         |   |   | 2,792         |   |   | 6,015         |  
|                                                            |   |               |   |   |               |   |   |               |   |   |               |  
|Other income (expenses):                                    |   |               |   |   |               |   |   |               |   |   |               |  
|Interest expense                                            |   | (270          | ) |   | (372          | ) |   | (544          | ) |   | (744          | )
|Interest and other income                                   |   | 362           |   |   | 465           |   |   | 617           |   |   | 692           |  
|Foreign exchange gain (loss)                                |   | 35            |   |   | 838           |   |   | (183          | ) |   | 966           |  
|Total other income (expenses)                               |   | 127           |   |   | 931           |   |   | (110          | ) |   | 914           |  
|                                                            |   |               |   |   |               |   |   |               |   |   |               |  
|Net income before non controlling interest
      and taxes  |   | 1,040         |   |   | 5,776         |   |   | 2,682         |   |   | 6,929         |  
|                                                            |   |               |   |   |               |   |   |               |   |   |               |  
|Income tax expense                                          |   | 496           |   |   | 953           |   |   | 71            |   |   | 1,329         |  
|                                                            |   |               |   |   |               |   |   |               |   |   |               |  
|Net income before non controlling interest                  |   | 544           |   |   | 4,823         |   |   | 2,611         |   |   | 5,600         |  
|                                                            |   |               |   |   |               |   |   |               |   |   |               |  
|Non controlling interest                                    |   | 469           |   |   | 1,096         |   |   | 1,129         |   |   | 1,571         |  
|                                                            |   |               |   |   |               |   |   |               |   |   |               |  
|Net income and comprehensive income for the
      period    | $ | 75            |   | $ | 3,727         |   | $ | 1,482         |   | $ | 4,029         |  
|                                                            |   |               |   |   |               |   |   |               |   |   |               |  
|Basic earnings per share                                    | $ | 0.00          |   | $ | 0.05          |   | $ | 0.02          |   | $ | 0.06          |  
|                                                            |   |               |   |   |               |   |   |               |   |   |               |  
|Diluted earnings per share                                  | $ | 0.00          |   | $ | 0.05          |   | $ | 0.02          |   | $ | 0.06          |  
|                                                            |   |               |   |   |               |   |   |               |   |   |               |  
|Weighed average number of shares
      outstanding          |   | 75,002,702    |   |   | 72,863,666    |   |   | 74,882,279    |   |   | 72,863,666    |  
|                                                            |   |               |   |   |               |   |   |               |   |   |               |  
|Weighted average number of diluted shares
      outstanding |   | 75,028,702    |   |   | 73,585,032    |   |   | 74,908,279    |   |   | 73,250,995    |  

5

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|Revett Minerals Inc.                                   
|-------------------------------------------------------
|Consolidated Statements of Cash Flow                   
|Three and six months ended June 30, 2008 and
      2007
|(expressed in thousands of United States
      dollars)
|(unaudited)                                            

|                                                                  |   | Three month   |   |   | Three month   |   |   | Six month     |   |   | Six month     |  
|----------------------------------------------------------------- | - | ------------- | - | - | ------------- | - | - | ------------- | - | - | ------------- | -
|                                                                  |   | period ended  |   |   | period ended  |   |   | period ended  |   |   | period ended  |  
|                                                                  |   | June 30, 2008 |   |   | June 30, 2007 |   |   | June 30, 2008 |   |   | June 30, 2007 |  
|                                                                  |   |               |   |   |               |   |   |               |   |   |               |  
|                                                                  |   |               |   |   |               |   |   |               |   |   |               |  
|Cash flows from operating
      activities:                       |   |               |   |   |               |   |   |               |   |   |               |  
|Net income for the period                                         | $ | 75            |   | $ | 3,727         |   | $ | 1,482         |   | $ | 4,029         |  
|Adjustments to reconcile net income to net
      cash provided by |   |               |   |   |               |   |   |               |   |   |               |  
|operating activities                                              |   |               |   |   |               |   |   |               |   |   |               |  
|Depreciation and amortization                                     |   | 454           |   |   | 449           |   |   | 846           |   |   | 835           |  
|Accretion of reclamation and remediation liability                |   | 148           |   |   | 162           |   |   | 295           |   |   | 323           |  
|Foreign exchange loss (gain)                                      |   | (35           | ) |   | (838          | ) |   | 183           |   |   | (966          | )
|Stock based compensation                                          |   | 39            |   |   | 154           |   |   | 119           |   |   | 497           |  
|Loss (gain) on disposal of fixed
      assets                     |   | (7            | ) |   | 1             |   |   | 67            |   |   | 1             |  
|Future income tax expense (recovery)                              |   | 475           |   |   | 953           |   |   | (147          | ) |   | 1,329         |  
|Non controlling interest                                          |   | 469           |   |   | 1,096         |   |   | 1,129         |   |   | 1,571         |  
|Accrued interest from reclamation trust fund                      |   | (67           | ) |   | (85           | ) |   | (153          | ) |   | (168          | )
|Amortization of prepaid insurance
      premium                   |   | 36            |   |   | 39            |   |   | 68            |   |   | 80            |  
|Change in fair value of derivative contracts                      |   | 2,142         |   |   | (1,466        | ) |   | 109           |   |   | 1,641         |  
|Changes in:                                                       |   |               |   |   |               |   |   |               |   |   |               |  
|Accounts receivable                                               |   | (82           | ) |   | (3,838        | ) |   | (3,080        | ) |   | (5,113        | )
|Income taxes receivable                                           |   | -             |   |   | -             |   |   | 1,250         |   |   | -             |  
|Inventory                                                         |   | (65           | ) |   | 605           |   |   | (247          | ) |   | (253          | )
|Prepaid expenses and other                                        |   | (88           | ) |   | 126           |   |   | (153          | ) |   | (270          | )
|Accounts payable and accrued liabilities                          |   | 1,229         |   |   | 5,187         |   |   | 1,631         |   |   | 1,061         |  
|Net cash provided by operating
      activities                   |   | 4,723         |   |   | 6,272         |   |   | 3,399         |   |   | 4,597         |  
|                                                                  |   |               |   |   |               |   |   |               |   |   |               |  
|                                                                  |   |               |   |   |               |   |   |               |   |   |               |  
|Cash flows from investing activities:                             |   |               |   |   |               |   |   |               |   |   |               |  
|Proceeds (purchase) of short term
      investments               |   | 1,002         |   |   | (1,465        | ) |   | 3,955         |   |   | (1,944        | )
|Other long term assets                                            |   | 3             |   |   | 541           |   |   | -             |   |   | 583           |  
|Purchase of plant and equipment                                   |   | (149          | ) |   | (2,450        | ) |   | (155          | ) |   | (2,708        | )
|Net cash provided (used) by investing activities                  |   | 856           |   |   | (3,374        | ) |   | 3,800         |   |   | (4,069        | )
|                                                                  |   |               |   |   |               |   |   |               |   |   |               |  
|Cash flows from financing activities:                             |   |               |   |   |               |   |   |               |   |   |               |  
|Proceeds form the issuance of common
      stock, net             |   | -             |   |   | -             |   |   | -             |   |   | 1,327         |  
|Proceeds from long term debt                                      |   | -             |   |   | 1,838         |   |   | -             |   |   | 1,839         |  
|Repayment of debt                                                 |   | (763          | ) |   | (1,602        | ) |   | (7,388        | ) |   | (2,342        | )
|Repayment of capital leases                                       |   | (282          | ) |   | (244          | ) |   | (577          | ) |   | (425          | )
|Net cash from (used by) financing
      activities                |   | (1,045        | ) |   | (8            | ) |   | (7,965        | ) |   | 399           |  
|                                                                  |   |               |   |   |               |   |   |               |   |   |               |  
|Effects of foreign exchange on cash
      held                    |   |               |   |   |               |   |   |               |   |   |               |  
|In foreign currencies                                             |   | 35            |   |   | 838           |   |   | (183          | ) |   | 966           |  
|                                                                  |   |               |   |   |               |   |   |               |   |   |               |  
|Net increase (decrease) in cash and cash equivalents              |   | 4,569         |   |   | 3,728         |   |   | (949          | ) |   | 1,893         |  
|Cash and cash equivalents, beginning
      of period              |   | 8,537         |   |   | 18,027        |   |   | 14,055        |   |   | 19,862        |  
|Cash and cash equivalents, end of period                          | $ | 13,106        |   | $ | 21,755        |   | $ | 13,106        |   | $ | 21,755        |  
|                                                                  |   |               |   |   |               |   |   |               |   |   |               |  
|Supplementary cash flow information:                              |   |               |   |   |               |   |   |               |   |   |               |  
|Cash paid for interest expense                                    | $ | 148           |   | $ | 242           |   | $ | 552           |   | $ | 787           |  
|Common stock issued to acquire non-controlling
      interest     | $ | -             |   | $ | -             |   | $ | 556           |   | $ | -             |  
|Acquisition of plant and equipment
      under capital lease      | $ | -             |   | $ | -             |   | $ | 84            |   | $ | -             |  

6

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|Revett Minerals Inc.                                   
|-------------------------------------------------------
|Consolidated Statement of Shareholders Equity         
|Six months ended June 30, 2008 and 2007                
|(expressed in thousands of United States
      dollars)
|(unaudited)                                            

|                                           |  | Common shares |  |   | Contributed |  |   |         |  |   |         |  
|------------------------------------------ |  | ------------- |  | - | ----------- |  | - | ------- |  | - | ------- | -
|                                           |  | Shares        |  |   | Amount      |  |   | surplus |  |   | Deficit |  
|                                           |  |               |  |   |             |  |   |         |  |   |         |  
|Balance, December 31, 2006                 |  | 71,904,088    |  | $ | 53,989      |  | $ | 816     |  | $ | (4,673  | )
|Issued for cash on the exercise of share   |  |               |  |   |             |  |   |         |  |   |         |  
|purchase warrants                          |  | 1,293,615     |  |   | 1,327       |  |   | -       |  |   | -       |  
|Stock-based compensation on options        |  |               |  |   |             |  |   |         |  |   |         |  
|granted                                    |  | -             |  |   | -           |  |   | 496     |  |   | -       |  
|Net income for the year                    |  | -             |  |   | -           |  |   | -       |  |   | 4,029   |  
|Balance, June 30, 2007                     |  | 73,197,703    |  | $ | 55,316      |  | $ | 1,312   |  | $ | (644    | )
|                                           |  |               |  |   |             |  |   |         |  |   |         |  
|Balance, December 31, 2007                 |  | 74,295,702    |  | $ | 56,315      |  | $ | 1,556   |  | $ | (3,800  | )
|Issued to acquire non controlling interest |  | 707,000       |  |   | 556         |  |   | -       |  |   | -       |  
|Issued for cash on the exercise of share   |  |               |  |   |             |  |   |         |  |   |         |  
|purchase warrants                          |  | -             |  |   | -           |  |   | -       |  |   | -       |  
|Stock-based compensation on options        |  |               |  |   |             |  |   |         |  |   |         |  
|granted                                    |  | -             |  |   | -           |  |   | 119     |  |   | -       |  
|Net income for the period                  |  | -             |  |   | -           |  |   | -       |  |   | 1,482   |  
|Balance, June 30, 2008                     |  | 75,002,702    |  | $ | 56,871      |  | $ | 1,675   |  | $ | (2,318  | )

See accompanying notes to interim consolidated financial
statements.

7

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|REVETT MINERALS INC.                                                                                  
|------------------------------------------------------------------------------------------------------
|Notes to the Consolidated Financial Statements                                                        
|For the three and six months ended June 30, 2008 and
      2007                                       
|(tabular amounts are expressed in thousands of U.S.
      dollars, except share and per share amounts)
|(unaudited)                                                                                           

|1. | Basis of Presentation
|-- | ---------------------

In the opinion of management, the accompanying unaudited
interim consolidated balance sheet and consolidated statements of operations,
cash flows, and shareholders equity contain all adjustments, consisting only of
normal recurring items, necessary to present fairly, in all material respects,
the financial position of Revett Minerals Inc. (Revett Minerals or the
Company) as of June 30, 2008, and the results of its operations and its cash
flows for the three and six month periods ended June 30, 2008 and 2007. The
operating and financial results for Revett Minerals for the three and six months
ended June 30, 2008 are not necessarily indicative of the results that may be
expected for the year ended December 31, 2008.

Except as discussed in note 2 below, these unaudited interim
financial statements are prepared using the same accounting policies and methods
of application as those disclosed in note 2 to the Companys audited financial
statements for the year ended December 31, 2007. These financial statements have
been prepared in accordance with generally accepted accounting principles for
interim financial information and accordingly, these interim financial
statements do not include all the notes to the financial statements required in
audited financial statements and as such these statements should be read in
conjunction with the most recently completed audited financial statements and
notes of the Company for the year ended December 31, 2007. These statements have
been prepared in accordance with accounting principles generally accepted in
Canada (Canadian GAAP). Material differences between Canadian GAAP and
generally accepted accounting principles in the United States (US GAAP) are
disclosed in note 11. All currency is reported in United States dollars unless
otherwise specified.

|2. | Adoption of New Accounting Standards
|-- | ------------------------------------

On January 1, 2008, the Company adopted The Canadian Institute
of Chartered Accountants (CICA) section 1535- Capital Disclosures. This
section establishes standards for disclosure concerning the Companys
objectives, policies and processes for managing capital. The required disclosure
is contained in note 7 (a).

