---

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 ENDEDMarch 31, 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 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 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, or a non-accelerated filer. See
definition of accelerated filer and large filer in rule 12b-2 of the Exchange
Act. (Check One)

Large accelerated filer [
]           Accelerated filer
[ ]          
Non-accelerated filer [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 May 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 March 31, 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                     |          | 40                                                                                         

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            | 8-22

3

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|Revett Minerals Inc.                                                                      
|------------------------------------------------------------------------------------------
|Consolidated Balance Sheets                                                               
|at March 31, 2008 and December 31, 2007                                                   
|(expressed in thousands of United States dollars
      except share and per share amounts)

|                                                                               |   | March 31, 2008 |   |   | December 31, 2007 |  
|------------------------------------------------------------------------------ | - | -------------- | - | - | ----------------- | -
|                                                                               |   | (unaudited)    |   |   |                   |  
|Assets                                                                         |   |                |   |   |                   |  
|Current Assets                                                                 |   |                |   |   |                   |  
|Cash and cash equivalents                                                      | $ | 8,538          |   | $ | 14,055            |  
|Short term investments                                                         |   | 1,002          |   |   | 3,955             |  
|Accounts receivable                                                            |   | 3,968          |   |   | 970               |  
|Income tax receivable                                                          |   | -              |   |   | 1,250             |  
|Concentrate settlement receivable                                              |   | 1,507          |   |   | -                 |  
|Inventories (note 3)                                                           |   | 4,701          |   |   | 4,519             |  
|Prepaid expenses and deposits                                                  |   | 563            |   |   | 498               |  
|Total current assets                                                           |   | 20,279         |   |   | 25,247            |  
|Mineral property, plant, equipment and mine
      development (net) (note 4)   |   | 60,531         |   |   | 60,714            |  
|Restricted cash (note 5)                                                       |   | 7,477          |   |   | 7,386             |  
|Other long term assets                                                         |   | 1,232          |   |   | 1,264             |  
|                                                                               |   |                |   |   |                   |  
|Total assets                                                                   | $ | 89,519         |   | $ | 94,611            |  
|                                                                               |   |                |   |   |                   |  
|Liabilities and shareholders
      equity                                      |   |                |   |   |                   |  
|Current liabilities                                                            |   |                |   |   |                   |  
|Trade accounts payable                                                         | $ | 1,801          |   | $ | 1,985             |  
|Payroll liabilities                                                            |   | 880            |   |   | 806               |  
|Income, property and mining taxes                                              |   | 1,497          |   |   | 1,161             |  
|Concentrate settlement payable                                                 |   | -              |   |   | 526               |  
|Other accrued liabilities                                                      |   | 1,030          |   |   | 852               |  
|Current portion of long term debt                                              |   | 3,572          |   |   | 9,719             |  
|Total current liabilities                                                      |   | 8,780          |   |   | 15,049            |  
|                                                                               |   |                |   |   |                   |  
|Long-term portion of debt (note 6)                                             |   | 1,011          |   |   | 1,784             |  
|Reclamation and remediation liability (note 9 (b))                             |   | 7,036          |   |   | 7,141             |  
|Future income tax                                                              |   | 7,974          |   |   | 8,391             |  
|Total liabilities                                                              |   | 24,801         |   |   | 32,365            |  
|                                                                               |   |                |   |   |                   |  
|Non controlling interest                                                       |   | 8,604          |   |   | 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 (note 7 (b)) |   | 56,871         |   |   | 56,315            |  
|Contributed surplus                                                            |   | 1,636          |   |   | 1,556             |  
|Deficit                                                                        |   | (2,393         | ) |   | (3,800            | )
|                                                                               |   | 56,114         |   |   | 54,071            |  
|                                                                               |   |                |   |   |                   |  
|Total liabilities and shareholders equity                                      | $ | 89,519         |   | $ | 94,611            |  

See accompanying notes to interim consolidated financial
statements.

4

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|Revett Minerals Inc.                                                                      
|------------------------------------------------------------------------------------------
|Consolidated Statements of Operations                                                     
|Three months ended March 31, 2008 and 2007                                                
|(expressed in thousands of United States dollars
      except share and per share amounts)
|(unaudited)                                                                               

|                                                         |   | Three month period   |   |   | Three month period   |  
|-------------------------------------------------------- | - | -------------------- | - | - | -------------------- | -
|                                                         |   | ended March 31, 2008 |   |   | ended March 31, 2007 |  
|                                                         |   |                      |   |   |                      |  
|                                                         |   |                      |   |   |                      |  
|                                                         |   |                      |   |   |                      |  
|Revenues                                                 | $ | 12,034               |   | $ | 10,716               |  
|Expenses:                                                |   |                      |   |   |                      |  
|Cost of sales                                            |   | 8,278                |   |   | 7,550                |  
|Depreciation and amortization                            |   | 392                  |   |   | 386                  |  
|Exploration and development                              |   | 355                  |   |   | 475                  |  
|General & administrative                                 |   | 986                  |   |   | 975                  |  
|Accretion of reclamation and remediation
      liability |   | 146                  |   |   | 161                  |  
|                                                         |   | 10,157               |   |   | 9,547                |  
|Income from operations                                   |   |                      |   |   |                      |  
|                                                         |   | 1,877                |   |   | 1,169                |  
|                                                         |   |                      |   |   |                      |  
|Other income (expenses):                                 |   |                      |   |   |                      |  
|Interest expense                                         |   | (274                 | ) |   | (371                 | )
|Interest and other income                                |   | 255                  |   |   | 387                  |  
|Foreign exchange (loss)                                  |   | (216                 | ) |   | (33                  | )
|Total other income (expenses)                            |   | (235                 | ) |   | (17                  | )
|                                                         |   |                      |   |   |                      |  
|Net income before non controlling interest and taxes     |   | 1,642                |   |   | 1,152                |  
|                                                         |   |                      |   |   |                      |  
|Income tax recovery (expense)                            |   | 426                  |   |   | (376                 | )
|                                                         |   |                      |   |   |                      |  
|Net income before non controlling interest               |   | 2,068                |   |   | 776                  |  
|                                                         |   |                      |   |   |                      |  
|Non controlling interest                                 |   | (661                 | ) |   | (475                 | )
|                                                         |   |                      |   |   |                      |  
|Net income for the period                                | $ | 1,407                |   | $ | 301                  |  
|                                                         |   |                      |   |   |                      |  
|Basic earnings per share                                 | $ | 0.02                 |   | $ | 0.00                 |  
|                                                         |   |                      |   |   |                      |  
|Diluted earnings per share                               | $ | 0.02                 |   | $ | 0.00                 |  
|                                                         |   |                      |   |   |                      |  
|Weighed average number of shares outstanding             |   | 74,761,856           |   |   | 72,934,097           |  
|                                                         |   |                      |   |   |                      |  
|Weighted average number of diluted shares outstanding    |   | 75,071,221           |   |   | 73,509,069           |  

