---

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 1934FOR THE QUARTERLY PERIOD ENDEDSEPTEMBER 30,
2008.

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

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

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

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

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

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

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

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

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

At September 30, 2008 75,002,702shares of common stock
were issued and outstanding.

1

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

|                                     |              | PAGE                                                                                             
|------------------------------------ | ------------ | -------------------------------------------------------------------------------------------------
|PART
      I  FINANCIAL INFORMATION |             
|                                     | ITEM
    1.  | FINANCIAL
      STATEMENTS                                                                       
|                                     | ITEM
    2.  | MANAGEMENTS
      DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
      OPERATIONS
|                                     | ITEM
    3.  | QUANTITATIVE
      AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK AND HEDGING
ACTIVITIES          
|                                     | ITEM
    4.  | CONTROLS
      AND PROCEDURES                                                                    
|PART II  OTHER
      INFORMATION    |             
|                                     | ITEM
    1.  | LEGAL
      PROCEEDINGS                                                                          
|                                     | ITEM
    1A. | RISK
      FACTORS                                                                               
|                                     | ITEM
    2.  | UNREGISTERED
      SALES OF EQUITY SECURITIES AND USE OF PROCEEDS                                
|                                     | ITEM
    3.  | DEFAULTS
      UPON SENIOR SECURITIES                                                            
|                                     | ITEM
    4.  | SUBMISSION
      OF MATTERS TO A VOTE OF SECURITY HOLDERS                                        
|                                     | ITEM
    5.  | OTHER
      INFORMATION                                                                          
|                                     | ITEM
    6.  | EXHIBITS                                                                                         
|SIGNATURES                           | 43          

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 and comprehensive income | 5   
|Consolidated
      statement of cash flow                            | 6   
|Consolidated
      statements of shareholders equity                | 7   
|Notes to consolidated financial statements                           | 8-20

3

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

|                                                                             |   | September 30, |   |   | December 31, |  
|---------------------------------------------------------------------------- | - | ------------- | - | - | ------------ | -
|                                                                             |   | 2008          |   |   | 2007         |  
|Assets                                                                       |   | (unaudited)   |   |   |              |  
|Current Assets                                                               |   |               |   |   |              |  
|Cash and cash equivalents                                                    | $ | 11,479        |   | $ | 14,055       |  
|Short term investments                                                       |   | -             |   |   | 3,955        |  
|Accounts receivable                                                          |   | 2,695         |   |   | 970          |  
|Income taxes receivable                                                      |   | 99            |   |   | 1,250        |  
|Inventories (note 3)                                                         |   | 4,899         |   |   | 4,519        |  
|Prepaid expenses and deposits                                                |   | 334           |   |   | 498          |  
|Total current assets                                                         |   | 19,506        |   |   | 25,247       |  
|Mineral property, plant, equipment and mine
      development (net) (note 4) |   | 61,953        |   |   | 60,714       |  
|Restricted cash (note 5)                                                     |   | 7,567         |   |   | 7,386        |  
|Other long term assets                                                       |   | 1,161         |   |   | 1,264        |  
|                                                                             |   |               |   |   |              |  
|Total assets                                                                 | $ | 90,187        |   | $ | 94,611       |  
|                                                                             |   |               |   |   |              |  
|Liabilities and shareholders
      equity                                   |   |               |   |   |              |  
|Current liabilities                                                          |   |               |   |   |              |  
|Trade accounts payable                                                       | $ | 2,162         |   | $ | 1,985        |  
|Payroll liabilities                                                          |   | 2,146         |   |   | 806          |  
|Income, property and mining taxes                                            |   | 1,434         |   |   | 1,161        |  
|Concentrate settlement payable                                               |   | 3,725         |   |   | 526          |  
|Other accrued liabilities                                                    |   | 1,369         |   |   | 852          |  
|Current portion of long term debt (note 6)                                   |   | 2,178         |   |   | 9,719        |  
|Total current liabilities                                                    |   | 13,014        |   |   | 15,049       |  
|                                                                             |   |               |   |   |              |  
|Long-term portion of debt (note 6)                                           |   | 676           |   |   | 1,784        |  
|Reclamation and remediation liability (note 9 (b))                           |   | 7,379         |   |   | 7,141        |  
|Future income taxes                                                          |   | 7,874         |   |   | 8,391        |  
|Total liabilities                                                            |   | 28,943        |   |   | 32,365       |  
|                                                                             |   |               |   |   |              |  
|Non controlling interest                                                     |   | 7,938         |   |   | 8,175        |  
|                                                                             |   |               |   |   |              |  
|                                                                             |   |               |   |   |              |  
|Shareholders' equity                                                         |   |               |   |   |              |  
|Preferred stock, no par value, unlimited authorized,                         |   |               |   |   |              |  
|nil issued and outstanding                                                   |   |               |   |   |              |  
|Common stock, no par value unlimited authorized,                             |   |               |   |   |              |  
|75,002,702 (2007- 74,295,702) shares issued
      and outstanding            |   | 56,871        |   |   | 56,315       |  
|Contributed surplus                                                          |   | 1,732         |   |   | 1,556        |  
|Deficit                                                                      |   | (5,297        | ) |   | (3,800       | )
|                                                                             |   | 53,306        |   |   | 54,071       |  
|Contingencies (note 9)                                                       |   |               |   |   |              |  
|                                                                             |   |               |   |   |              |  
|Total liabilities and shareholders equity                                   | $ | 90,187        |   | $ | 94,611       |  

See accompanying notes to interim consolidated financial
statements.

4

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

|                                                                  |   | Three month        |   |   | Three month                  |   |   | Nine month                   |   |   | Nine month                   |  
|----------------------------------------------------------------- | - | ------------------ | - | - | ---------------------------- | - | - | ---------------------------- | - | - | ---------------------------- | -
|                                                                  |   | period ended       |   |   | period ended                 |   |   | period ended                 |   |   | period ended                 |  
|                                                                  |   | September 30, 2008 |   |   | **September 30,
      2007** |   |   | **September 30,
      2008** |   |   | **September 30,
      2007** |  
|                                                                  |   |                    |   |   |                              |   |   |                              |   |   |                              |  
|                                                                  |   |                    |   |   |                              |   |   |                              |   |   |                              |  
|Revenues                                                          | $ | 7,430              |   | $ | 9,136                        |   |   | 32,841                       |   | $ | $35,754                      |  
|Expenses:                                                         |   |                    |   |   |                              |   |   |                              |   |   |                              |  
|Cost of sales                                                     |   | 8,881              |   |   | 7,049                        |   |   | 26,674                       |   |   | 23,356                       |  
|Depreciation and amortization                                     |   | 459                |   |   | 280                          |   |   | 1,305                        |   |   | 1,115                        |  
|Exploration and development                                       |   | 546                |   |   | 656                          |   |   | 1,856                        |   |   | 1,756                        |  
|General and administrative                                        |   | 2,183              |   |   | 1,074                        |   |   | 4,558                        |   |   | 3,113                        |  
|Accretion of reclamation and remediation
      liability          |   | 147                |   |   | 162                          |   |   | 442                          |   |   | 485                          |  
|                                                                  |   | 12,216             |   |   | 9,221                        |   |   | 34,835                       |   |   | 29,825                       |  
|Income (loss) from operations                                     |   | (4,786             | ) |   | (85                          | ) |   | (1,994                       | ) |   | 5,929                        |  
|                                                                  |   |                    |   |   |                              |   |   |                              |   |   |                              |  
|Other income (expenses):                                          |   |                    |   |   |                              |   |   |                              |   |   |                              |  
|Interest expense                                                  |   | (90                | ) |   | (336                         | ) |   | (458                         | ) |   | (1,079                       | )
|Interest and other income                                         |   | 104                |   |   | 326                          |   |   | 543                          |   |   | 1,017                        |  
|Foreign exchange gain (loss)                                      |   | (135               | ) |   | 449                          |   |   | (316                         | ) |   | 1,415                        |  
|Total other income (expenses)                                     |   | (121               | ) |   | 439                          |   |   | (231                         | ) |   | 1,353                        |  
|                                                                  |   |                    |   |   |                              |   |   |                              |   |   |                              |  
|Net income (loss) before non controlling
      interest and taxes |   | (4,907             | ) |   | 354                          |   |   | (2,225                       | ) |   | 7,282                        |  
|                                                                  |   |                    |   |   |                              |   |   |                              |   |   |                              |  
|Income tax recovery (expense)                                     |   | 793                |   |   | 385                          |   |   | 723                          |   |   | (944                         | )
|                                                                  |   |                    |   |   |                              |   |   |                              |   |   |                              |  
|Net income (loss) before non controlling
      interest           |   | (4,114             | ) |   | 739                          |   |   | (1,502                       | ) |   | 6,338                        |  
|                                                                  |   |                    |   |   |                              |   |   |                              |   |   |                              |  
|Non controlling interest                                          |   | 1,134              |   |   | (859                         | ) |   | 5                            |   |   | (2,430                       | )
|Net income (loss) and comprehensive income (loss) for the         |   |                    |   |   |                              |   |   |                              |   |   |                              |  
|period                                                            | $ | (2,980             | ) | $ | (120                         | ) | $ | (1,497                       | ) | $ | 3,908                        |  
|                                                                  |   |                    |   |   |                              |   |   |                              |   |   |                              |  
|Basic earnings (loss) per share                                   | $ | (0.04              | ) | $ | 0.00                         |   | $ | (0.02                        | ) | $ | 0.05                         |  
|                                                                  |   |                    |   |   |                              |   |   |                              |   |   |                              |  
|Diluted earnings (loss) per share                                 | $ | (0.04              | ) | $ | 0.00                         |   | $ | (0.02                        | ) | $ | 0.05                         |  
|                                                                  |   |                    |   |   |                              |   |   |                              |   |   |                              |  
|Weighed average number of shares
      outstanding                |   | 75,002,702         |   |   | 73,197,703                   |   |   | 74,922,713                   |   |   | 72,976,235                   |  
|                                                                  |   |                    |   |   |                              |   |   |                              |   |   |                              |  
|Weighted average number of diluted shares
      outstanding       |   | 75,002,702         |   |   | 73,197,703                   |   |   | 74,922,713                   |   |   | 73,542,289                   |  