On January 1, 2008, the Company adopted CICA section 3862-
Financial Instruments-Disclosures and section 3863 Financial
Instruments- Presentation, which together comprise a set of disclosure and
presentation requirements that revise and enhance current disclosure
obligations. Section 3862 requires disclosure of additional detail by financial
asset and liability categories. Section 3863 establishes standards for
presentation of financial instruments and non-financial derivatives. The
standard deals with the classification of financial instruments, from the
perspective of the issuer, between liabilities and equity, the classification of
related interest, dividends, losses and gains, and the circumstances in which
financial assets and liabilities are offset. The required disclosure is
contained in note 10.

On January 1, 2008, the Company adopted CICA section 3031-
Inventories, which provides guidance on the measurement, presentation and
disclosure requirements for inventories. This pronouncement requires inventories
to be measured at the lower of cost and net realizable value and provides
guidance on the determination of cost and its subsequent recognition as an
expense, including any write-down to net realizable value. In certain
circumstances this section also requires that previous write downs be reversed.
Previously, the Company valued materials and

8

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|REVETT MINERALS INC.                                                                                  
|------------------------------------------------------------------------------------------------------
|Notes to the Consolidated Financial Statements                                                        
|For the three and six months ended June 30, 2008 and
      2007                                       
|(tabular amounts are expressed in thousands of U.S.
      dollars, except share and per share amounts)
|(unaudited)                                                                                           

supplies inventory at the lower of cost or replacement cost and
a write up of inventory was not permitted. This section has been applied
retroactively without restatement of prior periods but the adoption of this
section did not result in any adjustments to opening deficit. The required
disclosure is contained in note 3.

|3. | Inventories
|-- | -----------

The major components of the Companys inventory accounts at
June 30, 2008 and December 31, 2007 are as follows:

|                      |   | June 30, 2008 |  |   | Dec. 31, 2007 | 
|--------------------- | - | ------------- |  | - | ------------- | 
|                      |   | (unaudited)   |  |   | (audited)     | 
|Concentrate inventory | $ | 1,191         |  | $ | 1,187         | 
|Material and supplies |   | 3,576         |  |   | 3,332         | 
|                      | $ | 4,767         |  | $ | 4,519         | 

Inventories are valued at cost at June 30, 2008 as cost exceeds
net realizable value and at net realizable value at December 31, 2007. The table
below identifies the nature of expenses included in cost of sales for the three
and six months ended June 30, 2008 and 2007:

|                          |   | Three month   |  |   | Three month   |  |   | Six month     |   |   | Six month     |  
|------------------------- | - | ------------- |  | - | ------------- |  | - | ------------- | - | - | ------------- | -
|                          |   | period ended  |  |   | period ended  |  |   | period ended  |   |   | period ended  |  
|Nature of expense         |   | June 30, 2008 |  |   | June 30, 2007 |  |   | June 30, 2008 |   |   | June 20, 2007 |  
|                          |   | (unaudited)   |  |   | (unaudited)   |  |   | (unaudited)   |   |   | (unaudited)   |  
|Raw materials and         |   |               |  |   |               |  |   |               |   |   |               |  
|consumables used          | $ | 3,633         |  | $ | 3,508         |  | $ | 6,802         |   | $ | 6,455         |  
|Labor costs               |   | 3,655         |  |   | 3,240         |  |   | 6,259         |   |   | 5,747         |  
|Other costs               |   | 2,139         |  |   | 1,399         |  |   | 4,736         |   |   | 4,126         |  
|Net change in concentrate |   |               |  |   |               |  |   |               |   |   |               |  
|inventories               |   | 88            |  |   | 611           |  |   | (4            | ) |   | (21           | )
|                          | $ | 9,515         |  | $ | 8,758         |  | $ | 17,793        |   | $ | 16,307        |  

|4. | Mineral Property, Plant, Equipment and Mine
      Development
|-- | -------------------------------------------------------------

The major components of the Companys mineral property, plant,
and equipment accounts at June 30, 2008, and December 31, 2007 are as
follows:

|                                           |   | June 30, 2008 |  |   | Dec. 31, 2007 | 
|------------------------------------------ | - | ------------- |  | - | ------------- | 
|                                           |   | (unaudited)   |  |   | (audited)     | 
|TROY:                                      |   |               |  |   |               | 
|Property acquisition and development costs | $ | 8,989         |  | $ | 9,093         | 
|Plant and equipment                        |   | 11,454        |  |   | 11,324        | 
|Buildings and structures                   |   | 996           |  |   | 997           | 
|ROCK CREEK:                                |   |               |  |   |               | 
|Property acquisition costs                 |   | 40,044        |  |   | 39,595        | 
|OTHER, corporate                           |   | 3,672         |  |   | 3,672         | 
|OTHER, mineral properties                  |   | 118           |  |   | 118           | 
|                                           |   | 65,273        |  |   | 64,799        | 

9

---

|REVETT MINERALS INC.                                                                                  
|------------------------------------------------------------------------------------------------------
|Notes to the Consolidated Financial Statements                                                        
|For the three and six months ended June 30, 2008 and
      2007                                       
|(tabular amounts are expressed in thousands of U.S.
      dollars, except share and per share amounts)
|(unaudited)                                                                                           

|Accumulated depreciation &depletion: |   |        |   |   |        |  
|------------------------------------ | - | ------ | - | - | ------ | -
|Troy Property                        |   | (2,528 | ) |   | (2,142 | )
|Troy plant and equipment             |   | (2,122 | ) |   | (1,727 | )
|Troy buildings and structures        |   | (186   | ) |   | (146   | )
|Other corporate assets               |   | (73    | ) |   | (70    | )
|                                     |   | (4,909 | ) |   | (4.085 | )
|                                     | $ | 60,364 |   | $ | 60,714 |  

No drilling costs were incurred and capitalized to convert
mineral resources to reserves at the Rock Creek property and the Troy mine
during the periods presented.

On February 1, 2008, Revett Silver shareholders exchanged
707,000 Class B common shares for common shares of the Company on a one for one
basis. The Company exchanged these Class B common shares for Class A common
shares of Revett Silver increasing its ownership in Revett Silver from 69% to
69.8% . As a result of this share exchange, the Company recorded an increase in
the carrying value of the Troy and Rock Creek properties in the amount of
$528,689, an increase in the future income tax liability of $206,400 and a
corresponding reduction of $233,352 in non controlling interest.

|5. | Restricted Cash
|-- | ---------------

On March 29, 2005, the Company purchased from a leading North
American insurance company an environmental risk transfer program (the ERTP).
The total cost of the ERTP was $8.4 million. Of this $8.4 million, $6.5 million
was deposited in an interest-bearing account with the insurer (the Commutation
Account). The Commutation Account principal plus interest earned on the
principal are reserved exclusively to pay the Companys reclamation and mine
closure liabilities at the Troy Mine. The remaining $1.9 million was comprised
of a premium paid to the insurer and Montana state taxes on the ERTP
transaction. This remaining amount is considered a non-current asset and is
amortized over the life of the mine on a units-of-production basis. At June 30,
2008 the commutation account was $7.5 million (December 31, 2007-$7.4 million)
and the balance for the prepaid insurance was $1.4 million (December 31,
2007-$1.4 million), of which the long term portion of $1.2 million (December 31,
2007-$1.2 million) is included in other assets.

|6. | Long-term debt
|-- | --------------

At June 30, 2008 and December 31, 2007 the balance of the
companys long term debt and capital lease obligations were as follows.

|                   |   | June 30, 2008 |   |   | Dec. 31, 2007 |  
|------------------ | - | ------------- | - | - | ------------- | -
|                   |   | (unaudited)   |   |   | (audited)     |  
|                   |   |               |   |   |               |  
|Royal Gold royalty | $ | 2,317         |   | $ | 3,705         |  
|Kennecott note     |   | -             |   |   | 6,000         |  
|Capital leases     |   | 1,305         |   |   | 1,798         |  
|                   |   | 3,622         |   |   | 11,503        |  
|Current portion    |   | (3,025        | ) |   | (9,719        | )
|                   | $ | 597           |   | $ | 1,784         |  

10

---

|REVETT MINERALS INC.                                                                                  
|------------------------------------------------------------------------------------------------------
|Notes to the Consolidated Financial Statements                                                        
|For the three and six months ended June 30, 2008 and
      2007                                       
|(tabular amounts are expressed in thousands of U.S.
      dollars, except share and per share amounts)
|(unaudited)                                                                                           

Royal Gold Royalty

In October 2004, Revett Silver sold Royal Gold two royalties on
production from the Troy Mine for $7.25 million (the production payment) and
$0.25 million (the tail royalty), respectively. The production payment royalty
is a 7% gross smelter return royalty payable in cash on production and limited
to the lesser of 90% of proven and probable reserves as at October 13, 2004 or
$10.5 million. The tail royalty is payable in cash at the rate of 6.1% on the
gross smelter returns from Troy for production between 100% and 115% of its
proven and probable reserves as at October 13, 2004 and then at the rate of 2%
thereafter. At June 30, 2008, royalty payments approximating a cumulative total
of $7.2 million had been made with an additional $0.9 million payable in July
2008.

Kennecott Note Payable

The Kennecott note payable, originally issued by Revett Silver,
bore interest at 1% over the prime rate in effect on the last day of the
preceding quarter. On February 21, 2008, this note was acquired by Revett
Minerals for face value and the Company received an assignment of the mortgages
on the Troy and Rock Creek properties which secure this note.

|7. | Share Capital
|-- | -------------

(a) Capital Management

The Company is a junior mining company with only one producing
asset and limited access to financial markets at advantageous terms and
conditions. The Companys objectives in managing its capital are twofold;

| | (i)  | to maintain sufficient liquidity to ensure the Company
      can meet its obligations as they become due and to ensure sufficient cash
      or debt facilities are in place to fund the Companys growth objectives
      and projects; and
| | ---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |      |                                                                                                                                                                                                                                             
| | (ii) | to minimize dilution of common equity now and in the
      future as and when the Company is required to access the capital
      markets.                                                                                                  

The Company defines capital to include debt and equity. The
Company establishes the amount of capital in proportion to risk by managing the
capital structure and making adjustments to it in light of changes in economic
conditions and the risk characteristics of the underlying assets. In order to
maintain or adjust its capital structure, the Company may issue new shares or
seek debt financing.

The Companys size, limited operating history, and the limited
  magnitude of its internally generated cash may be inadequate to finance its
  planned development activities at Rock Creek and its exploration and property,
  plant and equipment requirements at Troy. These factors also make accessing
  the debt markets difficult and costly. The Company may, from time to time, sell
  equity through secondary offerings to finance these cash requirements. The Company
  endeavors to sell its equity under the most favorable terms and conditions while
  attempting to minimize dilution to existing shareholders. To accomplish its
  objectives in managing capital, the Company

11

---

|REVETT MINERALS INC.                                                                                  
|------------------------------------------------------------------------------------------------------
|Notes to the Consolidated Financial Statements                                                        
|For the three and six months ended June 30, 2008 and
      2007                                       
|(tabular amounts are expressed in thousands of U.S.
      dollars, except share and per share amounts)
|(unaudited)                                                                                           

continually monitors both the debt and equity markets to ensure
the best possible price for any offering. The Company has decided not to pay
dividends or repurchase any of its own outstanding equity for the foreseeable
future.

Neither the Company nor its subsidiaries are subject to any
externally imposed capital requirements, loan covenants or capital ratios. There
were no changes to the Companys approach to capital management for the three
and six months ended June 30, 2008.

(b) Common Stock

The Company has one class of no par value common stock of which
an unlimited number are authorized for issue. The holders of common stock are
entitled to receive dividends without restriction when and if declared by the
board of directors. Holders of the Companys common stock are not entitled to
preemptive rights to acquire additional shares of common stock and do not have
cumulative voting rights. At June 30, 2008, the Company had 75,002,702 shares of
common stock outstanding. At June 30, 2008, Revett Silver had 26,311,761 Class B
common shares outstanding which may be exchangeable into common shares of the
Company, under certain conditions.

(c) Preferred Stock

The Company is authorized to issue an unlimited number of no
par preferred stock. The Companys board of directors is authorized to create
any series and, in connection with the creation of each series, to fix by
resolution the number of shares of each series, and the designations, powers,
preferences and rights; including liquidation, dividends, conversion and voting
rights, as they may determine. At June 30, 2008, no preferred stock was issued
or outstanding.

(d) Stock options

The Companys Equity Incentive Plan authorizes the Company to
reserve and have available for issue, 8,000,000 shares of common stock, less
that number of shares reserved for issuance pursuant to stock options granted
under the Revett Silver stock option plan. As at June 30, 2008 Revett Silver had
a total of 1,585,000 stock options exercisable into Class B common shares of
Revett Silver at a weighed average price of $0.68 per share. Revett Silver will
not grant any further stock options pursuant to this plan.

There were 60,000 stock options granted during the three and
six months ended June 30, 2008 by the Company. At June 30, 2008, Revett Minerals
had a total of 3,740,000 stock options outstanding with a weighted average
exercise price of Can $1.01 and 3,220,002 options are currently exercisable with
a weighted average exercise price of Can $1.01. A total of 55,000 stock options
were cancelled during the three and six month period ended June 30, 2008.