5

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|Revett Minerals Inc.                                                                      
|------------------------------------------------------------------------------------------
|Consolidated Statements of Cash Flow                                                      
|Three months ended March 31, 2008 and 2007                                                
|(expressed in thousands of United States dollars
      except share and per share amounts)
|(unaudited)                                                                               

|                                                             |   | Three month period   |   |   | Three month period   |   
|------------------------------------------------------------ | - | -------------------- | - | - | -------------------- | --
|                                                             |   | ended March 31, 2008 |   |   | ended March 31, 2007 |   
|                                                             |   | (unaudited)          |   |   | (unaudited)          |   
|                                                             |   |                      |   |   |                      |   
|                                                             |   |                      |   |   |                      |   
|Cash flows from operating
      activities:                  |   |                      |   |   |                      |   
|Net income for the period                                    | $ | 1,407                |   | $ | 301                  |   
|Adjustment to reconcile net income to net
      cash used by |   |                      |   |   |                      |   
|operating                                                    |   |                      |   |   |                      |   
|Depreciation and amortization                                |   | 392                  |   |   | 386                  |   
|Accretion of reclamation and remediation liability           |   | 146                  |   |   | 161                  |   
|Foreign exchange loss                                        |   | 216                  |   |   | 33                   |   
|Stock based compensation                                     |   | 80                   |   |   | 343                  |   
|Loss on disposal of fixed assets                             |   | 74                   |   |   | -                    |   
|Future income tax expense (recovery)                         |   | (623                 | ) |   | 376                  |   
|Non controlling interest                                     |   | 661                  |   |   | 475                  |   
|Accrued interest from reclamation trust fund                 |   | (86                  | ) |   | (82                  | ) 
|Amortization of prepaid insurance premium                    |   | 32                   |   |   | 41                   |   
|Change in fair value of derivative contracts                 |   | (2,033               | ) |   | (3,974               | ) 
|Changes in:                                                  |   |                      |   |   |                      |   
|Accounts receivable                                          |   | (2,998               | ) |   | 3,399                |   
|Income tax receivable                                        |   | 1,250                |   |   |                      |   
|Inventory                                                    |   | (182                 | ) |   | (857                 | ))
|Prepaid expenses and other                                   |   | (65                  | ) |   | (370                 | ) 
|Accounts payable and accrued liabilities                     |   | 404                  |   |   | (1,745               | ) 
|Net cash used by operating
      activities                  |   | (1,325               | ) |   | (1,513               | ) 
|                                                             |   |                      |   |   |                      |   
|                                                             |   |                      |   |   |                      |   
|Cash flows from investing activities:                        |   |                      |   |   |                      |   
|Proceeds (purchase) of short term
      investments          |   | 2,953                |   |   | (479                 | ) 
|Other long term assets                                       |   | (3                   | ) |   | 42                   |   
|Purchase of plant and equipment                              |   | (6                   | ) |   | (258                 | ) 
|Net cash provided (used) by investing activities             |   | 2,944                |   |   | (695                 | ) 
|                                                             |   |                      |   |   |                      |   
|Cash flows from financing activities:                        |   |                      |   |   |                      |   
|Proceeds form the issuance of common stock,
      net        |   | -                    |   |   | 1,327                |   
|Repayment of debt                                            |   | (6,625               | ) |   | (740                 | ) 
|Repayment of capital leases                                  |   | (295                 | ) |   | (181                 | ) 
|Net cash from (used by) financing activities                 |   | (6,920               | ) |   | 406                  |   
|                                                             |   |                      |   |   |                      |   
|Effects of foreign exchange on cash held                     |   |                      |   |   |                      |   
|In foreign currencies                                        |   | (216                 | ) |   | (33                  | ) 
|                                                             |   |                      |   |   |                      |   
|Net (decrease) increase in cash and cash
      equivalents   |   | (5,517               | ) |   | (1,835               | ) 
|Cash and cash equivalents, beginning of period               |   | 14,055               |   |   | 19,862               |   
|Cash and cash equivalents, end of period                     | $ | 8,538                |   | $ | 18,027               |   
|                                                             |   |                      |   |   |                      |   
|Supplementary cash flow information:                         |   |                      |   |   |                      |   
|Cash paid for interest expense                               | $ | 404                  |   | $ | 545                  |   
|Cash received for interest income                            | $ | 374                  |   | $ | 247                  |   
|Common stock issued to acquire non controlling interest      | $ | 556                  |   | $ | -                    |   
|Reduction of reclamation and remediation
      liability     | $ | 251                  |   | $ | 1,021                |   

