|   | Consolidated Financial Statements |
|--------|-----------------------------------|

|   | December 31, 2011 and 2010 |
|--------|----------------------------|

|   | (Expressed in thousands of U.S. dollars) |
|--------|------------------------------------------|

----

| (Signed) Paul N. Wright                              | (Signed) Fabiana Chubbs |
|------------------------------------------------------|-------------------------|
|                                                 |                    |
| Paul N. Wright                                       | Fabiana Chubbs          |
| President and Chief Executive Officer           | Chief Financial Officer |
|                                                 |                    |
|                                                 |                    |
| February 23, 2012Vancouver, British Columbia, Canada |                    |

----

----

----

----

----

|                                                     |   | Note   |   |   | December 31,2011 |   |      | December 31, 2010 |   |   | January 1,2010 |   |
|----------------------------------------------------------|--------|--------|--------|--------|------------------|--------|-----------|-------------------|--------|--------|----------------|--------|
|                                                     |   |   |   |   |             |   |      |              |   |   |           |   |
|                                                     |   |   |   |   |             |   |      |              |   |   |           |   |
| ASSETS                                                   |   |   |   |   |             |   |      |              |   |   |           |   |
| Current assets                                           |   |   |   |   |             |   |      |              |   |   |           |   |
| Cash and cash equivalents                                |   |   | 5      |   |             |   | 393,763   |              |   |   | 314,344        |   |   |   | 265,369 |   |
| Restricted cash                                          |   |   | 6, 15  |   |             |   | 55,390    |              |   |   | 52,425         |   |   |   | 50,000 |   |
| Marketable securities                                    |   |   | 7      |   |             |   | 2,640     |              |   |   | 8,027          |   |   |   | 13,951 |   |
| Accounts receivable and other                            |   |   | 8      |   |             |   | 42,309    |              |   |   | 42,437         |   |   |   | 26,434 |   |
| Inventories                                              |   |   | 9      |   |             |   | 164,057   |              |   |   | 147,263        |   |   |   | 129,197 |   |
|                                                     |   |   |   |   |             |   | 658,159   |              |   |   | 564,496        |   |   |   | 484,951 |   |
| Non-current inventories                                  |   |   | 9      |   |             |   | 26,911    |              |   |   | 29,627         |   |   |   | 31,534 |   |
| Investments in significantly influenced companies        |   |   | 10     |   |             |   | 18,808    |              |   |   | 6,202          |   |   |   | – |   |
| Deferred income tax assets                               |   |   | 18     |   |             |   | 4,259     |              |   |   | –        |   |   |   | – |   |
| Restricted assets and other                              |   |   | 11     |   |             |   | 38,430    |              |   |   | 19,328         |   |   |   | 13,759 |   |
| Property, plant and equipment                            |   |   | 12     |   |             |   | 2,847,910 |              |   |   | 2,699,787      |   |   |   | 2,527,567 |   |
| Goodwill                                                 |   |   | 13     |   |             |   | 365,928   |              |   |   | 365,928        |   |   |   | 324,935 |   |
|                                                     |   |   |   |   |             |   | 3,960,405 |              |   |   | 3,685,368      |   |   |   | 3,382,746 |   |
| LIABILITIES & EQUITY                                 |   |   |   |   |             |   |      |              |   |   |           |   |   |   |   |   |
| Current liabilities                                      |   |   |   |   |             |   |      |              |   |   |           |   |   |   |   |   |
| Accounts payable and accrued liabilities                 |   |   | 14     |   |             |   | 168,367   |              |   |   | 145,695        |   |   |   | 153,036 |   |
| Current debt                                             |   |   | 15     |   |             |   | 81,031    |              |   |   | 98,523         |   |   |   | 56,499 |   |
|                                                     |   |   |   |   |             |   | 249,398   |              |   |   | 244,218        |   |   |   | 209,535 |   |
| Debt                                                     |   |   | 15     |   |             |   | –   |              |   |   | 68,140         |   |   |   | 134,533 |   |
| Asset retirement obligations                             |   |   | 16     |   |             |   | 43,213    |              |   |   | 33,228         |   |   |   | 26,995 |   |
| Defined benefit plan                                     |   |   | 17     |   |             |   | 19,969    |              |   |   | 12,019         |   |   |   | 7,811 |   |
| Deferred income tax liabilities                          |   |   | 18     |   |             |   | 336,579   |              |   |   | 330,512        |   |   |   | 355,425 |   |
|                                                     |   |   |   |   |             |   | 649,159   |              |   |   | 688,117        |   |   |   | 734,299 |   |
| Equity                                                   |   |   |   |   |             |   |      |              |   |   |           |   |   |   |   |   |
| Share capital                                            |   |   | 19     |   |             |   | 2,855,689 |              |   |   | 2,814,679      |   |   |   | 2,671,634 |   |
| Treasury stock                                           |   |   |   |   |             |   | (4,018    | )                 |   |   | –        |   |   |   | – |   |
| Contributed surplus                                      |   |   |   |   |             |   | 30,441    |              |   |   | 22,967         |   |   |   | 17,865 |   |
| Accumulated other comprehensive (loss) income            |   |   |   |   |             |   | (10,069   | )                 |   |   | (1,637         | )      |   |   | 2,227 |   |
| Retained earnings (deficit)                              |   |   |   |   |             |   | 382,716   |              |   |   | 125,221        |   |   |   | (69,423 | ) |
| Total equity attributable to shareholders of the Company |   |   |   |   |             |   | 3,254,759 |              |   |   | 2,961,230      |   |   |   | 2,622,303 |   |
| Attributable to non-controlling interests                |   |   |   |   |             |   | 56,487    |              |   |   | 36,021         |   |   |   | 26,144 |   |
|                                                     |   |   |   |   |             |   | 3,311,246 |              |   |   | 2,997,251      |   |   |   | 2,648,447 |   |
|                                                     |   |   |   |   |             |   | 3,960,405 |              |   |   | 3,685,368      |   |   |   | 3,382,746 |   |

|   | (Signed)Robert R. Gilmore | Director |   | (Signed)Paul N. Wright  | Director |   |
|--------|---------------------------|----------|--------|------------------------------|----------|--------|

----

| For the year ended December 31                                  |   | Note   |   |   | 2011   |      |    | 2010   |   |
|-----------------------------------------------------------------|--------|--------|--------|--------|--------|-----------|---------|--------|--------|
|                                                            |   |   |   |   |   |      |    |   |   |
| Revenue                                                         |   |   |   |   |   |      |    |   |   |
|   Metal sales                                         |   |   |   |   |   | 1,098,933 |    |   |   | 791,175 |   |
|                                                            |   |   |   |   |   |      |    |   |   |   |   |
| Cost of sales                                                   |   |   |   |   |   |      |    |   |   |   |   |
|   Production costs                                    |   |   | 27     |   |   |      | 346,484 |   |   |   | 277,974 |   |
|   Depreciation and amortization                       |   |   |   |   |   |      | 122,414 |   |   |   | 107,157 |   |
| Total cost of sales                                             |   |   |   |   |   |      | 468,898 |   |   |   | 385,131 |   |
| Gross profit                                                    |   |   |   |   |   |      | 630,035 |   |   |   | 406,044 |   |
|                                                            |   |   |   |   |   |      |    |   |   |   |   |   |
| Exploration expenses                                            |   |   |   |   |   |      | 30,773  |   |   |   | 22,501 |   |
| Mine standby costs                                              |   |   |   |   |   |      | – |   |   |   | 1,335 |   |
| General and administrative expenses                             |   |   |   |   |   |      | 59,239  |   |   |   | 44,935 |   |
| Defined benefit plan expense                                    |   |   | 17     |   |   |      | 2,088   |   |   |   | 1,337 |   |
| Share based payments                                            |   |   | 20     |   |   |      | 19,722  |   |   |   | 17,112 |   |
| Foreign exchange loss                                           |   |   |   |   |   |      | 5,367   |   |   |   | 2,712 |   |
| Operating profit                                                |   |   |   |   |   |      | 512,846 |   |   |   | 316,112 |   |
|                                                            |   |   |   |   |   |      |    |   |   |   |   |   |
| Gain on disposal of assets                                      |   |   |   |   |   |      | (2,729  | )      |   |   | (592 | ) |
| Gain on marketable securities                                   |   |   |   |   |   |      | (664    | )      |   |   | (6,572 | ) |
| Loss on investments in significantly influenced companies       |   |   |   | 4,225  |   |      |    | 531    |   |
| Other income                                                    |   |   |   |   |   |      | (7,673  | )      |   |   | (13,468 | ) |
| Asset retirement obligation accretion                           |   |   | 16     |   |   |      | 1,546   |   |   |   | 2,727 |   |
| Interest and financing costs                                    |   |   | 28     |   |   |      | 5,331   |   |   |   | 8,089 |   |
|                                                            |   |   |   |   |   |      |    |   |   |   |   |   |
| Profit before income tax                                        |   |   |   |   |   |      | 512,810 |   |   |   | 325,397 |   |
| Income tax expense                                              |   |   | 18     |   |   |      | 165,587 |   |   |   | 86,939 |   |
| Profit for the year                                             |   |   |   |   |   |      | 347,223 |   |   |   | 238,458 |   |
|                                                            |   |   |   |   |   |      |    |   |   |   |   |   |
| Attributable to:                                                |   |   |   |   |   |      |    |   |   |   |   |   |
| Shareholders of the Company                                     |   |   |   |   |   |      | 318,662 |   |   |   | 221,001 |   |
| Non-controlling interests                                       |   |   |   |   |   |      | 28,561  |   |   |   | 17,457 |   |
| Profit for the year                                             |   |   |   |   |   |      | 347,223 |   |   |   | 238,458 |   |
|                                                            |   |   |   |   |   |      |    |   |   |   |   |   |
| Weighted average number of shares outstanding                   |   |   | 29     |   |   |      |    |   |   |   |   |   |
| Basic                                                           |   |   |   |   |   |      | 549,791 |   |   |   | 542,861 |   |
| Diluted                                                         |   |   |   |   |   |      | 551,625 |   |   |   | 545,850 |   |
|                                                            |   |   |   |   |   |      |    |   |   |   |   |   |
| Earnings per share attributable to shareholders of the Company: |   |   | 29     |   |   |      |    |   |   |   |   |   |
| Basic earnings per share                                        |   |   |   |   |   |      | 0.58    |   |   |   | 0.41 |   |
| Diluted earnings per share                                      |   |   |   |   |   |      | 0.58    |   |   |   | 0.40 |   |

----

| For the year ended December 31                                                              |   | Note   |   |   | 2011   |    |    | 2010   |   |
|---------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|---------|---------|--------|--------|
|                                                                                        |   |   |   |   |   |    |    |   |   |
| Profit for the year                                                                         |   |   |   |   |   | 347,223 |    |   |   | 238,458 |   |
| Other comprehensive income (loss):                                                          |   |   |   |   |   |    |    |   |   |   |   |
| Change in fair value of available-for-sale financial assets                                 |   |   |   |   |   | (989    | )       |   |   | 13,480 |   |
| Income tax on items taken to equity                                                         |   |   |   |   |   | 12      |    |   |   | (40 | ) |
| Reversal of unrealized gains on available-for-sale investments on acquisition of subsidiary |   |   |   |   |   | – |    |   |   | (11,424 | ) |
| Realized gains on disposal of available-for-sale financial assets transferred to net income |   |   |   |   |   | (794    | )       |   |   | (3,245 | ) |
| Actuarial losses on defined benefit pension plans                                           |   |   | 17     |   |   |    | (6,661  | )      |   |   | (2,635 | ) |
| Total other comprehensive (loss) income for the year                                        |   |   |   |   |   |    | (8,432  | )      |   |   | (3,864 | ) |
| Total comprehensive income for the year                                                     |   |   |   |   |   |    | 338,791 |   |   |   | 234,594 |   |
|                                                                                        |   |   |   |   |   |    |    |   |   |   |   |   |
| Attributable to:                                                                            |   |   |   |   |   |    |    |   |   |   |   |   |
| Shareholders of the Company                                                                 |   |   |   |   |   |    | 310,230 |   |   |   | 217,137 |   |
| Non-controlling interests                                                                   |   |   |   |   |   |    | 28,561  |   |   |   | 17,457 |   |
| Total comprehensive income for the year                                                     |   |   |   |   |   |    | 338,791 |   |   |   | 234,594 |   |

