UNITED STATES
SECURITIES AND EXCHANGE COMMISSIONWashington, D.C. 20549

FORM 10-K

(Mark One)ý

ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934For the fiscal year ended December 31, 2009ORo

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934For the transition period
from                                    to


Commission file number 1-13627

GOLDEN MINERALS COMPANY(Exact Name of Registrant as Specified in its Charter)

DELAWARE(State of Incorporation or Organization)

26-4413382(I.R.S. Employer Identification No.)350 Indiana Street, Suite 800
Golden, Colorado(Address of principal executive office)

80401
Not Applicable(Zip Code)(303) 839-5060(Registrant's telephone number, including area code)Securities registered pursuant to Section 12(b) of the Act:Title of each classCommon Stock, $0.01 par value

Name of each exchange on which registeredNYSE Amex LLCSecurities registered pursuant to Section 12(g) of the Act:None


Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities
Act. Yes o    No ý

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

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

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be
submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period
that the registrant was required to submit and post such
files). Yes o    No o

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be
contained, to the best of registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to
this Form 10-K.    o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting
company. See the definitions of "large accelerated filer," "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer o

Accelerated filer o

Non-accelerated filer o (Do not check if a
smaller reporting company)

Smaller reporting company ý


Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the
Act). Yes o    No ý

Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Section 12, 13, or 15(d) of the Securities
Exchanges Act of 1934 subsequent to the distribution of securities under a plan confirmed by a
court. Yes ý    No o

The aggregate market value of the voting and non-voting common equity held by non-affiliates as of June 30, 2009 was approximately
$5.0 million, based on the last sale price of the registrant's common stock of $2.45 per share as reported by The Pink Sheets LLC at www.pinksheets.com. For the purpose of this calculation,
the registrant has assumed that its affiliates as of June 30, 2009 included two
shareholders who collectively held approximately 32% of its outstanding common stock. The number of shares of common stock outstanding on March 24, 2010 was 9,040,608.

DOCUMENTS INCORPORATED BY REFERENCE

Portions
of the registrant's Definitive Proxy Statement to be filed with the Securities and Exchange Commission pursuant to Regulation 14A in connection with the 2010 Annual
Meeting of Stockholders are incorporated by reference in Part III of this Report on Form 10-K.



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All references to "Golden Minerals," "our," "we," or "us" are to Golden Minerals Company, including its subsidiaries and predecessors, except where it is clear
that the term refers only to Golden Minerals Company. Many of the terms used in our industry are technical in nature. We have included a glossary of some of these terms below.

FORWARD-LOOKING STATEMENTS

Some information contained in or incorporated by reference into this annual report on Form 10-K may contain
forward-looking statements. These statements include statements relating to our plans, expectations and assumptions concerning the El Quevar project, the timing and budget for exploration of our
portfolio of exploration properties, our expected cash needs, and statements concerning our financial condition, operating strategies and operating and legal risks.

We
use the words "anticipate," "continue," "likely," "estimate," "expect," "may," "could," "will," "project," "should," "believe" and similar expressions to identify forward-looking
statements. Statements that contain these words discuss our future expectations, contain projections or state other forward-looking information. Although we believe the expectations and assumptions
reflected in those forward-looking statements are reasonable, we cannot assure you that these expectations and assumptions will prove to be correct. Our actual results could differ materially from
those expressed or implied in these forward-looking statements as a result of the factors described under "Risk Factors" in this annual report on Form 10-K,
including:



Many
of those factors are beyond our ability to control or predict. You should not unduly rely on any of our forward-looking statements. These statements speak only as of the date of
this annual report on Form 10-K. Except as required by law, we are not obligated to publicly release any revisions to these forward-looking statements to reflect future events or
developments. All subsequent written and oral forward-looking statements attributable to us and persons acting on our behalf are qualified in their entirety by the cautionary statements contained in
this section and elsewhere in this annual report on Form 10-K.

CONVERSION TABLE

In this annual report on Form 10-K, figures are presented in both United States standard and metric measurements.
Conversion rates from United States standard to metric and metric to United

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States
standard measurement systems are provided in the table below. All currency references in this annual report on Form 10-K are to United States dollars, unless otherwise
indicated.

U.S. Unit

Metric Measure

Metric Unit

U.S. Measure1 acre

0.4047 hectares

1 hectare

2.47 acres1 foot

0.3048 meters

1 meter

3.28 feet1 mile

1.609 kilometers

1 kilometer

0.62 miles1 ounce (troy)

31.103 grams

1 gram

0.032 ounces (troy)1 ton

0.907 tonnes

1 tonne

1.102 tons


GLOSSARY OF SELECTED MINING TERMS

"Assay" means to test ores or minerals by chemical or other methods for the purpose of determining the amount of valuable metals contained.

"Base Metal" means a classification of metals usually considered to be of low value and higher chemical activity when compared with the precious metals
(gold, silver, platinum, etc.). This nonspecific term generally refers to the high-volume, low-value metals copper, lead, tin, and zinc.

"Breccia" means rock consisting of fragments, more or less angular, in a matrix of finer-grained material or of cementing material.

"Claim" means a mining interest giving its holder the right to prospect, explore for and exploit minerals within a defined area.

"Concentrates" means the clean product of ore or metal separated from its containing rock or earth by froth flotation or other methods of mineral
separation.

"Concentrator" means a plant where ore is separated into values (concentrates) and rejects (tails).

"Concession" means a grant or lease of a tract of land made by a government or other controlling authority in return for stipulated services or a
promise that the land will be used for a specific purpose.

"Diamond Core" means a rotary type of rock drill that cuts a core of rock and is recovered in long cylindrical sections, two centimeters or more in
diameter.

"Deposit" means an informal term for an accumulation of mineral ores.

"Exploration Stage" means a prospect that is not yet in either the development or production stage.

"Feasibility Study" means an engineering study designed to define the technical, economic, and legal viability of a mining project with a high degree of
reliability.

"Formation" means a distinct layer of sedimentary rock of similar composition.

"Grade" means the metal content of ore, usually expressed in troy ounces per ton (2,000 pounds) or in grams per ton or metric tons which contain 2,204.6
pounds or 1,000 kilograms. This report refers to ounces per tonne.

"Mineralization" means the concentration of metals within a body of rock.

"Mining" means the process of extraction and beneficiation of mineral reserves to produce a marketable metal or mineral product. Exploration continues
during the mining process and, in many cases, mineral reserves are expanded during the life of the mine operations as the exploration potential of the deposit is realized.

"Net Smelter Return Royalty" means a defined percentage of the gross revenue from a resource extraction operation, less a proportionate share or
transportation, insurance, and processing costs.

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"Open Pit" means a mine working or excavation open to the surface.

"Ore" means material containing minerals that can be economically extracted.

"Outcrop" means that part of a geologic formation or structure that appears at the surface of the earth.

"Oxide" means mineralized rock in which some of the original minerals have been oxidized (i.e., combined
with oxygen). Oxidation tends to make the ore more porous and permits a more complete permeation of cyanide solutions so that minute particles of gold in the interior of the minerals will be more
readily dissolved.

"Precious Metal" means any of several relatively scarce and valuable metals, such as gold, silver, and the platinum-group metals.

"Probable Reserves" means reserves for which quantity and grade and/or quality are computed from information similar to that used for Proven Reserves,
but the sites for inspection, sampling and measurement are farther apart or are otherwise less adequately spaced. The degree of assurance, although lower than that for Proven Reserves, is high enough
to assume continuity between points of observation.

"Proven Reserves" means reserves for which quantity is computed from dimensions revealed in outcrops, trenches, workings or drill holes; grade and/or
quality are computed from the results of detailed sampling and the sites for inspection, sampling and measurement are spaced so closely and the geologic character is so well defined that size, shape,
depth and mineral content of reserves are well-established.

"Production Stage" means a project that is actively engaged in the process of extraction and beneficiation of mineral reserves to produce a marketable
metal or mineral product.

"Reclamation" means the process of returning land to another use after mining is completed.

"Recovery" means that portion of the metal contained in the ore that is successfully extracted by processing, expressed as a percentage.

"Reserves" means that part of a mineral deposit that could be economically and legally extracted or produced at the time of reserve determination.

"Sampling" means selecting a fractional, but representative, part of a mineral deposit for analysis.

"Sediment" means solid fragmental material that originates from weathering of rocks and is transported or deposited by air, water, or ice, or that
accumulates by other natural agents, such as
chemical precipitation from solution or secretion by organisms, and that forms in layers on the Earth's surface at ordinary temperatures in a loose, unconsolidated form.

"Sedimentary" means formed by the deposition of sediment.

"Sulfide" means a compound of sulfur and some other element.

"Tertiary"means the first period of the Cenozoic Era (after the Cretaceous of the Mesozoic Era and before the Quaternary), thought to have covered the
span of time between 65 million years and 3 to 2 million years ago.

"Vein" means a fissure, fault or crack in a rock filled by minerals that have traveled upwards from some deep source.

"Waste" means rock lacking sufficient grade and/or other characteristics of ore.

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AVAILABLE INFORMATION

We make available, free of charge through our website atwww.goldenminerals.com, our
annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and amendments to those reports filed or furnished
pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), as soon as reasonably practicable
after such material is electronically filed with or furnished to the United States Securities and Exchange Commission ("SEC"). Information on our website is not incorporated into this annual report on
Form 10-K and is not a part of this report.

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PART I

ITEMS 1 AND 2:    BUSINESS AND PROPERTIES

Overview

We are a mineral exploration and mining services company with a diversified portfolio of precious metals and other mineral exploration
properties located in or near the traditional precious metals producing regions of Mexico and South America. Our management team is comprised of experienced mining professionals with over
160 years of combined experience in mineral exploration, mine construction and development, and mine operations. Our principal offices are located in Golden, Colorado at 350 Indiana Street,
Suite 800, Golden, CO 80401 and our registered office is the Corporation Trust Company, 1209 Orange Street, Wilmington, DE 19801. We also maintain exploration offices in Argentina, Mexico and
Peru.

We
are currently focused on advancement of our 100% controlled El Quevar silver project in northwestern Argentina. From the inception of our exploration activities in 2004 through
December 31, 2009, we have spent approximately $12.8 million on exploration and related activities at El Quevar. Based on an independent technical report completed in January 2010, there
are an estimated 866,000 tonnes of mineralized material at an average silver grade of approximately 412 grams per tonne. See "El QuevarGeology and
Mineralization." We are engaged in additional drilling, metallurgical analysis and other advanced exploration work at El Quevar, as well as preparation of a feasibility study.

In
addition to El Quevar, we own and control a portfolio of approximately 35 exploration properties located primarily in Mexico and South America. Our 100% controlled Zacatecas silver
and base metals project in Mexico is at an intermediate stage of exploration, with four separate target areas on which we are currently conducting exploration activities, including drilling at the
Pánuco target. We are also conducting drilling programs to explore several of our other projects, including Elisa de Bordos in Chile.

Our
team of mining professionals also provides mine management services. We currently manage the San Cristóbal silver, zinc and lead mine in Bolivia for Sumitomo
Corporation.

Company History

We were incorporated in Delaware under the Delaware General Corporation Law in March 2009, and are the successor to Apex Silver Mines
Limited ("Apex Silver"), for purposes of reporting under the U.S. Exchange Act. In January 2009, Apex Silver and its wholly-owned subsidiary, Apex Silver Mines Corporation, filed voluntary petitions
for relief under Chapter 11 of the U.S. Bankruptcy Code. In connection with its Joint Plan of Reorganization (the "Plan"), Apex Silver sold its interest in the San Cristóbal mine
to Sumitomo. Substantially all of Apex Silver's remaining assets, including its various subsidiaries that hold a broad portfolio of exploration properties, were assigned to us.

Under
the Plan, the holders of subordinated notes of Apex Silver received a pro rata distribution of Golden Minerals common stock and cash. Apex Silver's equity holders received no
recovery under the Plan, and the ordinary shares of Apex Silver were cancelled in connection with a Cayman Islands liquidation proceeding that was completed in December 2009. Apex Silver and Apex
Silver Mines Corporation were also discharged from any and all claims arising prior to the effective date of the Plan, except as provided by the Plan, and all persons holding such claims are enjoined
from asserting such claims against Apex Silver, Apex Silver Mines Corporation (now owned by Golden Minerals and renamed Golden Minerals Services Corporation), Golden Minerals and certain third
parties, including present and former directors and officers. On December 17, 2009, the Bankruptcy Court for the Southern District of New York entered an Order of Final Decree closing the
Chapter 11 case of Apex Silver. A Final Decree closing the Chapter 11 case of Apex Silver Mines Corporation (now named Golden Minerals Services Corporation) was entered on
October 16, 2009.

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Corporate Structure

Golden Minerals Services Corporation, our wholly-owned subsidiary headquartered in Golden, Colorado, is the operating entity through
which we conduct our business. We also wholly-own a number of subsidiaries organized throughout the world, including in Canada, Mexico, Central America, South America, the Caribbean,
Europe, and Australia. We generally hold our exploration rights and properties through subsidiaries organized in the countries in which our rights and properties are located.

Our Competitive Strengths and Business Strategy

Our business strategy is to discover, build and operate our own mines and to continue to provide mine development and operations
services to mines owned by others. We believe we are well positioned to implement this strategy for the reasons described below.

Experienced Management Team.We are led by a team of mining professionals with over 160 years of combined experience in exploration,
 project
development, construction and operations all over the world. Our executive officers have held senior positions at various large mining companies including Cyprus Amax Minerals Company, Phelps Dodge
Corporation, Inco Limited, Homestake Mining Company and Kinross Gold Corporation. Our executive team has a proven ability to manage large projects in challenging environments, as evidenced by our
successful development, construction and continued operation of the San Cristóbal mine in Bolivia. The San Cristóbal mine, which we currently manage on behalf of
Sumitomo, cost approximately $1.0 billion to develop and construct, and is one of the largest silver, zinc and lead mines in the world. We seek to leverage the experience and skill of our
management team by providing mine management services.

El Quevar Advanced Exploration Project.Our most advanced exploration project, the El Quevar project,
is located in the Salta Province in Argentina, a jurisdiction that has established protocols for, and has historically been receptive to, mining investment. The project is situated in an advantageous
location, with nearby infrastructure, including natural gas and power, and no community in the immediate vicinity. Based on our exploration work to date, the Yaxtché zone, one of 13
currently identified target areas, appears to be a relatively high grade silver deposit. We also have significant opportunity for expansion as we solely control 19 concessions totaling approximately
64,000 hectares in addition to the concession on which the Yaxtché deposit is located.

Broad Exploration Portfolio.In addition to El Quevar, we control a portfolio of approximately 35 exploration properties primarily in
certain
traditional precious metals producing regions of Argentina, Chile, Mexico and Peru, including several focus properties in the Zacatecas state of Mexico. We have been successful at generating value
from the sale or farm-out for cash, stock and/or royalties of certain properties that do not meet our minimum economic requirements for potential advancement.

El Quevar



Our El Quevar silver project is located in the San Antonio de los Cobres municipality, Salta province, in the Altiplano region of
northwestern Argentina, approximately 300 kilometers by road northwest of the city of Salta, the capital city of the province. The project is also accessible by a 300 kilometer dirt and gravel road
from the city of Calama in northern Chile. The village of Pocitos, located about 20 kilometers to the west of El Quevar, is the nearest settlement with approximately 150 inhabitants. A high tension
power line is located approximately 40 kilometers from the site, and a high pressure gas line devoted to the mining industry and subsidized by the Salta government is located within 20 kilometers of
El Quevar. We have established a camp approximately 10 kilometers west of the project, which currently houses approximately 45 workers.

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The
El Quevar project is located near Nevado Peak with altitudes on the concessions ranging from 3,800 to 6,130 meters above sea level. The climate of the area is high mountain desert,
with some precipitation in summer (as snow) and little snow in winter. The map below shows the location of the El Quevar project.