5

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

|                                                                  |   | Three month   |   |   | Three month       |   |   | Nine month    |   |   | Nine month    |  
|----------------------------------------------------------------- | - | ------------- | - | - | ----------------- | - | - | ------------- | - | - | ------------- | -
|                                                                  |   | period ended  |   |   | period ended      |   |   | period ended  |   |   | period ended  |  
|                                                                  |   | September 30, |   |   | **September 30,** |   |   | September 30, |   |   | September 30, |  
|                                                                  |   | 2008          |   |   | **2007**          |   |   | 2008          |   |   | 2007          |  
|                                                                  |   |               |   |   |                   |   |   |               |   |   |               |  
|Cash flows from operating
      activities:                       |   |               |   |   |                   |   |   |               |   |   |               |  
|Net income (loss) for the period                                  | $ | (2,980        | ) | $ | (120              | ) | $ | (1,497        | ) | $ | 3,908         |  
|Adjustments to reconcile net income to net
      cash provided by |   |               |   |   |                   |   |   |               |   |   |               |  
|operating activities                                              |   |               |   |   |                   |   |   |               |   |   |               |  
|Depreciation and amortization                                     |   | 459           |   |   | 280               |   |   | 1,305         |   |   | 1,115         |  
|Accretion of reclamation and remediation liability                |   | 147           |   |   | 162               |   |   | 442           |   |   | 485           |  
|Foreign exchange loss (gain)                                      |   | 133           |   |   | (449              | ) |   | 316           |   |   | (1,415        | )
|Stock based compensation                                          |   | 57            |   |   | 152               |   |   | 176           |   |   | 648           |  
|Loss (gain) on disposal of fixed assets                           |   | (2            | ) |   | 7                 |   |   | 65            |   |   | 7             |  
|Future income tax expense (recovery)                              |   | (576          | ) |   | (385              | ) |   | (723          | ) |   | 944           |  
|Non controlling interest                                          |   | (1,134        | ) |   | 859               |   |   | (5            | ) |   | 2,430         |  
|Accrued interest from reclamation trust fund                      |   | (24           | ) |   | (87               | ) |   | (177          | ) |   | (254          | )
|Amortization of prepaid insurance premium                         |   | 31            |   |   | 14                |   |   | 99            |   |   | 107           |  
|Change in fair value of derivative contracts                      |   | 2,821         |   |   | (594              | ) |   | 2,930         |   |   | 1,051         |  
|Changes in:                                                       |   |               |   |   |                   |   |   |               |   |   |               |  
|Accounts receivable                                               |   | 1,628         |   |   | 2,509             |   |   | (1,452        | ) |   | (963          | )
|Income taxes receivable                                           |   | (99           | ) |   | -                 |   |   | 1,151         |   |   | -             |  
|Inventory                                                         |   | (133          | ) |   | (333              | ) |   | (380          | ) |   | (584          | )
|Prepaid expenses and deposits                                     |   | 317           |   |   | (1,030            | ) |   | 164           |   |   | (1,206        | )
|Accounts payable and accrued liabilities                          |   | 677           |   |   | (931              | ) |   | 2,307         |   |   | (1,517        | )
|Net cash provided by operating
      activities                   |   | 1,322         |   |   | 54                |   |   | 4,721         |   |   | 4,756         |  
|                                                                  |   |               |   |   |                   |   |   |               |   |   |               |  
|                                                                  |   |               |   |   |                   |   |   |               |   |   |               |  
|Cash flows from investing activities:                             |   |               |   |   |                   |   |   |               |   |   |               |  
|Proceeds (purchase) of short term
      investments               |   | -             |   |   | 968               |   |   | 3,955         |   |   | (976          | )
|Other long term assets                                            |   | -             |   |   | 25                |   |   | -             |   |   | 502           |  
|Purchase of plant and equipment                                   |   | (1,792        | ) |   | (429              | ) |   | (1,947        | ) |   | (1,296        | )
|Purchase of minority interest                                     |   | -             |   |   | (1,003            | ) |   | -             |   |   | (1,003        | )
|Net cash provided (used) by investing
      activities            |   | (1,792        | ) |   | (439              | ) |   | 2,008         |   |   | (2,773        | )
|                                                                  |   |               |   |   |                   |   |   |               |   |   |               |  
|Cash flows from financing
      activities:                       |   |               |   |   |                   |   |   |               |   |   |               |  
|Proceeds form the issuance of common stock, net                   |   | -             |   |   | -                 |   |   | -             |   |   | 1,327         |  
|Repayment of debt                                                 |   | (814          | ) |   | (402              | ) |   | (8,203        | ) |   | (2,746        | )
|Repayment of capital leases                                       |   | (210          | ) |   | (321              | ) |   | (786          | ) |   | (745          | )
|Net cash from (used by) financing
      activities                |   | (1,024        | ) |   | (723              | ) |   | (8,989        | ) |   | (2,164        | )
|                                                                  |   |               |   |   |                   |   |   |               |   |   |               |  
|Effects of foreign exchange on cash
      held                    |   |               |   |   |                   |   |   |               |   |   |               |  
|In foreign currencies                                             |   | (133          | ) |   | 449               |   |   | (316          | ) |   | 1,415         |  
|                                                                  |   |               |   |   |                   |   |   |               |   |   |               |  
|Net increase (decrease) in cash and cash equivalents              |   | (1,627        | ) |   | (659              | ) |   | (2,576        | ) |   | 1,234         |  
|Cash and cash equivalents, beginning of
      period              |   | 13,106        |   |   | 21,755            |   |   | 14,055        |   |   | 19,862        |  
|Cash and cash equivalents, end of period                          | $ | 11,479        |   | $ | 21,096            |   | $ | 11,479        |   | $ | 21,096        |  
|                                                                  |   |               |   |   |                   |   |   |               |   |   |               |  
|Supplementary cash flow information:                              |   |               |   |   |                   |   |   |               |   |   |               |  
|Cash paid for interest expense                                    | $ | 151           |   | $ | 519               |   | $ | 702           |   | $ | 787           |  
|Cash paid for income taxes                                        | $ | -             |   | $ | 1,200             |   | $ | 75            |   | $ | 1,200         |  
|Common stock issued to acquire
      non-controlling interest     | $ | -             |   | $ | -                 |   | $ | 556           |   | $ | -             |  
|Acquisition of plant and equipment under capital lease            | $ | 255           |   | $ | -                 |   | $ | 338           |   | $ | -             |  

6

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

|                                           | Common shares |  |   | Contributed |  |   |         |  |   |         |  
|------------------------------------------ | ------------- |  | - | ----------- |  | - | ------- |  | - | ------- | -
|                                           | Shares        |  |   | Amount      |  |   | surplus |  |   | Deficit |  
|                                           |               |  |   |             |  |   |         |  |   |         |  
|Balance, December 31, 2006                 | 71,904,088    |  | $ | 53,989      |  | $ | 816     |  | $ | (4,671  | )
|Issued for cash on the exercise of share   |               |  |   |             |  |   |         |  |   |         |  
|purchase warrants                          | 1,293,615     |  |   | 1,327       |  |   | -       |  |   | -       |  
|Stock-based compensation on options        |               |  |   |             |  |   |         |  |   |         |  
|granted                                    | -             |  |   | -           |  |   | 648     |  |   | -       |  
|Net income for the year                    | -             |  |   | -           |  |   | -       |  |   | 3,908   |  
|Balance, September 30, 2007                | 73,197,703    |  | $ | 55,316      |  | $ | 1,464   |  | $ | (763    | )
|                                           |               |  |   |             |  |   |         |  |   |         |  
|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                                    | -             |  |   | -           |  |   | 176     |  |   | -       |  
|Net income (loss) for the period           | -             |  |   | -           |  |   | -       |  |   | (1,497  | )
|Balance, September 30, 2008                | 75,002,702    |  | $ | 56,871      |  | $ | 1,732   |  | $ | (5,297  | )

See accompanying notes to interim consolidated financial
statements.