----

| For the year ended December 31                               |   | Note   |   |   | 2011   |    |     | 2010   |   |
|--------------------------------------------------------------|--------|--------|--------|--------|--------|---------|----------|--------|--------|
|                                                         |   |   |   |   |   |    |     |   |   |
| Cash flows generated from (used in):                         |   |   |   |   |   |    |     |   |   |
| Operating activities                                         |   |   |   |   |   |    |     |   |   |
| Profit for the year                                          |   |   |   |   |   | 347,223 |     |   |   | 238,458 |   |
| Items not affecting cash                                     |   |   |   |   |   |    |     |   |   |   |   |
| Asset retirement obligation accretion                        |   |   |   |   |   | 1,546   |     |   |   | 2,727 |   |
| Depreciation and amortization                                |   |   |   |   |   | 122,414 |     |   |   | 107,157 |   |
| Unrealized foreign exchange loss                             |   |   |   |   |   | 6,500   |     |   |   | 5,802 |   |
| Deferred income tax expense (recovery)                       |   |   |   |   |   | 1,804   |     |   |   | (8,083 | ) |
| Gain on disposal of assets                                   |   |   |   |   |   | (2,729  | )        |   |   | (592 | ) |
| Loss on investment in significantly influenced companies     |   |   |   |   |   | 4,225   |     |   |   | 531 |   |
| Gain on marketable securities                                |   |   |   |   |   | (664    | )        |   |   | (6,572 | ) |
| Share based payments                                         |   |   |   |   |   | 19,722  |     |   |   | 17,112 |   |
| Defined benefit plan expense                                 |   |   |   |   |   | 2,088   |     |   |   | 1,337 |   |
|                                                         |   |   |   |   |   | 502,129 |     |   |   | 357,877 |   |
|                                                         |   |   |   |   |   |    |     |   |   |   |   |
| Changes in non-cash working capital                          |   |   | 21     |   |   |    | 9,948    |   |   |   | (59,509 | ) |
|                                                         |   |   |   |   |   |    | 512,077  |   |   |   | 298,368 |   |
| Investing activities                                         |   |   |   |   |   |    |     |   |   |   |   |   |
| Acquisition of subsidiaries net of cash received             |   |   |   |   |   |    | –  |   |   |   | (6,083 | ) |
| Purchase of property, plant and equipment                    |   |   |   |   |   |    | (272,818 | )      |   |   | (226,296 | ) |
| Proceeds from the sale of property, plant and equipment      |   |   |   |   |   |    | 147      |   |   |   | 23,756 |   |
| Purchase of marketable securities                            |   |   |   |   |   |    | (1,823   | )      |   |   | (11,983 | ) |
| Proceeds from the sale of marketable securities              |   |   |   |   |   |    | 8,154    |   |   |   | 15,611 |   |
| Non-registered supplemental retirement plan investments, net |   |   |   |   |   |    | (7,045   | )      |   |   | – |   |
| Investments in significantly influenced companies            |   |   |   |   |   |    | (16,830  | )      |   |   | (6,727 | ) |
| Increase in restricted cash                                  |   |   |   |   |   |    | (2,957   | )      |   |   | (2,463 | ) |
| Increase in restricted assets and other                      |   |   |   |   |   |    | –  |   |   |   | (7,007 | ) |
|                                                         |   |   |   |   |   |    | (293,172 | )      |   |   | (221,192 | ) |
| Financing activities                                         |   |   |   |   |   |    |     |   |   |   |   |   |
| Issuance of common shares for cash                           |   |   |   |   |   |    | 31,600   |   |   |   | 35,907 |   |
| Dividend paid to non-controlling interests                   |   |   |   |   |   |    | (8,095   | )      |   |   | (7,580 | ) |
| Dividend paid to shareholders                                |   |   |   |   |   |    | (61,167  | )      |   |   | (26,357 | ) |
| Purchase of treasury stock                                   |   |   |   |   |   |    | (6,438   | )      |   |   | – |   |
| Long-term and bank debt proceeds                             |   |   |   |   |   |    | 5,782    |   |   |   | 59,839 |   |
| Long-term and bank debt repayments                           |   |   |   |   |   |    | (98,169  | )      |   |   | (90,010 | ) |
| Loan financing costs                                         |   |   |   |   |   |    | (2,999   | )      |   |   | – |   |
|                                                         |   |   |   |   |   |    | (139,486 | )      |   |   | (28,201 | ) |
| Net increase in cash and cash equivalents                    |   |   |   |   |   |    | 79,419   |   |   |   | 48,975 |   |
| Cash and cash equivalents - beginning of year                |   |   |   |   |   |    | 314,344  |   |   |   | 265,369 |   |
|                                                         |   |   |   |   |   |    |     |   |   |   |   |   |
| Cash and cash equivalents - end of year                      |   |   |   |   |   |    | 393,763  |   |   |   | 314,344 |   |

----

| For the year ended December 31,                          |   | 2011   |      |   | 2010   |   |
|----------------------------------------------------------|--------|--------|-----------|--------|--------|--------|
|                                                     |   | $      |      |   |   | $      |   |   |
| Share capital                                            |   |   |      |   |   |   |   |   |
| Balance beginning of year                                |   |   | 2,814,679 |   |   |   | 2,671,634 |   |
| Shares issued upon exercise of share options, for cash   |   |   | 30,115    |   |   |   | 35,895 |   |
| Transfer of contributed surplus on exercise of options   |   |   | 9,410     |   |   |   | 12,020 |   |
| Shares issued in consideration for interests acquired    |   |   | –   |   |   |   | 95,118 |   |
| Shares issued upon exercise of warrants, for cash        |   |   | 1,485     |   |   |   | 12 |   |
| Balance end of year                                      |   |   | 2,855,689 |   |   |   | 2,814,679 |   |
|                                                     |   |   |      |   |   |   |   |   |
| Treasury stock                                           |   |   |      |   |   |   |   |   |
| Balance beginning of year                                |   |   | –   |   |   |   | – |   |
| Purchase of treasury stock                               |   |   | (6,438    | )      |   |   | – |   |
| Shares redeemed upon exercise of restricted share units  |   |   | 2,420     |   |   |   | – |   |
| Balance end of year                                      |   |   | (4,018    | )      |   |   | – |   |
|                                                     |   |   |      |   |   |   |   |   |
| Contributed surplus                                      |   |   |      |   |   |   |   |   |
| Balance beginning of year                                |   |   | 22,967    |   |   |   | 17,865 |   |
| Share based payments                                     |   |   | 19,304    |   |   |   | 16,557 |   |
| Share based payments on Brazauro warrants and options    |   |   |      |   |   |   |   |   |
| converted                                                |   |   | –   |   |   |   | 565 |   |
| Shares redeemed upon exercise of restricted share units  |   |   | (2,420    | )      |   |   | – |   |
| Transfer to share capital on exercise of options         |   |   | (9,410    | )      |   |   | (12,020 | ) |
| Balance end of year                                      |   |   | 30,441    |   |   |   | 22,967 |   |
|                                                     |   |   |      |   |   |   |   |   |
| Accumulated other comprehensive (loss) income            |   |   |      |   |   |   |   |   |
| Balance beginning of year                                |   |   | (1,637    | )      |   |   | 2,227 |   |
| Other comprehensive (loss) income for the year           |   |   | (8,432    | )      |   |   | (3,864 | ) |
| Balance end of year                                      |   |   | (10,069   | )      |   |   | (1,637 | ) |
|                                                     |   |   |      |   |   |   |   |   |
| Retained earnings (deficit)                              |   |   |      |   |   |   |   |   |
| Balance beginning of year                                |   |   | 125,221   |   |   |   | (69,423 | ) |
| Dividends paid                                           |   |   | (61,167   | )      |   |   | (26,357 | ) |
| Profit attributable to shareholders of the Company       |   |   | 318,662   |   |   |   | 221,001 |   |
| Balance end of year                                      |   |   | 382,716   |   |   |   | 125,221 |   |
| Total equity attributable to shareholders of the Company |   |   | 3,254,759 |   |   |   | 2,961,230 |   |
|                                                     |   |   |      |   |   |   |   |   |
| Non-controlling interests                                |   |   |      |   |   |   |   |   |
| Balance beginning of year                                |   |   | 36,021    |   |   |   | 26,144 |   |
| Profit attributable to non-controlling interests         |   |   | 28,561    |   |   |   | 17,457 |   |
| Dividends paid                                           |   |   | (8,095    | )      |   |   | (7,580 | ) |
| Balance end of year                                      |   |   | 56,487    |   |   |   | 36,021 |   |
|                                                     |   |   |      |   |   |   |   |   |
| Total equity                                             |   |   | 3,311,246 |   |   |   | 2,997,251 |   |

----

| 1.   | General Information |
|----------------|---------------------|

| 2.   | Basis of preparation and first-time adoption of IFRS |
|----------------|------------------------------------------------------|

|   | ● | IFRS 9 ‘Financial Instruments: Classification and Measurement’ – This is the first part of a new standard on classification and measurement of financial assets that will replace IAS 39, ‘Financial Instruments: Recognition and Measurement’. IFRS 9 has two measurement categories: amortized cost and fair value. All equity instruments are measured at fair value. A debt instrument is recorded at amortized cost only if the entity is holding it to collect contractual cash flows and the cash flows represent principal and interest. Otherwise it is measured at fair value with changes in fair value through profit or loss. In addition, this new standard has been updated to include guidance on financial liabilities and derecognition of financial instruments. This standard is effective for years beginning on or after January 1, 2015. The extent of the impact of adoption of IFRS 9 has not yet been determined. |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|   | ● | IFRS 11 ‘Joint Arrangements’ – This standard replaces the guidance in IAS 31 Interests in Joint Ventures.  Under IFRS 11, joint arrangements are classified as either joint operations or joint ventures.  Joint venture entities are now accounted for using the equity method.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |

----

| 2.   | Basis of preparation and first-time adoption of IFRS (continued) |
|----------------|------------------------------------------------------------------|

|   | ● | IFRS 12 ‘Disclosure of Interests in Other Entities’ – This IFRS shall be applied by companies with an interest in subsidiaries, joint arrangements, associates or unconsolidated structured entities.  The application of this standard intends to enable users of the financial statements to evaluate the nature of and risks associated with its interests in other entities, and the effects of those interests on its financial position, financial performance and cash flows. Companies will be required to disclose information about significant judgments and assumptions made in determining the control of another entity, the joint control of an arrangement or significant influence over another entity and the type of joint arrangement when the arrangement has been structured through a separate vehicle.  This standard is effective for years beginning on or after January 1, 2013.   The Company does not expect IFRS 12 to have a material impact on the consolidated financial statements.                                                                                                                                                                                                                                                                                                                                              |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   | ● | IFRS 13, ‘Fair value measurement’, aims to improve consistency and reduce complexity by providing a precise definition of fair value and a single source of fair value measurement and disclosure requirements for use across IFRS. The requirements do not extend the use of fair value accounting but provide guidance on how it should be applied where its use is already required or permitted by other standards within IFRS. The Company is yet to assess IFRS 13’s full impact and intends to adopt IFRS 13 no later than the accounting period beginning on or after January 1, 2013.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   | ● | IFRIC 20 ‘Stripping costs in the production phase of a surface mine’ – This interpretation applies to waste removal costs that are incurred in open pit mining activity during the production phase of the mine.  Recognition of a stripping activity asset requires the asset to be related to an identifiable component of the ore body.  Stripping costs that relate to inventory produced should be accounted for as a current production cost in accordance with IAS 2, ‘Inventories’. Stripping costs that generate a benefit of improved access and meet the definition of an asset should be accounted for as an addition to an existing asset.  Existing stripping costs on the balance sheet at transition that do not relate to a specific ore body should be written off to opening retained earnings. The stripping activity asset shall be depreciated on a systematic basis, over the expected useful life of the identified component of the ore body that becomes more accessible as a result of the stripping activity.  This interpretation is effective for years beginning on or after January 1, 2013. The Company does not expect IFRIC 20 to have a material impact on the consolidated financial statements as the Company currently applies comparable principles to those found in this interpretation. |
|   |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   | ● | There are no other IFRS or IFRIC interpretations that are not yet effective that would be expected to have a material impact on the Company.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |

| 3. | Significant accounting policies |
|----|---------------------------------|