6

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|Revett Minerals Inc.                                                                      
|------------------------------------------------------------------------------------------
|Consolidated Statements of Shareholders Equity                                           
|Three months ended March 31, 2008 and year ended December
      31, 2007                  
|(expressed in thousands of United States dollars except
      share and per share amounts)
|(unaudited)                                                                               

|                                           |  | Common Shares |  |   | Contributed |  |   |         |  |   |         |  
|------------------------------------------ |  | ------------- |  | - | ----------- |  | - | ------- |  | - | ------- | -
|                                           |  | Shares        |  |   | Amount      |  |   | Surplus |  |   | Deficit |  
|                                           |  |               |  |   |             |  |   |         |  |   |         |  
|Balance, December 31, 2006                 |  | 71,904,088    |  | $ | 53,989      |  | $ | 816     |  | $ | (4,671  | )
|Issued to acquire non controlling interest |  | 1,097,999     |  |   | 999         |  |   | -       |  |   | -       |  
|Issued for cash on the exercise of share   |  |               |  |   |             |  |   |         |  |   |         |  
|purchase warrants                          |  | 1,293,615     |  |   | 1,327       |  |   | -       |  |   | -       |  
|Stock-based compensation on options        |  |               |  |   |             |  |   |         |  |   |         |  
|granted                                    |  | -             |  |   | -           |  |   | 740     |  |   |         |  
|Net income for the year                    |  | -             |  |   | -           |  |   | -       |  |   | 871     |  
|Balance, December 31, 2007                 |  | 74,295,702    |  | $ | 56,315      |  | $ | 1,556   |  | $ | (3,800  | )
|                                           |  |               |  |   |             |  |   |         |  |   |         |  
|Issued to acquire non controlling interest |  | 707,000       |  |   | 556         |  |   | -       |  |   | -       |  
|Stock-based compensation on options        |  |               |  |   |             |  |   |         |  |   |         |  
|granted                                    |  | -             |  |   | -           |  |   | 80      |  |   | -       |  
|Net income for the period                  |  |               |  |   |             |  |   |         |  |   | 1,407   |  
|Balance, March31, 2008                     |  | 75,002,702    |  | $ | 56,871      |  | $ | 1,636   |  | $ | (2,393  | )

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 Months ended March 31, 2008                                                             
|(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 March 31, 2008, and the results of its operations and its cash
flows for the three month period ended March 31, 2008. The operating and
financial results for Revett Minerals for the three months ended March 31, 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 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
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 Months ended March 31, 2008                                                             
|(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
March 31, 2008 and December 31, 2007 are as follows:

|                      |   | March 31, 2008 |  |   | Dec. 31, 2007 | 
|--------------------- | - | -------------- |  | - | ------------- | 
|                      |   | (unaudited)    |  |   | (audited)     | 
|Concentrate inventory | $ | 1,259          |  | $ | 1,187         | 
|Material and supplies |   | 3,442          |  |   | 3,332         | 
|                      | $ | 4,701          |  | $ | 4,519         | 

The table below identifies the nature of expenses included in
cost of sales for the three months ended March 31, 2008 and 2007:

|                                      |   | March 31, 2008 |   |   | March 31, 2007 |  
|------------------------------------- | - | -------------- | - | - | -------------- | -
|Nature of expense                     |   | (unaudited)    |   |   | (unaudited)    |  
|Raw materials and consumables used    | $ | 3,169          |   | $ | 2,947          |  
|Labor costs                           |   | 2,604          |   |   | 2,507          |  
|Other costs                           |   | 2,597          |   |   | 2,727          |  
|Net change in concentrate inventories |   | (727           | ) |   | (631           | )
|                                      | $ | 8,278          |   | $ | 7,550          |  

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

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

| |                                            |   | March 31, 2008 |   |   | Dec. 31, 2007 |  
| | ------------------------------------------ | - | -------------- | - | - | ------------- | -
| |                                            |   | (unaudited)    |   |   | (audited)     |  
| | TROY:                                      |   |                |   |   |               |  
| | Property acquisition and development costs | $ | 8,942          |   | $ | 9,093         |  
| | Plant and equipment                        |   | 11,232         |   |   | 11,324        |  
| | Buildings and structures                   |   | 996            |   |   | 997           |  
| | ROCK CREEK:                                |   |                |   |   |               |  
| | Property acquisition costs                 |   | 40,024         |   |   | 39,595        |  
| | OTHER, corporate                           |   | 3,672          |   |   | 3,672         |  
| | OTHER, mineral properties                  |   | 118            |   |   | 118           |  
| |                                            |   | 64,984         |   |   | 64,799        |  
| | Accumulated depreciation &depletion:       |   |                |   |   |               |  
| | Troy Property                              |   | (2,321         | ) |   | (2,142        | )
| | Troy plant and equipment                   |   | (1,896         | ) |   | (1,727        | )

9

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|REVETT MINERALS INC.                                                                                  
|------------------------------------------------------------------------------------------------------
|Notes to the Consolidated Financial Statements                                                        
|For the Three Months ended March 31, 2008                                                             
|(tabular amounts are expressed in thousands of U.S.
      dollars, except share and per share amounts)
|(unaudited)                                                                                           

| | Troy buildings and structures |   | (165   | ) |   | (146   | )
| | ----------------------------- | - | ------ | - | - | ------ | -
| | Other corporate assets        |   | (71    | ) |   | (70    | )
| |                               |   | (4,453 | ) |   | (4.085 | )
| |                               | $ | 60,531 |   | $ | 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 March 31,
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 March 31, 2008 and December 31, 2007 the balance of the
companys long term debt and capital lease obligations were as follows.

| |                    |   | March 31, 2008 |   |   | Dec. 31, 2007 |  
| | ------------------ | - | -------------- | - | - | ------------- | -
| |                    |   | (unaudited)    |   |   | (audited)     |  
| |                    |   |                |   |   |               |  
| | Royal Gold royalty | $ | 3,080          |   | $ | 3,705         |  
| | Kennecott note     |   | -              |   |   | 6,000         |  
| | Capital leases     |   | 1,503          |   |   | 1,798         |  
| |                    |   | 4,583          |   |   | 11,503        |  
| | Current portion    |   | (3,572         | ) |   | (9,719        | )
| |                    | $ | 1,011          |   | $ | 1,784         |  

10

---

|REVETT MINERALS INC.                                                                                  
|------------------------------------------------------------------------------------------------------
|Notes to the Consolidated Financial Statements                                                        
|For the Three Months ended March 31, 2008                                                             
|(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 March 31, 2007, royalty payments approximating a cumulative total
of $6.4 million had been made with an additional $0.7 million payable in April,
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
seeks 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, 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 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.