7

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

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

In the opinion of management, the accompanying unaudited
interim consolidated balance sheet and consolidated statements of operations and
comprehensive income, 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 September 30, 2008, and the results
of its operations and its cash flows for the three and nine month periods ended
September 30, 2008 and 2007. The operating and financial results for Revett
Minerals for the three and nine months ended September 30, 2008 are not
necessarily indicative of the results that may be expected for the year ended
December 31, 2008.

Except as discussed in note 2 below, these unaudited interim
consolidated financial statements are prepared using the same accounting
policies and methods of application as those disclosed in note 2 to the
Companys audited consolidated 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.

Under Canadian and U.S. generally accepted accounting
principles, the Company is required to assess whether it is a going concern and
disclose factors that may cast doubt on the Company's ability to continue to
operate as a going concern. The recent economic uncertainties in the U.S. and
world-wide have caused a substantial reduction in metal prices including copper
and silver. Further declines in copper and silver prices would quickly erode the
Company's cash and working capital position. The Company is currently
investigating a number of alternative means of raising additional capital.
However, no assurance can be given that these efforts will prove to be
successful. At price levels of $2.00 per pound of copper and $10.00 per ounce of
silver, the Company may run out of cash at or before December 31, 2008 unless
such alternative financing efforts are successful.

The accompanying interim consolidated financial statements have
been prepared on a going concern basis, which assumes that the Company will be
able to realize its assets and discharge its obligations in the normal course of
business. There is doubt about the appropriateness of the use of the going
concern assumption as discussed in the preceding paragraph. As such, realization
of assets and discharge of liabilities are subject to significant
uncertainty.

The interim consolidated financial statements do not reflect
adjustments that would be necessary if the going concern basis was not
appropriate. If the going concern basis was not appropriate for these interim
consolidated financial statements, then significant adjustments would be
necessary to the carrying value of assets and liabilities, the reported revenues
and expenses, and the balance sheet classifications used. The appropriateness of
the going concern basis is dependent upon,

8

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

among other things, future profitable operations and the
ability to generate sufficient cash from operations and financing arrangements
to meet obligations.

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

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

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

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

In February 2008, the Canadian Accounting Standards Board
confirmed that Canadian public companies will be required to adopt International
Reporting Standards (IFRS) for fiscal years beginning on or after January 1,
2011. The adoption of IFRS will require the Company to change certain accounting
policies, accounting systems, internal controls over financial reporting and
disclosure. The Company is in the process of evaluating the impact of adopting
IFRS for its financial statements and will need to invest substantial time and
money to complete the conversion.

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

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

9

---

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

|                      |   | September 30, 
    2008 |  |   | Dec. 31, 
    2007 | 
|--------------------- | - | ----------------------- |  | - | ------------------ | 
|                      |   | (unaudited)             |  |   | (audited)          | 
|Concentrate inventory | $ | 1,445                   |  | $ | 1,187              | 
|Material and supplies |   | 3,454                   |  |   | 3,332              | 
|                      | $ | 4,899                   |  | $ | 4,519              | 

Inventories are valued at net realizable value at September 30,
2008 as net realizable value was less than cost and as a result an adjustment of
$142,573 was recognized in cost of sales to reduce concentrate inventory to its
net realizable value. The table below identifies the nature of expenses included
in cost of sales for the three and nine months ended September 30, 2008 and
2007:

|                          |   | Three month  |   |   | Three month  |   |   | Nine month   |   |   | Nine month    |  
|------------------------- | - | ------------ | - | - | ------------ | - | - | ------------ | - | - | ------------- | -
|                          |   | period ended |   |   | period ended |   |   | period ended |   |   | period ended  |  
|Nature of expense         |   | September    |   |   | September    |   |   | September    |   |   | September 30, |  
|                          |   | 30, 2008     |   |   | 30, 2007     |   |   | 30, 2008     |   |   | 2007          |  
|                          |   | (unaudited)  |   |   | (unaudited)  |   |   | (unaudited)  |   |   | (unaudited)   |  
|Raw materials and         |   |              |   |   |              |   |   |              |   |   |               |  
|consumables used          | $ | 4,707        |   | $ | 3,481        |   | $ | 11,509       |   | $ | 9,936         |  
|Labor costs               |   | 3,499        |   |   | 2,676        |   |   | 9,758        |   |   | 8,423         |  
|Other costs               |   | 928          |   |   | 1,078        |   |   | 5,665        |   |   | 5,206         |  
|Net change in concentrate |   |              |   |   |              |   |   |              |   |   |               |  
|inventories               |   | (253         | ) |   | (188         | ) |   | (258         | ) |   | (209          | )
|                          | $ | 8,881        |   | $ | 7,049        |   | $ | 26,674       |   | $ | 23,356        |  

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

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

|                                           |   | September 30, 
    2008 |   |   | Dec. 31, 
    2007 |  
|------------------------------------------ | - | ----------------------- | - | - | ------------------ | -
|                                           |   | (unaudited)             |   |   | (audited)          |  
|TROY:                                      |   |                         |   |   |                    |  
|Property acquisition and development costs | $ | 8,989                   |   | $ | 9,093              |  
|Plant and equipment                        |   | 11,726                  |   |   | 11,324             |  
|Buildings and structures                   |   | 2,622                   |   |   | 997                |  
|ROCK CREEK:                                |   |                         |   |   |                    |  
|Property acquisition costs                 |   | 40,194                  |   |   | 39,595             |  
|OTHER, corporate                           |   | 3,673                   |   |   | 3,672              |  
|OTHER, mineral properties                  |   | 118                     |   |   | 118                |  
|                                           |   | 67,322                  |   |   | 64,799             |  
|Accumulated depreciation &depletion:       |   |                         |   |   |                    |  
|Troy Property                              |   | (2,721                  | ) |   | (2,142             | )
|Troy plant and equipment                   |   | (2,347                  | ) |   | (1,727             | )
|Troy buildings and structures              |   | (224                    | ) |   | (146               | )
|Other corporate assets                     |   | (77                     | ) |   | (70                | )
|                                           |   | (5,369                  | ) |   | (4.085             | )
|                                           | $ | 61,953                  |   | $ | 60,714             |  

10

---

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

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 Companys (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 September
30, 2008 the commutation account was $7.6 million (December 31, 2007-$7.4
million) and the balance for the prepaid insurance was $1.3 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 September 30, 2008 and December 31, 2007 the balance of the
companys long term debt and capital lease obligations were as follows.

|                   |   | September 30, 2008 |   |   | Dec. 31, 2007 |  
|------------------ | - | ------------------ | - | - | ------------- | -
|                   |   | (unaudited)        |   |   | (audited)     |  
|                   |   |                    |   |   |               |  
|Royal Gold royalty | $ | 1,503              |   | $ | 3,705         |  
|Kennecott note     |   | -                  |   |   | 6,000         |  
|Capital leases     |   | 1,351              |   |   | 1,798         |  
|                   |   | 2,854              |   |   | 11,503        |  
|Current portion    |   | (2,178             | ) |   | (9,719        | )
|                   | $ | 676                |   | $ | 1,784         |  

Royal Gold Royalty

In October 2004, Revett Silver sold Royal Gold Inc. (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

11

---

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

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
September 30, 2008, royalty payments approximating a cumulative total of $8.1
million had been made with an additional $0.8 million payable in October
2008.