----

| 3. | Significant accounting policies (continued) |
|----|---------------------------------------------|

| Subsidiary                                                                    | Location | Ownership interest | Status       | Operations and development projects owned |
|-------------------------------------------------------------------------------|----------|--------------------|--------------|-------------------------------------------|
| Qinghai Dachaidan Mining Ltd (“QDML”)                             | China    | 90%                | Consolidated | TJS Mine                                  |
| Tüprag Metal Madencilik Sanayi ve Ticaret AS (“Tüprag”) | Turkey   | 100%               | Consolidated | Kişladağ MineEfemcukuru Mine    |
| Unamgen Mineração e Metalurgia S/A                                  | Brazil   | 100%               | Consolidated | Vila Nova Iron Ore Mine                   |
| Thracean Gold Mining SA                                                       | Greece   | 100%               | Consolidated | Perama Hill Project                       |
| Sino Guizhou Jinfeng Mining Limited                                           | China    | 82%                | Consolidated | Jinfeng Mine                              |
| Sino Gold Jilin BMZ Mining Limited                                            | China    | 95%                | Consolidated | White Mountain Mine                       |
| Heihe Rockmining Limited                                                      | China    | 95%                | Consolidated | Eastern Dragon Project                    |
| Brazauro Resources Corporation (“Brazauro”)                       | Brazil   | 100%               | Consolidated | Tocantinzinho Project                     |

----

| 3. | Significant accounting policies (continued) |
|----|---------------------------------------------|

----

| 3. | Significant accounting policies (continued) |
|----|---------------------------------------------|

| i)    | establishing the volume and grade of deposits through drilling of core samples, trenching and sampling activities in an ore body that is classified as either a mineral resource or a proven and probable reserve; |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ii)    | determining the optimal methods of extraction and metallurgical and treatment processes; |
|------------------|------------------------------------------------------------------------------------------|

| iii)    | studies related to surveying, transportation and infrastructure requirements; |
|-------------------|-------------------------------------------------------------------------------|

| iv)    | permitting activities, and; |
|------------------|-----------------------------|

| v)    | economic evaluations to determine whether development of the mineralized material is commercially justified, including scoping, prefeasibility and final feasibility studies. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 3. | Significant accounting policies (continued) |
|----|---------------------------------------------|

|   | ● | There is a probable future benefit that will contribute to future cash inflows; |
|--------|---------|---------------------------------------------------------------------------------|
|   | ● | The Company can obtain the benefit and control access to it, and;               |
|   | ● | The transaction or event giving rise to the benefit has already occurred.       |

----

| 3. | Significant accounting policies (continued) |
|----|---------------------------------------------|

----

| 3. | Significant accounting policies (continued) |
|----|---------------------------------------------|

| i)     | Product inventory consists of stockpiled ore, ore on leach pads, crushed ore, in-circuit material at properties with milling or processing operations, doré awaiting refinement and unsold bullion. Product inventory costs consist of direct production costs including mining, crushing and processing; site administration costs; and allocated indirect costs, including depreciation and amortization of property, plant and equipment. |
|-----------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ii)     | Materials and supplies inventory consists of consumables used in operations, such as fuel, chemicals, reagents and spare parts, which are valued at the lower of average cost and net realisable value and, where appropriate, less a provision for obsolescence. Costs include acquisition, freight and other directly attributable costs. |
|------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 3. | Significant accounting policies (continued) |
|----|---------------------------------------------|

----

| 3. | Significant accounting policies (continued) |
|----|---------------------------------------------|

----

| 3. | Significant accounting policies (continued) |
|----|---------------------------------------------|

| 4. | Critical accounting estimates and judgements |
|----|----------------------------------------------|

----

| 4. | Critical accounting estimates and judgements (continued) |
|----|----------------------------------------------------------|

| 5. | Cash and cash equivalents |
|----|---------------------------|

|                     | December 31, 2011$ | December 31, 2010$ | January 1, 2010$ |
|--------------------------|--------------------|--------------------|------------------|
| Cash at bank and on hand | 387,761            | 312,844            | 264,669          |
| Short-term bank deposits | 6,002              | 1,500              | 700              |
|                     | 393,763            | 314,344            | 265,369          |

| 6. | Restricted cash |
|----|-----------------|

|                                                          | December 31, 2011$ | December 31, 2010$ | January 1,2010$ |
|---------------------------------------------------------------|--------------------|--------------------|-----------------|
|                                                          |               |               |            |
| Eastern Dragon CMB standby letter of credit loan (Note 15(e)) | 52,390             | 52,425             | –         |
| Unamgen HSBC letter of credit                                 | 3,000              | –            | –         |
| Eastern Dragon CCB loan (Note 15(g))                          | –            | –            | 50,000          |
|                                                          | 55,390             | 52,425             | 50,000          |

| 7. | Marketable securities |
|----|-----------------------|

| 8. | Accounts receivable and other |
|----|-------------------------------|

|                                    | December 31, 2011$ | December 31, 2010$ | January 1, 2010$ |
|-----------------------------------------|--------------------|--------------------|------------------|
| Trade receivables                       | 7,037              | 7,233              | –          |
| Value added and other taxes recoverable | 7,679              | 4,196              | 5,956            |
| Other receivables and advances          | 5,528              | 8,990              | 9,123            |
| Prepaid expenses and deposits           | 22,065             | 22,018             | 11,355           |
|                                    | 42,309             | 42,437             | 26,434           |

----

| 9. | Inventories |
|----|-------------|

|                                     | December 31, 2011$ | December 31, 2010$ | January 1,2010$ |
|------------------------------------------|--------------------|--------------------|-----------------|
| Current                                  |               |               |            |
| Ore stockpiles                           | 47,544             | 39,483             | 37,503          |
| In-process inventory including doré | 50,583             | 62,366             | 56,098          |
| Materials and supplies                   | 65,930             | 45,414             | 35,596          |
|                                     | 164,057            | 147,263            | 129,197         |
| Non-current                              |               |               |            |
| Ore stockpiles                           | 19,112             | 15,659             | 15,987          |
| In-process inventory                     | 7,799              | 13,968             | 15,547          |
|                                     | 26,911             | 29,627             | 31,534          |

| 10. |  Investments in significantly influenced companies |
|-----|---------------------------------------------------------|

|                                     | December 31, 2011$ | December 31, 2010$ | January 1, 2010$ |
|------------------------------------------|--------------------|--------------------|------------------|
|                                     |               |               |             |
| Serabi Mining Plc (“Serabi”) | 3,646              | 6,202              | –          |
| Kopy Goldfields (“Kopy”)     | 3,959              | –            | –          |
| Glory Resources (“Glory”)    | 11,203             | –            | –          |
|                                     | 18,808             | 6,202              | –          |

|                      |   | 2011   |   |   | 2010   |   |
|---------------------------|--------|--------|--------|--------|--------|--------|
|                      |   |   | $      |   |   |   | $ |   |
| Balance at January 1,     |   |   | 6,202  |   |   |   | – |   |
| Purchases during the year |   |   | 1,318  |   |   |   | 6,727 |   |
| Equity loss for the year  |   |   | (3,874 | )      |   |   | (525 | ) |
| Balance at December 31,   |   |   | 3,646  |   |   |   | 6,202 |   |

----

| 10. |  Investments in significantly influenced companies (continued) |
|-----|---------------------------------------------------------------------|

|                       |   | 2011   |    |
|----------------------------|--------|--------|---------|
|                       |   |   | $       |   |
| Balance at January 1,      |   |   | – |   |
| Purchases during the year  |   |   | 4,273   |   |
| Equity loss for the period |   |   | (314    | ) |
| Balance at December 31,    |   |   | 3,959   |   |

|                       |   | 2011   |    |
|----------------------------|--------|--------|---------|
|                       |   |   | $       |   |
| Balance at January 1,      |   |   | – |   |
| Purchases during the year  |   |   | 11,240  |   |
| Equity loss for the period |   |   | (37     | ) |
| Balance at December 31,    |   |   | 11,203  |   |

| 11. | Restricted assets and other |
|-----|-----------------------------|

|                                                | December 31, 2011$ | December 31, 2010$ | January 1, 2010$ |
|-----------------------------------------------------|--------------------|--------------------|------------------|
| Restricted non-current asset – SERP (Note 17) | 14,456             | 7,872              | 7,066            |
| Restricted credit card deposits                     | 648                | 656                | 618              |
| Restricted non-current marketable securities        | –            | –            | 156              |
|                                                | 15,104             | 8,528              | 7,840            |
| Non-current accounts receivable                     | 369                | 352                | 2,477            |
| Prepaid loan costs (Note 15(i))                     | 2,849              | –            | –          |
| Environmental guarantee deposits                    | 12,304             | 10,448             | 3,442            |
| Deposit on land acquisition at Jinfeng              | 7,804              | –            | –          |
|                                                | 38,430             | 19,328             | 13,759           |

----

| 12. | Property, plant and equipment |
|-----|-------------------------------|

|                                               |   | Land and buildings |    |   | Plant and equipment |   |     | Capital works in progress |   |   | Mineral properties and leases |   |   | Total  |      |
|----------------------------------------------------|--------|--------------------|---------|--------|---------------------|--------|----------|---------------------------|--------|--------|-------------------------------|--------|--------|--------|-----------|
|                                               |   |               | $       |   |                |   | $        |                      |   |   | $                             |   |   |   | $         |   |   |   | $ |   |
| Cost                                               |   |               |    |   |                |   |     |                      |   |   |                          |   |   |   |      |   |   |   |   |   |
| Balance at January 1, 2010                         |   |               | 259,068 |   |                |   | 612,347  |                      |   |   | 95,810                        |   |   |   | 1,723,178 |   |   |   | 2,690,403 |   |
| Acquisition of Brazauro                            |   |               | – |   |                |   | 118      |                      |   |   | –                       |   |   |   | 108,282   |   |   |   | 108,400 |   |
| Additions                                          |   |               | 25,585  |   |                |   | 120,713  |                      |   |   | 44,475                        |   |   |   | 71,083    |   |   |   | 261,856 |   |
| Finalization of purchase price allocation for Sino |   |               | – |   |                |   | –  |                      |   |   | –                       |   |   |   | (58,523   | ) |   |   | (58,523 | ) |
| Other movements                                    |   |               | – |   |                |   | 268      |                      |   |   | –                       |   |   |   | 261       |   |   |   | 529 |   |
| Disposals and writedown of mineral interests       |   |               | (724    | )      |                |   | (4,549   | )                         |   |   | –                       |   |   |   | (25,596   | ) |   |   | (30,869 | ) |
| Balance at December 31, 2010                       |   |               | 283,929 |   |                |   | 728,897  |                      |   |   | 140,285                       |   |   |   | 1,818,685 |   |   |   | 2,971,796 |   |
|                                               |   |               |    |   |                |   |     |                      |   |   |                          |   |   |   |      |   |   |   |   |   |
| Balance at January 1, 2011                         |   |               | 283,929 |   |                |   | 728,897  |                      |   |   | 140,285                       |   |   |   | 1,818,685 |   |   |   | 2,971,796 |   |
| Additions/transfers                                |   |               | 58,067  |   |                |   | 185,012  |                      |   |   | (81,593                       | )      |   |   | 118,299   |   |   |   | 279,785 |   |
| Other movements                                    |   |               | – |   |                |   | (6,303   | )                         |   |   | –                       |   |   |   | -         |   |   |   | (6,303 | ) |
| Disposals                                          |   |               | (345    | )      |                |   | (1,418   | )                         |   |   | –                       |   |   |   | (3,430    | ) |   |   | (5,193 | ) |
| Balance at December 31, 2011                       |   |               | 341,651 |   |                |   | 906,188  |                      |   |   | 58,692                        |   |   |   | 1,933,554 |   |   |   | 3,240,085 |   |
|                                               |   |               |    |   |                |   |     |                      |   |   |                          |   |   |   |      |   |   |   |   |   |
| Depreciation and impairment losses                 |   |               |    |   |                |   |     |                      |   |   |                          |   |   |   |      |   |   |   |   |   |
| Balance at January 1, 2010                         |   |               | (35,558 | )      |                |   | (120,662 | )                         |   |   | –                       |   |   |   | (6,616    | ) |   |   | (162,836 | ) |
| Depreciation for the year                          |   |               | (22,412 | )      |                |   | (56,411  | )                         |   |   | –                       |   |   |   | (32,124   | ) |   |   | (110,947 | ) |
| Disposals                                          |   |               | 273     |   |                |   | 1,501    |                      |   |   | –                       |   |   |   | -         |   |   |   | 1,774 |   |
| Balance at December 31, 2010                       |   |               | (57,697 | )      |                |   | (175,572 | )                         |   |   | –                       |   |   |   | (38,740   | ) |   |   | (272,009 | ) |
|                                               |   |               |    |   |                |   |     |                      |   |   |                          |   |   |   |      |   |   |   |   |   |
| Balance at January 1, 2011                         |   |               | (57,697 | )      |                |   | (175,572 | )                         |   |   | –                       |   |   |   | (38,740   | ) |   |   | (272,009 | ) |
| Depreciation for the year                          |   |               | (31,712 | )      |                |   | (63,869  | )                         |   |   | –                       |   |   |   | (27,611   | ) |   |   | (123,192 | ) |
| Disposals                                          |   |               | 1,847   |   |                |   | 1,179    |                      |   |   | –                       |   |   |   | –   |   |   |   | 3,026 |   |
| Balance at December 31, 2011                       |   |               | (87,562 | )      |                |   | (238,262 | )                         |   |   | –                       |   |   |   | (66,351   | ) |   |   | (392,175 | ) |
|                                               |   |               |    |   |                |   |     |                      |   |   |                          |   |   |   |      |   |   |   |   |   |
| Carrying amounts                                   |   |               |    |   |                |   |     |                      |   |   |                          |   |   |   |      |   |   |   |   |   |
| At January 1, 2010                                 |   |               | 223,510 |   |                |   | 491,685  |                      |   |   | 95,810                        |   |   |   | 1,716,562 |   |   |   | 2,527,567 |   |
| At December 31, 2010                               |   |               | 226,232 |   |                |   | 553,325  |                      |   |   | 140,285                       |   |   |   | 1,779,945 |   |   |   | 2,699,787 |   |
| Balance at December 31, 2011                       |   |               | 254,089 |   |                |   | 667,926  |                      |   |   | 58,692                        |   |   |   | 1,867,203 |   |   |   | 2,847,910 |   |