MAP



Mining activity in and around the El Quevar project dates back at least 80 years. Between 1930 and 1950, there was lead and
silver production from small workings in the area. We do not have production records from that period. The first organized exploration activities on the property occurred during the 1970s, although no
data from that period remains. Over the last 30 years, several companies have carried out exploration activity in the area, including BHP Billiton, Industrias Peñoles, Mansfield
Minerals and Hochschild Mining Group, consisting primarily of local sampling with some limited drilling programs in the area.



The El Quevar project is comprised of 20 concessions, including 14 exploitation concessions and six exploration concessions. In total,
the El Quevar project encompasses approximately 64,000 hectares.

The
area of most of our exploration activities at El Quevar is within the concessions that are owned or controlled by Minera El Quevar, our indirect wholly-owned subsidiary. Prior to
January 2010, Minera El Quevar was jointly owned by us and an Argentine subsidiary of Hochschild, a publicly traded Peru-based mining company. In January 2010, we purchased Hochschild's
35% interest and became the sole owner of Minera El Quevar. See "Management's Discussion and Analysis and Result of OperationsHochschild
Transaction."

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Three
of the concessions near the primary Yaxtché target are subject to options to purchase from the existing third-party concession owners. One option agreement covers
the El Quevar II concession and one-half of the Castor concession, and another option agreement covers the Nevado I concession. Our remaining payments on those option agreements are set
forth below:

El Quevar II/Castor

Nevado IAmount

Date

Amount

Date$1,100,000


March 16, 2011


$200,000


June 22, 2010$300,000


June 22, 2011$750,000


June 22, 2012


We
intend to make the remaining option payments assuming funding continues to be available and the results of our additional drilling and planned feasibility work are promising. Upon
making the final option payment, Minera El Quevar will acquire all of the optioning party's rights in the concessions. If we continue to make the payments in a timely fashion, our ability to purchase
the concession rights may not be revoked by the existing concession owners.

In
addition, under the terms of the option agreements, we are required to pay a 1% net smelter return royalty on the value of all metals extracted from the El Quevar II or Nevado I
concessions and one-half of the minerals extracted from the Castor concession. We are also required to pay a 3% net smelter return royalty to the Salta province. To maintain the
concessions, we make yearly aggregate rental payments to the Argentine government of approximately $28,500.

The
surface rights at El Quevar are controlled by the Salta Province. There are no private properties within the concession area. To date, no issues involving surface rights have
impacted the project.



We initiated exploration at El Quevar during 2004, and through December 31, 2009 we have spent approximately
$12.8 million on exploration and related activities. Through December 31, 2009, we completed 195 diamond drill holes totaling approximately 38,500
meters. Approximately 141 of the holes intersected significant silver mineralization. See "Geology and Mineralization."

In
2008, we built a camp approximately 10 kilometers west of the project site to accommodate a work force of approximately 75 people. The camp currently relies on power generated from
two diesel-powered generators. Water for camp use is pumped from a 100-meter deep well in the alluvial fan at the camp, and additional water can be supplied by drilling more wells. Our
camp has sufficient infrastructure for expansion to project development and production stage capacity.



The geology of the El Quevar project is characterized by silver-rich veins and disseminations in Tertiary volcanic rocks
that are part of an eroded stratovolcano. Silver mineralization at El Quevar is hosted within a broad, generally east-west-trending structural zone and occurs as a series of
north-dipping parallel sheeted vein zones, breccias and mineralized faults situated within an envelope of pervasively silicified brecciated volcanic rocks and intrusive breccias. There are at least
three sub-parallel structures that extend for an aggregate length of approximately 12 kilometers. Several volcanic domes (small intrusive bodies) have been identified and mineralization is
also found in breccias associated with these domes, especially where they are intersected by the structures. The silver mineralization at the Yaxtché zone is of epithermal origin. The
cross-cutting nature of the mineralization, the assemblage of sulfide and alteration minerals, and the presence of open spaces with euhedral minerals, all point to an origin at shallow to moderate
depths (a few hundred meters below surface) from hydrothermal solutions.

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Our
work to date has identified at least 13 potential zones of mineralization at the El Quevar project. As of December 31, 2009, we completed approximately 38,500 meters of
diamond drilling in 195 drill holes. Of these holes, 168 were drilled to test the main Yaxtché zone for potential mineralization, with 141 of the Yaxtché holes
intersecting significant silver mineralization. Our work indicates that the Yaxtché central zone is at least 650 meters in strike length, with other drilling results to the east and
west indicating a total length of more than 1,900 meters, and between 40 to 150 meters in width. Our drilling further indicates that the silver mineralization is continuous laterally and to depths of
250 to 300 meters below surface in the main area. The zone appears to be faulted on the east and west ends, but geological mapping and a geophysical survey suggest that the zone has been faulted down
and preserved, and is continuous in both directions.

Set
forth below are the results of three independent technical reports on the Yaxtché deposit.

"Mineralized
material" as used in this annual report on Form 10-K, although permissible under SEC Industry Guide 7, does not indicate "reserves" by SEC standards. We
cannot be certain that any part of the Yaxtché deposit will ever be confirmed or converted into SEC Industry Guide 7 compliant "reserves." You are cautioned not to assume that all or
any part of the mineralized material will ever be confirmed or converted into reserves or that mineralized material can be economically or legally extracted.

February 2009 Technical Report

Technical reports for the El Quevar project were prepared, dated February 27, 2009, by SRK Consulting (US), Inc. ("SRK")
in accordance with the requirements of the SEC's Guide 7 and National Instrument 43-101 of the Canadian Securities Administrators ("Canadian NI 43-101"). Data
from the 78 diamond drill holes then drilled was used as the data base for the report. The SRK estimate was based on the assumption that sulfide and mixed sulfide/oxide material would be mined by
underground methods and oxide material would be mined from an open pit. Due to the higher mining costs associated with underground mining, the cut-off grade for mixed and sulfide material
was significantly higher than the cut-off grade for oxide. The estimate assumed 65% recovery for oxide material, 90% recovery for mixed oxide and sulfide material, and 95% for sulfide
material.

According
to the February 2009 SRK technical report, estimated mineralized material in the Yaxtché zone, assuming a price of $12.00 per ounce of silver, was as follows:

Material

Cut-off grade
(g/tonne)

Tonnes
(000s)

Average silver
grade
(g/tonne)Oxide


85


304


168Mixed


120


156


237Sulfide


120


939


197Total





1,399


195


October 2009 Technical Report

During 2009, we continued to conduct exploratory drilling on the El Quevar concessions and the Yaxtché zone in
particular. Using this additional drilling data, CAM prepared updated technical reports for the El Quevar project. The reports, completed in October 2009, were prepared in accordance with the
requirements of the SEC's Guide 7 and Canadian NI 43-101. We engaged CAM to prepare the updated technical reports, rather than SRK, because of CAM's experience in assessing narrow
vein deposits, which we expect to be the type of deposit at El Quevar based on preliminary drilling results. A 141 diamond drill hole database was used in the CAM resource estimates, which include 63
additional drill holes that were not present in the database used by SRK Consulting in its February

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2009
report. The additional drill holes include infill drilling in the Yaxtché central zone and holes in the east and west extensions of the Yaxtché central zone.

The
CAM resource estimate assumes selective underground mining with continuity along strike and down dip supported by geologic interpretation of all holes logged to date in the
mineralized zone, as compared to the February 2009 SRK estimate which assumed open pit mining of surface oxide materials. The CAM estimate was prepared on the assumption that all mineralized material
would be mined by underground methods.

According
to the October 2009 CAM technical report, estimated mineralized material in the Yaxtché zone, at a cut-off grade of 100 grams of silver per tonne,
was as follows:

Tonnes
(000s)

Average silver grade
(g/tonne)310


430


January 2010 Technical Report

We continued to conduct exploratory drilling at the Yaxtché zone throughout 2009. The additional drill holes include
infill drilling in the Yaxtché central zone and holes in the east and west extensions of the Yaxtché central zone. Utilizing this additional infill and
step-out drilling, CAM prepared updated technical reports for the El Quevar project. The reports, completed in January 2010, were prepared in accordance with the requirements of the SEC's
Guide 7 and Canadian NI 43-101.

Data
from 156 drill holes was used in the January 2010 estimate. Consistent with CAM's October 2009 estimate, the January 2010 resource estimate assumes highly selective underground
mining with continuity along strike and down dip supported by geologic interpretation of almost all holes logged to date in the mineralized zone. We have assumed concentration by flotation.

According
to the January 2010 CAM technical report, estimated mineralized material in the Yaxtché zone at a cut-off grade of 100 grams of silver per tonne was
as follows:

Tonnes
(000s)

Average silver grade
(g/tonne)866


412


The
cut-off grade of 100 grams of silver per tonne is consistent with a silver price of $14.35 per ounce, the three-year historic average price.



Through December 31, 2009, we completed 195 diamond drill holes totaling approximately 38,500 meters. Drill cores are maintained
in a locked facility at the El Quevar campsite before and after splitting. Golden Minerals personnel were responsible for logging, sampling, splitting, and shipping core to the laboratory facilities.
The insertion of standards and blanks is carried out at the project site, while the duplicate coarse rejects and pulps are selected by each commercial laboratory. El Quevar samples have been analyzed
at two independent laboratories. The quality assurance/quality control program used at El Quevar includes regular insertion and analysis of blanks and standards to monitor laboratory performance.
Blanks are used to check for contamination and standards are used to check for grade-dependent biases. Duplicate samples are used to monitor sample batches for potential sample mix-ups and
to monitor the data variability as a function of laboratory error and sample homogeneity.

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We have completed preliminary metallurgical analyses of composites made from core samples from the central portion of the El Quevar
project. This preliminary work was focused on determining the response to various types of processing and recovery methods, including whole ore cyanidation, sulfide flotation, and a combination of
cyanidation of flotation concentrates and tailings leach. As drilling activities at El Quevar have continued, our understanding of the potential orebody has increased. We are in the process of
conducting an additional and more comprehensive metallurgical study using composite samples derived from drill cores collected at various locations along
the Yaxtché central and western zones. We believe this study will give us a more reliable and conservative estimate of ore grade values than does metallurgical sampling of individual
cores with high ore grade values. We also expect that the metallurgical study will detect the presence of any elements that could make ore extraction and processing more difficult or costly. We expect
to complete this metallurgical study in the second quarter of 2010.



We are currently conducting additional drilling to better define the resource in the western extension of the Yaxtché
zone and to obtain further information on the continuity of mineralization. We expect additional drilling will also be conducted on selected targets in the project area, including the Viejo Campo
target. See "Viejo Campo.". All of the drilling is designed to support feasibility work for the El Quevar project.

In
July 2009, we engaged independent consultants to assist with pre-feasibility work, including metallurgical analysis and engineering studies, and preparation of a
feasibility study for the development of the Yaxtché zone. After consultation, we determined to proceed with a feasibility study that includes the construction of underground workings
to develop additional information regarding the continuity of the ore grade material inside the mineralized corridor and to better define the stoping characteristics and operating costs for the length
of the Yaxtché zone. Work to date indicates that underground mining of the Yaxtché zone should be more economically feasible than open pit mining methods. We believe that
underground investigation will provide us with more accurate and conservative data than relying solely on drilling results. Moreover, costs spent on underground workings will not be duplicated in the
event the project goes into further development and production, as we intend to construct the necessary infrastructure to be sufficient in both size and quality so as to permit its use in the event
the project goes into further development and production.

Underground
exploration workings will include a ramp system that will intersect the ore zone at two locations 350 meters apart, along strike, and at a depth of approximately 200 meters.
We expect the underground workings to consist of approximately 1,000 meters of four meter by five meter decline with all supporting excavations, ventilation, accesses, sumps, muck bays, and load
center excavations. The surface work will consist of excavating approximately 112,000 cubic meters of material, developing an access road, and construction of the required mine site buildings
(additions to these facilities would be required if the El Quevar project were to proceed to production). The camp will also be expanded to accommodate an additional 25 workers. Preliminary
construction activities in connection with the construction of the underground drift commenced in the first quarter of 2010.

The
underground drift is expected to encounter two veins of mineralized material in the Yaxtché zone. We anticipate that data achieved shortly after the first vein access,
which we expect to encounter near the end of the third quarter 2010, will provide sufficient data for us to complete a feasibility study for the Yaxtché zone in the fourth quarter of
2010.

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In addition to the Yaxtché zone, we are continuing to explore other potential zones of mineralization at the El Quevar
project, including the Viejo Campo target. In October 2008, we entered into an option agreement to acquire the Viejo Campo concession with Salta Exploraciones S.A. ("SESA"), from whom we
optioned the Castor and El Quevar I concessions. Under the terms of the Viejo Campo option agreement, we can earn a 60% interest in the Viejo Campo concession after making $600,000 in payments to SESA
and a $1,000,000 investment on the concession in the amounts and by the dates set forth below:

Viejo Campo Payment

Viejo Campo InvestmentAmount

Date

Amount

Date$50,000


October 27, 2009


$150,000


October 27, 2009$100,000


October 27, 2010


$250,000


October 27, 2010$200,000


October 27, 2011


$250,000


October 27, 2011$200,000


October 27, 2012


$350,000


October 27, 2012


In
addition to the required payments shown above, we paid $50,000 upon execution of the agreement. We completed the first payment of $50,000 and the first investment of $150,000, which
were due in October 2009. Subject to the availability of funding and the results of our additional drilling, we intend to make all remaining payments and investments. Upon completing our payment and
investment obligations, we will acquire a 60% interest in the Viejo Campo concession and have an option to increase our interest to an 80% interest by paying an additional $250,000 and completing a
feasibility study at Viejo Campo within three years from the exercise of the option. If we do not exercise our option to increase our interest in Viejo Campo to 80%, SESA has the ability to convert
its 40% interest into a 3% net smelter return royalty on precious metal produced from Viejo Campo and a 1% net smelter return royalty on the remaining metals produced from Viejo Campo, although we
have a right to buy back half of those royalty interests at amounts set forth in the option agreement.

An
initial drilling program has recently been completed at the Viejo Campo concession where two hydrothermal breccia structures, the Jenna and the Pamela structures, have been
identified. The Viejo Campo concession is approximately six kilometers northwest of the main Yaxtché zone. The Jenna structure is approximately 600 meters in strike length. The Pamela
structure has an exposed strike length of approximately 150 meters. Preliminary results from diamond drill holes completed as part of a first stage drill program at the Viejo Campo concession have
returned silver values.



We anticipate spending approximately $30.0 million during 2010 in connection with the advancement of the Yaxtché
deposit at El Quevar for engineering, construction and related costs associated with the underground drift and preparation of the feasibility study. We also expect to spend approximately
$2.0 million for drilling and other exploration activities outside of the Yaxtché zone, notably in the Viejo Campo target.

While
we currently expect to proceed with the construction of the underground drift and preparation of the feasibility study as projected, the plan contains a number of "stop/continue"
points, such as the completion of a hydrology study, close-spaced confirmation drilling results and first vein access. If it is determined at any one of those points that the project is not
economically viable, our costs will be limited to costs incurred up to that point, with the exception of any prepaid expenses or supply purchase commitments.

We
currently estimate that at least an additional $65.0 to $85.0 million would be required following completion of the feasibility study anticipated in the fourth quarter 2010.
The actual amount required could vary substantially from this estimate based on the final results of the feasibility study. If the

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project
advances to development and construction, we will need to obtain additional external financing. This estimate is part of an internal study prepared under the direction of Robert Blakestad, our
Senior Vice President, Exploration and a Qualified Person as defined in Canadian NI 43-101, and is not supported by a technical report compliant with NI 43-101.
We currently plan to spend approximately $30.0 million on the advancement of El Quevar, prior to establishing the economic viability of the project in a NI 43-101 compliant
technical report. There can be no assurance that such expenditures will demonstrate the economic viability of the project.