Kennecott Note Payable

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

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

(a) Capital Management

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

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

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

The Companys size, limited operating history, and the limited
magnitude of its internally generated cash may be inadequate to finance its
planned development activities at Rock Creek and its exploration and property,
plant and equipment requirements at Troy. These factors also make accessing the
debt markets difficult and costly. The Company may, from time to time, sell
equity through secondary offerings to finance these cash requirements. The
Company endeavors to sell its equity under the most favorable terms and
conditions while attempting to minimize dilution to existing shareholders. To
accomplish its objectives in managing capital, the Company continually monitors
both the debt and equity markets to ensure the best possible price for any
offering. The Company has decided not to pay dividends or repurchase any of its
own outstanding equity for the foreseeable future.

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

12

---

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

(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 September 30, 2008, the Company had 75,002,702
shares of common stock outstanding. At September 30, 2008, Revett Silver had
26,311,761 Class B common shares outstanding which may be exchangeable into
common shares of the Company, under certain conditions.

(c) Preferred Stock

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

(d) Stock options

The Companys Equity Incentive Plan authorizes the Company to
reserve and have available for issue, 8,000,000 shares of common stock, less
that number of shares reserved for issuance pursuant to stock options granted
under the Revett Silver stock option plan. As at September 30, 2008 Revett
Silver had a total of 1,235,000 stock options exercisable into Class B common
shares of Revett Silver at a weighed average price of $0.68 per share. Revett
Silver will not grant any further stock options pursuant to this plan.

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

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

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

For the three and nine months ended September 30, 2008, the
Company recorded total non-cash compensation related to its equity compensation
plans of $57,000 and $176,000 respectively, compared to $152,000 and $648,000
for the three and nine month periods ending September 30,

13

---

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

2007. The table below identifies the key attributes of the
stock options granted by the Company and the options vested as at September 30,
2008.

Options
    Options
    
    Exercise
    ExpiryGranted
    Vested
    
    Price (Can $)
    Date100,000
    100,000
    
    0.76
    January 25, 2010600,000
    600,000
    
    0.76
    April 27, 201075,000
    75,000
    
    0.55
    July 19, 201040,000
    40,000
    
    1.25
    May 12, 201120,000
    20,000
    
    1.25
    September 15, 20111,520,000
    1,520,000
    
    1.10
    October 4, 201125,000
    25,000
    
    1.45
    December 4, 20111,050,000
    700,002
    
    1.11
    January 12, 201240,000
    40,000
    
    1.15
    March 5, 2012210,000
    70,000
    
    0.84
    November 19, 201260,000
    30,000
    
    0.60
    May 1, 20133,740,000
    3,220,002


(e) Stock Purchase Warrants

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

Number
    Exercise price
    ExpiryRevett Minerals
    2,875,000
    Can$ 1.36
    May 22, 2009Revett Silver (1)
    3,051,326
    US$ 1.00
    To be determined


(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 and
nine months ended September 30, 2008.

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

a) Federal Mine Safety and Health Act Violations

The federal Mine Safety and Health Administration (MSHA)
issued a number of 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 and certain other matters. 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. As at
September 30, 2008, the Company had potential fines totaling $0.7 million
outstanding and it has set up an accrual for $0.3 million. The Company

14

---

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

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 December 2008. The
following table shows the changes in the reclamation liability for the nine
month period ended September 30, 2008.

| |                                                     |   | Nine Months 
    Ended |   |   | Year Ended |  
| | --------------------------------------------------- | - | ---------------------- | - | - | ---------- | -
| |                                                     |   | September 30,          |   |   | Dec. 31,   |  
| |                                                     |   | 2008                   |   |   | 2007       |  
| |                                                     |   | (unaudited)            |   |   | (audited)  |  
| | Reclamation and remediation liability               |   |                        |   |   |            |  
| | beginning of period                                 | $ | 7,141                  |   | $ | 7,603      |  
| | Change in timing and amount of estimated
      cash |   | (204                   | ) |   | (1,021     | )
| | flows                                               |   |                        |   |   |            |  
| | Accretion expense                                   |   | 442                    |   |   | 559        |  
| | Ending balance                                      | $ | 7,379                  |   | $ | 7,141      |  

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

c) Legal Proceedings

Rock Creek Permitting Matters:

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

15

---

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

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

(a) Financial Risk Management

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

(b) Credit Risk

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

Copper concentrate is sold to one customer under a long term
contract. This customer is a privately held international metal trading company
and it is one of the largest metal trading companies in the world. Therefore,
management is unable to accurately determine the precise credit worthiness of
any outstanding receivables due from the customer. 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 obtained from the current arrangement.

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 September 30,
2008, the Company had sold forward 0.3 million pounds of copper at $3.73 per
pound settling in the fourth quarter of 2008.

The Company manages its credit risk associated with cash and
short term investments through the use of large reputable regional financial
institutions in the United States and in Canada by utilizing the services of one
of Canadas largest chartered banks. At September 30, 2008, the Company held
cash and cash equivalents and short term investments in the amount of $11.5
million. The Company uses two banking institutions, a local regional bank which
accounts for $8.3 million of the total and a major Canadian chartered bank which
holds approximately $3.2 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 $8.3 million held in the regional bank,
approximately $2.8 million is liquid, held in checking or sweep accounts. $5.5
million is held in money market accounts and invested in terms for less than 90
days. The board of directors has approved a policy with respect to the
investment of cash and it includes the following requirements:

16

---

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

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

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

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

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

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

The Company is required to provide third party financial
assurance to the State of Montana regarding its reclamation obligations. This
assurance is provided by an insurance company with a credit rating of A+ XV by
AM Best, and this company also holds and controls the Commutation Account funds.
The Commutation Account is used to secure the financial assurance required by
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 September 30, 2008, the Companys gross credit exposure was
as follows:

Cash and cash equivalents
    $
    11,479Accounts receivable
    
    2,695Restricted cash
    
    7,567$
    21,741


(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 September 30, 2008 are as follows:

17

---

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

|                               |   | 1      |  |   | 2-3   |  |   | 3 Plus |  |   |        | 
|------------------------------ | - | ------ |  | - | ----- |  | - | ------ |  | - | ------ | 
|                               |   | Year   |  |   | Years |  |   | Years  |  |   | Total  | 
|Accounts payable and accrued   |   |        |  |   |       |  |   |        |  |   |        | 
|liabilities                    | $ | 10,836 |  | $ | -     |  | $ | -      |  | $ | 10,836 | 
|Capital leases (1)             |   | 675    |  |   | 636   |  |   | 177    |  |   | 1,488  | 
|Operating leases               |   | 512    |  |   | 512   |  |   | -      |  |   | 1,024  | 
|Royalty owing (1)(2)           |   | 1,503  |  |   | -     |  |   | -      |  |   | 1,503  | 
|Asset retirement obligation(3) |   | -      |  |   | -     |  |   | 13,320 |  |   | 13,320 | 

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

(d) Market Risk

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

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

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

|Sales for which prices are not finalized               |   | September 30, |   |   | December 31, |  
|------------------------------------------------------ | - | ------------- | - | - | ------------ | -
|                                                       |   | 2008          |   |   | 2007         |  
|Copper sales not finalized (lbs)                       |   | 3,453,110     |   |   | 1,822,972    |  
|Concentrate settlement payable for copper (000s)      | $ | (2,397        | ) | $ | (602         | )
|Silver sales not finalized (ozs)                       |   | 365,957       |   |   | 200,215      |  
|Concentrate settlement receivable (payable) for silver | $ | (1,328        | ) | $ | 76           |  
|(000s)                                                |   |               |   |   |              |  

18

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

As at September 30, 2008 the closing price of copper was $2.91
per pound and silver was $12.96 per ounce. There for a 10% change in the price
of both metals would change earnings and cash flow by approximately $1.5
million.

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

Foreign exchange risk: The Companys only foreign
exchange risk is its exposure to the Canadian dollar, which as previously
discussed, is limited to the $3.2 million dollars invested with a Canadian
chartered bank. The Company has limited operating risk created through changes
in foreign exchange because its operating assets are located in the United
States, the US dollar is the Companys functional currency and metal sales are
priced in United States dollars. A 10% change in the value of the Canadian
dollar against the US dollar would have changed net income by approximately
$0.32 million, all other things being held constant.