----

| 13. | Goodwill |
|-----|----------|

|                                                 | 2011    | 2010    |
|------------------------------------------------------|---------|---------|
|                                                 | $       | $       |
| Cost                                                 |    |    |
| Balance at January 1,                                | 365,928 | 324,935 |
| Adjustments to preliminary purchase price allocation | – | 40,993  |
| Balance at December 31,                              | 365,928 | 365,928 |

|              | 2011            | 2010            |
|-------------------|-----------------|-----------------|
| Gold price ($/oz) | $1,300 - $1,700 | $1,050 - $1,400 |
| Discount rate     | 7% - 9%         | 7% - 9%         |

----

| 14. | Accounts payable and accrued liabilities |
|-----|------------------------------------------|

|                | December 31, 2011$ | December 31, 2010$ | January 1, 2010$ |
|---------------------|--------------------|--------------------|------------------|
| Trade payables      | 67,056             | 55,786             | 27,786           |
| HST and other taxes | 40,256             | 26,627             | 28,630           |
| Accrued expenses    | 61,055             | 63,282             | 96,620           |
|                | 168,367            | 145,695            | 153,036          |

| 15. | Debt |
|-----|------|

|                                                   | December 31, 2011$ | December 31, 2010$ | January 1, 2010$ |
|--------------------------------------------------------|--------------------|--------------------|------------------|
| Current:                                               |               |               |             |
| Jinfeng construction loan  (a)               | 19,929             | 21,139             | –          |
| White Mountain fixed asset project loan  (c) | –            | 9,749              | 3,633            |
| White Mountain working capital project loan (c)        | –            | 6,176              | 5,991            |
| White Mountain working capital loan (d)                | –            | 7,549              | –          |
| Eastern Dragon CMB standby letter of credit loan (e)   | 50,786             | 48,317             | –          |
| Eastern Dragon HSBC revolving loan facility (f)        | 10,316             | 5,593              | –          |
| Eastern Dragon CCB loan (g)                            | –            | –            | 46,875           |
|                                                   | 81,031             | 98,523             | 56,499           |
| Non-current:                                           |               |               |             |
| Jinfeng construction loan  (a)               | –            | 52,951             | 97,867           |
| White Mountain fixed asset project loan  (c) | –            | 15,189             | 24,214           |
| Jinfeng working capital loan (b)                       | –            | –            | 12,452           |
|                                                   | –            | 68,140             | 134,533          |
| Total debt                                             | 81,031             | 166,663            | 191,032          |

|   | i)        | Sino Gold corporate guarantee;                                   |
|--------|-----------|------------------------------------------------------------------|
|   | ii)  | pledge all shares held by Sino Gold in Jinfeng;                  |
|   | iii)      | mortgage on all fixed assets of Jinfeng with a value above $100; |
|   | iv)       | mortgage on Jinfeng mining license and exploration license; and  |
|   | v)        | mortgage on land use right.                                      |

----

| 15. | Debt (continued) |
|-----|------------------|

----

| 15. | Debt (continued) |
|-----|------------------|

| i)   | A 5 year term, RMB 320.0 million ($50,786) long term loan (“the long term loan”) to replace the LC loan with CCB; |
|----------------|-------------------------------------------------------------------------------------------------------------------------------|

| ii)   | A 4 year term RMB 100.0 million ($15,871) fixed asset loan (“the fixed asset loan”); and |
|-----------------|------------------------------------------------------------------------------------------------------|

| iii)   | A one year term RMB 30.0 million ($4,761) working capital loan (“the working capital loan”). |
|------------------|----------------------------------------------------------------------------------------------------------|

----

| 15. | Debt (continued) |
|-----|------------------|

| 1.    | Obtain project approval from the Heilongjiang Provincial Development and Reform Commission; |
|-----------------|---------------------------------------------------------------------------------------------|

| 2.    | Sino Gold to open an offshore banking business bank account with CMB and deposit $40,000; |
|-----------------|------------------------------------------------------------------------------------------------|

| 3.    | The aggregate of the amount deposited in the offshore account, Eastern Dragon registered capital and shareholder loan is at least $84,660 (this threshold has been reached as at December 31, 2009). |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| i)   | The project obtains the mining license; |
|----------------|-----------------------------------------|

| ii)   | The project has been developed and in production; |
|-----------------|---------------------------------------------------|

| iii)   | The gold operation permit has been granted; and |
|------------------|-------------------------------------------------|

| iv)   | The safety production permit and environmental protection permit have been granted. |
|-----------------|-------------------------------------------------------------------------------------|

----

| 15. | Debt (continued) |
|-----|------------------|

| 16. | Asset retirement obligations |
|-----|------------------------------|

|                                | Asset retirement obligations |
|-------------------------------------|------------------------------|
|                                | Brazil                       | China | Turkey | Total |
|                                | $                            | $ | $ | $ |
| At January 1, 2010                  | 1,062                        | 20,555 | 5,378 | 26,995 |
| Accretion during the year           | 95                           | 2,268 | 364 | 2,727 |
| Revisions to estimate of obligation | 1,684                        | (5,720) | 7,542 | 3,506 |
| At December 31, 2010                | 2,841                        | 17,103 | 13,284 | 33,228 |
| Estimated undiscounted amount       | 3,805                        | 22,658 | 39,533 | 65,996 |
|                                |                         |   |   |   |
| At January 1, 2011                  | 2,841                        | 17,103 | 13,284 | 33,228 |
| Accretion during the year           | 135                          | 855 | 556 | 1,546 |
| Revisions to estimate of obligation | 269                          | 1,991 | 6,179 | 8,439 |
| At December 31, 2011                | 3,245                        | 19,949 | 20,019 | 43,213 |
| Estimated undiscounted amount       | 4,281                        | 25,788 | 51,640 | 81,709 |

|                 | Brazil | China      | Turkey     |
|----------------------|--------|------------|------------|
|                 | %      | %          | %          |
| At January 1, 2010   |   |       |       |
| Inflation rate       | 2.5    | 2.5 to 3.3 | 2.5        |
| Discount rate        | 4.4    | 4.4 to 7.0 | 4.6        |
|                 |   |       |       |
| At December 31, 2010 |   |       |       |
| Inflation rate       | 5.0    | 4.0        | 5.0        |
| Discount rate        | 3.3    | 2.0 to 3.3 | 4.1 to 4.3 |
|                 |   |       |       |
| At December 31, 2011 |   |       |       |
| Inflation rate       | 3.5    | 3.5        | 3.5        |
| Discount rate        | 3.1    | 3.1        | 3.1        |

----

| 17. | Defined benefit plans |
|-----|-----------------------|

|                                      | December 31, 2011 | December 31, 2010 |
|-------------------------------------------|-------------------|-------------------|
| $                                         | $                 |
| Balance sheet obligations for:            |              |              |
| Pension plan                              | 388               | 329               |
| Non-registered supplementary pension plan | 19,581            | 11,690            |
|                                      | 19,969            | 12,019            |

|                                                                                                  | Year ended December 31, 2011 | Year ended December 31, 2010 |
|-------------------------------------------------------------------------------------------------------|------------------------------|------------------------------|
|                                                                                                  | $                            | $                            |
| Income statement charge for:                                                                          |                         |                         |
| Pension plan                                                                                          | 118                          | 132                          |
| Non-registered supplementary pension plan                                                             | 1,970                        | 1,205                        |
|                                                                                                  | 2,088                        | 1,337                        |
|                                                                                                  |                         |                         |
| Actuarial losses recognised in the statement of other comprehensive income in the period (before tax) | 6,661                        | 2,635                        |
| Cumulative actuarial losses recognised in the statement of other comprehensive income (before tax)    | 9,296                        | 2,635                        |

|                              | 2012 | 2013 | 2014  | 2015  | 2016  | 2017 and later |
|-----------------------------------|------|------|-------|-------|-------|----------------|
|                              | $    | $    | $     | $     | $     | $              |
| Estimated future pension payments | 169  | 228  | 1,280 | 1,280 | 1,488 | 1,490          |

----

| 17. | Defined benefit plans (continued) |
|-----|-----------------------------------|

|                                |   | December 31, 2011 |   |   | December 31, 2010 |   |
|-------------------------------------|--------|-------------------|--------|--------|-------------------|--------|
|                                |   | Pension Plan      |   |   | SERP              |   |   | Pension Plan |   |   | SERP |   |
|                                |   |              | $      |   |              |   | $ |   |   |   | $ |   |   |   | $ |   |
| Present value of funded obligations |   |              | 2,101  |   |              |   | 19,581 |   |   |   | 1,609 |   |   |   | 11,690 |   |
| Fair value of plan assets           |   |              | (1,713 | )      |              |   | – |   |   |   | (1,280 | ) |   |   | – |   |
| Liability on balance sheet          |   |              | 388    |   |              |   | 19,581 |   |   |   | 329 |   |   |   | 11,690 |   |

|                    |   | 2011         |    |   | 2010   |   |
|-------------------------|--------|--------------|---------|--------|--------|--------|
|                    |   | Pension Plan |    |   | SERP   |   |   | Total |   |   | Pension Plan |   |   | SERP |   |   | Total |   |
|                    |   |         | $       |   |   |   | $ |   |   |   | $ |   |   |   | $ |   |   |   | $ |   |   |   | $ |   |
| Balance at January 1,   |   |         | 1,609   |   |   |   | 11,690 |   |   |   | 13,299 |   |   |   | 1,268 |   |   |   | 7,685 |   |   |   | 8,953 |   |
| Current service cost    |   |         | 120     |   |   |   | 1,292 |   |   |   | 1,412 |   |   |   | 127 |   |   |   | 705 |   |   |   | 832 |   |
| Interest cost           |   |         | 92      |   |   |   | 678 |   |   |   | 770 |   |   |   | 81 |   |   |   | 500 |   |   |   | 581 |   |
| Actuarial losses        |   |         | 265     |   |   |   | 6,396 |   |   |   | 6,661 |   |   |   | 64 |   |   |   | 2,571 |   |   |   | 2,635 |   |
| Benefit payments        |   |         | – |   |   |   | (174 | ) |   |   | (174 | ) |   |   | – |   |   |   | (167 | ) |   |   | (167 | ) |
| Exchange variance       |   |         | 15      |   |   |   | (301 | ) |   |   | (286 | ) |   |   | 69 |   |   |   | 396 |   |   |   | 465 |   |
| Balance at December 31, |   |         | 2,101   |   |   |   | 19,581 |   |   |   | 21,682 |   |   |   | 1,609 |   |   |   | 11,690 |   |   |   | 13,299 |   |

|                           |   | 2011         |   |   | 2010   |   |
|--------------------------------|--------|--------------|--------|--------|--------|--------|
|                           |   | Pension Plan |   |   | SERP   |   |   | Pension Plan |   |   | SERP |   |
|                           |   |         | $      |   |   |   | $ |   |   |   | $ |   |   |   | $ |   |
| At January 1,                  |   |         | 1,280  |   |   |   | – |   |   |   | 1,137 |   |   |   | – |   |
| Expected return on plan assets |   |         | 94     |   |   |   | – |   |   |   | 76 |   |   |   | – |   |
| Actuarial gains and losses     |   |         | 58     |   |   |   | – |   |   |   | – |   |   |   | – |   |
| Contributions by employer      |   |         | 322    |   |   |   | – |   |   |   | – |   |   |   | – |   |
| Exchange variance              |   |         | (41    | )      |   |   | – |   |   |   | 67 |   |   |   | – |   |
| At December 31,                |   |         | 1,713  |   |   |   | – |   |   |   | 1,280 |   |   |   | – |   |