The El Quevar project is inside the Reserva Natural Los Andes, which was established principally to provide habitat for local wildlife.
However, the reserve is designated for multiple uses, including mineral exploration and mining. The holder of any mineral concession in Salta province must submit an Environmental Information Report
prior to exploration or mining activity. This report must be re-submitted every two years. There are three levels of permitting: prospecting, drilling and exploration, and mineral
production.

We
have obtained all necessary permits for our current exploration activities at the El Quevar project. In order to construct the underground drift and related workings as described
above, we will be required to obtain a permit from the Mining Secretary of the Salta Province, Argentina. We have had an initial meeting with the Mining Secretary regarding the permit and we do not
expect the issuance of the permit to delay the construction of the underground drift.

If
the El Quevar project proceeds to development and construction, we will be required to obtain numerous additional permits from national, provincial and municipal authorities in
Argentina. We have selected a contractor and have initiated the environmental baseline studies and environmental impact assessment process required to support the permits necessary for construction
and operations. While we are not aware of any significant obstacle to obtaining the required permits, we have not yet formally begun to seek the necessary approvals.



The Republic of Argentina is a federal republic located in South America and bordered by Chile, Bolivia, Paraguay, Brazil and Uruguay.
The federal government coexists with the governments of 23 provinces and one autonomous city, Buenos Aires. Each province regulates its own administrative, legislative and judicial structure,
complying with the republican system of government and the division of powers.

Certain Laws Affecting Mining in Argentina

According to Argentine law, mineral resources are subject to regulation in the provinces where the resources are located. Each province
has the authority to grant exploration permits and exploitation concession rights to applicants. The Federal Congress has enacted the National Mining Code and other substantive mining legislation,
which is applicable throughout Argentina, however, each province has the authority to regulate the procedural aspects of the National Mining Code and to organize the enforcement authority within its
own territory.

In
the province of Salta, where the El Quevar project is located, all concessions are granted by a judge in the Salta Mining Court. The types of mineral concessions relevant to the El
Quevar project are exploration concessions and exploitation concessions. Exploration concessions are granted for up to 1,100 days depending on the size of the claim. The size of an exploration
claim must be reduced periodically unless the owner applies to the Mining Court to convert it, or at least part of it, to an exploitation concession. Exploration concessions are subject to a yearly
payment (canon), which is fixed each year by the federal government. For 2009, we paid a total of approximately $28,500 to maintain

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our
El Quevar exploration concessions. An exploration plan must be filed for each exploration concession along with an environmental report that must be approved by the provincial mining authority.
Additional environmental reports are required on a bi-annual basis while the exploration concession is valid. Upon expiration of the exploration concession, all data and documentation from
the activities carried out on the concession must be filed with the provincial mining authority.

Exploitation
concessions may be granted if any mineral discovery is made either by the concessionaire or authorized third parties. Exploitation concessions are also subject to a yearly
de minimis payment fixed by the National Ministry of Economy. An exploitation concession may be maintained indefinitely by timely payment of annual fees, capital investment, and continuity of work
program (exploration, infrastructure, or mining). In addition to the annual payment of maintenance fees, metals mines in the Salta Province are subject to a net smelter return royalty of 3% of metals
produced.

Taxes in Argentina

Argentina has a federal income tax rate of 35%, and the income tax law allows for a five year carryforward of net operating losses.
Argentina has several taxes in addition to income tax. The more significant taxes include (i) a Value Added Tax ("VAT") charged at a general rate of 21% for all goods and services provided in
Argentina, as well as for imports into Argentina, unless specifically exempted; (ii) an import duty for certain goods and services entering the country; (iii) a provincial gross receipts
tax applied to non-exported sales transactions in addition to VAT; (iv) a minimum presumed tax equivalent to 1% of the total asset value of an entity; and (v) a wealth tax of
0.5% of the equity value of an entity. For the metals extraction business, there is a 5% royalty on the value of the mineral extracted. Also, for exported minerals, Argentina imposes an export tax of
5% for silver dore and 10% for silver concentrates.

The
tax laws applicable to exploration, prospecting, development, and mining extraction, as set forth in the Argentina Mining Investment Law, provide for significant benefits to the
general tax system for those companies inscribed under this law and which meet certain conditions. These benefits include: (i) fiscal stability; (ii) double deductions for certain mining
costs; (iii) accelerated amortization for certain project costs; (iv) import duty exemptions; (v) an exemption from the minimum presumed tax described
in the previous paragraph and (vi) a decrease from 5% to 3% on the royalty on mineral extracted. A fiscal stability agreement with the federal government can be obtained with a term of
30 years from the date a project's economic feasibility is presented along with the corresponding application. During the 30 year term, in general, a party to such an agreement with the
federal government will neither be subject to new taxes or increases in tax rates, nor suffer the elimination of tax exemptions or deductions. However, a fiscal stability agreement does not limit
changes in VAT, contributions to the social security system, or indirect taxes, and it does not impede the government from extending rules passed for a specified term or exempt the government from
eliminating tax exemptions that have a scheduled date of expiration. Also, VAT paid on the import and purchase of goods and services used to carry out exploration activities that remains as a credit
for greater than 12 years, may be refunded. Argentina also allows for the exemption from import duties when importing capital goods and special equipments or components, spare parts of said
goods, or leased goods used to carry out mining and exploration activity defined by the Mining Department.

As
mentioned in the preceding paragraph, one of the benefits from the Argentina Mining Investment Law given to mining companies is a double deduction on certain mining related costs. If
we begin production at El Quevar, activities such as prospecting, exploration, special studies of mineralogy, metallurgy, feasibility and pilot plant studies may be offset 100% against taxable
profits, and such costs may also be depreciated for tax purposes. In addition, we may benefit from tax depreciation on an accelerated basis on investments in infrastructure, machinery, equipment and
vehicles used in developing production capacity or carrying out new mining projects.

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Other Exploration Properties

In addition to El Quevar, we own and control a portfolio of approximately 35 exploration properties located primarily in South America
and Mexico. In evaluating whether an exploration project warrants potential future development, we establish minimum requirements for reserves and annual saleable metal production rates and estimated
mine development, capital and operating cost requirements. We seek to generate value from exploration properties that do not satisfy our minimum economic requirements through sale or
farm-out of the property to a third party, and/or through retaining a royalty interest.

The
map below shows the location of some of our projects:

GRAPHIC

Zacatecas (Mexico)

Our 100% controlled Zacatecas silver and base metals project in Mexico is in an intermediate stage of exploration. Although we believe
that the Zacatecas project may contain
significant silver and/or other mineralization, we have not completed a feasibility study on the property, and the property may not advance further.

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The Zacatecas project surrounds the municipalities of Zacatecas, Veta Grande, Guadalupe, Pánuco, and Morelos in the
state of Zacatecas, Mexico. All of our Zacatecas properties can be easily reached within 10 kilometers from the city of Zacatecas by paved and dirt roads. A location map is shown below.

GRAPHIC



We own or control approximately 180 concessions totaling approximately 14,850 hectares in the Zacatecas project. Of these concessions,
all but four are currently owned exclusively by us, and the remaining four concessions are under our exclusive control under purchase options with private third-party owners. The purchase options
require option payments of $53,000 due in 2009, which payments have been made, $72,500 in 2010, $375,000 in 2011, and $204,000 in 2012. To maintain all of the concessions, we also pay approximately
$62,500 per year to the Mexican government. We are party to a finder's fee agreement with an individual, which requires that we pay a 1% net smelter return royalty on any mineral production from
certain of our Zacatecas claims.

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The Zacatecas Mining District is located in the central part of Mexico, in the Faja de Plata mineral belt. A map of the mineral belt is
shown below. Production from the Zacatecas district is estimated by the Mexican Federal Mining Agency to exceed 750 million ounces of silver. The existence of mining operations or mineral
deposits on adjacent properties is not indicative of whether mineral deposits occur on our properties.

GRAPHIC



From 1994 to 2005, we performed sporadic reconnaissance work on some of the Zacatecas concessions, including taking approximately 2,000
surface samples. In 2006, we began systematic reconnaissance work on all concessions that we controlled. On the basis of this and the previous work, we identified the Muleros, El Cristo and San
Manuel-San Gil areas of interest. In these areas, we performed more detailed mapping work, as well as trenching and detailed sampling, and in the Muleros area, we completed a
two-stage diamond drilling program of 37 holes totaling approximately 6,800 meters. We have also recently identified a fourth target area, the Pánuco target, which is
located in the northeastern part of the Zacatecas district about 10 kilometers east of the Muleros area. We believe that each of the target areas has potential for the discovery of silver with
associated base metals and gold. We have spent approximately $9.8 million through December 31, 2009 on exploration and property acquisition in the Zacatecas district.

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At a regional level, the Zacatecas Mining District is located within the physiographical provinces of the Western Sierra Madre and the
Central Plateau. The basement rock units in the area include the metamorphic rocks of the Zacatecas Formation of Upper Triassic age. Overlying these rocks are the volcano-sedimentary units of the
Chilitos Formation of Upper Jurassic-Lower Cretaceous age. During the Tertiary period, a polymictic conglomerate known as the "Red Zacatecas Conglomerate" was discordantly deposited, and overlying
this, andesitic to rhyolitic flows and tuffs were deposited. All units are intruded by small stocks and plugs of rhyolitic to andesitic composition.

The
Zacatecas Formation is composed of a sequence of sericitized phyllites and metamorphosed shales, sandstones, conglomerates and limestones. These rocks are host to some veins such as
those of the El Bote vein system and the deeper portions of the Mala Noche vein system.

The
Chilitos Formation of Upper Jurassic-Lower Cretaceous age is a volcano-sedimentary sequence made up of massive and pillowed lavas of basaltic-andesitic composition with
intercalations of sedimentary, volcaniclastic and calcareous rocks, metamorphosed to greenschist facies. This sequence is locally thrust over the Zacatecas Formation and is the main host rock for
mineral systems in several mining districts in the region, including Zacatecas and Fresnillo.

During
the Oligocene-Miocene period, extensive deformation occurred that produced normal faulting, forming grabens and horsts bearing generally north-northeast/south-southwest. It was
during this phase of deformation that most of the epigenetic mineral deposits were formed.

In
the four target areas identified by us, rocks of the Chilitos Formation are host to the veins. The four main target areasMuleros, Pánuco, El Cristo and San
Manuel-San Gilare described in more detail below.



Located in the northern part of the Zacatecas Mining District, the Muleros area covers an area of roughly 1,800 meters by 2,400 meters,
where four sub-parallel epithermal vein-faults outcrop. The veins are composed of quartz and calcite, and contain silver mineralization associated with minor antimony and lead
and zinc. The main vein system bears N40° to 70°W and dips 60° to 85° mainly to the southwest, with thicknesses that vary from 0.1 meters to 6.2 meters,
and lengths from 1,000 to 2,500 meters, with shorter offshoots. The total length of all the outcropping veins is about 6,500 meters, and of the inferred veins (i.e., those that do not
continuously outcrop) is 2,100 meters, with an average width of 1.33 meters. From 2006 to the present, we have taken approximately 1,100 surface samples from outcrops and trenches.

At
Muleros, we have drilled 37 diamond drill holes totaling approximately 6,800 meters. There were two stages of drilling. The first program was carried out with a total of 3,840 meters
distributed over 31 short bore holes. The purpose of this program was to determine the structural behavior of the veins, the vein textures and the geochemistry at a vertical depth of about 100 meters
from the surface. The second program was carried out with a total of 2,976 meters distributed over six boreholes. These holes were deeper tests (over 300 meters in depth), meant to intersect the veins
in a postulated zone of high grade mineralization. The results indicate that the dip of the veins changed, becoming less steep than indicated at the surface and the intersections were less deep than
planned (meaning they may have intercepted the upper part of a possible zone). Results from this drilling returned narrow intercepts of silver mineralization. Our results to date indicate that the
more promising part of the Muleros target may be in the southeastern part of the area.

We
anticipate conducting an additional drill program during the second quarter of 2010 consisting of 10 to 15 holes at a cost of approximately $500,000 to further test this area. If the
results of this program warrant further exploration, we intend to conduct a more extensive drilling program.

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The Pánuco target area is located in the northeastern part of the Zacatecas district about 10 kilometers east of the
Muleros area and is comprised of two main veins hosted in
sedimentary rocks that outcrop for an aggregate of about 5 kilometers in a northwesterly direction. Vein widths range from one to three meters. Several small pits indicate mining of silver from
oxidized surface rocks during Colonial times. There has been no modern exploration at Pánuco. We have mapped the area in detail and collected approximately 400 samples from the veins
and wall rocks.

We
are currently conducting a first phase drill program consisting of 10 diamond core holes totaling about 2000 meters at an estimated cost of approximately $350,000. If the results from
this work appear promising, we intend to conduct additional drilling and analytical work to advance the project in 2010.



Located in the central portion of the Zacatecas Mining District, the El Cristo area covers a surface area of 800 meters by 2000 meters,
where five sub-parallel epithermal quartz-calcite veins outcrop. These veins correspond to the northwestern extension of the Vetagrande vein system. From 2006 to October 2008, we took
approximately 1,017 surface samples from outcrops and trenches, of which 516 are from the veins. These samples have returned silver and gold values, with anomalous values in copper, lead and zinc. The
average vein width is 1.5 meters. The main vein system bears N50 to 60? W and dips 60 to 80? SW, with thicknesses varying from 0.15 meters to 5.0 meters, and lengths from 500
to 2400 meters, with shorter offshoots. The total length of the outcropping veins and their respective offshoots is approximately 8,000 meters.

The
area has been mapped at a 1:2,500 scale and we completed an environmental impact report in June 2007. We have planned an exploration program during 2010 including 3,000 meters of
diamond drilling at an estimated cost of approximately $500,000.



Located in the central portion of the Zacatecas Mining District, the San Manuel-San Gil area covers an area of 8 square
kilometers, where sub-parallel epithermal veins and alteration zones outcrop. The main vein system bears N60W to East-West and dips to the north and south, with thicknesses
varying from 0.10 meters to 7 meters, and lengths from 400 to 1400 meters with shorter offshoots. The total length of all the outcropping veins and their respective offshoots is about 7000 meters,
with an average width of 1.2 meters. We have taken 167 chip-channel samples that have returned silver and gold values, and highly anomalous values in copper, lead and zinc.

We
carried out a geochemical soil sampling program in an area measuring 4.2 kilometers by 2 kilometers with east-west lines every 100 meters and samples every 50 meters. A
total of 785 samples were taken. The strongest anomaly in silver, gold and copper is located in the southeastern portion of the area.

We
have planned an exploration program including approximately 2,000 meters of drilling at an estimated cost of $350,000 to test this target.

Early Stage Exploration Properties

We believe that the properties described below, while not as advanced as El Quevar and Zacatecas, appear promising based on our
activities to date. We intend to conduct further mapping, sampling and drilling on these properties. Although we believe that these properties merit further exploration activities, our activities are
at a preliminary stage and we do not yet consider any one of these properties to be individually material.

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The Palca project is located in the Puno province in southern Peru and is distinguished by an extensive series of veins aggregating
more than 10 kilometers in length containing silver, gold and base metals in locally significant amounts. We have a 100% interest in the project, which is made up of nine concessions totaling
approximately 4,800 hectares. The veins at Palca are hosted by Tertiary volcanic rocks and associated intrusive bodies and range in width from two to fifteen meters. Sampling has returned silver,
gold, lead and zinc values. There has been some limited production from one of the veins, but little modern exploration has been conducted.

We
are planning an initial drill test of 10 holes totaling 3,000 meters at a cost of $500,000 to begin in the second quarter 2010. If the program results are encouraging, we intend to
conduct additional drilling and analytical work to advance the project.