11

---

|REVETT MINERALS INC.                                                                                  
|------------------------------------------------------------------------------------------------------
|Notes to the Consolidated Financial Statements                                                        
|For the Three Months ended March 31, 2008                                                             
|(tabular amounts are expressed in thousands of U.S.
      dollars, except share and per share amounts)
|(unaudited)                                                                                           

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 period
ended March 31, 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 March 31, 2008, the Company had 75,002,702 shares
of common stock outstanding. At March 31, 2008, Revett Silver had 26,311,761
Class B common shares outstanding which are 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 March 31, 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 March 31, 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 no stock options granted during the three months
ended March 31, 2008 by the Company. At March 31, 2008, Revett Minerals had a
total of 3,735,000 stock options outstanding at a weighted average exercise
price of Can $1.02 and 3,245,002 options are currently exercisable with a
weighted average exercise price of Can $0.88.

The fair value of stock options granted in the first quarter of
2007 was estimated using the Black-Scholes option pricing model with the
following assumptions: The exercise price of the option at the date of the grant
equals the fair value of the stock;

| | a) | Risk-free interest rate at the date of the grant- 4.5%
      per annum;
| | -- | -----------------------------------------------------------------------
| | b) | Life of the option- 4 years;                                           
| | c) | Volatility- 70%; and                                                   
| | d) | Dividends- nil.                                                        

12

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|REVETT MINERALS INC.                                                                                  
|------------------------------------------------------------------------------------------------------
|Notes to the Consolidated Financial Statements                                                        
|For the Three Months ended March 31, 2008                                                             
|(tabular amounts are expressed in thousands of U.S.
      dollars, except share and per share amounts)
|(unaudited)                                                                                           

For the three month ended March 31, 2008, the Company recorded
total non-cash compensation related to its equity compensation plans of $80,000,
compared to $343,000 for the first quarter of 2007. The table below identifies
the key attributes of the stock options granted by the Company and the options
vested as at March 31, 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 | 
| |  | 1,575,000 |  |  | 1,575,000 |  |  | 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  | 
| |  | 3,735,000 |  |  | 3,245,002 |  |  |               |  |  |                    | 

(e) Stock Purchase Warrants

The table below identifies stock purchase warrants outstanding
at March 31, 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 three
months ended March 31, 2008 and 2007.

13

---

|REVETT MINERALS INC.                                                                                  
|------------------------------------------------------------------------------------------------------
|Notes to the Consolidated Financial Statements                                                        
|For the Three Months ended March 31, 2008                                                             
|(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 three month period
ended March 31, 2008.

| |                                                           |   | March 31, 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 |   | (251           | ) |   | (1,021        | )
| | Accretion expense                                         |   | 146            |   |   | 559           |  
| | Ending balance                                            | $ | 7,063          |   | $ | 7,141         |  

During the three months ended March 31, 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) Cabinet Resources Group, Inc. Plaintiff v. Montana
Department of Environmental Quality, Revett Minerals Inc. and Genesis Inc.,
Defendant.

The plaintiffs suit alleges that Troy is being operated in
violation of the Montana Metal Mine Reclamation Act (MMRA) because of
deficiencies in its reclamation plan and that the defendants have violated the
Montana Constitution and various state statutes and regulations by allowing
operations to continue. The plaintiffs seek 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 the DEQ to enforce the MMRA
and suspend or revoke Troys operating permit, declare a forfeiture of the
Companys performance bond and enjoin the Company from further

14

---

|REVETT MINERALS INC.                                                                                  
|------------------------------------------------------------------------------------------------------
|Notes to the Consolidated Financial Statements                                                        
|For the Three Months ended March 31, 2008                                                             
|(tabular amounts are expressed in thousands of U.S.
      dollars, except share and per share amounts)
|(unaudited)                                                                                           

operations at Troy pending approval of a new reclamation plan.
The Company believes this action is without merit, particularly in view of
on-going discussions with the DEQ concerning proposed revisions to the existing
reclamation plan at Troy and the increase in the performance bonds approved and
accepted by the DEQ. The Company is vigorously defending itself with respect to
this action.

(2) 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. These
actions are either preliminary in nature, or 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.

(3) Frank D. Duval and Janice E. Duval v Revett Silver
Company.

This action was brought in August 2007 to compel Revett Silver
to redeem 500,000 common shares of Revett Silver common stock that the Duvals
allegedly tendered for redemption at various times since March 2007. Frank D.
Duval is a co-founder of Revett Silver and previously served as a director and
executive officer of Revett Silver. Janice E. Duval, his spouse, also previously
served as an executive officer of Revett Silver. Revett Silver has filed a
response to the complaint, including counter claims against the Duvals. Revett
Silver believes the claims are without merit and it is defending itself against
the allegations.

(4) Possible Litigation:

Revett Silver Company believes that ASARCO LLC has filed a
complaint in a Texas court that alleges certain amendments to the agreement,
(but not the agreement itself) by which Revett Silver acquired ASARCOs interest
in Troy and Rock Creek, were invalid because ASARCO was about to become
insolvent. These amendments were negotiated by the companies between 2000 and
2004 and were done at arms length. As of the date of this report this complaint
has not been served and is therefore not in effect. The Company does not know if
or when this complaint may be served. In any event, because Revett Silvers
dealings with ASARCO were years before ASARCO had filed for bankruptcy, the
Company believes that these allegations are without merit and the Company plans
on vigorously defending itself against these allegations when and if the
complaint is served.

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.