The weighted average grant date fair value of options granted
in the three and six month periods ended June 30, 2008 was Can $0.32. The
exercise price of the option at the date of the grant equals the fair value of
the stock. The fair value of stock options granted in 2008 was estimated using
the Black-Scholes option pricing model with the following assumptions:

12

---

|REVETT MINERALS INC.                                                                                  
|------------------------------------------------------------------------------------------------------
|Notes to the Consolidated Financial Statements                                                        
|For the three and six months ended June 30, 2008 and
      2007                                       
|(tabular amounts are expressed in thousands of U.S.
      dollars, except share and per share amounts)
|(unaudited)                                                                                           

| | a) | Risk-free interest rate at the date of the grant - 2.5%
      per annum;
| | -- | ------------------------------------------------------------------------
| | b) | Life of the option- 4 years;                                            
| | c) | Volatility- 71%; and                                                    
| | d) | Dividends- nil.                                                         

For the three and six months ended June 30, 2008, the Company
recorded total non-cash compensation related to its equity compensation plans of
$39,000 and $119,000 respectively, compared to $154,000 and $496,000 for the
three and six month periods ending June 30, 2007. The table below identifies the
key attributes of the stock options granted by the Company and the options
vested as at June 30, 2008.

|Options   |  | Options   |  |  | Exercise      |  |  | Expiry             | 
|--------- |  | --------- |  |  | ------------- |  |  | ------------------ | 
|Granted   |  | Vested    |  |  | Price (Can $) |  |  | Date               | 
|100,000   |  | 100,000   |  |  | 0.76          |  |  | January 25, 2010   | 
|600,000   |  | 600,000   |  |  | 0.76          |  |  | April 27, 2010     | 
|75,000    |  | 75,000    |  |  | 0.55          |  |  | July 19, 2010      | 
|40,000    |  | 40,000    |  |  | 1.25          |  |  | May 12, 2011       | 
|20,000    |  | 20,000    |  |  | 1.25          |  |  | September 15, 2011 | 
|1,520,000 |  | 1,520,000 |  |  | 1.10          |  |  | October 4, 2011    | 
|25,000    |  | 25,000    |  |  | 1.45          |  |  | December 4, 2011   | 
|1,050,000 |  | 700,002   |  |  | 1.11          |  |  | January 12, 2012   | 
|40,000    |  | 40,000    |  |  | 1.15          |  |  | March 5, 2012      | 
|210,000   |  | 70,000    |  |  | 0.84          |  |  | November 19, 2012  | 
|60,000    |  | 30,000    |  |  | 0.60          |  |  | May 1, 2013        | 
|3,740,000 |  | 3,220,002 |  |  |               |  |  |                    | 

(e) Stock Purchase Warrants

The table below identifies stock purchase warrants outstanding
at June 30, 2008 for the purchase of common shares of Revett Minerals and Revett
Silver. The warrants of Revett Silver are exercisable into Class B common stock
of Revett Silver, which in turn may be exchangeable into common stock of Revett
Minerals, under certain conditions.

|                  |  | Number    |  |  | Exercise price |  |  | Expiry           | 
|----------------- |  | --------- |  |  | -------------- |  |  | ---------------- | 
|Revett Minerals   |  | 2,875,000 |  |  | Can$ 1.36      |  |  | May 22, 2009     | 
|Revett Silver (1) |  | 3,051,326 |  |  | US$ 1.00       |  |  | To be determined | 
|Revett Silver     |  | 620,000   |  |  | US$ 0.25       |  |  | September 2008   | 

(1) These warrants expire 18 months after Revett Silver becomes
listed on a public stock exchange

|8. | Related Party Transactions
|-- | --------------------------

There were no related party transactions during the six months
ended June 30, 2008.

13

---

|REVETT MINERALS INC.                                                                                  
|------------------------------------------------------------------------------------------------------
|Notes to the Consolidated Financial Statements                                                        
|For the three and six months ended June 30, 2008 and
      2007                                       
|(tabular amounts are expressed in thousands of U.S.
      dollars, except share and per share amounts)
|(unaudited)                                                                                           

|9. | Commitments and Contingencies
|-- | -----------------------------

a) Federal Mine Safety and Health Act Violations

The federal Mine Safety and Health Administration (MSHA)
issued 53 safety related citations against a subsidiary at various times in
August 2007. These citations related to a rock fall which occurred at Troy on
July 30, 2007. Three of these citations allege the subsidiary company was
negligent with respect to certain operations or activities conducted while
mining and two citations allege the subsidiary acted in reckless disregard for
the safety of the employees at the mine. In April 2008, the Company was informed
by MSHA that fines approximating $0.6 million were being proposed relating to
these and other citations, of which $0.5 million is being contested. The Company
disputes the allegations and rational for the determination of the fines put
forth by MSHA and is in the process of appealing the findings and fines. The
Company will vigorously defend itself in court, if necessary.

b) Reclamation

In accordance with the operating permit granted the Troy Mine,
the Montana DEQ is periodically required to review the ultimate bonding
requirements for the mine. The bonding requirement at Troy totals $12.6 million
and it is expected to increase an additional $0.3 million in 2008. The following
table shows the changes in the reclamation liability for the six month period
ended June 30, 2008.

|                                                          |   | June 30, 2008 |   |   | Dec. 31, 2007 |  
|--------------------------------------------------------- | - | ------------- | - | - | ------------- | -
|                                                          |   | (unaudited)   |   |   | (audited)     |  
|Reclamation and remediation liability                     |   |               |   |   |               |  
|beginning of period                                       | $ | 7,141         |   | $ | 7,603         |  
|Change in timing and amount of estimated
      cash flows |   | (205          | ) |   | (1,021        | )
|Accretion expense                                         |   | 295           |   |   | 559           |  
|Ending balance                                            | $ | 7,231         |   | $ | 7,141         |  

During the six months ended June 30, 2008, the Company extended
the mine life at Troy to 2015 from 2013 and also increased the estimated
undiscounted cost to reclaim Troy by $1.0 million. This resulted in a net
reduction of the estimated liability.

c) Legal Proceedings

(1) Rock Creek Permitting Matters:

There are a number of legal challenges relating to the United
States Forest Service (USFS) and DEQ approving the Rock Creek record of
decision and supporting studies (including the recently re-affirmed biological
opinion) and analysis. These challenges have been filed by individuals and
organizations generally opposed to mining in the United States. The Company, in
general, is not a named defendant to these actions, but it typically has
requested and has been granted intervener status due to the direct impact the
outcome of these cases could have on the Companys Rock Creek project. The court
has been fully briefed on all matters currently being adjudicated, or

14

---

|REVETT MINERALS INC.                                                                                  
|------------------------------------------------------------------------------------------------------
|Notes to the Consolidated Financial Statements                                                        
|For the three and six months ended June 30, 2008 and
      2007                                       
|(tabular amounts are expressed in thousands of U.S.
      dollars, except share and per share amounts)
|(unaudited)                                                                                           

where the Company has prevailed, the decision of the court is
being appealed. Therefore, the outcome of these matters is not determinable.
Although the Company believes that it will ultimately retain its environmental
and operating permits, it is possible that successful challenges could delay or
prevent the Company from advancing development of the Rock Creek project which
could result in the impairment and write down of the carrying value related to
Rock Creek.

|10. | Financial Instruments
|--- | ---------------------

(a) Financial Risk Management

The Company has exposure to credit risk, liquidity risk and
market risk from its use of financial instruments.

(b) Credit Risk

Credit risk is the potential for loss if a counterparty or
customer fails to meet its financial obligations, principally with respect to
accounts receivable, the investment in securities and if applicable, from the
counterpartys failure to honor obligations on forward contracts. In general,
the Company manages this risk by doing business with reputable, highly rated
companies and by closely monitoring the prompt payment of all obligations owing
it.

Copper concentrate is sold to one customer under a long term
contract. This customer is a privately held international metal trading company
and it is one of the largest metal trading companies in the world. Therefore,
management is unable to accurately determine the precise credit worthiness of
any outstanding receivables due it. The Company receives a 90% provisional
payment 14 days from the rail bill of lading date and may be at risk for this
payment and the remaining provisional payments on prior shipments should this
company encounter significant liquidity problems. Since 2005, the Company has
received prompt and timely payment for all outstanding metal sales invoices. All
sales are finalized and are required to be settled within three months of the
rail car arriving at the smelter. Therefore, if its current customer is unable
to purchase the Companys concentrate, the Company believes that another buyer
could be found, although the terms and conditions may not be as favorable as
those currently enjoyed.

The Company may be exposed to credit risk on copper and silver
forward contracts if its counterparty were not to honor its contractual
commitment at settlement. The Company attempts to manage this risk by
contracting only with reliable and reputable third parties. At June 30, 2008,
the Company had 0.3 million pounds of copper hedged at $3.73 per pound settling
in the fourth quarter of 2008.

The Company manages its credit risk associated with cash and
short term investments through the use of large reputable regional financial
institutions in the United States and in Canada by utilizing the services of one
of Canadas largest chartered banks. At June 30, 2008, the Company held cash and
cash equivalents and short term investments in the amount of $13.1 million. The
Company uses two banking institutions, a local regional bank which accounts for
$9.4 million of the total and a major Canadian chartered bank which holds
approximately $3.7 million. The funds held by the Canadian chartered bank are
only invested in certificates of deposit which have a typical maturity of less
than a year. Of the total $9.4 million held in the regional bank,

15

---

|REVETT MINERALS INC.                                                                                  
|------------------------------------------------------------------------------------------------------
|Notes to the Consolidated Financial Statements                                                        
|For the three and six months ended June 30, 2008 and
      2007                                       
|(tabular amounts are expressed in thousands of U.S.
      dollars, except share and per share amounts)
|(unaudited)                                                                                           

approximately $3.9 million is liquid, held in checking or sweep
accounts. $5.5 million is held in money market accounts and invested in terms
for less than 90 days. The board of directors has approved a policy with respect
to the investment of cash and it includes the following requirements:

i) no security shall be of a maturity
longer than 18 months, unless otherwise directed by the Companys board of
directors;

ii) no single issuer or guarantor
(other than U.S. Treasury and other Federal Agencies) may represent more than
15-percent of the total value of Companys investible cash;

iii) the total portfolio must meet
certain specified liquidity requirement such that the Company can convert these
investments into cash within a reasonably short time period; and

iv) the board has specified the credit
worthiness of acceptable investments as measured by third party rating agencies.

Both the Company and the investment manager at each financial
institution is responsible for ensuring all fixed income investments conform to
the policy adopted by the board of directors.

The Company is required to provide third party financial
assurance to the State of Montana regarding its reclamation obligations. This
assurance is provided by an insurance company with a credit rating of A+ XV by
AM Best, and this company also holds and controls the commutation account funds.
The commutation account is used to secure the financial assurance provided the
State. This provider of the financial assurance and the holder of the
commutation account funds must be approved by the State of Montana. However,
should this company become insolvent and the State requires third party
assurance from a different company, there is no assurance that the Company would
be able to obtain such financial assurance, in which case the operating permits
at Troy and Rock Creek would likely be revoked.

The carrying amount of financial assets represents the maximum
credit exposure. At June 30, 2008, the Companys gross credit exposure was as
follows:

|Cash and cash equivalents | $ | 13,106 | 
|------------------------- | - | ------ | 
|Accounts receivable       |   | 3,941  | 
|Restricted cash           |   | 7,538  | 
|                          | $ | 24,585 | 

(c) Liquidity Risk

Liquidity risk is the risk the Company will not be able to
obtain sufficient cash to meet its financial obligations as they come due. This
risk is typically managed through the prudent investment of cash balances,
through the close monitoring of discretionary expenditures, such as capital and
exploration programs and by the preparation of detailed cash forecasts and
monitoring trends in metal production and metal prices. Significant cash
commitments at June 30, 2008 are as follows:

16

---

|REVETT MINERALS INC.                                                                                  
|------------------------------------------------------------------------------------------------------
|Notes to the Consolidated Financial Statements                                                        
|For the three and six months ended June 30, 2008 and
      2007                                       
|(tabular amounts are expressed in thousands of U.S.
      dollars, except share and per share amounts)
|(unaudited)                                                                                           

|                               |   | 1     |  |   | 2-3   |  |   | 3 Plus |  |   |        | 
|------------------------------ | - | ----- |  | - | ----- |  | - | ------ |  | - | ------ | 
|                               |   | Year  |  |   | Years |  |   | Years  |  |   | Total  | 
|Accounts payable and accrued   |   |       |  |   |       |  |   |        |  |   |        | 
|liabilities                    | $ | 6,961 |  | $ | -     |  | $ | -      |  | $ | 6,961  | 
|Capital leases (1)             |   | 838   |  |   | 977   |  |   | -      |  |   | 1815   | 
|Operating leases               |   | 512   |  |   | 512   |  |   | -      |  |   | 1,024  | 
|Royalty owing (1)(2)           |   | 3,337 |  |   | -     |  |   | -      |  |   | 3,337  | 
|Asset retirement obligation(3) |   | -     |  |   | -     |  |   | 13,320 |  |   | 13,320 | 

| | (1) | These amounts include interest.                                                                  
| | --- | -------------------------------------------------------------------------------------------------
| | (2) | The royalty obligation is only payable on actual
      production and is capped at $10.5 million.
| | (3) | These amounts represent the undiscounted cash flow
      estimates                               

(d) Market Risk

Market risk is the risk that changes in market prices, such as
commodity prices, foreign exchange rates and interest rates will affect the
Companys income or the value of its financial instruments.

Commodity price risk: This is the largest market risk
the Company is exposed to as changes in the prices of silver and copper will
have a significant effect on revenue and the value of accounts receivable
because a significant portion of the Companys sales are subject to a future
pricing mechanism and changes in metal prices will change both revenue and the
value of accounts receivable. The Company does have a hedging policy which
permits the Company to fix the price of concentrate to be produced in the future
or for which concentrate has been sold and for which final settlement has not
occurred.