The Elisa de Bordos project is located about 40 kilometers southeast of the city of Copiapó in north-central Chile. We
have an option agreement to acquire a 75% interest by conducting $1.5 million in work prior to 2012 and establishing a resource estimate that meets industry standards. We may increase our
interest under certain conditions. There has been historical production of an unknown amount of silver ores from replacement-style mineralization hosted in sedimentary and volcanic rocks from this
project. There are about 4,500 meters of underground workings that we have mapped and sampled in some detail.

Our
sampling has returned silver values from exposures in the workings and we have established that silver is present in similar host rocks for at least one kilometer from the old mine
site. There has been no modern exploration on the project. Our work has shown that silver is present over a sufficient area and the indicated grade of the potentially mineralized zone is such that a
silver resource may be present at Elisa de Bordos.

We
are currently conducting a 10 hole, 1,700 meter drilling program to test this area at an estimated cost of $300,000.



The Matehuapil Project is located in northeastern Zacatecas state in central Mexico. Significant projects in the region surrounding
Matehuapil include the Peñasquito Mine, the Concepcíon del Oro district and the new Camino Rojo discovery. The project currently includes two concessions totaling 12,090
hectares, and we have a joint venture agreement with Almaden Minerals Ltd. under which we may earn a 60% interest in the properties by making certain payments to Almaden and conducting work
programs over a six year period. We have applied for additional property in the area that will be owned solely by Golden Minerals.

The
geology at Matehuapil is comprised of limestones with some sandstones and shales intruded by mozonitic bodies and cut by faults and veins related to regional structures. The project
has potential for the discovery of silver and base metal-rich veins and replacement deposits, including carbonate replacement deposits similar to the famous Santa Eulalia and Naica
deposits found further north.

In
addition to these types of deposits, we have indentified an area of altered intrusive and sedimentary rocks that contain potentially significant amounts of gold. This area, called
Rabioso, is located in the northwest portion of the Matehuapil concession and contains an exposure of oxidized altered intrusive rock cut by numerous fractures and veinlets. Sampling of this area has
indicated that gold values are present over an exposed area of the intrusive of approximately 250 meters by 800 meters and is also found in the adjacent altered sedimentary rocks to a lesser degree.
Our work has included trenching and the excavation of pits to obtain material for analysis and the compilation of

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detailed
geological information. This work has indicated that the possibility of a large disseminated gold deposit exists at the Rabioso target.

We
are planning an initial drill test of 10 to 15 holes totaling 3,000 meters at a cost of $500,000 to begin in the second quarter of 2010. If the results from this program are
encouraging, we intend to conduct additional drilling and analytical work to advance the project.



The La Pinta property is located in northeastern Zacatecas state in central Mexico about 25 kilometers southwest of
Concepcíon del Oro and 13 kilometers south of Goldcorp's Peñasquito mine. The project includes 10 concessions totaling 35,300 hectares that are owned outright by Golden
Minerals and one 40 hectare concession controlled under an option to purchase a 100% interest that requires that we pay a total of $35,000 over a two year period ending in September 2011.

The
geology at La Pinta is largely obscured by alluvium, but mapping of available outcrops reveals a thrust fault that places the Cretaceous age Indidura Formation over the Cuesta de
Cura Formation, also of Cretaceous age. This contact is marked by boulders and fragments of limestone that are in a siliceous matrix and fragments of silicified intrusive that locally contains
abundant pyrite. Large fragments of the altered intrusive are found as float over an area of approximately 2,000 meters by 500 meters. Sampling of this material has returned gold values and highly
anomalous levels of arsenic. Elsewhere on the property, scattered outcrops of the Caracol Formation indicates areas of brecciation and pyritic mineralization that has returned silver values and
anomalous levels of arsenic and zinc. Outcrops of the various sedimentary units of Cretaceous age show additional evidence of potential mineralization, including calcite and quartz veining, pyrite and
iron oxides after pyrite.

We
have completed a detailed ground magnetic survey over the central area of interest. This survey indicates a low-level anomaly that is in part coincident with the area of
intrusive float
and we interpret this as indicating that an altered intrusive rock may be present under the alluvium or intruding the sedimentary rocks in this area.

Our
plan is to conduct an initial drill test of 10 to 15 holes totaling 3,000 meters at a cost of $500,000 to begin in the second quarter of 2010. If the results of this program are
encouraging, we intend to follow up the initial program with additional drilling and related work.

Farm-outs, Royalties and Other Dispositions

Exploration properties that we decide not to advance are evaluated for joint venture, sale of all or a partial interest, and royalty
potential. In evaluating whether an exploration project warrants future expenditure, we establish minimum requirements for reserves and annual saleable metal production rates and estimate mine
development, capital and operating cost requirements to determine if developing the project is economically viable. Exploration properties that do not satisfy the minimum economic requirements may
generate value through sale or farm-out to third parties, or through retaining royalty interests. We have minority ownership interests and/or royalties in the following properties that
were once part of our exploration portfolio:



During 2004, we sold to Excellon the mineral rights to a portion of our Platosa silver-lead-zinc property in
Mexico, and we retained a 3% net smelter return royalty interest. In November 2009, we sold our 49% joint venture interest in the Platosa project to Excellon. We received a cash payment of
$2.0 million and retained a 1% net smelter return royalty over the joint venture properties. The prior agreements between us and Excellon were terminated in connection with the sale.

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We owned eight concessions totaling approximately 3,400 hectares on our Otuzco silver-lead-zinc project in
Peru. After conducting a detailed geological evaluation of the concessions, we determined that the mineral potential at the Otuzco project did not meet our requirements. We entered into an agreement
with Apoquindo Minerals Inc., a Canadian junior exploration company, to sell the concessions for a total of $3.0 million, payable in installments over four years. We received the initial
payment of $150,000 in 2008, and $35,000 in 2009; the remaining installment payments are due as follows: $350,000 in 2010, $500,000 in 2011, $900,000 in 2012 and $1,100,000 in 2013. If these payments
are not completed, the property will be returned to us and we will retain all amounts previously paid.



In August 2009, we sold to Capstone Gold SA de CV, a wholly owned subsidiary of Capstone Mining Corp., the mineral rights to a
portion of our Zacatecas project in Mexico; namely, the Esperanza, San Francisco, and Santa Rita concessions immediately adjacent to Capstone's Cozamin Mine. The purchase price we received for the
three concessions included (a) an initial payment of $1.0 million, (b) future cash payments of a net smelter return of 1.5% on the first one million tonnes of production from the
acquired claims, and (c) cash payments equivalent to a 3.0% net smelter return on production in excess of one million tonnes from the acquired claims. Additionally, the net smelter return on
production in excess of one million tonnes escalates by 0.5% for each $0.50 increment in copper price above $3.00 per pound of copper. There is currently no production on these concessions.

Mine Services

We provide mine services, including project development strategies and direction; engineering, construction and procurement management;
environmental permitting and corporate social responsibility; technical team support; and contract operations management. We currently have an agreement in place with Sumitomo Corporation, the San
Cristóbal Management Services Agreement, for the management of the San Cristóbal mine in Bolivia.



Under the terms of the San Cristóbal Management Services Agreement with Sumitomo we provide management services at the
San Cristóbal mine including, for example, management of technical and operating activities, administrative support, information technology and local community relations. Certain
services, such as lobbying, governmental relations and tax planning, are not included in the services that we provide under the San Cristóbal Management Services Agreement. We are paid
an annual fee of $11.4 million, which includes approximately $5.4 million that constitutes reimbursement for direct administrative expenses that we incur on behalf of the San
Cristóbal mine. We received an annual incentive fee of $1.125 million for 2009, and we are eligible to receive up to $1.5 million for each year thereafter, based on
achievement of certain negotiated performance targets and payable within 75 days of the first day of the year following the year in which the performance targets were achieved. After
June 30, 2010, the San Cristóbal Management Services Agreement may be terminated at the terminating party's discretion by us with 12 months' prior notice or by Sumitomo
with six months' prior notice (or by Sumitomo with three months notice if Sumitomo has sold, directly or indirectly, more than 20% of the subsidiary that owns the mine). If the agreement is terminated
by Sumitomo, we will be entitled to a $1.0 million termination fee. We will not be required to pay a termination fee if we opt to terminate the agreement.

The
San Cristóbal mine is located in Bolivia approximately 500 kilometers south of the city of La Paz. The San Cristóbal mine consists of an open pit mine
and concentrator with a designed capacity of 40,000 tonnes per day. During the year ended December 31, 2009, the mine produced approximately 499,400 tonnes of zinc concentrates and 107,700
tonnes of lead concentrates containing approximately 16.1 million ounces of silver, 246,300 tonnes of zinc and 69,600 tonnes of lead.

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Executive Officers of Golden Minerals

We have five executive officers: our President and Chief Executive Officer and four Senior Vice Presidents (including our Chief
Financial Officer). Set forth below is information regarding our executive officers.

Name and Residence

Age

PositionJeffrey G. ClevengerColorado, USA


60

Chairman, President and Chief Executive OfficerRobert B. BlakestadColorado, USA


63

Senior Vice President, Exploration and Chief GeologistJerry W. DanniColorado, USA


57

Senior Vice President, Corporate AffairsDeborah J. Friedman(1)Colorado, USA


57

Senior Vice President, General Counsel and Corporate SecretaryRobert P. VogelsColorado, USA


52

Senior Vice President and Chief Financial Officer


(1)Ms. Friedman
is a partner at Davis Graham & Stubbs LLP and devotes approximately half her time to service as Senior Vice President,
General Counsel and Corporate Secretary.


Jeffrey G. Clevenger.Mr. Clevenger has served as our Chairman of the Board and as our President and Chief Executive Officer since
March 2009.
He served as a director and President and Chief Executive Officer of Apex Silver from October 2004 through March 2009. Mr. Clevenger worked as an independent consultant from 1999 when Cyprus
Amax Minerals Company, his previous employer, was sold until he joined us in 2004. Mr. Clevenger served as Senior Vice President and Executive Vice President of Cyprus Amax Minerals Company
from 1993 to 1998 and 1998 to 1999, respectively, and as President of Cyprus Climax Metals Company and its predecessor, Cyprus Copper Company, a large integrated producer of copper and molybdenum with
operations in North and South America, from 1993 to 1999. He was Senior Vice President of Cyprus Copper Company from August 1992 to January 1993. From 1973 to 1992, Mr. Clevenger held various
technical, management and executive positions at Phelps Dodge Corporation, including President and General Manager of Phelps Dodge Morenci, Inc. He is a Member of the American Institute of
Mining, Metallurgical and Petroleum Engineers and the Metallurgical Society of America. Mr. Clevenger holds a B.S. in Mining Engineering with Honors from the New Mexico Institute of Mining and
Technology and is a graduate of the Advanced International Senior Management Program of Harvard University.

Robert B. Blakestad.Mr. Blakestad was appointed Senior Vice President, Exploration and Chief Geologist of our company on
March 24,
2009. In November 2004, he was appointed as Vice President, Exploration of Apex Silver Mines Limited. Prior to joining Apex Silver Mines Limited, Mr. Blakestad served as Chief Executive Officer
of International Taurus Resources from May 1998 until November 2004. He was Vice PresidentExploration for Amax Gold from 1996 to 1998 and Exploration Manager for Cyprus Amax Minerals
Company from 1990 until 1996. He held various positions at Homestake Mining Company from 1979 until 1990, beginning as a Senior Geologist and rising to the position of Manager, U.S. Reconnaissance.
Mr. Blakestad holds a B.S. in Mining Engineering from the New Mexico Institute of Mining and Technology and an M.S. in Geology from the University of Colorado. He is a member of the American
Institute of Mining, Metallurgical and Petroleum Engineers and of the Society of Economic Geologists. He holds professional certifications from the State of Washington and the Province of Nova Scotia.

23

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Jerry W. Danni.Mr. Danni was appointed Senior Vice President, Corporate Affairs of our company on March 24, 2009.
Mr. Danni
joined Apex Silver Mines Limited in February 2005 as the Senior Vice President, Environment, Health and Safety and in March 2005 was appointed Senior Vice President, Corporate Affairs. Prior to
joining Apex Silver Mines Limited, Mr. Danni served as Senior Vice President, Environment Health and Safety of Kinross Gold Corporation from January 2000 until February 2005 and as Vice
President, Environmental Affairs from July 2000 until January 2003. While at Kinross he was instrumental in the design and implementation of integrated environmental, and health and safety systems and
processes for Kinross operations worldwide, and was also responsible for management of the Reclamation Operations Business Unit. From 1994 to July 2000, Mr. Danni was the Vice President of
Environmental Affairs for Cyprus Climax Metals Company. Prior to working for Cyprus, Mr. Danni held senior environmental, and health and safety management positions with Lac
Minerals Ltd. and Homestake Mining Company. Mr. Danni holds a B.S. in Chemistry from Western State College, and is a member of the Society of Mining Engineers and a past director of the
National Mining Association.

Deborah J. Friedman.Ms. Friedman was appointed Senior Vice President, General Counsel and Corporate Secretary of our company on
March 24, 2009. She was previously appointed Senior Vice President, General Counsel and Corporate Secretary of Apex Silver Mines Limited in July 2007. Ms. Friedman is also currently a
partner at Davis Graham & Stubbs LLP, where her practice focuses primarily on securities, finance and transactional matters for publicly-traded mining companies. She transitioned to
Partner on leave status at Davis Graham & Stubbs LLP from December 2007 to June 2009 during her full-time employment with Apex Silver Mines Limited. Ms. Friedman was a
full time partner at Davis Graham & Stubbs LLP from August 2000 through December 2007, and she was of counsel to the firm from May 1999 through August 2000. From 1982 through 1994,
Ms. Friedman held various positions in the law department of Cyprus Amax Minerals Company, including General Counsel and Associate General Counsel, and served from 1994 to 1998 as the General
Counsel of AMAX Gold Inc. Prior to working for Cyprus, Ms. Friedman was an associate in several Denver law firms from 1977 to 1982. Ms. Friedman holds a B.A. in History from the
University of Illinois and a J.D. from The University of Michigan Law School.

Robert P. Vogels.Mr. Vogels was named Senior Vice President and Chief Financial Officer of our company on March 24, 2009.
Mr. Vogels served as Controller of Apex Silver since January 2005 and was named Vice President in January 2006. Prior to joining Apex Silver, Mr. Vogels served as corporate controller
for Meridian Gold Company from January 2004 until December 2004. He served as the controller of INCO Limited's Goro project in New Caledonia from October 2002 to January 2004. Prior to joining INCO,
Mr. Vogels worked from 1985 through October 2002 for Cyprus Amax Minerals Company, which was acquired in 1999 by Phelps Dodge Corp. During that time, he served in several capacities, including
as the controller for its El Abra copper mine in Chile from 1997 until March 2002. Mr. Vogels began his career in public accounting where he held a CPA certification. He holds a B.Sc. in
accounting and an MBA degree from Colorado State University.

In
addition to the executives described above, we rely on the consulting services of Terry L. Owen, our former Senior Vice President. Mr. Owen has more than 30 years of
experience in mine development, construction and operations, primarily at executive and senior management levels with Apex Silver, Cyprus Amax Minerals Company and Freeport McMoran. In addition to the
development, construction and operation of the San Cristóbal mine, Mr. Owen has had a leadership role in the development of more than 20 mining projects in 10 different
countries. These projects include the construction of the $1.0 billion El Abra copper mine and solvent extraction/electrowinning circuit in Chile, the modernization and expansion of the Cerro
Verde copper mine in Peru, the construction of the Fort Knox gold mine in Alaska, the construction of the Kubaka gold mine in Far East Russia, the expansion of the Henderson underground block cave
molybdenum mine in Colorado and the modernization of the related ore transport system, the completion of the Grasberg expansion and

24

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several
other major capital projects and expansions at Freeport McMoran Inc.'s gold and copper mines in Indonesia and service as Vice President and Assistant General Manager of those
operations. Mr. Owen resigned from his positions as Senior Vice President of Golden Minerals and President of Golden Minerals Services Corporation effective January 1, 2010.