(e) Fair Values

The carrying values of cash and cash equivalents, short term
investments, accounts receivable, 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 concentrate settlement payable, and forward sales contracts
approximates are marked to market each month using quoted forward prices as at
the last trading day of each month and accordingly approximate fair value. 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:

|                                                |   | September 30, |  |   | Dec. 31, | 
|----------------------------------------------- | - | ------------- |  | - | -------- | 
|                                                |   | 2008          |  |   | 2007     | 
|                                                |   |               |  |   |          | 
|Liabilities, under Canadian GAAP                | $ | 36,881        |  | $ | 40,540   | 
|Shares redeemable at option of
      holder (a) |   | 1,076         |  |   | 1,076    | 
|                                                |   |               |  |   |          | 
|Liabilities, under US GAAP                      | $ | 37,957        |  | $ | 41,616   | 

19

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

|Shareholders equity, under Canadian GAAP       | $ | 53,306 |   | $ | 54,071 |  
|----------------------------------------------- | - | ------ | - | - | ------ | -
|Shares redeemable at option of holder
      (a) |   | (1,076 | ) |   | (1,076 | )
|                                                |   |        |   |   |        |  
|Shareholders equity, under US GAAP             | $ | 52,230 |   | $ | 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.
Under Canadian GAAP, these shares would be classified as equity. Under US GAAP,
the full value associated with the redeemable shares is classified as temporary
equity in liabilities.

(b) Income taxes:

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

(c) Common share units:

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

(e) Other additional disclosures:

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

20

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

Stock option plan and compensation expense:

The weighed average intrinsic value of options exercised during
the nine months ended September 30, 2008 was nil (2007- nil). At September 30,
2008, the weighted average intrinsic value of options outstanding and
exercisable was nil and nil respectively, and at September 30, 2007, they were
$570,732 and $443,046, respectively.

At September 30, 2008, the total unrecognized compensation cost
related to unvested stock options is $88,070. This cost is expected to be
recognized over the weighted average period of 16 months.

At September 30, 2008, Revett Silver had 1,235,000 stock
options outstanding. The weighted average exercise price of Revett Silvers
options granted and exercisable is $0.68 per share. All options granted have
vested. As at September 30, 2008 the estimated intrinsic value of the options
granted and vested was nil (2007-Can $1,865,100). Revett Silver is a private
company and for the purposes of this calculation, it was assumed the value of
Revett Minerals and Revett Silvers common shares are the same.

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

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

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

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

21

---

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

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

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

Overview and Important Factors Influencing Results for the
Three and Nine Months Ended September 30, 2008

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

Overall Performance

During the third quarter the most significant event affecting
the financial performance of the Company was the dramatic decline in the price
of copper and silver. Metal prices will continue to be the most significant
factor influencing the Companys operations going forward. For the three month
period ended September 30, 2008, Revett Minerals reported a net loss after taxes
and non-controlling interest of $3.0 million or $0.04 per share compared to a
net loss after taxes and non-controlling interest of $0.1 million or $0.00 per
share for the three months ended September 30, 2007. Net earnings in the third
quarter of 2008 were negatively effected by three significant factors, (i) in
the quarter revenues were reduced by $3.0 million due to the accounting
requirement to fair value accounts receivables and forward contracts for which
final settlement has not yet occurred; (ii) legal expenses relating to Rock
Creek approximated $0.5 million; and (iii) general and administrative costs
increased significantly because of the accrual of severance of $0.9 million for
a member of the senior management team and due also to certain corporate
development efforts which were undertaken and concluded during the third
quarter.

For the nine month period ended September 30, 2008, Revett
Minerals reported a net loss after taxes and non-controlling interest of $1.5
million or $0.02 per share compared to net income after taxes and
non-controlling interest of $3.9 million or $0.05 per share for the nine months
ended September 30, 2007.

On a stand alone basis, Troy (100% basis) reported a net loss
before taxes for the three month period ended September 30, 2008 of $2.5 million
compared to net income before taxes of $1.8 million for the comparable period in
2007. As Troy is only one component of Revett Silver and 69.8% of Revett
Silvers earnings are attributable to the shareholders of Revett Minerals during
the reporting period because of the non-controlling shareholdings in Revett
Silver. This

22

---

ownership interest increased from 69% in December 2007 to 69.8%
in February 2008 and was 67% on September 30, 2007.

The major highlights for the three and nine months ended
September 30, 2008 included:

- The Troy Mine (100% basis (Troy)) attained mill throughput averaging
  3,497 tons per day for the three months ended September 30, 2008 (
  3,492 tons per day for the nine month period ending September 30, 2008)
  compared to 2,263 tons per day during the three months ended September
  30, 2007 ( 3,282 tons per day for the nine month period ending
  September 30, 2007);
- Troy (100% basis) generated approximately $0.6 million in cash for the
  three months ended September 30, 2008 bringing its year to date cash
  flow to approximately $4.2 million;
- Troy (100% basis) lost approximately $2.5 million during the third
  quarter of 2008. For the nine month period ending September 30, 2008,
  Troy (100% basis) has reported net earnings of approximately $4.1
  million before taxes;
- Troy (100% basis) produced 2.5 million pounds of copper and 302,239
  ounces of silver in concentrate during the third quarter of 2008
  compared to 1.7 million pounds of copper and 195,559 ounces of silver
  for the three months ended September 30, 2007;
- For the nine month period ended September 30, 2008, Troy produced 7.1
  million pounds of copper and 793,998 ounces of silver in concentrate
  compared to production of 8.5 million pounds of copper and 927,065
  ounces of silver in concentrate for the comparable nine month period in
  2007; and
- Troy has now operated since August 2007 without any significant lost
  time incidents.

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

For the three months ended September 30, 2008, Revett reported
a net loss of $3.0 million or $0.04 per share on revenue of $7.4 million. This
compared to a net loss of $0.1 million or $0.00 per share during the three
months ended September 30, 2007 on revenues of $9.1 million.

For the nine month period ended September 30, 2008, Revett
Minerals reported a net loss after taxes and non-controlling interest of $1.5
million or $0.02 per share compared to net income after taxes and
non-controlling interest of $3.9 million or $0.05 per share for the nine months
ended September 30, 2007.

Operating Results:

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

23

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|                      |  | Three Months Ended |  |  | Three Months Ended |  |  | Three Months Ended | 
|--------------------- |  | ------------------ |  |  | ------------------ |  |  | ------------------ | 
|                      |  | September 30, 2008 |  |  | June 30, 2008      |  |  | September 30, 2007 | 
|Tons milled           |  | 321,696            |  |  | 331,698            |  |  | 208,186            | 
|Tons milled per day   |  | 3,497              |  |  | 3,645              |  |  | 2,263              | 
|Copper grade (%)      |  | 0.45               |  |  | 0.41               |  |  | 0.49               | 
|Silver grade (opt)    |  | 1.04               |  |  | 0.87               |  |  | 1.06               | 
|Copper recovery (%)   |  | 88.7               |  |  | 87.9               |  |  | 86.1               | 
|Silver recovery (%)   |  | 90.2               |  |  | 90.1               |  |  | 88.6               | 
|Copper produced       |  |                    |  |  |                    |  |  |                    | 
|(lbs)                 |  | 2,549,580          |  |  | 2,388,947          |  |  | 1,753,207          | 
|Silver produced (ozs) |  | 302,239            |  |  | 259,847            |  |  | 195,599            | 
|Copper sold (payable  |  |                    |  |  |                    |  |  |                    | 
|pounds)               |  | 2,325,551          |  |  | 2,391,086          |  |  | 1,644,681          | 
|Silver sold (payable  |  |                    |  |  |                    |  |  |                    | 
|ounces)               |  | 252,587            |  |  | 244,630            |  |  | 183,427            | 

Production levels during the third quarter of 2008, as measured
by mill throughput, decreased by 3% over the second quarter of 2008, however
this was slightly offset by an increase in both the grade of copper and silver
also increased as the mine was successful in developing additional work headings
in the main areas of the mine and less ore was sourced from the lower quartzite
areas than in the prior quarter. In addition, ore recoveries in the mill remain
above budget levels. Also during the third quarter, the mine successfully
developed additional headings in the East Ore Body which should provide for
increase operating flexibility in the future. The table below illustrates
operating costs on a tons milled basis and generally reflects the sensitivity of
costs to the level of mill throughput. Equipment availability remains a
challenge and maintenance costs are high.