For financial statement purposes the Company fair values all
forward sales contracts and the amount of silver and copper in concentrate sold
to its customer for which final prices have not yet been determined. At each
month end, the Company adjusts its revenue to account for expected future prices
and the corresponding expected future revenue and cash flow. In order to do
this, the Company must make estimates of the future prices expected to prevail
when final settlement occurs. The Company uses published forward prices for the
period of expected settlement to estimate these expected prices. The table below
identifies the accounts receivable for which revenues are subject to adjustment
in the future as at June 30, 2008 and December 31, 2007.

|Sales for which prices are not finalized          |   | June 30, 2008 |   |   | December 31, 2007 |  
|------------------------------------------------- | - | ------------- | - | - | ----------------- | -
|Copper sales not finalized (lbs)                  |   | 3,862,820     |   |   | 1,822,972         |  
|Concentrate settlement payable for copper (000s) | $ | (207.0        | ) | $ | (601.6            | )
|Silver sales not finalized (ozs)                  |   | 392,365       |   |   | 200,215           |  
|Concentrate settlement payable for silver (000s) | $ | (209.0        | ) | $ | 78.8              |  

Should the price of copper change by $0.50 per pound and the
price of silver change by $1.00 per ounce, then copper revenues would have
changed by $2.2 million and silver revenue would have changed by $0.4 million
for the six month period ended June 30, 2008.

17

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|REVETT MINERALS INC.                                                                                  
|------------------------------------------------------------------------------------------------------
|Notes to the Consolidated Financial Statements                                                        
|For the three and six months ended June 30, 2008 and
      2007                                       
|(tabular amounts are expressed in thousands of U.S.
      dollars, except share and per share amounts)
|(unaudited)                                                                                           

Interest rate risk:At June 30, 2008, the Company had
limited interest rate risk as the majority of its capital leases have fixed
rates of interest and secondly, its cash investments are of a sufficiently short
duration that changes in interest rates are unlikely to have significant effect
on the value of these investments. The interest rate on the Royal Gold royalty
is estimated using the effective interest rate method and as such changes in
interest rates do not affect it.

Foreign exchange risk: The Companys only foreign
exchange risk is its exposure to the Canadian dollar, which as previously
discussed, is limited to the $3.7 million dollars invested with a Canadian
chartered bank. The Company has limited operating risk created through changes
in foreign exchange because its operating assets are located in the United
States, the US dollar is the Companys functional currency and metal sales are
priced in United States dollars. A 10% change in the value of the Canadian
dollar against the US dollar would have changed net income by approximately
$0.37 million, all other things being held constant.

(e) Fair Values

The carrying values of cash and cash equivalents, short term
investments, restricted cash, and accounts payable and accrued liabilities
approximate fair value due to their limited time to maturity or ability to
immediately convert them to cash in the normal course. The carrying value of
accounts receivable and forward sales contracts approximates fair value as they
are marked to market each month using quoted forward prices as at the last
trading day of each month. The carrying values of capital lease obligations and
the Royal Gold royalty approximate fair market values as they are based on
market rates of interest.

|11. | Reconciliation to United States Generally
      Accepted Accounting Principles
|--- | ------------------------------------------------------------------------------

The consolidated financial statements have been prepared in
accordance with Canadian GAAP, which differs in certain material respects from
those principles that the Company would have followed had its consolidated
financial statements been prepared in accordance with US GAAP.

The effect of the material measurement differences between
Canadian GAAP and US GAAP on the amounts reported in the consolidated balance
sheets, statements of operations and cash flows are as follows:

|                                                |   | June 30, |   |   | Dec. 31, |  
|----------------------------------------------- | - | -------- | - | - | -------- | -
|                                                |   | 2008     |   |   | 2007     |  
|Liabilities, under Canadian GAAP                | $ | 35,336   |   | $ | 40,540   |  
|Shares redeemable at option of
      holder (a) |   | 1,076    |   |   | 1,076    |  
|Liabilities, under US GAAP                      | $ | 36,412   |   | $ | 41,616   |  
|Shareholders equity, under Canadian GAAP       | $ | 56,228   |   | $ | 54,071   |  
|Shares
      redeemable at option of holder (a) |   | (1,076   | ) |   | (1,076   | )
|Shareholders equity, under US GAAP             | $ | 55,152   |   | $ | 52,995   |  

18

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|REVETT MINERALS INC.                                                                                  
|------------------------------------------------------------------------------------------------------
|Notes to the Consolidated Financial Statements                                                        
|For the three and six months ended June 30, 2008 and
      2007                                       
|(tabular amounts are expressed in thousands of U.S.
      dollars, except share and per share amounts)
|(unaudited)                                                                                           

There are no material differences between Canadian GAAP and US
GAAP with respect to net income and comprehensive income and total operating,
financing or investing cash flows in the consolidated statement of cash flows,
for any of the periods presented.

(a) Redeemable shares:

The Company has issued 3,583,333 common shares which are
redeemable, at the option of the holder, into a net smelter return royalty.
Under Canadian GAAP, the equity portion of these shares would be classified as
equity. Under US GAAP, the full value associated with the redeemable shares is
classified as temporary equity in liabilities.

(b) Income taxes:

For Canadian GAAP purposes, future income tax assets and
liabilities are calculated based on substantially enacted tax rates in effect in
the periods when the temporary differences are expected to reverse. For US GAAP
purposes, enacted tax rates are used to calculate future income tax assets and
liabilities. For all periods presented, there were no differences between the
tax rates used for Canadian and US GAAP purposes.

(c) Common share units:

Under Canadian GAAP, the proceeds received on issuance of
units, consisting of common shares and warrants, are not required to be
allocated to the individual common share and warrant components when the
instrument and its components are all determined to be equity instruments. Under
US GAAP, the Company is required to allocate the proceeds received on unit
offerings to the individual common share and warrant components on a relative
fair value basis when both components are determined to be equity classified.
The fair value of share purchase warrants issued in November 2006 was determined
to be $1.0 million using the Black-Scholes method based on the following
factors: risk free rate - 4.50%; volatility - 70%; expected life - 2.5 years;
expected dividend yield - nil. Accordingly, under US GAAP, share capital as at
June 30, 2008 and December 31, 2007 would be reduced and contributed surplus as
at these dates would be increased by $1.0 million to reflect the relative fair
values of the shares and warrants. As at June 30, 2008, none of the warrants had
been exercised.

(e) Other additional disclosures:

The following additional information would be disclosed if
these consolidated financial statements were presented in accordance with US
GAAP:

Stock option plan and compensation expense:

The weighed average intrinsic value of options exercised during
the six months ended June 30, 2008 was nil (2007- nil). At June 30, 2008, the
weighted average intrinsic value of options outstanding and exercisable was nil
and nil respectively, and at June 30, 2007, they were Can $573,700 and Can
$445,350, respectively.

19

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|REVETT MINERALS INC.                                                                                  
|------------------------------------------------------------------------------------------------------
|Notes to the Consolidated Financial Statements                                                        
|For the three and six months ended June 30, 2008 and
      2007                                       
|(tabular amounts are expressed in thousands of U.S.
      dollars, except share and per share amounts)
|(unaudited)                                                                                           

At June 30, 2008, the total unrecognized compensation cost
related to unvested stock options is $144,200. This cost is expected to be
recognized over the weighted average period of 16 months.

At June 30, 2008, Revett Silver Company, a subsidiary of the
Company had 1,585,000 stock options outstanding. The weighted average exercise
price of Revett Silver options granted and exercisable is Can $0.69 per share.
All options granted have vested. As at June 30, 2008 the estimated intrinsic
value of the options granted and vested was Can $9,000 (2007-Can $1,865,100).
Revett Silver is a private company and for the purposes of this calculation, it
was assumed the value of Revett Minerals and Revett Silvers common shares are
the same.

(f) Impact of recently adopted United States accounting
pronouncements:

(i)On January 1, 2008,
the Company adopted SFAS no. 159, The Fair Value Option for Financial Assets
and Financial Liabilities (SFAS 159), which permits entities to choose to
measure many financial assets and financial liabilities at fair value.
Unrealized gains on items for which the fair value option has been elected are
to be reported in earnings. The Company did not adopt the fair value option of
any of its assets or liabilities.

(ii)On January 1, 2008,
the Company adopted SFAS no. 157, Fair Value Measurements, (SFAS 157). SFAS 157
established a framework for measuring fair value and expands disclosure about
fair value measurements, but does not require any new fair value measurements.
The adoption of SFAS No. 157 did not materially effect the presentation or
disclosure in the Companys financial statements.

(iii)In June 2008, the
EITF reached a conclusion in EITF07-05 that an equity-linked financial
instrument would not be considered indexed to the Companys own stock if the
strike price is denominated in a currency other than the issuers functional
currency. The determination of whether an equity-linked financial instrument is
indexed to an entities own stock is not affected by the currency or currencies
in which the underlying shares trade. This guidance is effective for financial
statements beginning on January 1, 2009. The Company is presently evaluating the
effect this guidance will have on its financial statements.

20

---

Item #2: Managements Discussion and Analysis of Financial
Condition and Results of Operations as at August 14, 2008

This Managements Discussion and Analysis (MD&A) of the
financial results of Revett Minerals Inc. (Revett Minerals or the Company)
for the three month and six month periods ended June 30, 2008 should be read in
conjunction with the unaudited interim financial statements and notes as at June
30, 2008 which form part of this report and the 2007 annual audited consolidated
financial statements, the related Managements Discussion and Analysis, and the
Form 10-K filed in Canada on SEDAR or on file in the United States on EDGAR.
These financial statements are expressed in United States dollars, unless
otherwise stated, and they are prepared in accordance with Canadian generally
accepted accounting principles. Material differences between Canadian and US
GAAP are disclosed in note 11 of the consolidated interim financial
statements.

Some of the statements in this MD&A are forward looking
statements that are subject to risk factors set out in the cautionary note
contained in this MD&A.

Overview and Important Factors Influencing Results for the
Three and Six Months Ended June 30, 2008

As at August 14, 2008, the Companys principal assets consisted
of a 69.8% interest in the Troy copper and silver mine (Troy) in northwest
Montana, USA and also a 69.8% interest in the Rock Creek copper and silver
exploration project (Rock Creek) also located in northwest Montana. Troy was
placed back into commercial production by the Company in January, 2005.

Overall Performance

For the three month period ended June 30, 2008, Revett Minerals
reported net income after taxes and non-controlling interest of $0.1 million or
$0.00 per share compared to net income after taxes and non-controlling interest
of $3.7 million or $0.05 per share for the three months ended June 30, 2007. Net
earnings in the second quarter of 2008 were negatively effected by three
significant factors, (i) in the quarter revenues were reduced by $2.0 million
due to the accounting requirement to mark to market accounts receivables and
forward contracts for which final settlement has not yet occurred; (ii) legal
expenses relating to Rock Creek approximated $0.5 million; and (iii) a large tax
adjustment because management changed its estimate of the amount of exploration
spending at Rock Creek which increased income tax expense for the period.

For the six month period ended June 30, 2008, Revett Minerals
reported net income after taxes and non-controlling interest of $1.5 million or
$0.02 per share compared to net income after taxes and non-controlling interest
of $4.0 million or $0.06 per share for the six months ended June 30, 2007.

On a stand alone basis, Troy (100% basis) reported net income
before taxes for the three month period ended June 30, 2008 of $3.4 million
compared to net income before taxes of $8.2 million for the comparable period in
2007. Only 69.8% of these earnings are attributable to the shareholders of
Revett Minerals during the reporting period because of the non-controlling
shareholdings in Revett Silver. This ownership interest increased from 69% in
December 2007 to 69.8% in February 2008 and was 67% on June 30, 2007.

21

---

The major highlights for the three and six months ended June
30, 2008 included:

- Troy (100% basis) attained mill throughput averaging 3,645 tons per day
  for the three months ended June 30, 2008 ( and 3,489 tons per day for
  the first six month period in 2008) compared to 3,711 tons per day
  during the three months ended June 30, 2007 ( and 3,801 tons per day
  for the six month period ended June 30, 2007);
- Troy (100% basis) generated over $5.2 million in cash for the three
  months ended June 30, 2008 bringing its year to date cash flow to over
  $3.6 million
- Troy (100% basis) generated net earnings before taxes of $3.4 million
  for the second quarter of 2008 and $6.6 million for the six month
  period ended June 30, 2008;
- Troy (100% basis) produced 2.4 million pounds of copper and 259,847
  ounces of silver in concentrate during the second quarter of 2008
  compared to 3.5 million pounds of copper and 372,332 ounces of silver
  for the three months ended June 30, 2007;
- For the six month period ended June 30, 2008, Troy produced 4.5 million
  pounds of copper and 491,759 ounces of silver in concentrate compared
  to production of 6.8 million pounds of copper and 731,466 ounces of
  silver in concentrate for the comparable six month period in 2007;
- Troy has now operated for 12 consecutive months without a lost time
  incident; and
- The Troy Mine has entered into a contractual agreement with Small Mine
  Development (SMD) whereby SMD will provide contract mining services
  to assist in development of the C-Beds and also assist in the
  on-going mining and development in the East Ore Body.

Results of Operations for the Three Months and Six Months
Ended June 30, 2008 Compared to the Same Periods in 2007

For the three months ended June 30, 2008, Revett reported net
income of $0.1 million or $0.00 per share on revenue of $13.4 million. This
compared to net income of $3.7 million or $0.05 per share during the three
months ended June 30, 2007 on revenues of $15.9 million.

For the six month period ended June 30, 2008, Revett Minerals
reported net income after taxes and non-controlling interest of $1.5 million or
$0.02 per share compared to net income after taxes and non-controlling interest
of $4.0 million or $0.06 per share for the six months ended June 30, 2007.

Operating Results:

The table below illustrates certain key operating statistics
for Troy (100% basis) for the three months ended June 30, 2008, with a
comparison to the prior three months and same three month period in 2007.