----

| 17. | Defined benefit plans (continued) |
|-----|-----------------------------------|

|                           |   | 2011         |   |   | 2010   |   |
|--------------------------------|--------|--------------|--------|--------|--------|--------|
|                           |   | Pension Plan |   |   | SERP   |   |   | Pension Plan |   |   | SERP |   |
|                           |   |         | $      |   |   |   | $ |   |   |   | $ |   |   |   | $ |   |
| Current service cost           |   |         | 120    |   |   |   | 1,292 |   |   |   | 127 |   |   |   | 705 |   |
| Interest cost                  |   |         | 92     |   |   |   | 678 |   |   |   | 81 |   |   |   | 500 |   |
| Expected return on plan assets |   |         | (94    | )      |   |   | – |   |   |   | (76 | ) |   |   | – |   |
| Defined benefit plans expense  |   |         | 118    |   |   |   | 1,970 |   |   |   | 132 |   |   |   | 1,205 |   |

|                                                                              | 2011         | 2010      |
|-----------------------------------------------------------------------------------|--------------|-----------|
|                                                                              | Pension Plan | SERP      | Pension Plan | SERP |
|                                                                              | %            | %         | % | % |
| Expected return on plan assets                                                    | 6.5          | 6.5       | 6.5 | 6.5 |
| Discount rate - beginning of year                                                 | 5.5          | 5.5       | 6.0 | 6.0 |
| Discount rate - end of year                                                       | 4.5          | 4.5       | 5.5 | 5.5 |
| Rate of salary escalation                                                         | 3.0          | 3.0       | 4.5 | 4.5 |
| Average remaining service period of active employees expected to receive benefits | 6.7 years    | 6.7 years | 5 years | 5 years |

|                 | December 31, 2011 |   | December 31, 2010 |
|----------------------|-------------------|--------|-------------------|
|                 | Pension Plan      |   | SERP              |   | Pension Plan |   | SERP |
| Cash and equivalents | 2%                |   | 2%                |   | 4% |   | 4% |
| Fixed income         | 98%               |   | 43%               |   | 96% |   | 51% |
| Equity               | –           |   | 55%               |   | – |   | 45% |
| Total                | 100%              |   | 100%              |   | 100% |   | 100% |

|                   | Change in assumption      | Impact on overall liability |
|------------------------|---------------------------|-----------------------------|
| Discount rate          | Increase by 0.5%          | Decrease by 6.2%            |
|                   | Decrease by 0.5%          | Increase by 6.9%            |
| Salary escalation rate | Increase/decrease by 0.5% | Increase/decrease by 0.2%   |

----

| 18. | Income tax expense and deferred taxes |
|-----|---------------------------------------|

|                            |   | December 31, |    |   | December 31, |   |
|---------------------------------|--------|--------------|---------|--------|--------------|--------|
|                            |   | 2011         |    |   | 2010         |   |
|                            |   |         | $       |   |         |   | $ |   |
| Current tax expense             |   |         | 163,783 |   |         |   | 95,022 |   |
| Deferred tax expense (recovery) |   |         | 1,804   |   |         |   | (8,083 | ) |
|                            |   |         | 165,587 |   |         |   | 86,939 |   |

|                |   |   | 2011    | 2010    |
|---------------------|--------|--------|---------|---------|
|                |   |   | $       | $       |
| Turkey              |   |   | 94,781  | 47,780  |
| China               |   |   | 70,131  | 38,876  |
| Greece              |   |   | 260     | – |
| Brazil              |   |   | 125     | – |
| Canada              |   |   | 172     | 283     |
| Other jurisdictions |   |   | 118     | – |
|                |   |   | 165,587 | 86,939  |

|                                                             |   | 2011   |    |   | 2010   |   |
|------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|
|                                                             |   |   | $       |   |   |   | $ |   |
| Profit before income tax                                    |   |   | 512,810 |   |   |   | 325,397 |   |
| Canadian statutory tax rate                                 |   |   | 26.50   | %      |   |   | 28.50 | % |
| Tax on profit at Canadian statutory tax rate                     |   |   | 135,895 |   |   |   | 92,738 |   |
|                                                             |   |   |    |   |   |   |   |   |
| Items that cause an increase (decrease) in income tax expense:   |   |   |    |   |   |   |   |   |
|                                                             |   |   |    |   |   |   |   |   |
| Foreign income subject to different income tax rates than Canada |   |   | (23,973 | )      |   |   | (23,463 | ) |
| Derecognition (initial recognition) of deferred tax assets       |   |   | (7,634  | )      |   |   | – |   |
| Non-tax effected operating losses and capital gains              |   |   | 16,593  |   |   |   | 9,488 |   |
| Non-deductible expenses and other items                          |   |   | 9,302   |   |   |   | 8,118 |   |
| Foreign exchange and other translation adjustments               |   |   | 18,699  |   |   |   | (2,702 | ) |
| Amounts under (over) provided in prior years                     |   |   | 5,800   |   |   |   | (518 | ) |
| Withholding tax on foreign income                           |   |   | 10,905  |   |   |   | 3,278 |   |
| Income tax expense                                          |   |   | 165,587 |   |   |   | 86,939 |   |

----

| 18. | Income tax expense and deferred taxes (continued) |
|-----|---------------------------------------------------|

|                                                           |   | 2011   |     |   | 2010   |   |
|----------------------------------------------------------------|--------|--------|----------|--------|--------|--------|
|                                                           |   |   | $        |   |   |   | $ |   |
| Net deferred tax asset (liability)                        |   |   |     |   |   |   |   |   |
| Balance at January 1,                                     |   |   | (330,512 | )      |   |   | (355,425 | ) |
| Deferred income tax (expense) recovery in the income statement |   |   | (1,804   | )      |   |   | 8,083 |   |
| Deferred income tax charged to other comprehensive income      |   |   | (12      | )      |   |   | 40 |   |
| Adjustments to acquisitons                                |   |   | –  |   |   |   | 16,474 |   |
| Other                                                     |   |   | 8        |   |   |   | 316 |   |
| Net balance at December 31,                               |   |   | (332,320 | )      |   |   | (330,512 | ) |

| Type of temporary difference  |   | Deferred tax assets |   |   | Deferred tax liabilities |   |    | Expense (recovery)on the income statement |   |
|-------------------------------|--------|---------------------|--------|--------|--------------------------|--------|---------|-------------------------------------------|--------|
|                          |   | 2011                |   |   | 2010                     |   |    | 2011                                      |   |   | 2010 |   |   | 2011 |   |   | 2010 |   |
|                          |   |                | $      |   |                     |   | $       |                                      |   |   | $ |   |   |   | $ |   |   |   | $ |   |   |   | $ |   |
| Property, plant and equipment |   |                | 1,838  |   |                     |   | 3,286   |                                      |   |   | 346,687 |   |   |   | 338,876 |   |   |   | 9,259 |   |   |   | (9,463 | ) |
| Loss carryforwards       |   |                | 11,142 |   |                     |   | 6,581   |                                      |   |   | – |   |   |   | – |   |   |   | (4,561 | ) |   |   | 833 |   |
| Liabilities              |   |                | 11,534 |   |                     |   | 7,678   |                                      |   |   | 6,365 |   |   |   | 494 |   |   |   | 2,015 |   |   |   | (1,257 | ) |
| Other items              |   |                | 1,536  |   |                     |   | – |                                      |   |   | 5,318 |   |   |   | 8,687 |   |   |   | (4,909 | ) |   |   | 1,804 |   |
| Balance at December 31,  |   |                | 26,050 |   |                     |   | 17,545  |                                      |   |   | 358,370 |   |   |   | 348,057 |   |   |   | 1,804 |   |   |   | (8,083 | ) |

| Unrecognized deferred tax assets       | 2011   | 2010   |
|----------------------------------------|--------|--------|
|                                   | $      | $      |
| Tax losses                        | 61,287 | 61,599 |
| Other deductible temporary differences | 9,639  | 19,218 |
| Total unrecognized deferred tax assets | 70,926 | 80,817 |

----

| 18. | Income tax expense and deferred taxes (continued) |
|-----|---------------------------------------------------|

| Expiry date                               | Canada | Brazil  | Greece  | Australia | Total   |
|-------------------------------------------|--------|---------|---------|-----------|---------|
|                                      |   | $       | $       | $         | $       | $ |
| 2012                                      |   | – | – | 1,611     | – | 1,611 |
| 2013                                      |   | 5,989   | – | 1,652     | – | 7,641 |
| 2014                                      |   | 6,030   | – | –   | – | 6,030 |
| 2025                                      |   | 7,938   | – | –   | – | 7,938 |
| 2026                                      |   | 14,868  | – | –   | – | 14,868 |
| 2027                                      |   | 10,725  | – | –   | – | 10,725 |
| 2028                                      |   | 25,965  | – | –   | – | 25,965 |
| 2029                                      |   | 23,455  | – | –   | – | 23,455 |
| 2030                                      |   | 7,480   | – | –   | – | 7,480 |
| 2031                                      |   | 46,445  | – | –   | – | 46,445 |
| No Expiry                                 |   | – | 9,397   | –   | 28,346  | 37,743 |
|                                      |   | 148,895 | 9,397   | 3,263     | 28,346  | 189,901 |
| Capital losses with no expiry             | 96,868 | – | – | –   | 96,868  |
| Tax effect of total losses not recognized | 49,342 | 2,174   | 653     | 8,504     | 60,673  |

----

| 19. | Share capital |
|-----|---------------|

| Voting common shares                                   | Number ofShares | Total$    |
|--------------------------------------------------------|-----------------|-----------|
| At January 1, 2010                                     | 537,136,235     | 2,671,634 |
| Shares issued upon exercise of share options, for cash | 5,056,216       | 35,895    |
| Estimated fair value of share options exercised        | -               | 12,020    |
| Shares issued for acquisition of subsidiary            | 5,993,898       | 95,118    |
| Shares issued for cash upon exercise of warrants       | 843             | 12        |
| At December 31, 2010                                   | 548,187,192     | 2,814,679 |
| Shares issued upon exercise of share options, for cash | 3,399,096       | 30,115    |
| Estimated fair value of share options exercised        | –         | 9,410     |
| Shares issued for cash upon exercise of warrants       | 96,629          | 1,485     |
| At December 31, 2011                                   | 551,682,917     | 2,855,689 |

| 20. | Share-based payments |
|-----|----------------------|

|            |   | 2011                                 |   |   | 2010             |   |
|-----------------|--------|--------------------------------------|--------|--------|------------------|--------|
|            |   | Weighted average exercise price Cdn$ |   |   | Number ofoptions |   |   | Weighted average exercise priceCdn$ |   |   | Number ofoptions |   |
| At January 1,   |   |                                 | 9.49   |   |             |   | 8,720,524 |   |   |   | 6.11 |   |   |   | 8,928,901 |   |
| Granted         |   |                                 | 16.53  |   |             |   | 3,869,691 |   |   |   | 13.30 |   |   |   | 5,448,842 |   |
| Exercised       |   |                                 | 8.70   |   |             |   | (3,399,096 | ) |   |   | 7.37 |   |   |   | (5,056,216 | ) |
| Forfeited       |   |                                 | 14.96  |   |             |   | (575,006 | ) |   |   | 11.76 |   |   |   | (601,003 | ) |
| At December 31, |   |                                 | 12.60  |   |             |   | 8,616,113 |   |   |   | 9.49 |   |   |   | 8,720,524 |   |