Production levels during the third quarter of 2008, as measured
by mill throughput, improved by 54.5% over the third quarter of 2007 because in
2007 mining operations were restricted by a rock fall which occurred in late
July and resulted in the suspension of operations in numerous areas underground.
Additionally, ore grades milled during the third quarter of 2008 were below that
experienced during the third quarter of 2007 because the mine was forced to
operate in lower grade areas because of a shortage of development headings.
However, mill recoveries improved significantly in-spite of milling lower grade
ore. During the third quarter, the mine successfully developed additional
headings in the East Ore Body which should provide for increase operating
flexibility in the future should the Company have sufficient resources to
continue normal operations and should the commodity prices recovery from the low
level experience during October and early November.

|                        |  | Q3.08   |  |  | Q2.08   |  |  | Q1.08   |  |  | Q4.07   |  |  | Q3.07   |  |  | Q2.07   |  |  | Q1.07   | 
|----------------------- |  | ------- |  |  | ------- |  |  | ------- |  |  | ------- |  |  | ------- |  |  | ------- |  |  | ------- | 
|Tons milled             |  | 321,686 |  |  | 331,698 |  |  | 299,863 |  |  | 212,425 |  |  | 208,186 |  |  | 337,712 |  |  | 350,180 | 
|Cost per ton milled ($) |  | 26.65   |  |  | 26.96   |  |  | 26.33   |  |  | 32.81   |  |  | 32.89   |  |  | 22.04   |  |  | 21.77   | 

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

| | a) | Revenue:During the third quarter of 2008, the
      Troy Mine delivered and sold 2.3 million pounds of payable copper and
      252,587 ounces of payable silver in concentrate.
The
| | -- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

24

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| |    | concentrate sales in the third quarter were at similar
      levels to that attained during the second quarter of 2008. Compared to the
      third quarter of 2007, sales volumes were much improved because production
      in the third quarter of 2007 was affected by the rock fall which occurred
      in July 2007. In the third quarter of 2007, the Company delivered and sold
      1.6 million pounds of copper and 183,427 ounce of payable silver in
      concentrate. Total sales revenue during the third quarter of 2008 was $7.4
      million compared to $9.1 million in the third quarter of 2007 and its
      decline is a result of a significant negative fair value adjustment to
      concentrate sales for which prices have not yet been finalized. During the
      third quarter of 2008 this fair value adjustment resulted in a reduction
      in revenue of $3.0 million and is due to the decline in the price of
      silver and copper between June and September. Correspondingly, during the
      third quarter of 2007, the fair value adjustment for shipments not yet
      finalized was an increase in revenue of $0.6 million. In the third quarter
      of 2008 the rapid decline in metal prices offset the increase in the
      physical sale of copper and silver in concentrate. During the three months
      ended September 30, 2008, the price of copper averaged $3.48 per pound
      (Q2.08-$3.83 per pound) and silver averaged $15.03 per ounce (Q2.08-
      $17.17 per ounce) compared to the copper price of $3.50 per pound in the
      third quarter of 2007 (Q2.07-$3.46 per pound). In 2007, silver averaged
      $12.43 and $13.34 per ounce in the third and second quarters respectively.
      The main factors which resulted in increased production and sales in 2008
      compared to that in 2007 were: (i) an increase in mill throughput of 54%
      which was offset by a reduction in the grade of ore milled of 8% for
      copper and 2% for silver. However most importantly was the impact of the
      rapid decline in metal prices between June and September 2008. For example
      at June 30, 2008 the copper price closed at $3.98 per pound while at
      September 30, 2008 it closed at $2.91 per pound and silver likewise fell
      from $17.65 per ounce to $12.96 per ounce.
| | -- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
| | b) | Cost of Goods Sold:The cost of goods sold
      associated with the third quarter revenue was $8.9 million, an increase of
      $1.8 million (25%) over the same period in 2007. Costs increased because
      of the increase of 54% in mill throughput and also 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) decreased to $26.65 per
      ton compared to $32.89 per ton in the third quarter of 2007. This decrease
      is purely a function of the increase in mill throughput. In the second
      quarter of 2008, operating costs per ton milled averaged $26.96 per
      ton.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
| | c) | Depreciation and amortization:For the third
      quarter of 2008, these non cash charges increased by $0.2 million (64%)
      over the third quarter of 2007 and are a direct function of the increase
      in mill throughput. The majority of the plant and equipment at Troy is
      depreciated using the units-of-production method and changes in tons
      processed will change the amount of depreciation and amortization expense
      for the period.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
| | d) | Exploration and development:Exploration and
      development expense decreased by $0.1 million due largely to a reduction
      in legal costs associated with defending the Rock Creek operating permits.
      Exploration at Troy during the third quarter was $0.1 million greater than
      during the third quarter of 2007.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         

25

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| | e) | General and administration costs:This cost
      increased by $1.1 million and this increase was due to cost associated
      with certain corporate development expenditures and the recognition of
      $0.9 million in severance costs.                                                                                                                                                                              
| | -- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                          
| | f) | Accretion of reclamation and remediation liability:The decrease in the reclamation accretion account was a result of the
      increase in the mine life at Troy, essentially accreting the remaining
      costs over a longer period of time.                                                                                                                                                                          
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                          
| | g) | Income from operations:The decrease in operating
      income of $4.7 million was largely the result of change in the fair value
      of the concentrate sales position which had not yet finalized and the $1.1
      million increase in general and administrative expenditures previously
      discussed.                                                                                                          
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                          
| | h) | Other Expenses:For the third quarter of 2008,
      other income was a reduction in income of $0.1 million which reflected a
      foreign exchange loss on cash held in Canadian dollars.                                                                                                                                                                                                                               
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                          
| | i) | Income taxes:For the three month period ended
      September 30, 2008, the Company estimated its income tax recovery at $0.8
      million which effectively recognized the increase in net operating loss
      carry forwards for tax purposes.                                                                                                                                                                       
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                          
| | j) | Non-controlling interest:The non-controlling
      interest recovery of $1.1 million represents the after tax share of Revett
      Silvers losses attributable to the Class B shareholders of Revett
      Silver.                                                                                                                                                                                                     
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                          
| | k) | Net earnings:The Company recorded a net loss of
      $3.0 million or $0.04 per share for the third quarter. As discussed
      previously, this loss is almost entirely attributable to the change in the
      fair value of accounts receivable for concentrate sales which have not yet
      been finalized. For the third quarter of 2007 the company reported a net
      loss of $0.1 million or $0.00 per share.

Financial Results for the nine months ended September 30,
2008:

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

|                      |  | Nine Months Ended
      September |  |  | Nine Months Ended
      September | 
|--------------------- |  | --------------------------------- |  |  | --------------------------------- | 
|                      |  | 30, 2008                          |  |  | 30, 2007                          | 
|Tons milled           |  | 953,257                           |  |  | 896,078                           | 
|Tons milled per day   |  | 3,492                             |  |  | 3,282                             | 
|Copper grade (%)      |  | 0.42                              |  |  | 0.55                              | 
|Silver grade (opt)    |  | 0.93                              |  |  | 1.16                              | 
|Copper recovery (%)   |  | 87.7                              |  |  | 86.9                              | 
|Silver recovery (%)   |  | 89.8                              |  |  | 88.7                              | 
|Copper produced (lbs) |  | 7,068,049                         |  |  | 8,546,489                         | 
|Silver produced (ozs) |  | 793,998                           |  |  | 927,065                           | 
|Copper sold (payable  |  |                                   |  |  |                                   | 
|pounds)               |  | 6,710,570                         |  |  | 7,921,160                         | 
|Silver sold (payable  |  |                                   |  |  |                                   | 
|ounces)               |  | 616,992                           |  |  | 851,500                           | 