Metals Market Overview

We have targeted exploration properties that potentially contain silver or other precious metals, including gold. Descriptions of the
markets for these metals are provided below.

Silver Market

Silver has traditionally served as a medium of exchange, much like gold. Silver's strength, malleability, ductility, thermal and
electrical conductivity, sensitivity to light and ability to endure extreme changes in temperature combine to make it a widely used industrial metal. While silver continues to be used as a form of
investment and a financial asset, the principal uses of silver are industrial, primarily in electrical and electronic components, photography, jewelry, silverware, batteries, computer chips,
electrical contacts, and high technology printing. Silver's anti-bacterial properties also make it valuable for use in medicine and in water purification. Additionally, new uses of silver
are being developed in connection with the use of superconductive wire.

Most
silver production is obtained from mining operations in which silver is not the principal or primary product. The CPM Group, a precious metal and commodities consultant, estimates
in its
Yearbook 2009 that approximately 76% of mined silver is produced as a by-product of mining lead, zinc, gold or copper deposits.

The
following table sets forth for the periods indicated on the London Fix high and low silver fixes in U.S. dollars per troy ounce. On March 24, 2010, the closing price of silver
was $16.68 per troy ounce.

SilverYear

High

Low2005

$
9.23

$
6.392006

$
14.94

$
8.832007

$
15.82

$
11.672008

$
20.92

$
8.882009

$
19.18

$
10.512010*

$
18.84

$
15.14


*Through
March 24, 2010


Gold Market

For centuries, gold has been desirable for its rarity, beauty, and unique properties. Because gold is highly valued and in very limited
supply, it has long been used as a medium of exchange or money.

The
production of ornamental objects was probably the first use of gold over 6,000 years ago. The CPM Group estimates in its Yearbook 2009 that about 79% of the gold consumed each
year is used in the manufacture of jewelry, with approximately 13% of demand for gold from industry. Gold is an excellent conductor of electricity, is extremely resistant to corrosion, and is one of
the most chemically stable of the elements, making it critically important in electronics and other high-tech applications.

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The
most important industrial use of gold is in the manufacture of electronics. A small amount of gold is used in almost every sophisticated electronic device. Gold's unique properties
make it also useful in medical applications.

The
following table sets forth for the periods indicated on the London Fix AM high and low gold fixes in U.S. dollars per troy ounce. On March 24, 2010, the closing price of gold
was $1,094.00 per troy ounce.

GoldYear

High

Low2005

$
537.50

$
411.502006

$
725.75

$
520.752007

$
841.75

$
608.302008

$
1,023.50

$
692.502009

$
1,218.25

$
813.002010*

$
1,158.00

$
1,052.25


*Through
March 24, 2010


Employees

We currently have approximately 155 employees, including 20 working out of our office in Golden, Colorado, approximately 115 working
out of our various foreign exploration offices, and approximately 20 working at the San Cristóbal mine in connection with the San Cristóbal Management Services Agreement.

Competition

As an exploration stage company, we compete with other mineral resource exploration and development companies for financing and for the
acquisition of new mineral properties. In addition, as a mine services provider, we compete with other mining companies to attract and retain key executives, skilled labor, contractors and other
employees. The metals markets are cyclical and our ability to maintain our competitive position over the long term will be based on our ability to acquire and develop quality deposits, hire and retain
a skilled workforce and to manage our costs.

Many
of the mineral resource exploration and development companies with which we compete have greater financial and technical resources than we do. Accordingly, these competitors may be
able to spend greater amounts on acquisitions of mineral properties of merit, on exploration of their mineral properties and on development of their mineral properties. In addition, they may be able
to afford greater geological expertise in the targeting and exploration of mineral properties. This competition could result in competitors having mineral properties of greater quality and interest to
prospective investors who may finance additional exploration and development. This competition could adversely impact our ability to finance further exploration and to achieve the financing necessary
for us to develop our mineral properties.

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ITEM 1A:    RISK FACTORS

Investors in Golden Minerals should consider carefully, in addition to the other information contained in, or incorporated by reference
into, this annual report on Form 10-K, the following risk factors:

Risks related to our business

We expect to incur operating losses at least through 2010 and our profitability in the foreseeable future depends entirely on the success of the El Quevar project, which has
not been shown to contain proven or probable reserves.

We have a history of losses and we expect that we will continue to incur operating losses unless and until such time as our El Quevar
project in Argentina or another of our exploration properties enters into commercial production and generates sufficient revenue to fund continuing operations. We are focused primarily on the
advancement of El Quevar.

Neither
the El Quevar project, nor any of our other properties, has been shown to contain proven or probable reserves and expenditures made in the exploration of our properties may not
result in discoveries of commercially recoverable quantities of ore. Most exploration projects do not result in the discovery of commercially mineable deposits of ore and we cannot assure you that any
mineral deposit we identify will qualify as an ore body that can be legally and economically exploited or that any particular level of recovery of silver from discovered mineralization will in fact be
realized.

Chlumsky,
Armbrust & Meyer, LLC ("CAM") completed a technical report on the El Quevar property, which indicates the presence of "mineralized material." See
"Business and PropertiesEl QuevarGeology and Mineralization." Mineralization figures based on estimates made by geologists are
inherently imprecise and depend on geological interpretation and statistical inferences drawn from drilling and sampling that may prove to be unreliable. We cannot assure you that these estimates will
be accurate or that proven and probable reserves will be identified at El Quevar or any of our other properties. Even if we establish the presence of reserves at a project, the economic viability of
the project may not justify further exploitation. We currently plan to spend approximately $30.0 million on the advancement of El Quevar prior to establishing the economic viability of the
project in a technical report compliant with National Instrument 43-101 of the Canadian Securities Administrators ("NI 43-101"). There can be no assurance that
such expenditures will demonstrate the economic viability of the project.

Estimates
of reserves, mineral deposits and production costs can also be affected by such factors as governmental regulations and requirements, fluctuations in metals prices or costs of
essential materials or supplies, weather, environmental factors, unforeseen technical difficulties, unusual or unexpected geological formations and work interruptions. In addition, the grade of ore
ultimately mined may differ from that indicated by drilling results, sampling, feasibility studies or technical reports. Short term factors relating to reserves, such as the need for orderly
development of ore bodies or the processing of new or different grades, may also have an adverse effect on mining operations and on the results of operations. Silver or other minerals recovered in
small scale laboratory tests may not be duplicated in large scale tests under on-site production conditions.

We will need substantial additional financing to advance the El Quevar project and we may not be able to obtain such financing.

If the El Quevar project proceeds to development and construction, we anticipate that we will need to raise additional capital during
2010. We currently estimate that at least an additional $65.0 to $85.0 million would be required following completion of the feasibility study anticipated in the fourth quarter 2010. The actual
amount required could vary substantially from this estimate based on the final

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results
of the feasibility study. This estimate is part of an internal study prepared under the direction of Robert Blakestad, our Senior Vice President, Exploration and a Qualified Person as defined
in NI 43-101, and is not supported by a technical report compliant with NI 43-101. We do not have a credit agreement in place and believe that securing credit
will be difficult given our limited history and continuing constraints on global credit markets. We cannot assure you that we will be able to obtain the necessary financing for the project on
favorable terms or at all. Failure to obtain sufficient financing may also result in the delay or indefinite postponement of exploration activities at our other properties.

We depend on the services of key executives.

Our business strategy is based on leveraging the experience and skill of our management team. We are dependent on the services of key
executives including Jeffrey Clevenger, Robert Blakestad, Robert Vogels and Jerry Danni. We are also dependent on the management services provided by Terry Owen. Due to our relatively small size, the
loss of any of these persons or our inability to attract and retain additional highly skilled employees may have a material adverse effect on our business, our ability to maintain and grow our mine
services business, as well as our ability to manage and succeed in our exploration activities.

The exploration of mineral properties is highly speculative in nature, involves substantial expenditures and is frequently non-productive.

Our future growth and profitability will depend, in large part, on our ability to identify and acquire additional mineral rights, and
on the costs and results of our continued exploration programs. Competition for attractive mineral exploration properties is intense. Our strategy is to identify reserves through a broad program of
exploration. Mineral exploration is highly speculative
in nature and is frequently non-productive. Substantial expenditures are required to:



If
we discover ore, it usually takes several years from the initial phases of exploration until production is possible. During this time, the economic feasibility of a project may change
because of increased costs, lower metal prices or other factors. As a result of these uncertainties, we may not successfully acquire additional mineral rights, or our exploration programs may not
result in proven and probable reserves at all or in sufficient quantities to justify developing any of our exploration properties.

The
decisions about future development of projects will be based primarily on feasibility studies, which derive estimates of reserves, operating costs and project economic returns.
Estimates of economic returns are based, in part, on assumptions about future metal prices and estimates of average cash operating costs based upon, among other things:



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Actual
cash operating costs, production and economic returns may differ significantly from those anticipated by our studies and estimates.

Our long-term cash flow and profitability will be affected by changes in the prices of silver and other metals.

Our ability to establish reserves and develop any of our exploration propertiesand our profitability and
long-term viabilitydepend, in large part, on the market price of silver, zinc, lead, gold, copper and other metals. The market prices for these metals are volatile and are
affected by numerous factors beyond our control, including:



The
extreme volatility and disruption that have affected the financial markets have also extended to the commodity markets, including metals markets, which experienced significant
volatility in 2009. Any extended weakness in the global economy could further increase volatility in metals prices or depress prices, which could in turn make it uneconomical for us to continue our
exploration activities. Volatility or sustained price declines may also affect the number, quality and profitability of available mine service opportunities and adversely affect our ability to build
our business.

Our revenues currently depend primarily on our agreement to manage the San Cristóbal mine.

Our revenues currently consist primarily of the management fees payable to us under the Management Services Agreement, dated
March 24, 2009 (the "San Cristóbal Management Services Agreement"), under which we manage the San Cristóbal mine for Sumitomo. After June 30, 2010, Sumitomo
will be able to terminate the San Cristóbal Management Services Agreement at its discretion upon six months' written notice (or three months notice if Sumitomo has sold, directly or
indirectly, more than 20% of the subsidiary that owns the mine) provided that it pays us a $1.0 million fee. Sumitomo may not wish to continue the San Cristóbal Management
Services Agreement beyond June 2010 and, as a result, our primary source of funding may not continue beyond the initial term. Moreover, the San Cristóbal Management Services Agreement,
and payments to us thereunder, may be reduced or suspended in certain circumstances in the event of a prolonged interruption in mining activities, including labor disturbances, shutdowns or events of
force majeure, such as expropriation by the Bolivian government.

We have limited experience managing mining properties for third parties and our mine management business may not be successful.

We currently have only one management agreement, the San Cristóbal Management Services Agreement. We have a limited
history of providing management services to third parties and we cannot assure you that we will be able to retain our current services contract or attract
additional mine or mine project management business. Demand for our services may also be negatively affected if certain commodity prices and global economic conditions remain weak.

If we are unable to obtain all of our required governmental permits or property rights, our operations could be negatively impacted.

Our future operations, including exploration and any potential development activities, will require additional permits from various
governmental authorities. Our operations are and will continue to be

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governed
by laws and regulations governing prospecting, development, mining, production, exports, taxes, labor standards, occupational health, waste disposal, toxic substances, land use, environmental
protection, mine safety, mining royalties and other matters. We may also be required to obtain certain property rights to access or use our properties. Obtaining or renewing licenses and permits, and
acquiring property rights, can be complex and time-consuming processes. We cannot assure you that we will be able to acquire all required licenses, permits or property rights on reasonable
terms or in a timely manner, or at all, that such terms will not be adversely changed, that required extensions will be granted, or that the issuance of such licenses, permits or property rights will
not be challenged by third parties. Delays in obtaining or a failure to obtain any licenses, permits or property rights or any required extensions, challenges to the issuance of our licenses, permits
or property rights, whether successful or unsuccessful, changes to the terms of our licenses, permits or property rights, or a failure to comply with the terms of any such licenses, permits or
property rights that we have obtained, could have a material adverse effect on our business by delaying or preventing or making continued operations economically unfeasible.

Lack of infrastructure could forestall or prevent further exploration and development.

Exploration activities, as well as any development activities, depend on adequate infrastructure. Reliable roads, bridges, power
sources and water supply are important factors that affect capital and operating costs and the feasibility of a project, or unanticipated or higher than expected costs and unusual or infrequent
weather phenomena, government or other interference in the maintenance or provision of such infrastructure, or unanticipated or higher than expected costs, could adversely affect our operations,
financial condition and results of operations.

Our exploration and mine management activities are in countries with developing economies and are subject to the risks of political and economic instability associated with
these countries.

We currently conduct exploration and mine management activities almost exclusively in Latin American countries with developing
economies, including Argentina, Bolivia, Chile, Mexico and Peru. These countries and other emerging markets in which we may conduct operations have from time to time experienced economic or political
instability. We may be materially adversely affected by risks associated with conducting exploration and mine management activities in countries with developing economies,
including:



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Changes
in mining or investment policies or shifts in the prevailing political climate in any of the countries in which we conduct exploration and mine management activities could
adversely affect our business.

Title to our mineral properties may be challenged.

Our policy is to seek to confirm the validity of our rights to, title to, or contract rights with respect to, each mineral property in
which we have a material interest. However, we cannot guarantee that title to our properties will not be challenged. Title insurance generally is not available for mineral properties, and our ability
to ensure that we have obtained secure rights to individual mineral properties or mining concessions may be severely constrained. We have not conducted surveys of all of the exploration properties in
which we hold direct or indirect interests and, therefore, the precise area and location of these exploration properties may be in doubt. Accordingly, our mineral properties may be subject to prior
unregistered agreements, transfers or claims, and title may be affected by, among other things, undetected defects. In addition, we may be unable to operate our properties as permitted or to enforce
our rights with respect to our properties, and the title to our mineral properties may also be impacted by state action.

In
some of the countries in which we operate, failure to comply with applicable laws and regulations relating to mineral right applications and tenure could result in loss, reduction or
expropriation of entitlements, or the imposition of additional local or foreign parties as joint venture partners. Any such loss, reduction or imposition of partners could have a material adverse
affect in our financial condition, results of operations and prospects.

We may lose rights to properties if we fail to meet payment requirements or development or production schedules.

We derive the rights to some of our mineral properties from leaseholds or purchase option agreements or that require the payment of
option payments, rent or other installment fees or specified expenditures. For example, we acquired certain of our rights on the El Quevar property through option agreements, which require aggregate
payments of approximately $3.4 million and an exploration investment of $850,000 over the next three years. The El Quevar property is our most advanced exploration property, and the only
property on which we have estimated mineralized material. If we fail to make these payments when they are due, our rights to the property may terminate.

Some
contracts with respect to our mineral properties require development or production schedules. If we are unable to meet any or all of the development or production schedules, we
could lose all or a portion of our interests in such properties. Moreover, we are required in certain instances to make payments to governments in order to maintain our rights to our mineral
properties. Because our ability to make some of these payments is likely to depend on our ability to obtain external financing, we may not have the funds to make these payments by the required dates.

The management services we provide at the San Cristóbal mine could be negatively affected by future actions of the Bolivian government.

In December 2005, Evo Morales, the leader of the Movement to Socialism party, was elected president. At various times since his
election, President Morales and others in his administration have made public statements regarding their desire to exert greater state control over natural resource production in Bolivia, including
mining.