----

| 20. | Share-based payments (continued) |
|-----|----------------------------------|

|                      |   | December 31, 2011         |
|---------------------------|--------|---------------------------|
|                      |   | Total options outstanding |   | Exercisable options |
| Range ofexercisepriceCdn$ |   | Shares               |   | Weightedaverageremainingcontractuallife(years) |   | WeightedaverageexercisepriceCdn$ |   | Shares  |   | WeightedaverageexercisepriceCdn$ |
| $4.00 to $4.99            |   | 1,218,686                 |   | 1.8 |   | 4.88 |   | 1,218,686 |   | 4.88 |
| $5.00 to $5.99            |   | 82,500                    |   | 0.6 |   | 5.31 |   | 82,500 |   | 5.31 |
| $6.00 to $6.99            |   | 471,000                   |   | 1.1 |   | 6.42 |   | 471,000 |   | 6.42 |
| $7.00 to $7.99            |   | 284,333                   |   | 0.5 |   | 7.24 |   | 284,333 |   | 7.24 |
| $9.00 to $9.99            |   | 302,900                   |   | 2.3 |   | 9.64 |   | 302,900 |   | 9.64 |
|  $11.00 to $11.99    |   | 10,000                    |   | 2.2 |   | 11.40 |   | 10,000 |   | 11.40 |
|  $12.00 to $12.99    |   | 183,500                   |   | 3.1 |   | 12.60 |   | 116,833 |   | 12.44 |
| $13.00 to $13.99          |   | 2,616,916                 |   | 3.1 |   | 13.23 |   | 1,381,091 |   | 13.23 |
| $15.00 to $15.99          |   | 453,646                   |   | 4.3 |   | 15.54 |   | 231,215 |   | 15.44 |
| $16.00 to $16.99          |   | 2,919,026                 |   | 4.1 |   | 16.66 |   | 858,329 |   | 16.66 |
| $18.00 to $18.99          |   | 24,000                    |   | 3.9 |   | 18.81 |   | 16,000 |   | 18.81 |
|  $19.00 to $20.02    |   | 49,606                    |   | 4.4 |   | 19.35 |   | 19,737 |   | 19.46 |
|                      |   | 8,616,113                 |   | 3.1 |   | 12.60 |   | 4,992,624     |   | 10.57 |

|                            |   | 2011                  |   | 2010                  |
|---------------------------------|--------|-----------------------|--------|-----------------------|
|                            |   |                  |   |                  |
| Risk-free interest rate (range) |   | 1.60% – 2.05%   |   | 1.69% – 1.99%   |
| Expected volatility (range)     |   |  29% – 61% |   |  38% – 73% |
| Expected life (range)           |   | 0.8 – 2.8 years |   | 0.8 - 2.8 years       |
| Expected dividends              |   | Cdn $0.10             |   | Nil                   |
| Forfeiture rate                 |   | 4%                    |   | 4%                    |

----

| 20. | Share-based payments (continued) |
|-----|----------------------------------|

|                         |   | Total RSUs |     |
|------------------------------|--------|------------|----------|
| Balance at December 31, 2010 |   |       | –  |   |
| RSUs Granted                 |   |       | 416,454  |   |
| Redeemed                     |   |       | (146,059 | ) |
| Forfeited                    |   |       | (16,808  | ) |
| Balance at December 31, 2011 |   |       | 253,587  |   |

| 21. | Supplementary cash flow information |
|-----|-------------------------------------|

|                                                                                      |   | December 31, 2011$ |    |   | December 31, 2010$ |   |
|-------------------------------------------------------------------------------------------|--------|--------------------|---------|--------|--------------------|--------|
| Changes in non-cash working capital                                                       |   |               |    |   |               |   |
| Accounts receivable and other                                                             |   |               | (7,902  | )      |               |   | (14,307 | ) |
| Inventories                                                                               |   |               | (13,299 | )      |               |   | (12,452 | ) |
| Accounts payable and accrued liabilities                                                  |   |               | 31,149  |   |               |   | (32,750 | ) |
| Total                                                                                     |   |               | 9,948   |   |               |   | (59,509 | ) |
| Supplementary cash flow information                                                       |   |               |    |   |               |   |   |   |
| Income taxes paid                                                                         |   |               | 134,594 |   |               |   | 93,056 |   |
| Interest paid                                                                             |   |               | 7,856   |   |               |   | 10,415 |   |
|                                                                                      |   |               |    |   |               |   |   |   |
| Non-cash investing and financing activities                                               |   |               |    |   |               |   |   |   |
|   Shares, options and warrants  issued on acquisition of subsidiaries |   |               | – |   |               |   | 95,683 |   |

----

| 22. | Financial risk management |
|-----|---------------------------|

|                                     |   | Canadian dollar |    |   | Australiandollars |   |    | Euro   |   |   | Turkish lira |   |   | Chinese renminbi |    |   | Brazilian real |   |
|------------------------------------------|--------|-----------------|---------|--------|-------------------|--------|---------|--------|--------|--------|-------------------|--------|--------|------------------|---------|--------|----------------|--------|
| Cash and cash equivalents                |   |            | 20,837  |   |              |   | 1,308   |   |   |   | 61                |   |   |             | 65,989  |   |           |   | 855,214 |   |   |   | 7,097 |   |
| Marketable securities                    |   |            | 2,686   |   |              |   | – |   |   |   | –           |   |   |             | – |   |           |   | – |   |   |   | – |   |
| Accounts receivable and other            |   |            | 2,353   |   |              |   | – |   |   |   | 499               |   |   |             | 8,560   |   |           |   | 90,695 |   |   |   | 25,189 |   |
| Accounts payable and accrued liabilities |   |            | (12,424 | )      |              |   | (12     | )      |   |   | (38               | )      |   |             | (59,520 | )      |           |   | (672,734 | ) |   |   | (12,740 | ) |
| Debt                                     |   |            | – |   |              |   | – |   |   |   | –           |   |   |             | – |   |           |   | (510,568 | ) |   |   | – |   |
| Net balance                              |   |            | 13,452  |   |              |   | 1,296   |   |   |   | 522               |   |   |             | 15,029  |   |           |   | (237,393 | ) |   |   | 19,546 |   |
| Equivalent in U.S. dollars               |   | $               | 13,227  |   |              | $      | 1,318   |   |   | $      | 675               |   |   | $                | 7,956   |   |           | $      | (37,676 | ) |   | $ | 10,433 |   |

----

| 22. | Financial risk management (continued) |
|-----|---------------------------------------|

----

| 22. | Financial risk management (continued) |
|-----|---------------------------------------|

| ·     | Level 1 – Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. |
|---------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·     | Level 2 – Inputs that are observable, either directly or indirectly, but do not qualify as Level 1 inputs (i.e.,quoted prices for similar assets or liabilities). |
|---------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·     | Level 3 – Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity). |
|---------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                | Balance at December 31, 2011 |   | Quoted Prices in Active Markets for Identical Assets |   | Significant Other Observable Inputs |   | Significant Unobservable inputs |
|-------------------------------------|------------------------------|--------|------------------------------------------------------|--------|-------------------------------------|--------|--------------------------------------|
|                                | $                            |   | $                                                    |   | $                                   |   | $                                    |
|                                |                         |   | (Level 1)                                            |   | (Level 2)                           |   | (Level 3)                            |
| Assets                              |                         |   |                                                 |   |                                |   |                                 |
|                                |                         |   |                                                 |   |                                |   |                                 |
| Held-for-trading                    |                         |   |                                                 |   |                                |   |                                 |
| Restricted asset (SERP)             | 14,456                       |   | 14,456                                               |   | –                             |   | –                              |
|                                |                         |   |                                                 |   |                                |   |                                 |
| Available-for-sale financial assets |                         |   |                                                 |   |                                |   |                                 |
|   Marketable securities   | 2,640                        |   | 2,640                                                |   | –                             |   | –                              |
|                                |                         |   |                                                 |   |                                |   |                                 |
| Total assets                        | 17,096                       |   | 17,096                                               |   | –                             |   | –                              |

| 23. | Commitments |
|-----|-------------|

|                                      |   | 2012$  |   | 2013$ |   | 2014$ |   | 2015 and later$ |
|-------------------------------------------|--------|--------|--------|-------|--------|-------|--------|-----------------|
| Operating leases and capital expenditures |   | 10,337 |   | 3,560 |   | 3,491 |   | 1,930           |
| Purchase obligations                      |   | 81,785 |   | 5,133 |   | 1,056 |   | 562             |
| Totals                                    |   | 92,122 |   | 8,693 |   | 4,547 |   | 2,492           |

----

| 23. | Commitments (continued) |
|-----|-------------------------|

| 24. | Contingencies |
|-----|---------------|

| 25. | Related party transactions |
|-----|----------------------------|

|                                            |   | 2011   | 2010    |
|-------------------------------------------------|--------|--------|---------|
|                                            |   | $      | $       |
| Salaries and other short-term employee benefits |   | 18,897 | 7,966   |
| Termination benefits                            |   | 732    | – |
| Post-employment benefits                        |   | 95     | 87      |
| Share-based payments                            |   | 17,104 | 25,556  |
|                                            |   | 36,828 | 33,609  |

| 26. | Financial instruments by category |
|-----|-----------------------------------|

|                                                 | December 31, 2011 |       | December 31, 2010 |
|------------------------------------------------------|-------------------|------------|-------------------|
|                                                 | Carrying amount   | Fair value |              | Carrying amount | Fair value |
|                                                 | $                 | $          |              | $ | $ |
| Financial Assets                                     |              |       |              |   |   |
| Held-for-trading                                     |              |       |              |   |   |
|   Restricted assets and other (SERP)       | 14,456            | 14,456     |              | 7,872 | 7,872 |
|                                                 |              |       |              |   |   |
| Available-for-sale                                   |              |       |              |   |   |
|   Marketable securities                    | 2,640             | 2,640      |              | 8,027 | 8,027 |
|                                                 |              |       |              |   |   |
| Loans and receivables                                |              |       |              |   |   |
|   Cash and cash equivalents                | 393,763           | 393,763    |              | 314,344 | 314,344 |
|   Restricted cash                          | 55,390            | 55,390     |              | 52,425 | 52,425 |
|   Accounts receivable and other            | 34,630            | 34,630     |              | 38,241 | 38,241 |
|   Restricted assets and other              | 23,974            | 23,974     |              | 11,456 | 11,456 |
|                                                 |              |       |              |   |   |
| Financial Liabilities                                |              |       |              |   |   |
|   Accounts payable and accrued liabilities | 168,367           | 168,367    |              | 145,695 | 145,695 |
|   Debt                                     | 81,031            | 81,031     |              | 166,663 | 166,663 |

----

| 27. | Production costs |
|-----|------------------|

|                                             |   | 2011   |    |   | 2010   |   |
|--------------------------------------------------|--------|--------|---------|--------|--------|--------|
|                                             |   |   | $       |   |   |   | $ |   |
| Production costs                                 |   |   |    |   |   |   |   |   |
|                                             |   |   |    |   |   |   |   |   |
| Labor                                            |   |   | 59,079  |   |   |   | 47,302 |   |
| Fuel                                             |   |   | 30,580  |   |   |   | 22,143 |   |
| Reagents                                         |   |   | 39,873  |   |   |   | 29,910 |   |
| Electricity                                      |   |   | 31,753  |   |   |   | 25,146 |   |
| Mining contractors                               |   |   | 31,677  |   |   |   | 42,415 |   |
| Operating and maintenance supplies and services  |   |   | 73,532  |   |   |   | 62,725 |   |
| Finance and administrative costs                 |   |   | 19,210  |   |   |   | 23,579 |   |
| Inventory change                                 |   |   | 13,185  |   |   |   | (2,375 | ) |
| Royalties, production taxes and selling expenses |   |   | 47,595  |   |   |   | 27,129 |   |
| Total production costs                           |   |   | 346,484 |   |   |   | 277,974 |   |

| 28. | Interest and financing costs |
|-----|------------------------------|

|                               | 2011    | 2010   |
|------------------------------------|---------|--------|
|                               | $       | $      |
|                               |    |   |
| Interest expense                   | 4,208   | 7,730  |
| Financing fees                     | 1,123   | 357    |
| Interest on capital leases         | – | 2      |
| Total interest and financing costs | 5,331   | 8,089  |

| 29. | Earnings per share |
|-----|--------------------|

|                                                               | December 31,   | December 31,   |
|--------------------------------------------------------------------|----------------|----------------|
|                                                               | 2011           | 2010           |
|                                                               | (in thousands) | (in thousands) |
| Weighted average number of ordinary shares used in the calculation |           |           |
| of basic earnings per share                                        | 549,791        | 542,861        |
| Diluted impact of stock options                                    | 1,834          | 2,989          |
| Weighted average number of ordinary shares used in the calculation |           |           |
| of diluted earnings per share                                      | 551,625        | 545,850        |