15

---

|REVETT MINERALS INC.                                                                                  
|------------------------------------------------------------------------------------------------------
|Notes to the Consolidated Financial Statements                                                        
|For the Three Months ended March 31, 2008                                                             
|(tabular amounts are expressed in thousands of U.S.
      dollars, except share and per share amounts)
|(unaudited)                                                                                           

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.

d) Kennecott Royalty Option

Kennecott has 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: (1) one year after the Rock Creek
Project achieves 80% of designed commercial capacity production or (2) December
31, 2015. Kennecott is required to surrender the 2,250,000 shares of the
Companys common stock or the common stock of Revett Silver previously issued
and not yet exchanged for common shares of the Company in order to acquire this
royalty. The royalty terminates upon Kennecotts recovery of royalty payments in
the amount of $8.0 million, plus an adjustment related to changes in the
consumer price index.

e) Royal Gold Private Placement

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 or the common shares of the Company that were received in
exchange for the Revett Silver common shares into a perpetual, non-participating
1% net smelter return royalty from production from the Rock Creek project. This
conversion must be made within a specified period of time after the Company
makes a decision to develop Rock Creek. This agreement also gives Royal Gold the
right to assume certain obligations with respect to the Kennecott note payable
if Revett Silver is in default of that note. If Royal Gold assumes the Kennecott
note, Royal Gold will have the right to convert the note and interest owing into
a 3% net smelter return royalty on production from Rock Creek or into common
shares of the Company.

|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.

16

---

|REVETT MINERALS INC.                                                                                  
|------------------------------------------------------------------------------------------------------
|Notes to the Consolidated Financial Statements                                                        
|For the Three Months ended March 31, 2008                                                             
|(tabular amounts are expressed in thousands of U.S.
      dollars, except share and per share amounts)
|(unaudited)                                                                                           

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 March 31, 2008,
the Company had no forward contracts with respect to any of its metal
production.

The Company attempts to manage 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 March 31, 2008, the
Company held cash and cash equivalents and short term investments in the amount
of $9.5 million. The Company uses two banking institutions, a local regional
bank which accounts for $5.8 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 $5.8 million held in the regional
bank, approximately $2.3 million is liquid, held in checking or sweep accounts.
$2.5 million is held in money market accounts and invested in terms for less
than 90 days, and approximately $1.0 million is held in fixed income securities
for a period not to exceed 365 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.

17

---

|REVETT MINERALS INC.                                                                                  
|------------------------------------------------------------------------------------------------------
|Notes to the Consolidated Financial Statements                                                        
|For the Three Months ended March 31, 2008                                                             
|(tabular amounts are expressed in thousands of U.S.
      dollars, except share and per share amounts)
|(unaudited)                                                                                           

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 March 31, 2008, the Companys gross credit exposure was as
follows:

|Cash and cash equivalents | $ | 8,538  | 
|------------------------- | - | ------ | 
|Short term investments    |   | 1,002  | 
|Accounts receivable       |   | 5,475  | 
|Restricted cash           |   | 7,477  | 
|                          | $ | 22,492 | 

(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 March 31, 2008 are as follows:

|                               |   | 1       |  |   | 2-3   |  |   | 3 Plus |  |   |        | 
|------------------------------ | - | ------- |  | - | ----- |  | - | ------ |  | - | ------ | 
|                               |   | Year    |  |   | Years |  |   | Years  |  |   | Total  | 
|Accounts payable and           |   | accrued |  |   |       |  |   |        |  |   |        | 
|liabilities                    | $ | 5,083   |  | $ | -     |  | $ | -      |  | $ | 5,083  | 
|Capital leases (2)             |   | 972     |  |   | 749   |  |   | -      |  |   | 1,721  | 
|Operating leases               |   | 512     |  |   | 512   |  |   | -      |  |   | 1,024  | 
|Royalty owing (1)              |   | 2,828   |  |   | 508   |  |   | -      |  |   | 3,336  | 
|Asset retirement obligation(2) |   | -       |  |   | -     |  |   | 13,320 |  |   | 13,320 | 

| | (1) | The royalty obligation is only payable on actual
      production and is capped at $10.5 million.
| | --- | -------------------------------------------------------------------------------------------------
| | (2) | 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.

18

---

|REVETT MINERALS INC.                                                                                  
|------------------------------------------------------------------------------------------------------
|Notes to the Consolidated Financial Statements                                                        
|For the Three Months ended March 31, 2008                                                             
|(tabular amounts are expressed in thousands of U.S.
      dollars, except share and per share amounts)
|(unaudited)                                                                                           

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 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 and the
change in this account from December 31, 2007.

|Sales for which prices are not finalized |   | March 31, 2008 |  |   | December 31, 2007 |  
|---------------------------------------- | - | -------------- |  | - | ----------------- | -
|Copper sales not finalized (lbs)         |   | 2,756,263      |  |   | 1,822,972         |  
|Revenue adjustment for copper (000s)    | $ | 1,176.1        |  | $ | (601.6            | )
|Silver sales not finalized (ozs)         |   | 287,856        |  |   | 200,215           |  
|Revenue adjustment for silver (000s)    | $ | 331.3          |  | $ | 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 $1.4 million and silver revenue would have changed by $0.3
million.

Interest rate risk:At March 31, 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 increased or decreased 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 approximates fair value as they are marked to market each
month using

19

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|REVETT MINERALS INC.                                                                                  
|------------------------------------------------------------------------------------------------------
|Notes to the Consolidated Financial Statements                                                        
|For the Three Months ended March 31, 2008                                                             
|(tabular amounts are expressed in thousands of U.S.
      dollars, except share and per share amounts)
|(unaudited)                                                                                           

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:

| |                                                 |   | March 31, |   |   | Dec. 31, |  
| | ----------------------------------------------- | - | --------- | - | - | -------- | -
| |                                                 |   | 2008      |   |   | 2007     |  
| | Liabilities, under Canadian GAAP                | $ | 33,712    |   | $ | 40,540   |  
| | Shares redeemable at option of
      holder (a) |   | 1,076     |   |   | 1,076    |  
| | Liabilities, under US GAAP                      | $ | 34,788    |   | $ | 41,616   |  
| | Shareholders equity, under Canadian GAAP       | $ | 55,807    |   | $ | 54,071   |  
| | Shares
      redeemable at option of holder (a) |   | (1,076    | ) |   | (1,076   | )
| | Shareholders equity, under US GAAP             | $ | 54,731    |   | $ | 52,995   |  

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 as
described in notes 9 (d) and 9 (e). 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.