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| | a) | Revenue:During the nine months ended September
      30, 2008, the Troy Mine delivered and sold 6.7 million pounds of payable
      copper and 616,992 ounces of payable silver in concentrate. This was a
      decrease for the first nine months of this year compared to the first nine
      months of 2007 due largely to the lower grade of ore milled offset by a 6%
      increase in mill throughput. In the first nine months of 2007, the Company
      delivered and sold 7.9 million pounds of payable copper and 851,500 ounce
      of payable silver in concentrate. Total sales revenue during the nine
      months ended September 30, 2008 was $32.8 million compared to $35.7
      million for the first nine months of 2007. In 2008, the Company fair
      valued concentrate sales which had not yet finalized and the lower sales
      of physical metal resulted in the decrease in sales. However, prior to the
      end of the third quarter 2008, metal prices during 2008 exceeded those of
      2007 on average. The Company received a higher sales price for both copper
      and silver for those shipments which were finalized during the year.
      During the nine months ended September 30, 2008 the price of copper
      averaged $3.62 per pound and silver averaged $16.63 per ounce compared to
      the copper price of $3.21 per pound and a silver price of $13.10 per ounce
      for the comparable period in 2007. The main factors which resulted in
      lower production and sales in 2008 compared to that in 2007 were: (i) a
      $3.0 million reduction in sales due to the Company fair valuing
      concentrate sales which are not yet finalized; and (ii) a reduction in the
      grade of copper and silver ore milled of 24% and 20%, respectively, These
      unfavorable factors were offset by higher recoveries of metal in the
      mill.
| | -- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
| | b) | Cost of Goods Sold:The cost of goods sold
      associated with the revenue for the first nine months of 2008 was $26.7
      million, an increase of $3.3 million (14.2%) over the same period in 2007.
      Costs increased because of higher labor expenditures, increased
      maintenance costs, increased parts and supplies costs, and an increase in
      property and state mining taxes. On an operating cost basis the cost per
      ton milled (calculated as mining costs per ton milled plus milling costs
      per ton milled plus mine indirect costs per ton milled) increased to
      $26.67 per ton compared to $24.51 per ton for the first nine months of
      2007. The mine department was the only cost center that had costs which
      increased significantly on a year over year basis.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
| | c) | Depreciation and amortization:For the nine month
      period ended September 30, 2008, these non cash charges were $0.2 million
      higher than for the same period in 2007 because of the greater depreciable
      basis in plant and equipment.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
| | d) | Exploration and development:This expense item
      increased by $0.1 million because of increased legal expenses relating to
      the Rock Creek permits challenges. For the nine month period ending
      September 30, 2008 exploration spending was $0.3 million compared to $0.7
      million for the comparable period in 2007.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
| | e) | General and administration costs:The increase
      $1.4 in corporate administration costs for the year to date was due to
      higher salary costs, an increase in corporate development activities and
      the accrual of severance costs of $0.9 million for one member of the
      senior management team.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
| | 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.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     

27

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| | g) | Income from operations:The reduction in
      concentrate production, and lower revenue due to the rapid decline in
      metal prices, resulted in the Company recording a loss of $2.0 million for
      income from operations, compared to income from operations of $5.9 million
      for the first nine months of 2007.                               
| | -- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |    |                                                                                                                                                                                                                                                                                                                                                              
| | h) | Other Expenses:For the first nine months of 2008,
      other expenses totaled $0.2 million versus other income of $1.3 million
      for 2007. The difference is largely due to sizable foreign exchange gains
      of $1.4 million recorded in 2007 contrasted with a foreign exchange loss
      of $0.3 million for 2008.                               
| |    |                                                                                                                                                                                                                                                                                                                                                              
| | i) | Income taxes:For the nine month period ended
      September 30, 2008, the Company recognized an income tax recovery of $0.7
      million versus an expense of $0.9 million for the nine month period ended
      September 30, 2007 reflecting the recognition of the tax benefit of
      current period losses.                                          
| |    |                                                                                                                                                                                                                                                                                                                                                              
| | j) | Non-controlling interest:The non-controlling
      interest charge for the earnings attributable to Revett Silver Company was
      effectively zero for 2008 versus a charge of $2.4 million for the nine
      months ended September 30, 2007.                                                                                                            
| |    |                                                                                                                                                                                                                                                                                                                                                              
| | k) | Net earnings:The Company recorded a loss of $1.5
      million net income or $0.02 per share for the nine months ended September
      30, 2008 compared to net income of $3.9 million or $0.05 per share for the
      same period in 2007. The change in income can be attributed to increased
      production costs and falling copper and silver
prices.

28

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Summarized Financial Results by Quarter

2008 Q3
    2008 Q2
    2008 Q1
    2007 Q4
    2007 Q3
    2007 Q2
    2007 Q1
    2006 Q4Cu Prodn (million lbs)
    2.5
    2.4
    2.2
    1.1
    1.8
    3.5
    3.3
    1.4Ag Prodn (000s ozs)
    302
    260
    232
    127
    196
    372
    359
    175Total Sales (000s $)
    7,430
    13,337
    12,034
    3,130
    9,136
    15,903
    10,716
    4,041Net Income (000s $)
    (2,980)
    75
    1,407
    (3,037)
    (120)
    3,727
    301
    (4,806)EPS- Basic ($)
    (0.04)
    0.00
    0.02
    (0.04)
    (0.00)
    0.05
    0.00
    (0.07)EPS- fully diluted ($)
    (0.04)
    0.00
    0.02
    (0.04)
    (0.00)
    0.05
    0.00
    (0.07)Cash and Cash Equivalents & s/t Investments
      ending (000s $)
    11,479
    13,106
    9,540
    18,010
    26,012
    27,639
    22,446
    23,802Total Assets, ending (000s $)
    90,187
    91,564
    89,519
    94,611
    100,329
    102,398
    94,225
    94,203Total liabilities, ending (1)
      (000s $)
    28,943
    26,264
    24,801
    32,365
    33,959
    36,318
    33,111
    35,545Total Equity, ending (000s $)
    53,306
    56,228
    56,114
    54,071
    56,017
    55,984
    52,115
    50,134


(1) excludes non-controlling
interest

Financing Activities

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

|Contractual obligations     |  |        |  |  | Current |  |  | 1 to 3 |  |  | 3 to 5 |  |  | 5 years or | 
|--------------------------- |  | ------ |  |  | ------- |  |  | ------ |  |  | ------ |  |  | ---------- | 
|(100%)                      |  | Total  |  |  | portion |  |  | years  |  |  | years  |  |  | more       | 
|Royalty obligation          |  | 1,503  |  |  | 1,503   |  |  | -      |  |  | -      |  |  | -          | 
|Capital lease obligations   |  | 1,488  |  |  | 237     |  |  | 636    |  |  | 615    |  |  | -          | 
|Operating leases            |  | 512    |  |  | 512     |  |  |        |  |  |        |  |  |            | 
|Long term reclamation costs |  |        |  |  |         |  |  |        |  |  |        |  |  |            | 
|                            |  | 13,320 |  |  | -       |  |  | -      |  |  | -      |  |  | 13,320     | 
|Total contractual           |  |        |  |  |         |  |  |        |  |  |        |  |  |            | 
|obligations                 |  | 16,823 |  |  | 2,252   |  |  | 636    |  |  | 615    |  |  | 13,320     | 

29

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Liquidity and Capital Resources

The Companys liquidity position is directly related to the
level of concentrate production, the cost of this production and the provisional
and final prices received for the copper and silver in concentrate that is sold.
At September 30, 2008, working capital was $6.7 million of which $11.5 million
was cash and cash equivalents. However, at September 30, 2008 concentrate
settlement payable was $3.7 million using the forward market price of copper and
silver of approximately $2.90 per pound and $12.73 per ounce respectively.
Further price declines in either metal will seriously erode the Companys cash
and working capital position. At price levels of $2.00 per pound for copper and
$10.0 per ounce for silver, the Company will run out of cash at or before year
end unless alternative financing arrangements can be obtained. The Company is
currently investigating a number of alternative means of raising additional
capital. However, no assurance can be given that these efforts will prove to be
successful. Given market conditions in early November, it is likely that it will
be extremely difficult for the Company to raise sufficient external financing to
meet the obligations it faces with respect to the amounts owing for final
settlement on its concentrate sales. As of the date of this report, the Company
had paid a total of $8.9 million on the Royal Gold 7% royalty obligation. This
royalty is capped at total payments of $10.5 million.

Because of the Companys need to conserve cash, all
discretionary capital spending and exploration spending has been placed on hold.
Furthermore, the Company does not have sufficient cash to undertake any
activities at Rock Creek, should a favorable ruling be obtained by the Judge
respecting the environmental challenges brought against its operating
permits.

Off Balance Sheet Arrangements

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

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

Related Party Transactions

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

30

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Principal Risks and Uncertainties

Revett Minerals is a very risky and 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.

Liquidity and ability to Continue as a Going
Concern. The sale of copper concentrate involves invoicing at past metal
prices and then in months following, the final payment received is adjusted for
final weights and assays and for metal prices that exist during the month of
final settlement. As metal prices rise, the Company generally recognizes the
benefit of rising prices by recognizing an increase in revenue as compared to
the original invoice prepared at the date of the sale. However, during periods
of falling metal prices the converse is true and the Company will be required to
reduce revenue and return money to its customers that it had received in prior
periods. The Company has a substantial amount of copper and silver in
concentrate which is subject to this future pricing mechanism. The magnitude of
the metal subject to change could be between 20% and 40% of annual sales.
Therefore a dramatic decline in the metal prices could have a material effect of
the Companys earnings and cash balances. If the prices fall quickly and far
enough the Company may not have sufficient current period sales to generate
sufficient cash to maintain operations and refund the money owed to its
customers arising from this final pricing mechanism.