----

| 30. | Segment information |
|-----|---------------------|

|                                       |   | 2011   |    |
|--------------------------------------------|--------|--------|---------|
|                                       |   | Turkey |    |   | China |   |   | Brazil |   |   | Greece |   |   | Other |   |   | Total |   |
| Information about profit and loss          |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Metal sales from external customers        |   |   | 455,311 |   |   |   | 586,759 |   |   |   | 56,863 |   |   |   | – |   |   |   | – |   |   |   | 1,098,933 |   |
| Production costs                           |   |   | 117,189 |   |   |   | 198,995 |   |   |   | 30,300 |   |   |   | – |   |   |   | – |   |   |   | 346,484 |   |
| Depreciation                               |   |   | 11,342  |   |   |   | 104,154 |   |   |   | 4,689 |   |   |   | – |   |   |   | 2,229 |   |   |   | 122,414 |   |
| Operating profit                           |   |   | 326,780 |   |   |   | 283,610 |   |   |   | 21,874 |   |   |   | – |   |   |   | (2,229 | ) |   |   | 630,035 |   |
|                                       |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other material items of income and expense |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Exploration costs                          |   |   | 10,515  |   |   |   | 8,741 |   |   |   | 5,639 |   |   |   | – |   |   |   | 5,878 |   |   |   | 30,773 |   |
| Income tax expense                         |   |   | 94,781  |   |   |   | 70,131 |   |   |   | 125 |   |   |   | 260 |   |   |   | 290 |   |   |   | 165,587 |   |
|                                       |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Information about assets and liabilities   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Property, plant and equipment              |   |   | 591,896 |   |   |   | 1,903,793 |   |   |   | 185,667 |   |   |   | 163,239 |   |   |   | 3,315 |   |   |   | 2,847,910 |   |
| Goodwill                                   |   |   | – |   |   |   | 365,928 |   |   |   | – |   |   |   | – |   |   |   | – |   |   |   | 365,928 |   |
| Non-current assets                         |   |   | 591,896 |   |   |   | 2,269,721 |   |   |   | 185,667 |   |   |   | 163,239 |   |   |   | 3,315 |   |   |   | 3,213,838 |   |
| Additions to property, plant and equipment |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| during the year                            |   |   | 166,601 |   |   |   | 82,249 |   |   |   | 17,532 |   |   |   | 2,902 |   |   |   | 2,062 |   |   |   | 271,346 |   |
| Total debt                                 |   |   | – |   |   |   | 81,031 |   |   |   | – |   |   |   | – |   |   |   | – |   |   |   | 81,031 |   |

----

| 30. | Segment information (continued) |
|-----|---------------------------------|

|                                       |   | 2010   |    |
|--------------------------------------------|--------|--------|---------|
|                                       |   | Turkey |    |   | China |   |   | Brazil |   |   | Greece |   |   | Other |   |   | Total |   |
| Information about profit and loss          |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Metal sales from external customers        |   |   | 339,151 |   |   |   | 443,699 |   |   |   | 8,325 |   |   |   | – |   |   |   | – |   |   |   | 791,175 |   |
| Production costs                           |   |   | 96,658  |   |   |   | 177,045 |   |   |   | 4,271 |   |   |   | – |   |   |   | – |   |   |   | 277,974 |   |
| Depreciation                               |   |   | 14,419  |   |   |   | 90,304 |   |   |   | 1,031 |   |   |   | – |   |   |   | 1,403 |   |   |   | 107,157 |   |
| Operating profit                           |   |   | 228,074 |   |   |   | 176,350 |   |   |   | 3,023 |   |   |   | – |   |   |   | (1,403 | ) |   |   | 406,044 |   |
|                                       |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other material items of income and expense |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Exploration costs                          |   |   | 13,181  |   |   |   | 3,464 |   |   |   | 3,063 |   |   |   | – |   |   |   | 2,793 |   |   |   | 22,501 |   |
| Income tax expense                         |   |   | 47,780  |   |   |   | 38,876 |   |   |   | – |   |   |   | – |   |   |   | 283 |   |   |   | 86,939 |   |
|                                       |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Information about assets and liabilities   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Property, plant and equipment              |   |   | 431,392 |   |   |   | 1,924,959 |   |   |   | 179,612 |   |   |   | 160,335 |   |   |   | 3,489 |   |   |   | 2,699,787 |   |
| Goodwill                                   |   |   | – |   |   |   | 365,928 |   |   |   | – |   |   |   | - |   |   |   | – |   |   |   | 365,928 |   |
| Non-current assets                         |   |   | 431,392 |   |   |   | 2,290,887 |   |   |   | 179,612 |   |   |   | 160,335 |   |   |   | 3,489 |   |   |   | 3,065,715 |   |
| Additions to property, plant and equipment |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| during the year                            |   |   | 141,001 |   |   |   | 101,089 |   |   |   | 9,560 |   |   |   | 2,368 |   |   |   | 2,421 |   |   |   | 256,439 |   |
| Total debt                                 |   |   | – |   |   |   | 166,663 |   |   |   | – |   |   |   | – |   |   |   | – |   |   |   | 166,663 |   |

|   | TJS  Mine | Henan Zhongyuan Gold Smelter Factory Co. Ltd.of Zhongjin Gold Holding Co. Ltd. |
|--------|---------------------|--------------------------------------------------------------------------------|
|   | Jinfeng Mine        | China National Gold Group Corporation                                          |
|   | White Mountain Mine | Refinery of Shandong Humon Smelting Co. Ltd.                                   |

| 31. | Events occurring after the reporting date |
|-----|-------------------------------------------|

----

| 31. | Events occurring after the reporting date (continued) |
|-----|-------------------------------------------------------|

| 32. | Explanation of transition to IFRS |
|-----|-----------------------------------|

----

| 32. | Explanation of transition to IFRS (continued) |
|-----|-----------------------------------------------|

----

| 32. | Explanation of transition to IFRS (continued) |
|-----|-----------------------------------------------|

|                                                     | Note               |   |  Canadian GAAP |      |   |  Effect oftransitionto IFRSJanuary 1, 2010 |   |    |  IFRS |   |
|----------------------------------------------------------|--------------------|--------|---------------------|-----------|--------|-------------------------------------------------|--------|---------|------------|--------|
| ASSETS                                                   |               |   |                |      |   |                                            |   |    |       |   |
| Current assets                                           |               |   |                |      |   |                                            |   |    |       |   |
| Cash and cash equivalents                                |               |   |                | 265,369   |   |                                            |   | – |       |   |   | 265,369 |   |
| Restricted cash                                          |               |   |                | 50,000    |   |                                            |   | – |       |   |   | 50,000 |   |
| Marketable securities                                    |               |   |                | 13,951    |   |                                            |   | – |       |   |   | 13,951 |   |
| Accounts receivable and other                            |               |   |                | 26,434    |   |                                            |   | – |       |   |   | 26,434 |   |
| Inventories                                              |               |   |                | 129,197   |   |                                            |   | – |       |   |   | 129,197 |   |
|                                                     |               |   |                | 484,951   |   |                                            |   | – |       |   |   | 484,951 |   |
| Long term inventories                                    |               |   |                | 31,534    |   |                                            |   | – |       |   |   | 31,534 |   |
| Restricted assets and other                              |               |   |                | 13,872    |   |                                            |   | (113    | )          |   |   | 13,759 |   |
| Property, plant and equipment                            | (a); (c); (f)      |   |                | 2,580,816 |   |                                            |   | (53,249 | )          |   |   | 2,527,567 |   |
| Goodwill                                                 |               |   |                | 324,935   |   |                                            |   | -       |       |   |   | 324,935 |   |
|                                                     |               |   |                | 3,436,108 |   |                                            |   | (53,362 | )          |   |   | 3,382,746 |   |
|                                                     |               |   |                |      |   |                                            |   |    |       |   |   |   |   |
| LIABILITIES & EQUITY                                 |               |   |                |      |   |                                            |   |    |       |   |   |   |   |
| Current liabilities                                      |               |   |                |      |   |                                            |   |    |       |   |   |   |   |
| Accounts  payables and accrued liabilities     | (bii); (e)         |   |                | 157,250   |   |                                            |   | (4,214  | )          |   |   | 153,036 |   |
| Current debt                                             |               |   |                | 56,499    |   |                                            |   | – |       |   |   | 56,499 |   |
| Deferred income taxes                                    | (aii)              |   |                | 4,264     |   |                                            |   | (4,264  | )          |   |   | – |   |
|                                                     |               |   |                | 218,013   |   |                                            |   | (8,478  | )          |   |   | 209,535 |   |
| Debt                                                     |               |   |                | 134,533   |   |                                            |   | – |       |   |   | 134,533 |   |
| Asset retirement obligations                             | (c)                |   |                | 26,566    |   |                                            |   | 429     |       |   |   | 26,995 |   |
| Pension fund obligation                                  | (b)                |   |                | –   |   |                                            |   | 7,811   |       |   |   | 7,811 |   |
| Deferred income taxes                                    | (a); (c); (e); (f) |   |                | 390,242   |   |                                            |   | (34,817 | )          |   |   | 355,425 |   |
|                                                     |               |   |                | 769,354   |   |                                            |   | (35,055 | )          |   |   | 734,299 |   |
| Non-controlling interests                                | (d)                |   |                | 26,144    |   |                                            |   | (26,144 | )          |   |   | – |   |
| Equity                                                   |               |   |                |      |   |                                            |   |    |       |   |   |   |   |
| Share capital                                            |               |   |                | 2,671,634 |   |                                            |   | – |       |   |   | 2,671,634 |   |
| Contributed surplus                                      |               |   |                | 17,865    |   |                                            |   | – |       |   |   | 17,865 |   |
| Accumulated other comprehensive income                   |               |   |                | 2,227     |   |                                            |   | – |       |   |   | 2,227 |   |
| Deficit                                                  |               |   |                | (51,116   | )      |                                            |   | (18,307 | )          |   |   | (69,423 | ) |
| Total equity attributable to shareholders of the Company |               |   |                | 2,640,610 |   |                                            |   | (18,307 | )          |   |   | 2,622,303 |   |
| Attributable to non-controlling interests                | (d)                |   |                | –   |   |                                            |   | 26,144  |       |   |   | 26,144 |   |
|                                                     |               |   |                | 2,666,754 |   |                                            |   | 7,837   |       |   |   | 2,648,447 |   |
|                                                     |               |   |                | 3,436,108 |   |                                            |   | (53,362 | )          |   |   | 3,382,746 |   |