22

---

|                      |  | Three Months Ended |  |  | Three Months Ended |  |  | Three Months Ended | 
|--------------------- |  | ------------------ |  |  | ------------------ |  |  | ------------------ | 
|                      |  | June 30, 2008      |  |  | March 31, 2008     |  |  | June 30, 2007      | 
|Tons milled           |  | 331,698            |  |  | 299,863            |  |  | 337,712            | 
|Tons milled per day   |  | 3,645              |  |  | 3,332              |  |  | 3,711              | 
|Copper grade (%)      |  | 0.41               |  |  | 0.41               |  |  | 0.59               | 
|Silver grade (opt)    |  | 0.87               |  |  | 0.87               |  |  | 1.24               | 
|Copper recovery (%)   |  | 87.9               |  |  | 86.5               |  |  | 87.1               | 
|Silver recovery (%)   |  | 90.1               |  |  | 89.0               |  |  | 88.5               | 
|Copper produced       |  |                    |  |  |                    |  |  |                    | 
|(lbs)                 |  | 2,388,947          |  |  | 2,129,522          |  |  | 3,490,930          | 
|Silver produced (ozs) |  | 259,847            |  |  | 231,912            |  |  | 372,332            | 
|Copper sold (payable  |  |                    |  |  |                    |  |  |                    | 
|pounds)               |  | 2,391,086          |  |  | 2,017,974          |  |  | 3,544,216          | 
|Silver sold (payable  |  |                    |  |  |                    |  |  |                    | 
|ounces)               |  | 244,630            |  |  | 204,297            |  |  | 378,226            | 

Production levels in the second quarter of 2008 improved by
10.6% over the first quarter of 2008, but lower than planned ore grades continue
to affect the amount of payable metal produced. Since January 2008 the mine has
operated for significant periods of time in the fringes of the ore body because
metal prices have allowed for the production from lower grade material and,
additionally the mine remains behind in its development as it continues to
recovery from restrictions placed on it by MSHA during the second half of 2007.
Ore grades, however, remain below average life of mine grades and modest
improvement in grades is anticipated throughout the rest of the year. By the end
of the quarter as mining activities became normalized, the grade of ore milled
had improved significantly which will contribute to improved production. Mill
recoveries remain good and are above anticipated levels. The table below
illustrates operating costs on a tons milled basis and generally reflects the
sensitivity of costs to the level of mill throughput.

|                        |  | Q2.08   |  |  | Q1.08   |  |  | Q4.07   |  |  | Q3.07   |  |  | Q2.07   |  |  | Q1.07   | 
|----------------------- |  | ------- |  |  | ------- |  |  | ------- |  |  | ------- |  |  | ------- |  |  | ------- | 
|Tons milled             |  | 331,698 |  |  | 299,863 |  |  | 212,425 |  |  | 208,186 |  |  | 337,712 |  |  | 350,180 | 
|Cost per ton milled ($) |  | 26.96   |  |  | 26.33   |  |  | 32.81   |  |  | 32.89   |  |  | 22.04   |  |  | 21.77   | 

Financial Results for the three months ended June 30,
2008:

| | a) | Revenue:During the second quarter of 2008, the
      Troy Mine delivered and sold 2.4 million pounds of payable copper and
      244,630 ounces of payable silver in concentrate. This is an improvement
      over the level of sales in the first quarter of 2008 which totaled 2.0
      million pounds of payable copper and 202,763 ounces of payable. Compared
      to the second quarter of 2007, sales volumes were slightly less in this
      quarter due largely to the lower grade of ore milled. In the second
      quarter of 2007, the Company delivered and sold 3.5 million pounds of
      copper and 378, 226 ounce of payable silver in concentrate. Total sales
      revenue during the second quarter of 2008 was $13.4 million compared to
      $15.9 million in the second quarter of 2007 and is a result of lower
      production and sales of payable metal in concentrate. In 2008 higher metal
      prices mostly offset the lower physical sales of both copper and silver in
      concentrate. During the three months ended June 30, 2008 the price of
      copper averaged $3.38 per pound (Q1.08-$3.54 per pound) and silver
      averaged $17.17 per ounce (Q1.08- $17.68 per ounce) compared to the copper
      price of $3.46 per pound in the second quarter of 2007 (Q1.07-$2.69 per
      pound). In 2007 silver averaged $13.34 and $13.53 per ounce in the second
      and first quarters respectively. The main factors which resulted in lower
      production and sales in 2008 compared to that
| | -- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

23

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| |    | in 2007 were: (i) lower mill throughput of 8%; and (ii) a
      reduction in the grade of copper and silver ore milled of 27% and 24%,
      respectively. These unfavorable factors were offset by higher recoveries
      of metal in the mill. The 2008 reduction in metal production was a result
      of the restrictions placed by MSHA on areas where mining could take place
      resulting from the second quarter 2007 ground fall. Improvements have been
      made in July in both mill throughput and the grade of ore
milled.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
| | -- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| | b) | Cost of Goods Sold:The cost of goods sold
      associated with the second quarter revenue was $9.5 million, an increase
      of $0.76 million (8.6%) over the same period in 2007. Costs increased
      because of higher labor expenditures, increased maintenance costs,
      increased parts and supplies costs (mostly in the drill and blast
      activities), and an increase in property and state mining taxes (the
      latter being a direct function of metal sales). On an operating cost basis
      the cost per ton milled (calculated as mining costs per ton milled plus
      milling costs per ton milled plus mine indirect costs per ton milled)
      increased to $26.96 per ton compared to $22.04 per ton in the second
      quarter of 2007. In the first quarter of 2008, operating costs per ton
      milled averaged $26.33 per ton. The increase in operating costs per ton
      milled in the second quarter of 2008 compared to the second quarter of
      2007 was a function of lower mill throughput, increased salary expense and
      increased costs of parts and supplies.
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| | c) | Depreciation and amortization:For the second
      quarter of 2008, these non cash charges were marginally lower than the
      second quarter of 2007 because of the small reduction in mill throughput.
      The majority of the plant and equipment at Troy is depreciated using the
      units-of-production method and changes in tons processed will change the
      amount of depreciation and amortization expense for the period.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| | d) | Exploration and development:Exploration and
      development expense increased by over $0.3 million because of increased
      legal expenses relating to the Rock Creek permit challenges. The court
      required that all briefs, replies and responses be submitted by June 4,
      2008 and therefore there was a concentrated effort by the Companys legal
      counsel to complete all of the required work before the end of the
      quarter.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| | e) | General and administration costs:The increase in
      corporate administration costs in the second quarter of 2008 over the
      comparable quarter in 2007 was due to increased public company costs
      including SOX 404 compliance costs, an increase in salaries and an
      increase in board of director costs resulting from the addition of one
      director and more director meetings were held.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| | f) | Accretion of reclamation and remediation liability:The decrease in the reclamation accretion account was a result of the
      increase in the mine life at Troy, essentially accreting the remaining
      costs over a longer period of time.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| | g) | Income from operations:The decrease in
      concentrate production, which was offset by an increase in the price of
      copper and silver, resulted in the Company recording $0.9 million in
      income from operations, a decrease of $3.9 million from income from
      operations reported for the second quarter of 2007. During the second
      quarter of 2008, revenues were reduced by $1.9 million to fair value sales
      for which prices and assays were not finalized.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| | h) | Other Expenses:For the second quarter of 2008,
      other income was a modest $0.1 million reflecting a reduction in interest
      expense and a reduction in foreign exchange gains
on                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   

24

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| |    | Canadian dollars held by the Company. In the second
      quarter of 2007 other income totaled $0.9 million which largely reflected
      such foreign exchange gains.                                                                                                                                                                                                                                                                                                                                                                                  
| | -- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| | i) | Income taxes:For the three month period ended
      June 30, 2008, the Company estimated its income tax expense at $0.5
      million versus $1.0 million for the second quarter of 2007. The tax
      expense was high for the current quarter because management reduced its
      estimate of exploration spending on Rock Creek which resulted in an
      increase in its AMT liability, this change in estimate increased the
      utilization of its loss carry forwards and it also reduced the value of
      some other deferred tax assets.
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| | j) | Non-controlling interest:The non-controlling
      interest charge of $0.5 million represents the after tax share of Revett
      Silvers earnings attributable to the Class B shareholders of Revett
      Silver. This amount increases as Revett Silvers income increases and it
      is reduced as Revett Minerals ownership in Revett Silver
  increases.                                                                                                                                                                                       
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| | k) | Net earnings:The Company recorded net income of
      $0.1 million or $0.00 per share for the second quarter compared to net
      income of $3.7 million or $0.05 per share in the second quarter of
      2007.                                                                                                                                                                                                                                                                                                                                       

Financial Results for the six months ended June 30,
2008:

The table below illustrates certain key operating statistics
for Troy (100% basis) for the six months ended June 30,2008, with a comparison
to the same six month period in 2007.

|                             |  | Six Months Ended June 30, 2008 |  |  | Six Months Ended June 30, 2007 | 
|---------------------------- |  | ------------------------------ |  |  | ------------------------------ | 
|Tons milled                  |  | 631,561                        |  |  | 687,892                        | 
|Tons milled per day          |  | 3,489                          |  |  | 3,801                          | 
|Copper grade (%)             |  | 0.41                           |  |  | 0.56                           | 
|Silver grade (opt)           |  | 0.87                           |  |  | 1.19                           | 
|Copper recovery (%)          |  | 87.2                           |  |  | 87.1                           | 
|Silver recovery (%)          |  | 89.6                           |  |  | 88.7                           | 
|Copper produced (lbs)        |  | 4,518,469                      |  |  | 6,793,282                      | 
|Silver produced (ozs)        |  | 491,759                        |  |  | 731,466                        | 
|Copper sold (payable pounds) |  | 4,409,060                      |  |  | 6,276,480                      | 
|Silver sold (payable ounces) |  | 447,393                        |  |  | 668,073                        | 

| | l) | Revenue:During the six months ended June 30,
      2008, the Troy Mine delivered and sold 4.4 million pounds of payable
      copper and 447,393 ounces of payable silver in concentrate. This was a
      decrease for the first six months of this year compared to the first six
      months of 2007 due largely to the lower grade of ore milled. In the first
      six months of 2007, the Company delivered and sold 6.3 million pounds of
      payable copper and 668,073 ounce of payable silver in concentrate. Total
      sales revenue during the six months ended June 30, 2008 was $25.4 million
      compared to $26.6 million for the first six months of 2007. In 2008 higher
      metal prices mostly offset the lower physical sales of both copper and
      silver in concentrate. During the six months ended June 30, 2008 the price
      of copper averaged $3.69 per pound and silver averaged $17.43 per ounce
      compared to the copper price of $3.08 per pound and a silver price of
      $13.43 per ounce for the comparable period in 2007. The main factors which
      resulted in lower production and sales in 2008 compared to that in 2007
      were: (i) lower mill throughput of 9%; and (ii) a reduction
  in
| | -- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

25

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| |    | the grade of copper and silver ore milled of 27% and 27%,
      respectively, These unfavorable factors were offset by higher recoveries
      of metal in the mill. The 2008 reduction in metal production was a result
      of the restrictions placed by MSHA on areas where mining could take place
      resulting from the second quarter 2007 ground fall. Improvements have been
      made in July in both mill throughput and the grade of ore
milled.                                                                                                                                                                                                                            
| | -- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
| | m) | Cost of Goods Sold:The cost of goods sold
      associated with the revenue for the first six months of 2008 was $17.8
      million, an increase of $1.5 million (9.1%) over the same period in 2007.
      Costs increased because of higher labor expenditures, increased
      maintenance costs, increased parts and supplies costs, and an increase in
      property and state mining taxes. On an operating cost basis the cost per
      ton milled (calculated as mining costs per ton milled plus milling costs
      per ton milled plus mine indirect costs per ton milled) increased to
      $26.66 per ton compared to $22.04 per ton for the first six months of
      2007.
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
| | n) | Depreciation and amortization:For the six month
      period ended June 30, 2008, these non cash charges were marginally higher
      than for the same period in 2007 because of the greater depreciable basis
      in plant and equipment.                                                                                                                                                                                                                                                                                                                                                                                                                                                
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
| | o) | Exploration and development:This expense item
      increased by $0.2 million because of increased legal expenses relating to
      the Rock Creek permit challenges.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
| | p) | General and administration costs:The increase in
      corporate administration costs for the year to date was due to higher
      salary costs and increased corporate governance costs.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
| | q) | Accretion of reclamation and remediation liability:The decrease in the reclamation accretion account was a result of the
      increase in the mine life at Troy, essentially accreting the remaining
      costs over a longer period of time.                                                                                                                                                                                                                                                                                                                                                                                                                                              
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
| | r) | Income from operations:The decrease in
      concentrate production, which was offset by an increase in the price of
      copper and silver, resulted in the Company recording $2.8 million in
      income from operations, a decrease of $3.2 million from income from
      operations reported for the same period in 2007.                                                                                                                                                                                                                                                                                                                                                             
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
| | s) | Other Expenses:For the first six months of 2008,
      other expenses totaled $0.1 million versus other income of $0.9 million
      for 2007. The difference is largely due to sizable foreign exchange gains
      of $1.0 million recorded in 2007.                                                                                                                                                                                                                                                                                                                                                                                                                                       
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
| | t) | Income taxes:For the six month period ended June
      30, 2008, the Company estimated its income tax expense at $0.1 million
      versus $1.3 million for the six months period ended June 30,
  2007.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
| | u) | Non-controlling interest:The non-controlling
      interest charge of $1.1 million represents the after tax share of Revett
      Silvers earnings attributable to the Class B shareholders of Revett
      Silver. This amount increases as Revett Silvers income increases and it
      is reduced as Revett Minerals ownership in Revett Silver
  increases.                                                                                                                                                                                                                                                                                                                            
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
| | v) | Net earnings:The Company recorded net income of
      $1.5 million or $0.02 per share for the six months ended June 30, 2008
      compared to net income of $4.0 million or $0.06 per share for the same
      period in 2007.                                                                                                                                                                                                                                                                                                                                                                                                                                                              