In
2007, the Bolivian government enacted various changes to applicable mining taxes. The current or future government may make additional changes that could increase the total tax burden
on the San Cristóbal mine, and any such changes could adversely affect the earnings and cash flow generated by the San Cristóbal mine.

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In
February 2009, Bolivia approved a new constitution in a national referendum that significantly affects the legal framework governing mining in Bolivia. The new constitution requires
that existing mining concessions be replaced by mining agreements negotiated with the Bolivian government. The deadline for implementation of the new mining agreements is December 2010. The new
constitution does not specify the effect on existing concessions or provide either general or specific terms for the mining agreements. There can be no certainty as to the form and content of these
contracts that must be negotiated with the Bolivian government, or that we will be allowed to continue to operate the San Cristóbal mine as contemplated by the San
Cristóbal Management Services Agreement.

Even if we are successful in bringing the El Quevar project into production, mining operations are hazardous, raise environmental concerns and raise insurance risks.

Mining operations are by their nature subject to a variety of risks, such as cave-ins, pit-wall failures,
flooding, rock bursts, fire, industrial accidents, failure of processing and mining equipment, environmental hazards, discharge of pollutants or hazardous chemicals, supply problems and delays,
changes in the regulatory environment, encountering unusual or unexpected geological formations or other geological or grade problems, encountering unanticipated ground or water conditions, periodic
interruptions due to inclement or hazardous weather conditions, and other acts of God or unfavorable operating conditions. These risks could result in delays to development or production, damage to or
destruction of mineral properties or processing facilities, personal injury or death, loss of key employees, environmental damage, monetary losses and possible legal liability. Satisfying these
liabilities may be very costly and could have a material adverse effect on our future cash flow, results of operations and financial condition. We may not be able to insure fully or at all against
these risks, or we may decide not to take out insurance against such risks as a result of high premiums or for other reasons.

Our activities are subject to foreign environmental laws and regulations that may materially adversely affect our future operations.

We conduct mineral exploration and mine management activities primarily in Argentina, Bolivia, Mexico and Peru. These countries have
laws and regulations that control the exploration and mining of mineral properties and their effects on the environment, including air and water quality, mine reclamation, waste handling and disposal,
the protection of different species of flora and fauna and the preservation of lands. These laws and regulations will require us to acquire permits and other authorizations for certain activities. In
many countries, there is relatively new comprehensive environmental legislation, and the permitting and authorization process may not be established or
predictable. We may not be able to acquire necessary permits or authorizations on a timely basis, if at all. Delays in acquiring any permit or authorization could increase the cost of our projects and
could delay the commencement of production.

Environmental
legislation in many countries is evolving in a manner that will likely require stricter standards and enforcement, increased fines and penalties for
non-compliance, more stringent environmental assessments of proposed projects and a heightened degree of responsibility for companies and their officers, directors and employees. We cannot
predict what environmental legislation or regulations will be enacted or adopted in the future or how future laws and regulations will be administered or interpreted. Compliance with more stringent
laws and regulations, as well as potentially more vigorous enforcement policies or regulatory agencies or stricter interpretation of existing laws, may (i) necessitate significant capital
outlays, (ii) cause us to delay, terminate or otherwise change our intended activities with respect to one or more projects, (iii) materially adversely affect our future exploration
activities and (iv) negatively affect the profitability of the San Cristóbal mine or other projects we may manage in the future.

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Many
of our exploration properties are located in historic mining districts where prior owners may have caused environmental damage that may not be known to us or to the regulators. In
most cases, we have not sought complete environmental analyses of our mineral properties and have not conducted comprehensive reviews of the environmental laws and regulations in every jurisdiction in
which we own or control mineral properties. To the extent we are subject to environmental requirements or liabilities, the cost of compliance with these requirements and satisfaction of these
liabilities could have a material adverse effect on our financial condition and results of operations. If we are unable to fully fund the cost of remediation of any environmental condition, we may be
required to suspend activities or enter into interim compliance measures pending completion of the required remediation.

We compete against larger and more experienced companies.

The mining industry is intensely competitive. Many large mining companies are primarily producers of precious or base metals and may
become interested in the types of deposits on which we are focused, which include silver and other precious metals deposits or polymetallic deposits containing significant quantities of base metals,
including zinc, lead, copper and gold. Many of these companies have greater financial resources, operational experience and technical capabilities than we do. We may encounter increasing competition
from other mining companies in our efforts to acquire mineral properties and hire experienced mining professionals. Increased competition in our business could adversely affect our ability to attract
necessary capital funding, acquire suitable
producing properties or prospects for mineral exploration in the future or maintain and develop our mine services business.

We may be required to indemnify Sumitomo in certain circumstances under the terms of the San Cristóbal Purchase and Sale Agreement, and such payments could
have a material adverse effect on our financial condition.

Under the terms of the Plan, Apex Silver sold its interests in the San Cristóbal mine to Sumitomo. In connection with
the Plan, Apex Silver assigned substantially all of its remaining assets to us, and we agreed to assume Apex Silver's obligations under the purchase and sale agreement by which Apex Silver sold the
San Cristóbal mine. Under the terms of the agreement, we are required to indemnify Sumitomo in certain circumstances, including for losses, if any, arising as a result of a breach of
certain customary representations and warranties, primarily regarding title to the interests which were sold. Our maximum exposure for such losses could be as much as the full amount of the
$27.5 million cash purchase price, although for fraud or intentional misrepresentation, our liability exposure is not limited. Any obligation to make indemnification payments could have a
material adverse effect on our financial condition.

Risks related to our common stock

We do not anticipate paying a dividend in the foreseeable future.

We anticipate that we will not pay cash dividends on our common stock in the foreseeable future. Moreover, our Amended and Restated
Certificate of Incorporation and Bylaws prohibited the payment of dividends for a one-year period beginning March 24, 2009, and prohibit payment of dividends (in a single
distribution or series of distributions) in excess of $1.5 million during the one-year period beginning March 24, 2010.

We have a large number of authorized but unissued shares of our common stock which may lead to the dilution of our common stock.

We have a large number of authorized but unissued shares of common stock, which our management may issue without further stockholder
approval, thereby causing dilution of your holdings of our common stock. Our management will continue to have broad discretion to issue shares of our

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common
stock in a range of transactions, including capital-raising transactions, mergers, acquisitions and in other transactions, without obtaining stockholder approval, unless required by applicable
law or stock exchange rules. If our management determines to issue shares of our common stock from the large pool of authorized but unissued shares for any purpose in the future, your ownership
position may be diluted without your further ability to vote on that transaction.

ITEM 1B:    UNRESOLVED STAFF COMMENTS

None.

ITEM 3:    LEGAL PROCEEDINGS

Apex Silver concluded, based on the results of an internal investigation conducted under the direction of its Audit Committee in late
2005 and early 2006, that certain former senior employees were involved in making impermissible payments of approximately $125,000 to government officials in 2003 and 2004. Apex Silver contacted the
Department of Justice and the SEC during 2006 and reported the results of the internal investigation and was informed that the SEC and Department of Justice would commence investigations with respect
to these matters, including possible violations of the Foreign Corrupt Practices Act. Subsequently, Apex Silver entered into discussions with the SEC staff concerning a settlement of the conduct
subject to the SEC's investigation. As a result, we have reached an agreement in principle with the SEC staff which, if approved by the SEC, would resolve this matter with the SEC. Under the terms of
the proposed settlement, we, on neither an admit nor deny basis, would agree to the entry of an administrative cease and desist order prohibiting us from future violations of
Sections 13(b)(2)(A), 13(b)(2)(B) and 30A of the Exchange Act. Moreover, under the terms of the proposed settlement, the SEC staff would not recommend that the SEC require the
payment of disgorgement, civil money penalties, prejudgment interest or the appointment of a corporate monitor. The proposed settlement is subject to SEC approval, negotiation of the terms of the
settlement papers and approval by our board of directors.

We
cannot guarantee you that the SEC will ultimately accept the terms of the proposed settlement. In August 2009, the Department of Justice informed us that it has closed its
investigation based on, among other things, our pending settlement with the SEC.

34

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PART II

ITEM 5:    MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES

Our common stock began trading on the NYSE Amex LLC, also referred to as "Amex", under the symbol "AUMN" on March 19,
2010. The high and low sales prices per share on the Amex from the commencement of trading on March 19, 2010 through March 24, 2010 were $8.40 and $7.66, respectively.

Prior
to the commencement of trading on Amex, our common stock traded in interdealer and over-the-counter transactions, and price quotations have been available
in the "pink sheets" under the symbol "GDMN". The following table sets forth the high and low sales prices per share and volume traded as reported by The Pink Sheets LLC at www.pinksheets.com.
Although the prices and volumes have been obtained from a source believed to be reliable, no assurances can be given with respect to
the accuracy of such prices. In addition, such prices reflect interdealer prices, which may not include retail mark-up, mark down or commission, and may not necessarily represent actual
transactions.

High

Low

Volume
Traded
(shares)2009April*

$
0.15

$
0.01


60,571May

$
2.48

$
0.90


954,322June

$
2.90

$
1.94


1,531,368July

$
3.25

$
2.35


140,997August

$
4.15

$
3.05


135,574September

$
6.40

$
3.60


447,919October

$
8.00

$
5.70


133,795November

$
7.59

$
5.06


50,560December

$
10.75

$
6.15


212,0022010January

$
16.00

$
10.00


152,646February

$
11.20

$
7.70


99,472March**

$
9.60

$
8.00


33,666


*Since
April 20, 2009, the date of the first reported transaction in our common stock on the Pink Sheets.**Through
March 18, 2010.


35

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Our
common stock is also listed on the Toronto Stock Exchange and trades under the symbol "AUM". The following table sets forth the high and low sales prices per share for each month
since of common stock began trading on the Toronto Stock Exchange.

High(1)

Low(1)

Volume
Traded
(shares)2009July*

$
3.02

$
3.00


5,000August

$
4.77

$
3.46


21,190September

$
6.81

$
3.31


145,720October

$
7.78

$
5.60


70,687November

$
7.15

$
5.41


18,485December

$
10.62

$
6.47


86,7592010January

$
15.10

$
9.98


172,094February

$
11.39

$
8.06


52,682March**

$
9.74

$
7.71


94,151


*Since
July 16, 2009, the date our common stock commenced trading on the Toronto Stock Exchange.**Through
March 24, 2010.(1)All
Canadian share prices were converted to U.S. dollars based on an exchange rate of 0.9740, as reported by the Bank of Canada, as of March 24,
2010. On March 24, 2010, the closing sales price for common stock was Cdn$7.92 per share on the Toronto Stock Exchange ($7.71, as converted to U.S. dollars).


As
of March 24, 2010, we had 30 stockholders of our common stock of record based upon the stockholders list provided by our transfer agent, Olympia Trust Company.

Dividends

We have never declared or paid any cash dividends on our common stock and do not anticipate paying any cash dividends on our common
stock in the foreseeable future. We currently intend to retain all future earnings, if any, to fund the development and growth of our business. In addition, our Amended and Restated Certificate of
Incorporation and Bylaws prohibit the payment of dividends (in a single distribution or series of distributions) until after March 24, 2010 and prohibit payment of dividends (in a single
distribution or series of distributions) in excess of $1.5 million until after March 24, 2011. Our board's ability to declare a dividend is also subject to limits imposed by Delaware
corporate law.

Proceeds from March 2010 Offerings

On March 24, 2010, we closed a public offering of 3,652,234 shares of our common stock at a public offering price of $8.50 per
share, and a selling stockholder sold an additional 347,766 previously held shares of our common stock at the same price. The public offering was made pursuant to a written prospectus forming part of
the Registration Statement on Form S-1 (333-162486) that was declared effective by the SEC on March 18, 2010. In addition, for up to 30 days following the
closing, we granted the underwriters the right to purchase up to an additional 600,000 shares of our common stock to cover over-allotments. As of the filing date of this annual report on
Form 10-K, the over-allotment option has not been exercised. Dahlman Rose & Company and Canaccord

36

---



Financial Ltd.
acted as joint book-running managers for the public offering, and Rodman & Renshaw, LLC acted as a co-manager in the public offering.

Concurrent
with the public offering, our largest stockholder, The Sentient Group, exercised its existing pre-emptive right and purchased, in a private offering pursuant to
Regulation S under the U.S. Securities Act of 1933, an additional 905,065 shares of our common stock at the public offering price of $8.50 per share. Dahlman Rose & Company acted as the
sole placement agent in the private placement to Sentient.

The
aggregate net proceeds to us from the sale of the shares in the public offering and the sale of the shares to Sentient was approximately $35.3 million after deducting the
underwriting discount of approximately $2.1 million, the placement agent commission of approximately $0.3 million, and estimated expenses of approximately $1.1 million to advisors
and other third parties in connection with the registration, offering, and listing of shares. The aggregate net proceeds from the public and private offerings have been placed in either a
short-term interest bearing account or short-term treasury securities pending deployment.

37

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ITEM 6:    SELECTED CONSOLIDATED FINANCIAL DATA

SELECTED CONSOLIDATED FINANCIAL DATA

The selected consolidated financial data for the period ended December 31, 2009 has been derived from our audited financial
statements for that period. We emerged from Apex Silver's Chapter 11 proceedings on March 24, 2009. Accordingly, the data provided below for the period March 25, 2009 through
December 31, 2009 represents the consolidated financial data for Golden Minerals and the data prior to March 25, 2009 represents the consolidated financial data for our predecessor, Apex
Silver. The selected consolidated financial data of Apex Silver for the years ended December 31, 2008, 2007, and 2006 are derived from Apex Silver's audited consolidated financial statements.
The selected consolidated financial data of Apex Silver for the year ended December 31, 2005 was derived from our historic financial records. The financial information for all periods
presented, except for the period ended December 31, 2009, has been revised for the retrospective adoption of FASB Statement No. 160, "Noncontrolling Interests in Consolidated Financial
Statementsan amendment of ARB No. 51" ("FAS No. 160") and to reflect the San Cristóbal mine activity as discontinued operations. In addition, the amounts
included as revenue have been reclassified from a net reduction of operating expenses for all predecessor periods presented. No amounts in the cash flow data have been reclassified. Amounts on the
balance sheet formerly labeled minority interest are now referred to as noncontrolling interest and are included as a component of equity (deficit). Our financial statements are reported in
U.S. dollars and have been prepared in
accordance with generally accepted accounting principles in the United States. The following selected consolidated financial data should be read in conjunction with the consolidated financial
statements and the related notes thereto and "Management's Discussion and Analysis of Financial Condition and Results of Operations".