----

| 32. | Explanation of transition to IFRS (continued) |
|-----|-----------------------------------------------|

|                                                     |  Note    |   | CanadianGAAP |      |   | Effect oftransitionto IFRSDecember 31, 2010 |   |    | IFRS   |   |
|----------------------------------------------------------|---------------|--------|--------------|-----------|--------|---------------------------------------------|--------|---------|--------|--------|
| ASSETS                                                   |          |   |         |      |   |                                        |   |    |   |   |
| Current assets                                           |          |   |         |      |   |                                        |   |    |   |   |
| Cash and cash equivalents                                |          |   |         | 314,344   |   |                                        |   | – |   |   |   | 314,344 |   |
| Restricted cash                                          |          |   |         | 52,425    |   |                                        |   | – |   |   |   | 52,425 |   |
| Marketable securities                                    |          |   |         | 8,027     |   |                                        |   | – |   |   |   | 8,027 |   |
| Accounts receivable and other                            |          |   |         | 42,437    |   |                                        |   | – |   |   |   | 42,437 |   |
| Inventories                                              |          |   |         | 147,263   |   |                                        |   | – |   |   |   | 147,263 |   |
| Deferred income taxes                                    | (aii)         |   |         | 606       |   |                                        |   | (606    | )      |   |   | – |   |
|                                                     |          |   |         | 565,102   |   |                                        |   | (606    | )      |   |   | 564,496 |   |
| Long term inventories                                    |          |   |         | 29,627    |   |                                        |   | – |   |   |   | 29,627 |   |
| Investment in significantly influenced company           |          |   |         | 6,202     |   |                                        |   | – |   |   |   | 6,202 |   |
| Restricted assets and other                              |          |   |         | 19,328    |   |                                        |   | – |   |   |   | 19,328 |   |
| Property, plant and equipment                            | (ai); (c)     |   |         | 2,793,722 |   |                                        |   | (93,935 | )      |   |   | 2,699,787 |   |
| Goodwill                                                 |          |   |         | 365,928   |   |                                        |   | -       |   |   |   | 365,928 |   |
|                                                     |          |   |         | 3,779,909 |   |                                        |   | (94,541 | )      |   |   | 3,685,368 |   |
|                                                     |          |   |         |      |   |                                        |   |    |   |   |   |   |   |
| LIABILITIES & EQUITY                                 |          |   |         |      |   |                                        |   |    |   |   |   |   |   |
| Current liabilities                                      |          |   |         |      |   |                                        |   |    |   |   |   |   |   |
| Accounts  payables and accrued liabilities     | (bii); (e)    |   |         | 152,781   |   |                                        |   | (7,086  | )      |   |   | 145,695 |   |
| Current debt                                             |          |   |         | 98,523    |   |                                        |   | – |   |   |   | 98,523 |   |
| Deferred income taxes                                    | (aii)         |   |         | 2,915     |   |                                        |   | (2,915  | )      |   |   | - |   |
|                                                     |          |   |         | 254,219   |   |                                        |   | (10,001 | )      |   |   | 244,218 |   |
| Debt                                                     |          |   |         | 68,140    |   |                                        |   | -       |   |   |   | 68,140 |   |
| Asset retirement obligations                             | (c)           |   |         | 24,275    |   |                                        |   | 8,953   |   |   |   | 33,228 |   |
| Pension fund obligation                                  | (b)           |   |         | -         |   |                                        |   | 12,019  |   |   |   | 12,019 |   |
| Deferred income taxes                                    | (a); (c); (e) |   |         | 430,020   |   |                                        |   | (99,508 | )      |   |   | 330,512 |   |
|                                                     |          |   |         | 776,654   |   |                                        |   | (88,537 | )      |   |   | 688,117 |   |
| Non-controlling interests                                | (d)           |   |         | 36,021    |   |                                        |   | (36,021 | )      |   |   | – |   |
| Equity                                                   |          |   |         |      |   |                                        |   |    |   |   |   |   |   |
| Share capital                                            |          |   |         | 2,814,679 |   |                                        |   | – |   |   |   | 2,814,679 |   |
| Contributed surplus                                      |          |   |         | 22,967    |   |                                        |   | – |   |   |   | 22,967 |   |
| Accumulated other comprehensive income                   | (bi)          |   |         | 998       |   |                                        |   | (2,635  | )      |   |   | (1,637 | ) |
| Retained earnings (deficit)                              |          |   |         | 128,590   |   |                                        |   | (3,369  | )      |   |   | 125,221 |   |
| Total equity attributable to shareholders of the Company |          |   |         | 2,967,234 |   |                                        |   | (6,004  | )      |   |   | 2,961,230 |   |
| Attributable to non-controlling interests                | (d)           |   |         | –   |   |                                        |   | 36,021  |   |   |   | 36,021 |   |
|                                                     |          |   |         | 3,003,255 |   |                                        |   | 30,017  |   |   |   | 2,997,251 |   |
|                                                     |          |   |         | 3,779,909 |   |                                        |   | (94,541 | )      |   |   | 3,685,368 |   |

----

| 32. | Explanation of transition to IFRS (continued) |
|-----|-----------------------------------------------|

|                                                                 |   |   | Year ended        |    |
|----------------------------------------------------------------------|--------|--------|-------------------|---------|
|                                                                 | Note   |   | December 31, 2010 |    |
|                                                                 |   |   |              |    |
| Comprehensive Income under Canadian GAAP                             |   |   |              | 222,291 |   |
| Profit adjustments                                                   |   |   |              |    |   |
| Reduction in pension expense                                         | (b)    |   |              | 1,037   |   |
| Increase in depreciation of asset retirement obligation (net of tax) | (c)    |   |              | (274    | ) |
| Decrease in severance provision expense (net of tax)                 | (e)    |   |              | 300     |   |
| Revision to asset retirement obligation liability (net of tax)       | (c)    |   |              | (866    | ) |
| Foreign exchange (loss) gain on reversal of deferred income tax      | (a)    |   |              | 12,223  |   |
| Tax adjustment to reflect foreign exchange difference                | (aii)  |   |              | 2,518   |   |
|                                                                 |   |   |              |    |   |
| Other comprehensive income adjustments                               |   |   |              |    |   |
| Recognition of actuarial gains/losses in other comprehensive income  | (bi)   |   |              | (2,635  | ) |
| Total IFRS adjustments to comprehensive income                       |   |   |              | 12,303  |   |
| Comprehensive Income under IFRS                                      |   |   |              | 234,594 |   |

|   | a)     | i)     | Under IFRS, deferred income taxes are not recognized on an asset acquisition providing certain conditions are met, whereas they are under Canadian GAAP. During 2008, Eldorado completed the acquisition of Frontier Pacific Corporation (“Frontier”) and accounted for this transaction as an asset acquisition. Accordingly, a deferred tax liability was recognized under Canadian GAAP. The reversal of the deferred income tax liability recognized on the acquisition of Frontier results in an adjustment to decrease property, plant and equipment by $51,440, decrease deferred income tax liabilities by $37,582 and increase deficit by $13,858 at January 1, 2010.                                                       |
|--------|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|   |   |   | Further, in 2010 Eldorado completed the acquisition of all of the issued and outstanding common shares of Brazauro that it had not already owned. This transaction was accounted for as an asset acquisition and a deferred income tax liability was recorded under Canadian GAAP. The reversal of the deferred income tax liability recognised under Canadian GAAP resulted in an adjustment to decrease property, plant and equipment by $47,682 and decrease deferred income tax liabilities by $49,441 as of December 31, 2010 and a foreign exchange gain of $1,759 being recognized in the income statement for the year ended December 31, 2010.                                                                                          |
|   |   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|   |   |   | The reversal of these deferred income tax liabilities resulted in a reduced foreign exchange movement under IFRS compared to Canadian GAAP during the year ended December 31, 2010, resulting in an adjustment to further decrease deferred income tax liabilities by $1,685 and an increase in foreign exchange gain for the same amount.                                                                                                                                                                                                                                                                                                                                                                                                       |
|   |   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|   |   | ii)    | Under Canadian GAAP, no future tax assets or liabilities are recognized for temporary differences associated with the cost of non-monetary assets and liabilities of subsidiaries where the tax basis is measured in a currency different from the functional currency. IFRS requires that deferred taxes be recognized in respect of these foreign exchange differences by translating the tax bases of the assets and liabilities at the year end rate and comparing to the accounting carrying value calculated at historical rates.  Upon adoption of IFRS, this resulted in an adjustment to decrease property, plant and equipment by $1,864, decrease deferred income tax liability by $1,620 and increase the deficit by $244. |

----

| 32. | Explanation of transition to IFRS (continued) |
|-----|-----------------------------------------------|

|   |   |   | Further to the adjustment at January 1, 2010, for the year ended December 31, 2010 this resulted in an adjustment to decrease the deferred income tax liability by $11,297, increase foreign exchange gain by $8,779 and decrease deferred income tax expense by $2,518.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|--------|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   |   |   | As required under IFRS, all deferred taxes are reclassified and presented as non-current in the balance sheet.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   |   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   | b)     | i)     | Under Canadian GAAP, Eldorado applied the corridor method of accounting for actuarial gains and losses.  Under this method, gains and losses are recognized only if they exceed specified thresholds. Under IFRS the Company has not used the corridor method, resulting in the carrying value of the net liability for pension fund obligations and deficit increasing by $2,020 to recognize cumulative net actuarial losses as at January 1, 2010 in accordance with the IFRS exemption.                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   |   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   |   |   | For the year ended December 31, 2010, actuarial losses of $2,635 were recognized within other comprehensive income.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
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|   |   | ii)    | Under IFRS, Eldorado expenses the cost of past service benefits awarded to employees under post employment benefit plans over the year in which the benefits are vested. Under Canadian GAAP, Eldorado expensed past service costs over the weighted average service life of active employees remaining in the plan. This adjustment increased benefit fund obligations and deficit by $2,665 as at January 1, 2010.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
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|   |   |   | For the year ended to December 31, 2010 this resulted in an adjustment to decrease the pension expense by $1,440, decrease the foreign exchange gain by $403 and decrease the pension liability by $1,037.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   |   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   |   |   | As required under IFRS, the pension liability is presented as a separate line item. Accordingly, these amounts have been reclassified in the financial statements.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   |   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   | c)     |   |  IFRS requires that asset retirement obligations are discounted using a current discount rate specific to the related future liability or a risk-free interest rate if risks are incorporated into the related cash flows. Under Canadian GAAP, a credit adjusted risk-free rate was used. As a result, the asset retirement obligation recorded at January 1, 2010 has been re-measured using the risk-free discount rate in effect at that date, given that risks have been incorporated into the related cash flows, and an adjustment has been recorded to the corresponding asset. This resulted in an increase in property, plant and equipment of $370, an increase in asset retirement obligation of $429, a decrease in the deferred income tax liability of $11 and an increase in deficit of $48 at January 1, 2010. As a result of this, the annual accretion of the liability increased under IFRS.                                                |
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|   |   |   | In addition to the adjustment at January 1, 2010, the Company revised the asset retirement obligation estimates at December 31, 2010, resulting in an adjustment to the asset retirement obligations and property, plant and equipment. Under IFRS, the asset retirement obligation recorded at December 31, 2010 has been re-measured using the discount rate in effect at that date, and an adjustment has been recorded to the corresponding asset. This item resulted in an increase in property, plant and equipment of $6,996, an increase in asset retirement obligation of $8,524, a decrease in the deferred income tax liability of $388, an increase in asset retirement obligation costs of $1,163 all as at December 31, 2010, and for the year ended December 31, 2010 an increase in depreciation of $365 and a decrease in deferred income tax expense of $297 related to the asset retirement obligation costs and $91 related to the depreciation. |
|   |   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   | d)     |   | Under IFRS, the non-controlling interests’ share of the net assets of subsidiaries is included in equity and their share of the comprehensive income of subsidiaries is allocated directly to equity. Under Canadian GAAP, non-controlling interests were presented as a separate item between liabilities and equity in the statement of financial position and the non-controlling interests’ share of income and other comprehensive income were deducted in calculating net income and comprehensive income of the entity.                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   |   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   |   |   | Non-controlling interest of $26,144 at January 1, 2010 has been reclassified to equity. Similar adjustments were made at December 31, 2010 of $36,021.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |

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| 32. | Explanation of transition to IFRS (continued) |
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|   | e)     |   | IFRS requires provisions to be recorded at fair value rather than carrying value, therefore the severance provision at January 1, 2010 in Turkey was reduced by $975, creating a deferred tax liability of $195 on transition. The offsetting entry for these adjustments was recorded against retained earnings. During the 2010 year the provision was decreased by $375 and the deferred tax liability increased by $75. The decrease has been accrued over the year on a straight-line method, with the offsetting entry recorded in the income statement. |
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|   | f)     |   | As part of the IFRS transition and the evaluation of components of property, plant and equipment, the Company recorded at January 1, 2010 a decrease of $315 to property, plant and equipment, a decrease of $63 to the deferred tax liability and an increase of deficit of $252.                                                                                                                                                                                                                                                                             |
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