26

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Summarized Financial Results by Quarter

2008
    2008
    2007
    2007
    2007
    2007
    2006
    2006Q2
    Q1
    Q4
    Q3
    Q2
    Q1
    Q4
    Q3Cu Prodn (million lbs)
    2.4
    2.2
    1.1
    1.8
    3.5
    3.3
    1.4
    1.9Ag Prodn (000s ozs)
    260
    232
    127
    196
    372
    359
    175
    239Total Sales (000s $)
    13,377
    12,034
    3,130
    9,136
    15,903
    10,716
    4,041
    8,406Net Income (000s $)
    75
    1,407
    (3,037)
    (120)
    3,727
    301
    (4,806)
    773EPS- Basic ($)
    0.00
    0.02
    (0.04)
    (0.00)
    0.05
    0.00
    (0.07)
    0.01EPS- fully diluted ($)
    0.00
    0.02
    (0.04)
    (0.00)
    0.05
    0.00
    (0.07)
    0.01Cash and Cash Equivalents & s/t Investments
      ending (000s $)
    13,106
    9,540
    18,010
    26,012
    27,639
    22,446
    23,802
    12,574Total Assets, ending (000s $)
    91,564
    89,519
    94,611
    100,329
    102,398
    94,225
    94,203
    87,289Total liabilities, ending (1)
      (000s $)
    26,264
    24,801
    32,365
    33,959
    36,318
    33,111
    35,545
    34,097Total Equity, ending (000s $)
    56,228
    56,114
    54,071
    56,017
    55,984
    52,115
    50,134
    43,722


(1) excludes non-controlling interest

Financing Activities

Revett Silver had entered into the following contractual
financial obligations (in thousands of USD):

|                          |  |        |  |  | Current |  |  | 1 to 3 |  |  | 3 to 5 |  |  | 5 years or | 
|------------------------- |  | ------ |  |  | ------- |  |  | ------ |  |  | ------ |  |  | ---------- | 
|Contractual obligation    |  | Total  |  |  | portion |  |  | years  |  |  | years  |  |  | more       | 
|Royalty obligation        |  | 2,317  |  |  | 2,317   |  |  | -      |  |  | -      |  |  | -          | 
|Capital lease obligations |  | 1,591  |  |  | 708     |  |  | 883    |  |  | -      |  |  | -          | 
|Long term reclamation     |  |        |  |  |         |  |  |        |  |  |        |  |  |            | 
|costs                     |  | 13,320 |  |  | -       |  |  | -      |  |  | -      |  |  | 13,320     | 
|Total contractual         |  |        |  |  |         |  |  |        |  |  |        |  |  |            | 
|obligations               |  | 17,228 |  |  | 3,025   |  |  | 883    |  |  | -      |  |  | 13,320     | 

Liquidity and Capital Resources

The Company continues to be in a good working capital position
with minimal debt obligations outstanding as at end of the second quarter of
2008. At the end of June 2008, there was $12.5 million of working capital
compared to $10.2 million at December 31, 2007 and $11.6 million at March 31,
2008. This working capital includes cash, cash equivalents, and short term
investments of $13.1 million at June 30, 2008 compared to $18.0 million at
December 31, 2007.

27

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During the first quarter of 2008, Revett Minerals repurchased
at face value the Kennecott loan which accounted for the majority of the
reduction in cash which was offset by Troys cash flow for the six month period
ended June 30, 3008 of $3.6 million. In addition, receivables increased because
of an increase in production and sales during the second quarter of 2008
compared to production and sales in November and December of 2007 coupled with
the significant increase in the price of copper and silver at June 30, 2008
compared to December 2007. This increase in metal prices also contributed to an
increase in the fair value of accounts receivable for which final settlement had
not occurred as at those same balance sheet dates. The only debt obligations
remaining include capital leases on equipment at Troy and the production based
royalty owing Royal Gold. As of the date of this report, the Company had paid a
total of $8.0 million on the Royal Gold 7% royalty obligation. This royalty is
capped at total payments of $10.5 million.

During 2008, the Company has budgeted to spend $0.9 million in
exploration at Troy and $1.2 million in capital, of which $0.7 million is
development work to drive a ramp down from the existing mining areas into the
C-bed reserves. The Company believes that it may be able to commence the
evaluation program at Rock Creek in the near future. Total budgeted spending at
Rock Creek for 2008 is approximately $13.5 million, however the amount and
timing of the spending at Rock Creek is subject to considerable uncertainty.

Off Balance Sheet Arrangements

During 2002, Kennecott and Revett Silver agreed to amend the
February 21, 2000 Asset Purchase and Sale Agreement pursuant to which Revett
Silver acquired Kennecotts interest in Troy and Rock Creek. Among other things,
the amendment granted Kennecott the right to acquire a 2% net smelter return
royalty from the sale of metals from a defined area of the Companys Rock Creek
property at any time until the later of: (i) one year after Rock Creek achieves
80% of designed commercial production capacity or, (ii) December 31, 2015. The
amendment requires Kennecott to surrender the 2,250,000 shares of Revett
Silvers common stock previously issued as part of the original Purchase and
Sale Agreement in exchange for this royalty. The royalty terminates upon
Kennecotts recovery of $8 million in total royalty payments, plus an adjustment
related to changes in the consumer price index.

In October 2004, Revett Silver sold Royal Gold 1,333,333 common
shares for gross proceeds of $1.0 million. Royal Gold has the right to convert
these common shares into a perpetual, non-participating 1% net smelter return
royalty from production from Rock Creek. This conversion must be made within a
specified period of time after the Company makes a decision to develop Rock
Creek. In February 2008, this note was acquired by Revett Minerals for face
value and the Company received an assignment of the mortgages on the Troy and
Rock Creek properties which secured this note.

Related Party Transactions

There were no related party transactions during the first six
months of 2008.

Proposed Transactions

In accordance with the Agreement and Plan of Reorganization
approved by the shareholders of Revett Silver, Revett Silver anticipates it may
either redeem for cash or exchange for common shares of Revett Minerals up to
$1.0 million worth of Class B common shares of Revett Silver per

28

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quarter. This exchange is predicated upon the introduction of
the regulations for Section 7874 of the United States Internal Revenue Code.

Principal Risks and Uncertainties

Revett Minerals is a speculative investment, for many
reasons, and the following risk factors should be carefully considered in
evaluating it. In addition, this report contains forward-looking statements that
involve known and unknown risks and uncertainties. These forward-looking
statements include statements of our plans, objectives, expectations and
intentions. Actual results could differ from those discussed in the
forward-looking statements as a result of certain factors, including those set
forth below. You should carefully consider the risks and uncertainties described
below and the other information in this report before investing.

Environmental challenges could prevent us from ever
developing Rock Creek.Our proposed development of Rock Creek has been
challenged on environmental grounds by several regional and national
environmental organizations at various times subsequent to the Forest Services
issuance of an administrative record of decision approving our plan of operation
in 2003. Some of these challenges are substantial and ongoing, and allege
violations of the procedural and substantive requirements of a variety of
federal and state laws and regulations pertaining to our permitting activities
at Rock Creek, including ESA, NEPA, the 1872 Mining Law, the Federal Land Policy
Management Act, the Wilderness Act, the National Forest Management Act, the
Clean Water Act, the Forest Service Organic Act of 1897, and the Administrative
Procedural Act. Although we have generally been successful in addressing most of
the environmental challenges to our operations, we cannot predict with any
degree of certainty how the pending challenges will be resolved. Rock Creek is
potentially the more significant of our two mining assets. Continued court
challenges to the record of decision and its accompanying biological opinion
will inevitably delay us from proceeding with our planned development, and a
successful challenge to either could prevent us from developing the project at
all. If we are successful in defending these challenges, we still must comply
with a number of requirements and conditions as development progresses, failing
which we could be denied the ability to continue with our proposed activities at
Rock Creek.

Our reclamation liability at Troy could be
substantial. In acquiring Troy, we agreed to indemnify ASARCO and hold
it harmless from all of the liabilities associated with the reclamation,
restoration and closure of the mine. This entailed our procurement of a $12.6
million performance bond to ensure that sufficient funds would be available to
meet these obligations, and our subsequent agreement with the DEQ to increase
the amount of the bond by $338,000 in December 2008. We are currently preparing
a revised reclamation and restoration plan for Troy, which, when completed, may
result in changes to the estimated reclamation and restoration costs and the
amount of the performance bond. One of the key issues that has yet to be
resolved is the extent to which we may be required to treat water from Troy
after mining operations have ceased. Another issue is whether we are required to
prepare and file an EIS in conjunction with any action taken with respect to our
revised reclamation plan. We have advised the DEQ that we will fund the cost of
an EIS, but believe the study should be postponed until such time as mining
operations at Troy are actually projected to cease and more current information
concerning the scope of any required remediation is known. We do not presently
know whether our revised plan will actually result in increased reclamation and
restoration costs at Troy. Laws governing the closure of mining operations in
Montana have become more stringent since Troy was first placed into production,
and in the case of Troy, could include provisions requiring us to perpetually
treat all of the discharged water from the mine. These factors could result in
the imposition of a higher performance bond. Further, our reclamation and
restoration liability at Troy is not limited by the amount of the performance
bond itself. The bond serves only as security for the payment of these
obligations; any substantial increase in actual costs over and above the amount
of the bond would necessarily be borne by the Company. Payment of such costs
could have a material adverse effect on its financial condition.

29

---

We have a limited operating history and had losses in
prior years.We have been engaged in commercial mining operations at
Troy for just over three years and have not yet attained a significant level of
earnings. In the 2007 fiscal year, we earned approximately $0.9 million on
revenues of approximately $39 million. In the 2006 fiscal year, we incurred a
loss of approximately $1.7 million on revenues of approximately $31.4 million,
and in the fiscal 2005 year we incurred a loss of approximately $2.9 million on
revenues of approximately $21.1 million. Our losses in 2006 and 2005 were
partially attributable to the fact that production levels at Troy have not
attained projected levels due to geotechnical problems, a shortage of skilled
employees, problems in obtaining necessary repair parts for its equipment, and
other factors common to underground hard rock mining operations. This ongoing
shortfall in production has resulted in higher than anticipated operating costs.
All of this is against the backdrop of higher than average copper and silver
prices.

We presently do not have the financial resources to
develop Rock Creek.At June 30, 2008 we had cash and cash equivalents
and short term investments of approximately $13.1 million. Although we believe
we may have sufficient cash to fund our evaluation program at Rock Creek, we do
not have sufficient funds to allow us to develop the mine or begin mining
operations should it prove feasible to do so. Moreover, we do not have any
commitments for additional funding. The forecasted capital cost of constructing
a mine at Rock Creek is currently estimated to be in the range of $300 to $350
million and could change materially.

The Rock Creek mineral resources are not equivalent to
reserves. This report includes information concerning our estimated size
of the mineral resource at Rock Creek and the amount of ore that may be produced
from the project were it to be developed. Since no ore has been produced from
Rock Creek, these estimates are preliminary in nature. And although we believe
these amounts are significant, it does not mean the mineral resource can be
economically mined. A mineral resource is not equivalent to a commercially
mineable ore body or proven reserves or probable reserves under standards
promulgated by the United States Securities and Exchange Commission (the SEC),
principally because they are less certain and not necessarily amenable to
economic development. We will not be able to determine whether Rock Creek
contains a commercially mineable ore body until our evaluation program has been
completed and we have obtained a final, economic and technical feasibility study
that will include an analysis of the amount of ore that can be economically
produced under then-prevailing market conditions. Investors are cautioned not to
assume that our mineral resource estimates for Rock Creek will ever be converted
into reserves.

Non-U.S. persons owning our stock could be subject to
U.S. taxes if we are treated as a United States company.Section 7874 of
the Internal Revenue Code of 1986, as amended (the Code), provides that, under
certain instances, a non-U.S. corporation such as Revett Minerals could be
treated as a U.S corporation for U.S. tax purposes. A consequence of this
treatment for non-U.S. persons owning common stock of such a corporation is that
they could be subject to U.S. tax on any gain they receive from the sale of such
stock unless they qualify for a statutory exemption. Was this to occur, it is
unlikely that this potential U.S. tax liability would be credited against the
shareholders tax liability in his or her country of domicile, meaning that the
shareholder would likely suffer double taxation on any such gain. Management
does not believe Revett Minerals will be treated as a U.S. corporation for tax
purposes, but cannot offer any assurance that such treatment would not occur.
There is presently uncertainty surrounding the interpretation of Section 7874.
The Internal Revenue Service could challenge Revett Minerals interpretation of
the guidance that has been provided to date, or it could write implementing
regulations that differ from that guidance.

30

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There are other formidable risks to mining.We
are subject to all of the risks inherent in the mining industry, including
industrial accidents, labor disputes, unusual or unexpected geologic formations,
cave-ins, surface subsidence, flooding, power disruptions and periodic
interruptions due to inclement weather. These risks could result in damage to or
destruction of its mineral properties and production facilities, personal
injury, environmental damage, delays, monetary losses and legal liability. We do
not maintain insurance covering environmental or other catastrophic liabilities,
and we do not expect to procure such insurance unless and until it is
economically feasible to do so. Insurance against environmental risks (including
pollution or other hazards resulting from the disposal of waste products
generated from exploration and production activities) is generally not
available. In addition, we are subject to competition for new minerals
properties, management and skilled miners from other mining companies, many of
which have significantly greater resources than we do. We also have no control
over changes in governmental regulation of mining activities, the speculative
nature of mineral exploration and development, operating hazards, fluctuating
metals prices, and inflation and other economic conditions.