20

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|REVETT MINERALS INC.                                                                                  
|------------------------------------------------------------------------------------------------------
|Notes to the Consolidated Financial Statements                                                        
|For the Three Months ended March 31, 2008                                                             
|(tabular amounts are expressed in thousands of U.S.
      dollars, except share and per share amounts)
|(unaudited)                                                                                           

(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
March 31, 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 March 31, 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 three months ended March 31, 2008 was nil (2007- nil). At March 31, 2008,
the weighted average intrinsic value of options outstanding and exercisable was
Can $14,250 and Can $14,250 respectively, and at March 31, 2007, they were Can
$359,345 and Can $271,950, respectively.

At March 31, 2008, the total unrecognized compensation cost
related to unvested stock options is $207,400. This cost is expected to be
recognized over the weighted average period of 19 months.

At March 31, 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 $0.68 per share.
All options granted have vested. As at March 31, 2008 the estimated intrinsic
value of the options granted and vested was Can $108,000 (2007-Can $1,301,307).
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.

21

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|REVETT MINERALS INC.                                                                                  
|------------------------------------------------------------------------------------------------------
|Notes to the Consolidated Financial Statements                                                        
|For the Three Months ended March 31, 2008                                                             
|(tabular amounts are expressed in thousands of U.S.
      dollars, except share and per share amounts)
|(unaudited)                                                                                           

(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.

.

22

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Item #2: Managements Discussion and Analysis of Financial
Condition and Results of Operations as at May 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 period ended March 31, 2008 should be read in conjunction
with the unaudited interim financial statements and notes as at March 31, 2008
which form part of this report. In addition, this MD&A and related financial
statements should be read in conjunction with the 2007 audited consolidated
financial statements dated at February 8, 2008, the related Managements
Discussion and Analysis, and the Form 10-K filed in Canada on SEDAR or on file
in the United States with the Securities and Exchange Commission (SEC) 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 Months Ended March 31, 2008

As at May 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 undeveloped Rock Creek copper and
silver development 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 March 31, 2008, Revett
Minerals reported net income after taxes and non-controlling interest of $1.4
million or $0.02 per share compared to net income after taxes and
non-controlling interest of $0.3 million or $0.00 per share for the three months
ended March 31, 2007.

On a stand alone basis, Troy (100% basis) reported net income
before taxes for the three month period ended March 31, 2008 of $3.2 million
compared to net income before taxes of $3.0 million for the comparable period in
2007. Only 69.8% of these earnings are attributable to the shareholders of
Revett Minerals during the first quarter because of the non-controlling
shareholdings in Revett Silver. This ownership interest increased from 69% in
December 2007 to 69.8% in February 2008.

The major highlights for the quarter ended March 31, 2008,
included:

- Troy (100% basis) achieved improved mill throughput averaging 3,332
  tons per day for the three months ended March 31, 2008 compared to
  2,309 tons per day in the fourth quarter of 2007;
- Troy (100% basis) produced 2.1 million pounds of copper and 231,912
  ounces of silver compared to 1.1 million pounds of copper and 127,352
  ounces of silver in the fourth quarter of 2007;
- Revett Minerals acquired the Kennecott term note leaving the
  consolidated company with only minimal non-royalty related debt, all of
  which relates to capital leases;

23

---

- For the three months ended March 31, 2008, the Company reported income
    from operations of $1.9 million compared to a loss from operations
    of $6.5 million for the three Months ended December 31, 2007; and
- The Company reported net income of $1.4 million or $0.02 per share for
  the first quarter versus a loss of $3.0 million or $0.04 per share in
  the fourth quarter of 2007 and a profit of $0.3 million or $0.00 per
  share for the quarter ended March 31, 2007.

Results of Operations for the Three Months Ended March 31,
2008 Compared to the Same Period in 2007

For the first quarter of 2008, Revett reported a profit of $1.4
million or $0.02 per share on revenue of $12.0 million. This compared to a
profit of $0.3 million or $0.00 per share during the first quarter of 2007 on
sales of $10.7 million and a loss of $3.0 million or ($0.04) per share in the
fourth quarter of 2007 on sales of $3.1 million.

Concentrate deliveries and sales during the first quarter of
2008 consisted of 2.0 million pounds of payable copper and 183,735 ounces of
payable silver compared to 2.7 million pounds of copper and 292,365 ounces of
silver during the first quarter of 2007.

Operating Results:

The table below illustrates certain key operating statistics
for Troy (100% basis) for the three months ended March 31, 2008, with a
comparison to the same three month period in 2007.

|                      | **Three**
      **Months Ended** March **31,
      2008** | Three Months
      Ended March 31,
      **2007**
|--------------------- | --------------------------------------------------------- | -------------------------------------------------
|                      |                                                           |                                                  
|Tons milled           | 299,863                                                   | 350,180                                          
|Tons milled per day   | 3,332                                                     | 3,891                                            
|Copper grade (%)      | 0.41                                                      | 0.54                                             
|Silver grade (opt)    | 0.87                                                      | 1.15                                             
|Copper recovery (%)   | 86.5                                                      | 87.1                                             
|Silver recovery (%)   | 89.0                                                      | 88.9                                             
|Copper produced (lbs) | 2,129,522                                                 | 3,302,352                                        
|Silver produced (ozs) | 231,912                                                   | 359,134                                          

Production during the early part of the first quarter of 2008
was adversely affected by mining restrictions imposed by MSHA following the July
30, 2007 rock fall, but by mid February production, measured by mill throughput
had improved significantly. For example, in January averaged daily throughput
was approximately 2,289 tons per day but during March mill throughput had
increased to 4,540 tons per day. Also during the quarter as mining activities
became normalized the grade of ore milled also improved significantly which also
contributed to improved production. Ore grades, however, remain below average
life of mine grades and modest improvement in grades is anticipated throughout
the rest of the year. 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.