The Year Ended December 31, 2009For The Period
March 25, 2009
Through
December 31, 2009

For The Period
January 1, 2009
Through
March 24, 2009

The Year Ended December 31,2008

2007

2006

2005(Successor)

(Predecessor)(in thousands, except per share amounts)Statement of Operations:Revenue

$
11,067

$
1,350

$
5,400

$
5,400

$
2,640

$
143Operating expenses


(27,090
)

(11,080
)

(46,124
)

(36,163
)

(28,386
)

(23,173
)Other income (expense), net(1)


(3,285
)

253,516


(28,392
)

(19,567
)

14,602


13,682Net loss from continuing operations before income taxes


(19,308
)

243,786


(69,116
)

(50,330
)

(11,144
)

(9,348
)Income taxes


(968
)

(165
)

(618
)

(879
)

(749
)

(379
)Net income (loss) from continuing operations


(20,276
)

243,621


(69,734
)

(51,209
)

(11,893
)

(9,727
)Loss from discontinued operations(2)





(4,153
)

(166,625
)

(24,634
)

(510,465
)

(57,327
)Net loss


(20,276
)

239,468


(236,359
)

(75,843
)

(522,358
)

(67,054
)Net income (loss) attributable to noncontrolling interest(3)





(7,869
)

118,122


87,399


8,813


16Net income (loss) attributable to shareholders

$
(20,276
)
$
231,599

$
(118,237
)
$
11,556

$
(513,545
)
$
(67,038
)Net income (loss) per Common Stock / Ordinary SharebasicNet income (loss) from continuing operations attributable to shareholders

$
(6.78
)
$
4.13

$
(1.18
)
$
(0.87
)
$
(0.21
)
$
(0.20
)Net income (loss) from discontinued operations attributable to shareholders





(0.20
)

(0.82
)

1.07


(8.88
)

(1.18
)Net income (loss) attributable to shareholders

$
(6.78
)
$
3.93

$
(2.01
)
$
0.20

$
(9.09
)
$
(1.38
)


38

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The Year Ended December 31, 2009For The Period
March 25, 2009
Through
December 31, 2009

For The Period
January 1, 2009
Through
March 24, 2009

The Year Ended December 31,2008

2007

2006

2005Net income (loss) per Common StockOrdinary SharedilutedNet loss from continuing operations attributable to shareholders

$
(6.78
)
$
(0.06
)
$
(1.18
)
$
(0.87
)
$
(0.21
)
$
(0.20
)Net income (loss) from discontinued operations attributable to shareholders





(0.17
)

(0.82
)

1.07


(8.88
)

(1.18
)Net income (loss) attributable to shareholders

$
(6.78
)
$
(0.23
)
$
(2.01
)
$
0.20

$
(9.09
)
$
(1.38
)Weighted average Common Stock / Ordinary Shares outstandingbasic


2,989,562


59,000,832


58,947,025


58,714,935


56,498,416


48,615,586Weighted average Common Stock / Ordinary Shares outstandingdiluted


2,989,562


69,171,400


58,947,025


58,714,935


56,498,416


48,615,586Cash Flow Data:Net cash used in operating activities

$
(23,247
)
$
(13,849
)
$
(139,554
)
$
(166,029
)
$
(70,727
)
$
(24,338
)Net cash provided by (used in) investing activities

$
6,197

$
43,043

$
(95,842
)
$
40,254

$
(223,012
)
$
(1,869
)Net cash provided by (used in) financing activities(4)

$


$
(37,297
)
$
228,383

$
116,671

$
338,771

$
3,275




At December 31,At December 31,
20092008

2007

2006

2005Balance Sheet Data:Total assets

$
21,700




$
606,347

$
1,324,911

$
1,270,096

$
780,511Long term liabilities

$
651




$
73,504

$
1,040,098

$
1,278,474

$
467,743Noncontrolling interest

$
794




$
150,792

$


$
40

$
34Parent company's shareholder's equity (deficit)

$
17,764




$
(199,080
)
$
(84,101
)
$
(103,290
)
$
227,229


(1)The
predecessor period ended March 24, 2009 includes a $248.2 million gain from extinguishment of debt and a $9.1 million fresh start
accounting gain both related to the reorganization and emergence from Chapter 11 bankruptcy.(2)Amounts
shown for the years ended December 31, 2008, 2007, 2006 and 2005 include gains and losses related to Apex Silver's open metals derivative
positions, including realized cash losses related to the settlement of the positions during 2008 and 2007 and unrealized mark-to-market gains and losses during 2008, 2007, 2006
and 2005. The 2008 amount also includes a $63.1 million gain related to the sale of our retained interest in Sumitomo's share of future silver and zinc production from the San
Cristóbal mine. The 2006 amount also includes a $199.6 million gain related to the sale to Sumitomo of a 35% interest in the subsidiaries that own and operate the San
Cristóbal mine.(3)In
accordance with generally accepted accounting principles in the United States at the time, we did not allocate losses to the noncontrolling interest in
excess of the minority owner's recorded interest in the subsidiary and at December 31, 2007 and 2006, we had absorbed approximately $23.6 million and $98.8 million of losses,
respectively, that normally would have been allocated to the noncontrolling interest. During 2008 and 2007, $23.6 million and $75.2 million of the losses previously absorbed were
recouped and included in noncontrolling interest in losses of consolidated subsidiaries for the respective periods. See Note 18, "Noncontrolling Interests," in our Consolidated Financial
Statements.(4)The
2008 amount includes $150.0 million of funding by Sumitomo directly to Apex Silver's San Cristóbal mine. The 2007 amount includes
$45.0 million of borrowings under Apex Silver's project finance facility. The 2006 amount includes $180.0 million of borrowings under the project finance facility and
$156.8 million of net proceeds from the sale of ordinary shares of Apex Silver.


39

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

You should read the following discussion and analysis of our financial condition and results of operations
together with our financial statements and related notes appearing at page F-1 in this annual report on Form 10-K. This discussion and analysis contains
forward-looking statements that involve risks, uncertainties and assumptions. Our actual results may differ materially from those anticipated in these forward-looking statements as a result of many
factors, including those set forth under "Risk Factors" in this annual report on Form 10-K.

Our Company

We are a mineral exploration and mining services company with a diversified portfolio of precious metals and other mineral exploration
properties located in or near the traditional precious metals producing regions of Mexico and South America. We are currently focused on the advancement of our El Quevar silver project in northwestern
Argentina.

Our
team of mining professionals also provides mine management services. We currently manage the San Cristóbal silver, zinc and lead mine in Bolivia for Sumitomo.

We
were incorporated in Delaware under the Delaware General Corporation Law in March 2009 and are the successor to Apex Silver for purposes of reporting under the U.S. Exchange Act. In
January 2009, Apex Silver and its wholly-owned subsidiary, Apex Silver Mines Corporation, filed voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy Code. In connection with
the Plan, Apex Silver sold its interest in the San Cristóbal mine to Sumitomo. Substantially all of Apex Silver's remaining assets, including its various subsidiaries that hold the
interests in our portfolio of exploration properties, were assigned to us.

Currently,
our only sources of revenue are associated with our management services agreement, royalty and interest income, and sales of non-core properties for cash. We
incurred a net operating loss for 2009 and expect to incur a net operating loss for 2010 and future periods unless and
until El Quevar or one of our other exploration properties is developed and goes into production. We cannot predict when or if that will occur.

Recent Developments

Our operations have changed substantially as a result of the sale of the San Cristóbal mine to Sumitomo in connection
with emergence from Apex Silver's Chapter 11 proceedings. We no longer own an operating mine. Instead, we have focused our efforts primarily on advancing our El Quevar project and managing the
San Cristóbal mine for Sumitomo under the terms of the San Cristóbal Management Services Agreement. We have also continued to make progress in advancing the exploration
of our portfolio of exploration properties. Significant events which have occurred subsequent to our inception are described below:



40

---





41

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Hochschild Transaction

On January 7, 2010, we completed a transaction with Hochschild, pursuant to which we acquired Hochschild's 35% interest in
Minera El Quevar, an Argentine company in which we held the other 65% interest. Minera El Quevar controls approximately 10,000 hectares of the 64,000 hectare El Quevar project, including the
Yaxtché target area.

We
issued 400,000 shares of common stock to Hochschild and warrants to acquire an additional 300,000 shares of common stock exercisable for three years at an exercise price of $15.00 per
share. Hochschild has agreed that it will not, for a two year period, acquire additional shares of our common stock if such acquisition would cause its ownership to exceed 19.9% of our then
outstanding common stock.

Pursuant
to the purchase agreement, Hochschild has the right, until January 7, 2012, to participate on a pro rata basis in public offerings or private placements for cash by us in
order to permit Hochschild to maintain up to an 11% equity interest, on the same terms and conditions offered to others in such equity offerings or sales. Hochschild elected not to participate in our
March 2010 public offering.

We
have agreed to register with the SEC the resale of the common stock issued to Hochschild as well as the shares which may be issued upon exercise of the warrant. We are required to
file one registration statement upon demand by Hochschild at any time after May 31, 2010, which obligation will cease on January 7, 2013.

Sentient Investment

On January 7, 2010, we completed a private placement with Sentient, an independent private equity firm in the global resources
industry with approximately $1.3 billion under management. In the private placement, we sold to Sentient a total of 844,694 shares of our common stock at a price of Cdn$7.06 per share,
resulting in gross proceeds to us of approximately $5.5 million. Sentient became our largest stockholder, holding 19.9% of our outstanding common stock, not including restricted stock held by
our employees. Sentient has agreed that it will not, for a two year period, acquire additional shares of our common stock if such acquisition would cause its ownership to exceed 22.5% of our
outstanding common stock. Dahlman Rose & Company served as the sole placement agent for the transaction and received a fee from us equal to 3.5% of the gross proceeds received from Sentient, or
$208,375.

Under
the terms of the purchase agreement, Sentient had the right to purchase, concurrent with the March 2010 public offering, that number of shares of common stock such that Sentient
would

42

---



continue
to hold the same percentage of our outstanding common stock after closing of the public offering as it held before such closing. Sentient exercised its pre-emptive right in full
and purchased 905,065 shares of our common stock concurrent with the March 2010 public offering at the public offering price of $8.50 per share, which resulted in proceeds to us of approximately
$7.4 million net of the placement agent commission of approximately $0.3 million. Sentient does not have any further pre-emptive rights.

In
connection with the initial private placement, we agreed to nominate one individual designated by Sentient for election to our board of directors, beginning with our annual meeting of
stockholders in 2011. Sentient's right to designate one nominee will terminate if it ceases to own at least 17% of our outstanding common stock or if the individual designated by Sentient is not
elected by our stockholders.

We
have agreed to register with the SEC the resale of the common stock purchased by Sentient. We are required to file a registration statement with the SEC no later than
May 31, 2010 and to cause such registration statement to be declared effective no later than September 30, 2010. If we are unable to meet these deadlines, we may be subject to liquidated
damages equal to 1.0% of the aggregate purchase price of the shares purchased by Sentient for every thirty days following the applicable deadline, up to a maximum amount of 3.0% of the aggregate
purchase price.

Results of Operations

In this annual report on Form 10-K we present historical financial statements of Apex Silver. These financial
statements have been updated to reclassify the activity of the San Cristóbal mine and related subsidiaries to discontinued operations as the result of the sale of the San
Cristóbal mine effective March 24, 2009. Because of the significant differences between the business operations of the two companies, the historical performance of Apex Silver
may not be indicative of our future performance.

For
the results of continuing operations discussed below, we compare the results of continuing operations of Apex Silver for the 83-day period ended March 24, 2009 and
the results of continuing operations of Golden Minerals for the period March 25, 2009 through December 31, 2009 to the results of continuing operations of Apex Silver for the years ended
December 31, 2008 and 2007.

The
results of operations of the San Cristóbal mine and related subsidiaries that were sold during the first quarter 2009 are aggregated and presented as discontinued
operations of Apex Silver for the 83-day period ended March 24, 2009 and the years ended December 31, 2008 and 2007. Golden Minerals does not report any discontinued
operations.

Continuing Operations

Management Service Fees.We recorded $12.5 million of management service fee income ($11.1 million and $1.4 million for
Golden
Minerals and Apex Silver, respectively) for the year ended December 31, 2009. Our $11.1 million of revenue is primarily related to the San Cristóbal Management Services
Agreement and is comprised of $8.7 million of fees, including $1.1 million for a bonus earned for 2009 under the terms of the agreement, and $1.3 million for reimbursed
withholding taxes. Apex Silver recorded management service fees of $5.4 million and $5.4 million for the years ended December 31, 2008 and 2007, respectively. Beginning in
mid-2006 Apex Silver entered into an agreement with Minera San Cristóbal S.A. ("MSC"), the Bolivian subsidiary which owned and operated the San
Cristóbal mine, whereby it charged MSC $450,000 per month as a management service fee. This arrangement terminated on March 24, 2009, concurrent with Apex Silver's disposition of
the San Cristóbal mine. None of the amounts reflected in prior periods pertain to our current San Cristóbal Management Services Agreement.

43

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Cost of services.We recorded $3.8 million of costs of services (all related to Golden Minerals) for the year ended
December 31, 2009.
The cost of services is comprised of reimbursed out-of-pocket costs incurred by us related to the San Cristóbal Management Services Agreement. Apex Silver
recorded no cost of services for the years ended December 31, 2008 and 2007.

Exploration.Our exploration expenses, including property holding costs and allocated administrative
expenses, totaled $16.1 million ($12.6 million and $3.5 million for Golden Minerals and Apex Silver, respectively) for the year ended December 31, 2009, as compared to
$25.4 million and $15.4 million for the years ended December 31, 2008 and 2007, respectively. Exploration expense was incurred primarily in Argentina, Mexico and Peru. During
2008, Apex Silver increased drilling programs and other geologic testing to increase the rate of evaluation of many of its properties. None of the exploration expenses reported relate to the San
Cristóbal mine. All of Apex Silver's exploration properties were assigned to us in March 2009 in connection with the emergence from Chapter 11 proceedings.

Administrative and reorganization.Administrative expenses totaled $13.2 million ($8.4 million and $4.8 million for
Golden
Minerals and Apex Silver, respectively) for the year ended December 31, 2009, as compared to $17.3 million and $17.7 million for the years ended December 31, 2008 and 2007,
respectively. Administrative expenses, including costs associated with being a public company, are incurred primarily by our corporate activities in support of our exploration program and our
management services for the San Cristóbal mine. The $8.4 million of administrative expenses we incurred after emergence from bankruptcy is comprised of $2.8 million of
professional fees, $3.5 million of employee compensation, $0.5 million of travel expenses and $1.6 million of rents, utilities and other office costs. We anticipate that
administrative expenses will remain at similar levels in 2010, with the exception of professional fees, which are expected to decrease as a result of completion of the transactions relating to our
emergence from bankruptcy. Reorganization expenses were $4.7 million ($1.0 million and $3.7 million for Golden Minerals and Apex Silver, respectively) for the year ended
December 31, 2009. The reorganization expenses relate to expenses for professional services incurred as a result of Apex Silver's bankruptcy filing and the sale of its interest in the San
Cristóbal mine to Sumitomo. We incurred $2.2 million of reorganization expenses during the year ended December 31, 2008 and no reorganization expense during the year ended
December 31, 2007.

Loss on Auction Rate Securities.Loss on ARS investments totaled $3.0 million ($2.2 million and $0.8 million for Golden
Minerals
and Apex Silver, respectively) for the year ended December 31, 2009, as compared to losses of $16.3 million and $34.5 million for the years ended December 31, 2008 and
2007, respectively. The auctions for certain of Apex Silver's ARS began to fail during the third quarter of 2007 and continued to fail through 2009. As a result of the auction failures, the markets
for the ARS continued to deteriorate resulting in Apex Silver recognizing impairment charges related to the ARS of $16.3 million and $34.5 million for the years ended December 31,
2008 and 2007, respectively. In connection with the emergence from Chapter 11 proceedings the illiquid ARS securities, with a carrying value of $5.2 million, were assigned to us by Apex
Silver. During the second and third quarters of 2009 we were able to sell all of the ARS securities in a secondary market through two brokerage firms, resulting in total proceeds of
$3.0 million and the recognition of a $2.2 million loss on the sale. At December 31, 2009 we have no remaining ARS investments.

Interest and Other Income.We recorded interest and other income of $2.1 million ($1.1 million and $1.0 million for
Golden
Minerals and Apex Silver, respectively) for the year ended December 31, 2009, as compared to $5.6 million and $19.4 million for the years ended December 31, 2008 and 2007,
respectively. The $1.1 million Golden Minerals interest and other income for the year ended December 31, 2009 includes a $0.5 million gain on the sale of shares of stock we held
in a junior mining company. We and Apex Silver held progressively lower average cash and investment balances

44

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each
preceding year which resulted in lower interest being earned. In addition, interest rates were also lower as compared to each preceding year.