Copper and silver prices fluctuate markedly.The
viability of our operations are significantly influenced by the price of copper
and silver. Copper and silver prices fluctuate widely and are affected by
numerous factors that are beyond our control, such as inflation, the strength of
the United States dollar relative to foreign currencies, global and regional
demand, commodity funds and speculators and the political and economic
conditions of major producing countries throughout the world. Since 1990, world
average annual copper prices fluctuated from a low of $0.71 per pound in 2002 to
a high of $3.23 per pound in 2007, and world average annual silver prices
fluctuated from a low of $3.95 per ounce in 1992 to a high of $13.38 per ounce
in 2007.

Currency fluctuations will affect our
competitiveness. The price of copper and silver are denominated
in U.S. dollars even though most production originates in countries whose
currencies are independently valued. Fluctuations in the value of the U.S.
dollar relative to the values of these host country currencies could affect the
competitiveness of our operations.

Recently Adopted Accounting Standards

On January 1, 2008, the Company adopted SFAS no. 159, The Fair
Value Option for Financial Assets and Financial Liabilities (SFAS 159), which
permitted entities to choose to measure many financial assets and financial
liabilities at fair value. Unrealized gains on items for which the fair value
option has been elected are to be reported in earnings. The Company did not
adopt the fair value option.

On January 1, 2008, the Company adopted SFAS no. 157, Fair
Value Measurements, (SFAS 157). SFAS 157 established a framework for measuring
fair value and expands disclosure about fair value measurements, but does not
require any new fair value measurements. The adoption of SFAS No. 157 did not
materially effect the presentation and disclosure in the Companys financial
statements.

On January 1, 2008, the Company adopted The Canadian Institute
of Chartered Accountants (CICA) section 1535- Capital Disclosures.
This section establishes standards for disclosure concerning a companys
objectives, policies and processes for managing capital. The required disclosure
is contained in note 7 (a) to the financial statements.

31

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On January 1, 2008, the Company adopted CICA section 3862-
Financial Instruments-Disclosures and section 3863 Financial
Instruments- Presentation, which together comprise a complete set of
disclosure and presentation requirements that revise and enhance current
disclosure obligations. Section 3862 requires disclosure of additional detail by
financial asset and liability categories. Section 3863 establishes standards for
presentation of financial instruments and non-financial derivatives. The
standard deals with the classification of financial instruments, from the
perspective of the issuer, between liabilities and equity, the classification of
related interest, dividends, losses and gains, and the circumstances in which
financial assets and liabilities are offset. The required disclosure is in note
10 to the financial statements.

On January 1, 2008, the Company adopted CICA section 3031-
Inventories, which provides guidance on the measurement, presentation and
disclosure requirements for inventories. This pronouncement requires inventories
to be measured at the lower of cost and net realizable value and provides
guidance on the determination of cost and its subsequent recognition as an
expense, including any write-down to net realizable value. In certain
circumstances this section also requires that previous write downs be reversed.
Previously, the Company valued materials and supplies inventory at the lower of
cost or replacement cost and a write up of inventory was not permitted This
section has been applied retroactively without restatement of prior periods but
the adoption of this section did not result in any adjustments to opening
deficit. The required disclosure is in note 3 to the financial statements.

Recently Issued Accounting Pronouncements

In June 2008, the EITF reached a conclusion that an
equity-linked financial instrument would not be considered indexed to the
Companys own stock if the strike price is denominated in a currency other than
the issuers functional currency. The determination of whether an equity-linked
financial instrument is indexed to an entities own stock is not affected by the
currency or currencies in which the underlying shares trade. This guidance is
effective beginning for financial statements beginning on January 1, 2009. The
Company is presently evaluating the effect this guidance will have on its
financial statements.

Financial Instruments, Hedging Activities and Other
Instruments

The Company fair values its forward sales contracts and the
amount of silver and copper in concentrate for which final settlement has not
occurred. At each month end, the Company adjusts its revenue to account for
expected future prices and the corresponding expected future revenue and cash
flow. In order to do this, the Company must make estimates of the future prices
expected to prevail when final settlement occurs. The Company uses future
contract prices at each month end to estimate these expected prices. At June 30,
2008, the Company had 3.8 million pounds of copper and 392,365 ounces of silver
with prices not yet fixed. The fair value revenue adjustment was a liability of
$0.4 million. Considerable judgment is required to interpret market data and to
develop the estimates of fair value for future periods. Accordingly, the
estimates presented herein are not necessarily indicative of the amounts the
Company will realize in such future periods.

At June 30, 2008 and as at the date of this report, the Company
had the following forward sales contracts outstanding. For October, November and
December 2008 settlement periods the Company had sold 110, 231 pounds in each
month at an average price of $3.73 per pound, LME basis. The fair value of these
hedges at June 30, 2008 was a liability of $0.04 million which was recorded in
accounts payable.

32

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Forward Looking Statements

Cautionary Safe Harbor Statement under the Private Securities
Litigation Reform Act of 1995. With the exception of historical matters, the
matters discussed in this report are forward- looking statements that involve
risk and uncertainties that could cause actual results to differ materially from
projections or estimates contained herein. The words believe, estimate,
anticipate, expect, and project and similar expressions are included to
identify forward-looking statements. Such forward looking-statements include
statements regarding future production levels and operating costs at the Troy
mine, future levels of capital expenditures at both Troy and Rock Creek, the
reserve and resource estimates at both Troy and Rock Creek, the adequacy of the
financial resources and funds to cover operating and exploration costs at Troy
and the cost of exploration at Rock Creek, the timing of certain litigation
activities which have delayed exploration activities at Rock Creek, the adequacy
of third part financing to complete certain corporate development activities,
and the expectation that the Troy mine will be able to generate positive cash
flow in future periods. Factors that could cause actual results to differ
materially from these forward looking statements include, among others;

- changes in copper and silver prices;
- the operating performance of the Troy mine;
- geological conditions at the Troy mine;
- the need for copper concentrate by copper smelters and the costs
  associated with selling such concentrate to the smelters;
- the ability of the Company to complete exploration activities at the Rock
  Creek project;
- activities of certain environmental groups opposed to the Companys
  activities in the United States;
- changes in the planned Rock Creek project parameters;
- changes in estimates of the reserves and resources at all the properties
  owned or controlled by the Company;
- economic and market conditions;
- future financial needs and the Companys ability to secure such financing
  under reasonable terms and conditions;
- changes in federal or state legislation and regulations governing our
  operations and projects;
- risks of future unknown lawsuits respecting future planned activities on
  our projects or past activities by the Company.

as well as other factors described in our annual Form 10-K and
the various regulatory filings done with United States and Canadian and
provincial regulatory bodies which are available in Canada at www.sedar.com or
in the United States on EDGAR. Future events and actual results could differ
materially from those set forth in, contemplated by, or underlying the
forward-looking statements. Most of these factors are beyond our ability to
predict or control. Future events and actual results could differ materially
from those set forth in, contemplated by, or underlying the forward looking
statements. We disclaim any obligation to update any forward-looking statement
made here-in. Readers are cautioned not to put undue reliance on forward looking
statements.

Item #3: Quantitative and Qualitative Disclosures About
Market Risk

Our earnings and cash flow are significantly affected by
changes in the market price of copper and silver. The prices of both metals can
fluctuate widely and are influenced by numerous factors

33

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such as demand, production levels, the economic policies of
central banks, producer and fund hedging, world political and economic events
and the strength of the US dollar relative to other currencies. During the past
eighteen years the average annual price of copper has ranged from a low of $0.71
per pound to a high of $3.23 per pound. Average annual silver prices over this
same period have ranged from a low of $3.95 per ounce to a high of $13.38.
Currently the prices for both metals are at or near their highs for this time
period. Should the price of copper or silver decline substantially, the value of
Troy and Rock Creek could fall dramatically and the future operation of Troy and
the future exploration and development at Rock Creek could both be at risk.

During the three months ended June 30, 2008, the company
delivered and sold 2.4 million pounds of payable copper and 244,630 payable
ounces of silver. Based upon these metals sales level, a $0.50 change in the
price of each metal would have changed revenue by approximately $1.3
million.

A substantial portion of the Companys cash and short term
investments are invested in certificates of deposit or high quality government
and corporate fixed income securities, all of which are denominated in US
dollars. With the uncertainty in the financial markets the value of these fixed
income securities could change materially. Approximately $3.7 million of the
Companys short term investments are in savings deposits or in the form of
certificates of deposit issued by the a major Canadian chartered bank and are
denominated in Canadian dollars which exposes the Company to some foreign
exchange risk.

Item #4: Controls and Procedures

Management of the Company is responsible for adopting an
internal control system that gives it and the board of directors reasonable
assurance that the Companys financial statements present fairly its financial
position and activities. Management is also responsible for establishing and
maintaining disclosure controls and procedures that provide reasonable assurance
the material information concerning the Company and its consolidated
subsidiaries is appropriately disclosed.

Disclosure Controls and Procedures. The Companys
disclosure controls and procedures are designed to ensure that information the
Company is required to disclose in its periodic reports and other information
filed under the Securities Exchange Act, as amended (the Exchange Act) is
recorded, processed, summarized and accurately reported within the time periods
prescribed by the Securities and Exchange Commissions rules. They include,
without limitation, controls and procedures designed to ensure that such
information is accumulated and promptly communicated to the Companys
management, including its chief executive office, its chief financial officer
and other principal accounting officers, so such persons can make timely
decisions regarding disclosure.

The Company evaluated the effectiveness of the design and
operation of its disclosure controls and procedures as required by Exchange Act
Rules 13 (a) - 15 (e) and 15 (d)  15 (e). This evaluation was performed under
the supervision and with the participation of its management, including the
chief executive officer and its chief financial officer. Based upon this
evaluation, the chief executive officer and the chief financial officer
concluded that the design and operation of the Companys disclosure controls and
procedures are effective as at June 30, 2008 to ensure that information required
to be disclosed by us in reports that we file under the Exchange Act, is
gathered, reported, processed, summarized and reported within the time periods
specified in the Securities and Exchange Commissions rules and forms and is
accumulated and communicated to

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management of Revett Minerals, including the CEO and CFO, to
allow timely decisions regarding required disclosure as specified under U.S. and
Canadian securities laws.

Internal Controls over Financial
Reporting. Management is responsible for establishing and
maintaining adequate internal control over financial reporting as defined in
Rules 13a-15(f) and 15d-15(f) under the Securities Act of 1934.Our
internal control over financial reporting is designed to provide reasonable
assurance regarding the reliability of our financial reporting and preparation
of our financial statements for external purposes in accordance with generally
accepted accounting principles. Our internal control over financial reporting
includes those policies and procedures that: pertain to the maintenance of
records that in reasonable detail accurately and fairly reflect our transactions
and disposition of assets; provide reasonable assurance that transactions are
recorded as necessary to permit preparation of our financial statements in
accordance with generally accepted accounting principles and that receipts and
expenditures of our assets are being made only in accordance with the
authorizations of management and directors; and provided reasonable assurance
regarding prevention or timely detection of unauthorized acquisitions, use or
disposition of assets that could have a material effect on our financial
statements. Because of inherent limitations, internal control over financial
reporting may not prevent or detect misstatements. Also, projections of any
evaluation of effectiveness to future periods are subject to risk that controls
may become inadequate because of changes in conditions or that degree of
compliance with the policies and procedures may deteriorate.

As permitted by the transitional period established by the
Securities and Exchange Commission (Item 308T), the Company has not yet
completed, in its entirety, its evaluation as to whether internal controls over
financial reporting are effective. Our evaluation has been on-going since mid
2007 and we expect to complete it in 2008.

Changes in Internal Controls. During the first
six months of 2008, there were no changes in internal controls from the prior
year.

PART II: Other Information

Item #1: Legal proceedings

The Company and certain of its subsidiaries are parties to
several pending legal actions in the federal and state courts in Montana as of
the date of this report, all of which are predicated on alleged violations of
various federal and state environmental laws and regulations at Troy and Rock
Creek.

Troy-Related Actions.

Cabinet Resource Group, Inc. v. Montana Department of
Environmental Quality, Revett Minerals Inc. and Genesis Inc., Montana
Nineteenth Judicial District Court in and for Lincoln County (Case No.
DV-07-118). This action was brought in 2007. The plaintiff, a regional
environmental organization, alleges that Genesis, Inc. is operating Troy in
violation of the Metal Mine Reclamation Act (MMRA) because of deficiencies in
its reclamation plan, and that all of the defendants have violated the Montana
constitution and various state statutes and regulations by allowing such
operations to continue. The plaintiff seeks a declaration that the Troy
operating permit and reclamation plan are void and invalid; alternatively, it
seeks a writ of mandamus from the court requiring DEQ to enforce the MMRA and
presumably suspend or revoke the operating permit, declare a forfeiture of the
Companys performance bond, and enjoin the Company from

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further operations at Troy pending approval of a reclamation
plan. The plaintiff also alleges that DEQ has failed to maintain a clean and
healthful environment, in violation of the Montana constitution.