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

24

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Financial Results:

| | a) | Revenue:For the first quarter of 2008 compared to
      the first quarter of 2007, revenue increased from $10.7 million to $12.0
      million (12.3%) mostly due to an increase in the price of copper and
      silver. During the quarter ended March 31, 2008, the price of copper and
      silver averaged $3.54 per pound and $17.68 per ounce, respectively,
      compared to average prices of $2.69 per pound and $13.53 per ounce,
      respectively in the first quarter of 2007. Complementing the general
      increase in metal prices, the mark to mark fair value of concentrate
      receivable with prices not yet finalized resulted in an increase in
      revenue of approximately $2.0 million compared to a favorable adjustment
      of $3.9 million during the first quarter of 2007. Offsetting these
      favorable price effects was slightly lower physical metal sales. Payable
      copper sales during the first quarter were 2.0 million pounds of copper
      and approximately 183,735 ounces of payable silver. The physical metal
      sold represents a reduction of 26% and 37% for copper and silver
      respectively from the first quarter of 2007. The main factors which
      resulted in lower production and sales in the first quarter of 2008
      compared to that in 2007 was: (i) lower mill throughput of 14%; (ii) a
      reduction in the grade of silver ore milled of 24%; and (iii) a reduction
      in the ore grade of copper by 24%. These production issues were all a
      result of the restrictions placed by MSHA on areas where mining could take
      place resulting from the third quarter 2007 ground fall. Improvements have
      been made in March and April in both mill through put and the grade of ore
      milled
| | -- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| | b) | Cost of Goods Sold:The cost of goods sold
      associated with the first quarter revenue was $ 8.3 million, an increase
      of $0.8 million (9.6%) 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)
      declined to $26.32 per ton compared to $32.81 per ton in the fourth
      quarter of 2007. In the first quarter of 2007, operating costs per ton
      milled averaged $21.77 per ton. The increase in operating costs per ton
      milled in the first quarter of 2008 compared to the first 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 first
      quarter of 2008, these non cash charges were marginally higher than the
      first quarter of 2007 because of a year over year increase in the total
      cost of equipment being depreciated. The majority of the plant and
      equipment at Troy is depreciated using the units-of-production method and
      marginal decrease in mill through put offset somewhat the higher
      depreciable base.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| | d) | Exploration and development:This expense
      decreased by $0.1 million because Troy has not commenced its exploration
      program for 2008 and spending at Rock Creek was slightly less in 2008 than
      it was in 2007.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| | e) | General and administration costs:The increase in
      corporate administration costs in the first quarter of 2008 over the
      comparable quarter in 2007 was due to increased public company costs
      including SOX 404 compliance costs and an increase in board of director
      costs resulting from the addition of one director and more meetings were
      held.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     

25

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| | f) | Accretion of reclamation and remediation liability:The marginal 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 slight decline in
      concentrate production, which was offset by an increase in the price of
      copper and silver, resulted in the Company recording $1.9 million in
      income from operations, an increase of $0.7 million (61%) over income from
      operations reported for the first quarter of 2007.                                                                                                                                                                                                                            
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
| | h) | Other Expenses:For the first quarter of 2008,
      other expenses were a small expense of $0.2 million for the first quarter.
      This was almost entirely the result of a $0.2 million foreign exchange
      loss on the cash and investments held in Canada and denominated in
      Canadian dollars and only slightly larger than other expenses that were
      incurred in the first quarter of 2007.                                                                                                                                                            
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
| | i) | Income taxes:For the three month period ended March
        31, 2008, the Company reported an income tax recovery of $0.4 million
        which arose from the recognition of certain deferred tax assets, principally
        net operating loss carry forwards, that were not previously recognized
        and the on-going amortization of the fair market purchase price adjustment
        to property, plant and equipment. These benefits were partially offset
        by the recognition during the quarter of a small alternative minimum tax
        liability.
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
| | j) | Non-controlling interest:The non-controlling
      interest charge of $0.6 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
      $1.4 million or $0.02 per share for the first quarter compared to net
      income of $0.3 million or $0.00 per share in the first quarter of
    2007.                                                                                                                                                                                                                                                                                                                                                              

Summarized Financial Results by Quarter

2008
    2007
    2007
    2007
    2007
    2006
    2006
    2006Q1
    Q4
    Q3
    Q2
    Q1
    Q4
    Q3
    Q2Cu Prodn (million lbs)
    2.2
    1.1
    1.8
    3.5
    3.3
    1.4
    1.9
    1.9Ag Prodn (000s ozs)
    232
    127
    196
    372
    359
    175
    239
    238Total Sales (000s $)
    12,034
    3,130
    9,136
    15,903
    10,716
    4,041
    8,406
    11,497Net Income (000s $)
    1,407
    (3,037)
    (120)
    3,727
    301
    (4,806)
    773
    2,276EPS- Basic ($)
    0.02
    (0.04)
    (0.00)
    0.05
    0.00
    (0.07)
    0.01
    0.04EPS- fully diluted ($)
    0.02
    (0.04)
    (0.00)
    0.05
    0.00
    (0.07)
    0.01
    0.04Cash and Cash Equivalents & s/t Investments
      ending (000s $)
    9,540
    18,010
    26,012
    27,639
    22,446
    23,802
    12,574
    9,646


26

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Total Assets, ending (000s $)
    89,519
    94,611
    100,329
    102,398
    94,225
    94,203
    87,289
    86,337Total liabilities, ending (000s $)
    24,801
    32,365
    33,959
    36,318
    33,111
    35,545
    34,097
    34,247Total Equity, ending (000s $)
    56,114
    54,071
    56,017
    55,984
    52,115
    50,134
    43,722
    42,949