Copper and silver prices fluctuate markedly.The
viability of our operations are significantly influenced by the price of copper
and silver. Copper and silver prices fluctuate widely and are affected by
numerous factors that are beyond our control, such as inflation, the strength of
the United States dollar relative to foreign currencies, global and regional
demand, commodity funds and speculators and the political and economic
conditions of major producing countries throughout the world. Since 1990, world
average annual copper prices fluctuated from a low of $0.71 per pound in 2002 to
a high of $3.23 per pound in 2007, and world average annual silver prices
fluctuated from a low of $3.95 per ounce in 1992 to a high of $13.38 per ounce
in 2007. In 2008, the volatility in metal prices was evident as the spot copper
price ranged between $4.00 per pound in July and $1.60 per pound in October. The
spot silver was likewise extremely volatile ranging between a high of $20.92 per
ounce in March and $8.88 per ounce in October. Furthermore, as both of these
metals are used in industrial activities a sustained slowdown in economic
activity would likely result in further downward pressure on prices.

General Economic Conditions and Financial Instability.Over the past three months, we have witnessed the collapse or near
collapse of a number of leading financial institutions both in the United States
and abroad. Governments have been forced to inject massive amounts of money into
the financial system to provide liquidity for many different types of financial
institutions. Unfortunately, banks and other investors have not yet been willing
to provide liquidity to many needy businesses. This will make raising capital
for companies the size of Revett extremely difficult. Whether or not the efforts
by central banks will restore some level of normalcy to the financial markets is
impossible to predict. In addition, we have experience a massive flight to
liquidity as the vast majority of market participants fear their counterparties
may collapse. As a result of these expectations, there has been a massive sell
off of commodities creating extreme volatility in commodity markets, making it
nearly impossible to accurately predict future metal prices. This near financial
collapse has also raised expectations for the possibility of a slowdown or
contraction in global economy. These expectations have resulted in a reduction
in consumption

31

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and an increase in the expectation that metal consumption will
fall further. These beliefs have resulted in additional downward pressure on the
prices of copper and silver.

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.

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

Our reclamation liability at Troy could be substantial.When Troy was acquired, 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

32

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

We presently do not have the financial resources to
develop Rock Creek.At September 30, 2008 we had cash and cash
equivalents and short term investments of approximately $11.5 million. We do not
believe that we have sufficient funds available to undertake any meaningful
activity at Rock Creek unless alternative financial arrangements can be
made.

The Rock Creek mineral resources are not equivalent to
reserves. Our annual Form 10-K includes information concerning our
estimated size of the mineral resource at Rock Creek and the amount of ore that
may be produced from the project were it to be developed. Since no ore has been
produced from Rock Creek, these estimates are preliminary in nature. And
although we believe these amounts are significant, it does not mean the mineral
resource can be economically mined. A mineral resource is not equivalent to a
commercially mineable ore body or proven reserves or probable reserves under
standards promulgated by the United States Securities and Exchange Commission
(the SEC), principally because they are less certain and not necessarily
amenable to economic development. We will not be able to determine whether Rock
Creek contains a commercially mineable ore body until our evaluation program has
been completed and we have obtained a final, economic and technical feasibility
study that will include an analysis of the amount of ore that can be
economically produced under then-prevailing market conditions. Investors are
cautioned not to assume that our mineral resource estimates for Rock Creek will
ever be converted into reserves.

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

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

33

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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.

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.

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

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adoption of this section did not result in any adjustments to
opening deficit. The required disclosure is in note 3 to the financial
statements.

Recently Issued Accounting Pronouncements

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

In February 2008, the Canadian Accounting Standards Board
confirmed that Canadian public companies will be required to adopt International
Reporting Standards (IFRS) for fiscal years beginning on or after January 1,
2011. The adoption of IFRS will require the Company to change certain accounting
policies, accounting systems, internal controls over financial reporting and
disclosure. The Company is in the process of evaluating the impact of adopting
IFRS for its financial statements and will need to invest substantial time and
money to complete the conversion.

Financial Instruments, Hedging Activities and Other
Instruments

The Company fair values its forward sales contracts and the
amount of silver and copper in concentrate for which final settlement has not
occurred. At each month end, the Company adjusts its revenue to account for
expected future prices and the corresponding expected future revenue and cash
flow. In order to do this, the Company must make estimates of the future prices
expected to prevail when final settlement occurs. The Company uses future
contract prices at each month end to estimate these expected prices. At
September 30, 2008 the Company had 3.4 million pounds of copper and 365,957
ounces of silver with prices not yet fixed. The fair value revenue adjustment
was a liability of $3.7 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 September 30, 2008, the Company had the following forward
sales contracts outstanding. During the forth quarter of 2008, Company had sold
a total of 0.3 million pounds at an average price of $3.73 per pound. The fair
value of these forward contacts at September 30, 2008 was an asset of $0.27
million which was recorded in accounts receivable.

Forward Looking Statements

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

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exploration activities at Rock Creek, the adequacy of third
part financing to complete certain corporate development activities, and the
expectation that the Troy mine will be able to generate positive cash flow in
future periods. Factors that could cause actual results to differ materially
from these forward looking statements include, among others:

- changes in copper and silver prices;
- final settlement owing or receivable from concentrate sales;
- 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. The recent financial and economic
turmoil has seen the price of both copper and silver fall to levels less than
one-half of the highs seen in this year alone. Furthermore, because of the
uncertainty in forecasting future financial and economic conditions the Company
is unable to provide any guidance respecting future price levels or even if the
price of copper and silver will fall to levels which will require the Company to
cease operations at Troy. Should the price of copper or silver decline
substantially, the value of Troy and Rock Creek could fall dramatically and the
continued existence of the Company could be at risk.

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As at September 30, 2008 the closing price of copper was $2.91
per pound and silver was $12.96 per ounce. There for a 10% change in the price
of both metals would change earnings and cash flow by approximately $1.5
million.

During the nine moths ended September 30, 2008 concentrate
shipments totaling 5.6 million pounds of copper and 588,193 ounces of silver
were finalized plus at the end of September concentrate shipments totaling 3.4
million pounds of copper plus 365,957 ounces of silver remain subject to
finalization. Therefore a 10% change in the year to date price of copper
(assuming the year to date average of $3.62 per pound) would have changed
revenue by total of $3.2 million and a 10% change in the year to date price of
silver (assuming the year to date average of $16.63) would have changed revenue
by $1.6 million.

A substantial portion of the Companys cash and short term
investments are invested in certificates of deposit or high quality government
and corporate fixed income securities, all of which are denominated in US
dollars. With the uncertainty in the financial markets the value of these fixed
income securities could change materially. Approximately $3.2 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. A 10% change in the us an Canadian dollar foreign exchange rate
would affect the value of the Canadian dollars held by the Company by
approximately $0.3 million.

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 September 30, 2008 to ensure that information
required to be disclosed by us in reports that we file under the Exchange Act,
is gathered, reported, processed, summarized and reported within the time
periods specified in the Securities and Exchange Commissions rules and forms
and is accumulated and

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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 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
nine months of 2008, there were no changes in internal controls from the prior
year.

PART II: Other Information

Item #1: Legal proceedings

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

Troy-Related Actions.

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

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

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

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

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

Rock Creek-Related Actions.

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

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

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

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

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

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

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

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

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

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

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

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

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

Other Actions and Proceedings.

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

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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. The federal Mine Safety and Health Administration (MSHA) issued a
number of safety related citations against a subsidiary at various times between
August 2007 and November 2008. These citations related to a rock fall which
occurred at Troy on July 30, 2007 and certain other matters. 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. As of the date of this report, the Company has potential fines totaling
$0.7 million outstanding and it has established an accrual of $0.3 million. 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.

Item #1(a): Risk Factors

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

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

Not Applicable

Item #3: Defaults Upon Senior Securities

Not Applicable

Item #4: Submission To A Vote of Securities Holders

Not Applicable.

Item #5: Other Information

Not Applicable

Item #6: Exhibits

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

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SIGNATURES

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

|                        | REVETT MINERALS INC.                        
|----------------------- | --------------------------------------------
|                        |                                             
|                        |                                             
|Date: November 14, 2008 | By: /s/John Shanahan                        
|                        | John Shanahan                               
|                        | Acting President and Chief Executive Officer
|                        |                                             
|                        |                                             
|Date: November 14, 2008 | By: /s/ Scott Brunsdon                      
|                        | Scott Brunsdon                              
|                        | Chief Financial Officer                     

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