The Company has answered the complaint and asserted several
affirmative defenses to plaintiffs claims. It has also filed a motion seeking
to dismiss Revett Minerals on the grounds that it does not do business in
Montana. Discovery has been substantially completed, although no trial date has
been set. The court has indicated that it will not set a trial date until DEQ
has completed its required review of the reclamation plan. The Company is
engaged in ongoing discussions with DEQ concerning proposed revisions to the
existing reclamation plan and increased performance bond requirements, and
therefore believes the claim is without merit.

In re ASARCO, LLC et al., Debtor: ASARCO, LLC, Plaintiff v.
Revett Silver Company and Genesis, Inc., United States Bankruptcy Court
for the Southern District of Texas, Corpus Christi Division (Bankruptcy
Case No. 05-21207). This action seeks to avoid the July 2002 and May 2004
amendments to Revett Silvers purchase agreement with ASARCO. It also seeks a
judgment in an amount equal to the value ceded by these amendments. Importantly,
the action does not challenge the provisions of the original agreement that
resulted in ASARCOs transfer of its interests in the Troy mine and the Rock
Creek project to us.

The amendments pertain to the amount we owed ASARCO under the
original purchase agreement and the manner in which we were to have paid that
amount. Specifically, the amendments resulted in the issuance of additional
shares of our common stock to ASARCO in exchange for its cancellation of a
production debt obligation and certain share price guaranties in the original
purchase agreement. Plaintiff contends that the amendments constitute fraudulent
transfers under applicable federal and state law because ASARCO was insolvent at
the time and received insufficient or no value under the amendments. Although
this action was commenced in 2007, neither Revett Silver nor Genesis, Inc. had
been served as of the date of this report.

Rock Creek-Related Actions.

Clark Fork Coalition, Rock Creek Alliance, Inc, Cabinet
Resource Group, Inc., Montana Environmental Information Center, Inc. and
Trout Unlimited v. Montana Department of Environmental Quality, Montana
First Judicial District Court in and for Lewis and Clark County (Cause
No. BDV-2002-70). This action was brought in 2002 challenging DEQs issuance
of a Montana Pollution Discharge Elimination System (MPDES) permit pertaining
to prospective wastewater and mine drainage from the proposed Rock Creek
project. The plaintiffs contend the permit was arbitrarily issued because DEQ
did not perform the required non-degradation review and did not ensure that
surface waters designated as Outstanding Water Resources within the Cabinet
Mountains Wilderness Area would not be degraded by the proposed project. The
plaintiffs also allege that the proposed reclamation plan for Rock Creek fails
to provide for the reclamation of lands within the wilderness area that may be
damaged by subsidence or other disturbances, all in violation of MMRA and the
Montana Water Quality Act, and that the permitted discharges violate the
constitutional rights of Montana citizens to a clean and healthy
environment.

In February 2005, the parties stipulated to a dismissal of the
constitutional, MMRA and Outstanding Water Resources claims, without prejudice.
In March 2006, the district court entered summary judgment against the
plaintiffs on their claim that the MPDES permit as to Outfall 001 and 004
violated the Montana Water Quality Act and the states constitution. However, it
did find that those portions of the MPDES permit covering Outfall 002 (the area
in which a proposed paste facility would be constructed) violated the act and
the constitution since it allows an increase in arsenic levels below the
outfall, and was therefore void. The court concluded by

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noting that its decision does not mean Rock Creek could not go
forward, only that the MPDES permit needed to be revised in light of its ruling.
The Company had commenced the required revision of the MPDES permit before the
courts ruling was issued, as part of its statutorily-required five-year review
process, and management is confident that the issues with the Outfall 002 can be
successfully resolved.

In May 2007, the plaintiffs filed an appeal with the Montana
Supreme Court, contending that the district courts March 2006 summary judgment
was incorrect in not invalidating the MPDES permit entirely, and asking the
court to do so on constitutional grounds. Oral arguments have been heard
respecting the plaintiffs appeal, but no decision has been rendered as of the
date of this report.

Rock Creek Alliance, Clark Fork Coalition, Cabinet Resource
Group, Inc., Montana Wilderness Association, Earthworks, and Alliance for
the Wild Rockies, Plaintiffs, v. United States Forest Service, U.S.
Department of Agriculture, Tom Tidwell, in his official capacity as Regional
Forester for the Northern Region, Paul Bradford, in his official capacity as
Forest Supervisor of the Kootenai National Forest, and Ed Schaffer, in
his official capacity as Secretary of the U.S. Department of Agriculture,
Defendants, United States District Court for the District of Montana,
Missoula Division, Case No. CV-05-107-M-DWM. This action was originally
filed in June 2005 and was superseded by an amended complaint filed in February
2008. Plaintiffs seek injunctive and declaratory relief against the defendants,
claiming they unlawfully approved the record of decision, plan of operations,
and the final EIS for Rock Creek. In addition, plaintiffs challenge the findings
of a determination letter issued by the Forest Service and three supplemental
information reports issued by the Kootenai National Forest in December 2007.
They allege violations of the ESA, NEPA, the National Forest Management Act, the
Clean Water Act, the Forest Service Organic Administration Act of 1897, the
Administrative Procedure Act, and various implementing regulations adopted under
these statutes. Revett Silver petitioned the court and was granted intervener
status in October 2005.

This action has twice been stayed. The first stay was ordered
in 2005 pending resolution of a challenge to the USFWSs May 2003 biological
opinion in a separate lawsuit in the United States District Court for the
District of Montana entitled Rock Creek Alliance v. U.S. Fish and Wildlife
Service, CV 01-152-M-DWM. That lawsuit has now been concluded and resulted
in the issuance of a revised biological opinion in October 2006, which concluded
that development of Rock Creek would not likely to jeopardize the continued
existence of grizzly bears or bull trout, each of which is listed as a
threatened species under the ESA, nor adversely modify critical habitat of these
species. The second stay was ordered in November 2006 pending a Forest Service
determination as to whether the Companys plan of operations at Rock Creek
needed to be modified. The Forest Services December 2007 supplemental
information reports did not mandate any changes to the plan of operations of the
final EIS.

All parties to this dispute filed briefs, replies and responses
on June 4, 2008 as required by the court and all are awaiting the courts
ruling. An adverse ruling could delay or even prevent the Company from
proceeding with its proposed activities at Rock Creek.

Rock Creek Alliance, Cabinet Resource Group, Sierra Club,
Alliance For The Wild Rockies, Natural Resource Defense Council, Trout
Unlimited, Earthworks, Idaho Counsel of Trout Unlimited, Pacific Rivers
Counsel and Great Old Broads For Wilderness v United States Fish and
Wildlife Service, United States District Court for the District of Montana,
Missoula Division, case No. CV-08-28-M-DWM.This lawsuit was filed in
February 2008 after the US Fish and Wildlife Service reaffirmed the conclusions
reached in its revised October 2006 biological opinionnamely, that Rock Creek
would not jeopardize the continued existence of the grizzly bear or bull trout
in the vicinity of the proposed mine. The plaintiffs contend that the
conclusions

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reached by the USFWS ignored the best available science and
were arbitrary, capricious, and an abuse of discretion in violation of the ESA
and the Administrative Procedural Act. The Company has intervened in this matter
as a defendant and this case has been consolidated with the above described
actions. The court has been fully briefed on the issues pending in this action
and the parties are waiting for the courts decision.

Managements Analysis of Actions pertaining to the Record of
Decision and Biological Opinion. Management cannot predict with any degree
of certainty whether the Company will be successful in defending the pending
legal challenges to the Forest Services record of decision and the Fish and
Wildlife Services revised biological opinion. The issues presented by these
challenges are complex and involve agency actions, procedures and determinations
that the Company may influence but not control. The February 2008 amendment to
the lawsuit petition challenging the USFWSs revised biological opinion is
particularly difficult to analyze at this time, since it simply challenges the
scientific studies and evidence reached by the responsible agencies. It is also
vexing in light of the conclusions that were reached in earlier challenges to
the biological opinions, including an agency-approved agreed mitigation plan
that addresses concerns about Rock Creeks affect on grizzly bear habitat and
migration corridors in the project area.

The validity of the USFWSs various studies and analyses has
been a recurrent theme in prior environmental challenges to the Rock Creek
biological opinions. Consequently, management of the Company anticipates that,
should the petitioners ultimately commence an action challenging the revised
opinion, they will again contend that these studies and analyses are flawed or
ignore the best available science.

Managements ability to predict the outcome of these challenges
is further complicated by the fact that Rock Creek is one of two proposed mining
projects in the Cabinet Mountains Wilderness Area, the other being the Montenore
project being developed by Mines Management, Inc., a junior mining company based
in Spokane, Washington. Although the pending actions are specific to Rock Creek,
it is only because development of Rock Creek has proceeded to the point where
the jurisdictional agencies have either issued permits or taken other
administrative actions that invoke legal challenges. The prospective cumulative
effect of two mining projects within the Cabinet Mountains Wilderness Area is an
implicit factor in these pending actions, in managements opinion, this despite
the fact that the Montenore project faces substantial hurdles and, at this
point, may not be developed in the foreseeable future.

Management anticipates that, even if the revised biological
opinion is upheld, it will result in some modification of the Forest Services
record of decision, which could in turn affect the Rock Creek plan of operation.
Regardless, unless and until they are favorably resolved, these challenges could
delay the Companys planned evaluation program at Rock Creek and may make it
more difficult to obtain the financing needed to fund commercial development.
Even if the Company is ultimately successful in defending these challenges, it
still must comply with a number of requirements and conditions as development of
Rock Creek progresses, failing which it could be denied the ability to
continue.

Other Actions and Proceedings.

Frank D. Duval and Janice E. Duval v. Revett Silver Company
(Spokane County, Washington Superior Court). This action was brought
in August 2007 to compel Revett Silver to redeem shares of Revett Silver Class B
common stock that the Duvals allegedly tendered for redemption at various times
in 2007 and 2008. Frank Duval is a co-founder of Revett Silver and previously
served as a director and executive officer of the company. Janice Duval, his
spouse, also previously served as an executive officer of Revett Silver. The
plaintiffs allege that Revett Silver

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has a contractual obligation to redeem their shares pursuant to
the terms of the amended and restated articles of incorporation, not
withstanding the fact that such redemption could cause Revett Minerals to be
treated as a U.S. corporation for U.S. tax purposes. (See the section of this
report entitled Risk Factors-Non U.S. persons owning our stock could be subject
to U.S. taxes if we are treated as a U.S. company.) We have filed an answer to
the complaint, including counterclaims against the Duvals. Discovery in the
matter is proceeding.

Federal Mine Safety and Health Act Violations and Related
Matters. The federal Mine Safety and Health Administration (MSHA) issued
53 safety related citations against a subsidiary at various times in August
2007. These citations related to a rock fall which occurred at Troy on July 30,
2007. Three of these citations allege the subsidiary company was negligent with
respect to certain operations or activities conducted while mining and two
citations allege the subsidiary acted in reckless disregard for the safety of
the employees at the mine. In April 2008, the Company was informed by MSHA that
fines approximating $0.6 million were being proposed relating to these and other
citations, of which $0.5 million is being contested. The Company disputes the
allegations and rational for the determination of the fines put forth by MSHA
and is in the process of appealing the findings and fines. The Company will
vigorously defend itself in court, if necessary.

Tammy K. Ivins, Individually and as Personal Representative
of the Estate of Michael E. Ivins, Deceased, Plaintiffs, vs. Revett
Minerals Inc., a Foreign Corporation for Profit; Revett Silver Company, a
for Profit Corporation; and Does A-Z, Inclusive, Defendants.This threatened
action arises from the isolated rock fall incident and resulting fatality that
occurred at Troy on July 30, 2007. The proposed complaint, which was sent to the
Company in February 2008 but had not been filed as of the date of this report,
alleges causes of action based on negligence, failure to provide a safe work
place, strict liability for abnormally dangerous activity, and intentional and
malicious acts or omissions. It seeks compensatory damages in the amount of
$8,000,000 and punitive damages in the amount of $10,000,000. The Company
believes the claim is barred by the Montana workers compensation statute.

Item #1(a): Risk Factors

Information regarding risk factors appears in Item #2
MD&A-Forward-Looking Statements and various risks faced by use are also
discussed elsewhere in Item 2 MD&A of this quarterly report. In addition,
risk factors are discussed in Item 1A. in our Form 10-K filed with the SEC.

Item #2: Unregistered sales of equity securities and Use of
proceeds

Not Applicable

Item #3: Defaults Upon Senior Securities

Not Applicable

Item #4: Submission To A Vote of Securities Holders

Not Applicable.

Item #5: Other Information

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Not Applicable

Item #6: Exhibits

| | (a) Exhibits:                                                                                                                   
| | --------------------------------------------------------------------------------------------------------------------------------
| |                                                                                                                                 
| | 31.1
      Certification of Chief Executive Officer pursuant to Section 302 of the
      Sarbanes-Oxley Act                     
| | 31.2 Certification of
      Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act                           
| | 32.1
      Certification of the Chief Executive Officer pursuant to 18 U.S.C., 1350
      (Section 906 of the Sarbanes-Oxley Act
| | 32.2 Certification of
      the Chief Financial Officer pursuant to 18 U.S.C., 1350 (Section 906 of
      the Sarbanes-Oxley Act

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SIGNATURES

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

|                      | REVETT MINERALS INC.                 
|--------------------- | -------------------------------------
|                      |                                      
|                      |                                      
|Date: August 14, 2008 | By: /s/ William Orchow               
|                      | William Orchow                       
|                      | President and Chief Executive Officer
|                      |                                      
|                      |                                      
|Date: August 14, 2008 | By: /s/ Scott Brunsdon               
|                      | Scott Brunsdon                       
|                      | Chief Financial Officer              

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