Financing Activities

During the first quarter of 2008 the Company did not enter
entered into capital leases as capital expenditures were less than $6,000. In
April 2008, the Company entered into a capital lease for a loader. 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        |  | 3,336  |  |  | 2,828   |  |  | 508    |  |  | -      |  |  | -          | 
|Capital lease obligations |  | 1,721  |  |  | 972     |  |  | 749    |  |  | -      |  |  | -          | 
|Long term reclamation     |  |        |  |  |         |  |  |        |  |  |        |  |  |            | 
|costs                     |  | 13,320 |  |  | -       |  |  | -      |  |  | -      |  |  | 13,320     | 
|Total contractual         |  |        |  |  |         |  |  |        |  |  |        |  |  |            | 
|obligations               |  | 18,377 |  |  | 3,800   |  |  | 1,257  |  |  | -      |  |  | 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 first quarter of
2008. At the end of March 2008, there was $11.6 million of working capital
compared to $10.2 million at December 31, 2007. This working capital includes
cash, cash equivalents, and short term investments of $9.5 million at March 31,
2008 compared to $18.0 million at December 31, 2007. 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. 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 $7.2 million on the Royal Gold 7% royalty obligation. This royalty is
capped at total payments of $10.5 million. Payments on the Royal Gold royalty
are due on the 10th working day after the end of each calendar
quarter.

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.

27

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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. This agreement also gives Royal Gold the right to assume certain
obligations with respect to the Kennecott note payable if the Company is in
default of that note. If Royal Gold assumes the Kennecott note, Royal Gold will
have the right to convert the note and interest owing into a 3% net smelter
return royalty or into common shares of the Company. 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 three
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 quarter. This
exchange is predicated upon the introduction of the regulations for Section 7874
of the United States Internal Revenue Code. In February 2008, Revett Silver and
Revett Minerals exchanged 707,000 Class B common shares of Revett Silver for a
like number of common shares of Revett Minerals, which increased Revett Minerals
ownership in Revett Silver to 69.8% .

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

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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.

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 2007, we earned approximately $0.9 million on revenues of
approximately $39 million. In 2006, we incurred a loss of approximately $1.7
million on revenues of approximately $31.4 million, and in 2005 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 March 31, 2008 we had cash and cash equivalents
and short term investments of approximately $9.5 million. Although we believe we
may have sufficient cash to fund our evaluation program at Rock Creek,

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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. Were these 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.

We could be treated as a passive foreign income company
for tax purposes.Section 1297 of the Code provides that a foreign
corporation such as Revett Minerals may be a passive foreign investment company
(PFIC) if (a) 75% or more of its gross income is passive income or (b) the
average percentage of the corporations assets (by value) held by it during the
taxable year that produce passive income or are held for the production of
passive income is at least 50%. (For purposes of Section 1297, passive income
could include income derived by Revett Minerals from the operations of its
majority-owned Revett Silver subsidiary.) If a U.S. taxpayer shareholder
receives an excess distribution from a PFIC, that distribution is generally
subject to an interest charge unless the shareholder has elected to treat its
interest in the corporation as an interest in a qualified electing fund or
QEF, or makes an election to mark to market his or her PFIC stock at the close
of each taxable year. An excess distribution for purposes of Section 1297 and
regulations promulgated there-under is the amount of any current distribution
that exceeds the normal level of a PFICs distributions. The purpose of the
interest charge is to enable a recapture of the benefit of any U.S. income tax
deferral to a U.S. shareholder while the investment income (presumably untaxed)
was accumulated by the foreign investment company.

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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.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 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.

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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.

Financial Instruments, Hedging Activities and Other
Instruments

The Company fair values the amount of silver and copper in
concentrate 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 future contract prices at each month
end to estimate these expected prices. At March 31, 2008, the Company had 2.7
million pounds of copper and 331,260 ounces of silver with prices not yet fixed.
The fair value revenue adjustment was a gain of $1.5 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 March 31, 2008 and as at the date of this report, the
Company had no forward sales contracts outstanding.

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

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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 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 March 31, 2008, the company
delivered and sold 2.0 million pounds of payable copper and 183,735 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 $1.1 million.

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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 March 31, 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 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

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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
quarter of 2008, there were no changes in internal controls from the prior
quarter.

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 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

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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. (See the subsection of this report
entitled Properties  Our Purchase Agreements with ASARCO and Kennecott.).

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 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

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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.

The governmental defendants and the Company each filed answers
to the plaintiffs amended complaint in March 2008 and the issues in this action
are to be fully briefed to the court by early June 2008. 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 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. Answers have been filed by the Fish and Wildlife service and the
Company and the issues will be briefed to the court tentatively scheduled for
June 2008.

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

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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 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. MSHA issued 53 safety-related citations and six orders against
Revett Silvers Genesis, Inc. subsidiary during the period from July 30, 2007 to
September 30, 2007, the majority of which relate to the isolated rock fall
incident and resulting fatality that occurred at Troy on July 30, 2007. Three of
these citations allege that the Company was negligent with respect to certain
operations or activities conducted at Troy, and two of them allege that Company
acted in reckless disregard of the safety of its

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employees. The Company has been notified that fines totally
over $0.5 million have been assessed by MSHSA and the Company has engaged
counsel to appeal and contest these citations.

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

The Company has scheduled its annual meeting of shareholders
for June 12, 2008, commencing at 2:30 p.m. (Eastern Time) and it will be held at
the Conference Center 200- 20 Toronto Street, Toronto, Ontario. Matters to come
before the shareholders included the election of directors and the appointment
of the Companys independent auditors and authorizing the directors to fix the
remuneration to the auditors.

Item #5: Other Information

Not Applicable

Item #6: Exhibits

|(a) Exhibits:
|-------------
|             
|31.1         
|             
|31.2         
|             
|32.1         
|             
|32.2         

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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: May 14, 2008 | By: /s/ William Orchow               
|                   | William Orchow                       
|                   | President and Chief Executive Officer
|                   |                                      
|                   |                                      
|Date: May 14, 2008 | By: /s/ Scott Brunsdon               
|                   | Scott Brunsdon                       
|                   | Chief Financial Officer              

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