Royalty Income.We recorded royalty income from the Platosa property in Mexico on which we retained a net smelter return royalty of
$0.5 million ($0.4 million and $0.1 million for us and Apex Silver, respectively) for the year ended December 31, 2009, as compared to $0.4 million and
$1.3 million for the years ended December 31, 2008 and 2007. This property was assigned to us in March 2009 in connection with the emergence from Chapter 11 proceedings. The
property was being test mined by a joint venture partner, and we and Apex Silver received a royalty for product sold from the test mining operation. During the fourth quarter 2009 we sold our interest
in the Platosa property to the joint venture partner, and we received a cash payment of $2.0 million and retained a 1% net smelter return royalty. We recognized a $0.6 million gain on
the transaction which is reflected in gain on disposal of assets, net on our consolidated statements of operations. The prior agreements between us and our joint venture partner were terminated in
connection with the sale.

Interest and Other Expense.We recorded interest and other expense of $0.3 million (all related to Apex Silver) for the year ended
December 31, 2009, as compared to $15.8 million and $5.7 million for the years ended December 31, 2008 and 2007, respectively. Interest incurred during the construction of
the San Cristóbal mine was capitalized, consequently the 2007 interest expense and other borrowing costs amount is net of $4.9 million of interest capitalized. Interest expense
and other borrowing costs, as well as amounts capitalized, was all related to interest incurred on Apex Silver's Convertible Senior Subordinated Notes due 2024, which were cancelled on
March 24, 2009 in connection with the emergence from Chapter 11 proceedings. At December 31, 2009 we have no indebtedness.

Income Taxes.We are subject to U.S. income taxes on income derived from services provided to the San Cristóbal mine but to date
we
have not conducted business in the U.S. that generated significant U.S. taxable income. Our income tax provisions of $1.2 million ($1.0 million and $0.2 million for Golden
Minerals and Apex Silver, respectively) for the year ended December 31, 2009, and $0.6 million and $0.9 million for the years ended December 31, 2008 and 2007,
respectively, consist primarily of
withholding taxes either accrued or paid to Bolivia in connection with management services provided to the San Cristóbal mine.

Net Loss attributable to Noncontrolling Interests (formerly Minority Interest).We allocated gains to the noncontrolling interest of
$7.9 million (all related to Apex Silver) for the year ended December 31, 2009. The 2009 amount is primarily related to Sumitomo's interest in income generated by the San
Cristóbal Mine during the period. For the years ended December 31, 2008 and 2007 Apex Silver allocated losses to the noncontrolling interest of $118.1 million and
$87.4 million, respectively. The 2008 amount is primarily related to Sumitomo's interest in certain losses related to San Cristóbal property, plant and equipment impairment
charges and inventory write downs partially offset by gains related to marking Apex Silver's metal derivative positions to market. For the year ended December 31, 2007 Apex Silver did not
allocate certain losses to the noncontrolling interests because generally accepted accounting principles in the United States at that time did not allow for the allocation of losses to the
noncontrolling interest if the noncontrolling interest's equity balance is in a deficit position. Consequently, for the year ended December 31, 2007 Apex Silver had absorbed approximately
$23.6 million of losses that normally would have been allocated to the noncontrolling interest. When the noncontrolling interest's equity balance returned to positive, as the result of capital
contributions and income distributions, Apex Silver was able to allocate the previously absorbed losses to the noncontrolling interest. Accordingly, the $23.6 million loss Apex Silver absorbed
during the year ended December 31, 2007 was allocated to the noncontrolling interest during the year ended December 31, 2008. Also, during 2008, Sumitomo advanced an additional
$86.9 million to fund its share of operating costs related to the San Cristóbal mine, Apex Silver recorded $14.1 million of interest due Sumitomo on its cumulative share
of advances to fund the San Cristóbal mine, and Sumitomo loaned MSC

45

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$150.0 million
under a working capital facility. All of these transactions were recorded to noncontrolling interest. At December 31, 2009 we did not have any noncontrolling interests
that participated in any of our gains or losses.

Discontinued OperationsSan Cristóbal.

The loss from discontinued operations for the year ended December 31, 2009 of $4.2 million was incurred during the
83-day period ended March 24, 2009 as discontinued operations related to the San Cristóbal asset group were sold at that date. We recognized an $8.4 million
loss on the sale of the San Cristóbal asset group which is included in discontinued operations for the period. The aggregated results of operations for the discontinued San
Cristóbal mine totaled losses of $166.6 million and $24.6 million for the years ended December 31, 2008 and 2007, respectively. See Note 4, "Discontinued
Operations," in our Consolidated Financial Statements for detailed components of the losses from discontinued operations for each of the periods presented.

Liquidity and Capital Resources

At December 31, 2009 our aggregate cash and short-term investments totaled $9.0 million, which included
$8.6 million of cash and cash equivalents and $0.4 million of short term investments. Our cash and short and long-term investment balance is significantly lower than the
$76.1 million in similar assets held by Apex Silver at December 31, 2008. The decrease is primarily attributable to the transactions related to Apex Silver's Chapter 11
proceedings and our emergence from such proceedings in March 2009, as more fully described in footnote 3 to our consolidated financial statements. For Golden Minerals, during the year 2009, our cash
and investment balance decreased by $22.0 million from the $30.8 million as of March 24, 2009, which included illiquid ARS investments recorded at fair value of
$5.2 million and cash and cash equivalents of $25.6 million. The decrease was as a result of a net cash outflow of $24.1 million related to our exploration, management services,
and general and administrative activities, including the final payment of liabilities and reorganization costs associated with Apex Silver's Chapter 11 proceedings, and a $1.5 million
net decrease in the fair value of our investments, partially offset by $3.0 million received in connection with the sale of certain mining concessions in Mexico and $0.6 million received
for the sale of an office building in Bolivia. At December 31, 2009 we have no remaining ARS investments.

In
March 2010, we received approximately $35.3 million in net proceeds from the sale of 3,652,234 shares of our common stock in a public offering in the US and Canada and 905,065
shares of our common stock to Sentient in a private placement pursuant to the exercise of Sentient's preemptive right. As a result, we plan to spend the following amounts during 2010 pursuant to our
long term business strategy:



46

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We
plan to fund the long term business strategy expenditures described above from the approximately $35.3 million net proceeds of the March 2010 public offering of our common
stock and private placement to Sentient, from our existing cash and investment balances, from the approximately $7.0 million of annual net cash flow from our management services agreement with
San Cristóbal (comprised of the annual fee and bonus, net of reimbursed administrative expenses), and from the approximately $5.5 million in net proceeds we received in the
Sentient private placement in January 2010.

A
significant portion of the Company's expected 2010 cash inflows are payments to be received pursuant to the San Cristóbal Management Services Agreement. The initial term
of the San Cristóbal
Management Services Agreement has been extended until June 30, 2010 and thereafter may be terminated at the terminating party's discretion by Golden Minerals Services Corporation with twelve
months' prior notice or by Sumitomo with six months' prior notice (or by Sumitomo with three months notice if Sumitomo has sold, directly or indirectly, more than 20% of the subsidiary that owns the
mine). If terminated by Sumitomo, Golden Minerals Services Corporation would be entitled to a $1.0 million termination fee. Golden Minerals Services Corporation would not be required to pay a
termination fee. Should Sumitomo terminate the San Cristóbal Management Services Agreement on July 1, 2010, the Company will not receive cashflows from the San
Cristóbal Management Services Agreement subsequent to December 31, 2010, and the Company will be unable to rely on the San Cristóbal Management Services Agreement
as a source of funding for its business plans subsequent to that date.

If
the El Quevar feasibility study is positive, we currently anticipate that at least an additional $65.0 to $85.0 million would be needed beyond 2010 to complete development and
construction of an underground mine and processing facility at El Quevar. This is a preliminary estimate and the actual cost may vary significantly. If the project advances to development and
construction, we will need to obtain additional financing to continue with the execution of our long term business strategy beyond 2010. There can be no assurance that we will be successful raising
additional capital in the future on terms acceptable to us or at all. If we are unable to obtain additional capital during 2010, the potential development of the El Quevar project may be delayed.

Critical Accounting Policies and Estimates

The selection and application of accounting policies is an important process that has developed as our business activities have evolved
and as the accounting rules have changed. Accounting rules generally do not involve a selection among alternatives, but involve an implementation and interpretation of existing rules, and the use of
judgment, to the specific set of circumstances existing in our business. Discussed below are the accounting policies that we believe are critical to our financial statements due to the degree of
uncertainty regarding the estimates or assumptions involved and the magnitude of the asset, liability, revenue or expense being reported.

The
discussion below highlights critical accounting policies for the Company. Certain other policies were relevant to Apex Silver in its capacity as the owner of San
Cristóbal. See Note 5, "Summary of

47

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Significant
Accounting Policies," in our Consolidated Financial Statements for a discussion of those policies.

Adoption of Accounting Standards Requiring Retrospective Application and Other Reclassifications

On January 1, 2009 we adopted certain provisions of ASC 810 "Consolidation" ("ASC 810") related to noncontrolling interests. A
noncontrolling interest, formerly called a minority interest, is the portion of equity in a subsidiary not attributable, directly or indirectly, to a parent. The objective of this Standard is to
improve the relevance, comparability, and transparency of the financial information that a reporting entity provides in its consolidated financial statements by establishing accounting and reporting
standards related to noncontrolling interests. The provisions of ASC 810 have been applied prospectively, except for the provisions related to the presentation of noncontrolling interests, which have
been applied retrospectively for all periods presented. We no longer report minority interest in the "mezzanine," but reflect such noncontrolling interests as a component of total equity in the
consolidated balance sheets. See Note 18 to the Consolidated Financial Statements for a discussion of noncontrolling interests.

As
a result of the sale of the San Cristóbal mine, and per the guidance of ASC 805 "Business Combinations", ("ASC 805") we have retrospectively reclassified historical
amounts on the Consolidated Statements of Operations and Comprehensive Income (Loss) for the San Cristóbal mine activity to discontinued operations for all periods presented. See
"Note 3 to the Consolidated Financial Statements."

Mineral Reserves

Mineral reserve estimates involve subjective judgment and are based on numerous assumptions that may later prove to be inaccurate.
These estimates include engineering evaluations of assay values derived from samplings of drill holes and other openings. Additionally, changes in the market prices of metals may render certain
mineral reserves containing relatively lower grades of mineralization uneconomic to mine. Further, availability of permits, changes in operating and capital costs, and other factors could materially
and adversely affect mineral reserves. We have not established proven or probable reserves at any of our exploration properties.

Mineral Properties

When and if we determine that a mineral property has proven and probable reserves, subsequent development costs are capitalized to
mineral properties. When mineral
properties are developed and operations commence, capitalized costs are charged to operations using the units-of-production method over proven and probable reserves.

Asset Retirement Obligations

We record asset retirement obligations in accordance with ASC 410, "Asset Retirement and Environmental Obligations" ("ASC 410"), which
establishes a uniform methodology for accounting for estimated reclamation and abandonment costs. According to ASC 410, the fair value of a liability for an asset retirement obligation ("ARO") is
recognized in the period in which it is incurred if a reasonable estimate of fair value can be made. An offsetting asset retirement cost is capitalized as part of the carrying value of the assets with
which it is associated, and depreciated over the useful life of the asset.

Fresh Start Accounting/Reorganization Value

Due to our emergence from bankruptcy we applied fresh start accounting effective March 25, 2009 in accordance with ASC 805
"Business Combinations" ("ASC 805") and ASC 852 "Reorganizations"

48

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("ASC
852"). ASC 852 requires, among other things, the determination of the reorganization value of the successor upon emergence from bankruptcy. Reorganization value approximates the fair value of
the entity, before considering liabilities, and approximates the amount a willing buyer would pay for the assets of the entity immediately after the restructuring. The fair value of our assets was
determined with the assistance of a third party valuation expert and a minerals engineering firm, which used available comparable market data and quotations, discounted cash flow analysis, and other
methods in determining the appropriate asset fair values.

Our
total equity as of March 25, 2009 reflects our estimated enterprise value following the principles of ASC 852 and ASC 805. As part of our bankruptcy proceedings, an enterprise
value ranging from $15 million to $30 million was initially projected based on a blend of valuations using market value multiples for peer companies and an assessment of the underlying
values of our mineral properties at the time of the bankruptcy filing. Additional valuation assessments of the fair value of our assets were performed with the assistance of a third party valuation
expert and a minerals engineering firm to arrive at our reported equity value at the effective date of $36.5 million. The asset valuations were derived using a combination of income, market and
cost approach models depending on the asset. In applying the appropriate valuation model or models, we utilized a variety of economic factors and
market data, including discount rates, income tax rates, projections of future metals prices and third party market surveys.

Table of Contractual Obligations

The following table summarizes our contractual obligations at December 31, 2009:

Contractual Obligations

Total

Less
Than
1 Year

1 - 3
Years

3 - 5
Years

More Than
5 Years(in thousands of $)Operating leases(1)


1,906


338


785


783


El Quevar concession payments(2)


143


29


57


57



(4)Purchase option agreement payments(3)


2,850


700


2,150








(1)The
operating lease obligations are related to our corporate headquarters office. The current lease expires November 2014.(2)We
make annual maintenance payments of approximately $28,500 to the Argentine federal government to maintain the El Quevar project concessions. These
payments include payments for both owned concessions and concessions under purchase option agreements.(3)In
addition to the annual maintenance payments to the Argentine federal government, we make payments to the current concession owners for the properties
under option agreements in order to retain title to the properties. Amounts shown only include the concessions held by Minera El Quevar, which include the Yaxtché zone, our primary area
of interest. Payments associated with other concessions at the El Quevar project are not included because exploration success is historically low and we have the right to terminate the payments and
release the concessions at any time.(4)We
cannot currently estimate the life of the El Quevar project. This table assumes that no annual maintenance payments will be made more than five years
after December 31, 2009. If we develop a mine at the El Quevar project, we expect that we would make annual maintenance payments of approximately $28,500 per year for the life of the mine.


From
time to time we enter into lease option agreements related to exploration properties that are of interest to us. These agreements typically contain escalating lease payments
required to maintain our

49

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exploration
rights to the property. Such agreements are not included in the above table because exploration success is historically low and we have the right to terminate the agreements at any time.

Off-Balance Sheet Arrangements

We do not have any off balance sheet arrangements.

ITEM 7A:    QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Interest Rate Risk

We invest substantially all of our excess cash in U.S. government and debt securities rated "investment grade" or better. The rates
received on such investments may fluctuate with changes in economic conditions. Based on the average cash, restricted cash, investments and restricted investment balances outstanding during the year
ended December 31, 2009, a 1% decrease in interest rates would have resulted in a reduction in interest income for the period of approximately $0.1 million.

Foreign Currency Exchange Risk

Although most of our expenditures are in U.S. dollars, certain purchases of labor, operating supplies and capital assets are
denominated in other currencies. As a result, currency exchange fluctuations may impact the costs of our operations. To reduce this risk, we maintain minimum cash balances in foreign currencies and
complete most of our purchases in U.S. dollars.

Commodity Price Risk

One of our primary business activities is the exploration of properties containing silver, zinc, lead, copper, gold and other minerals,
As a result, decreases in the price of any of these metals have the potential to negatively impact our ability to establish reserves and develop our exploration properties. None of our properties is
in production and we do not currently hold any commodity derivative positions.

ITEM 8:    FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

The consolidated financial statements and supplementary information filed as part of this Item 8 are listed under
Part IV, Item 15, "Exhibits, Financial Statement Schedules" and contained in this annual report on Form 10-K at page F-1.

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

Not applicable.

ITEM 9A:    CONTROLS AND PROCEDURES

Disclosure Controls and Procedures

The management of Golden Minerals has evaluated, under the supervision and with the participation of our Chief Executive Officer and
Chief Financial Officer, the effectiveness of our disclosure controls and procedures as of December 31, 2009.

Based
on that evaluation, the Chief Executive Officer and Chief Financial Officer have concluded that, as of December 31, 2009, our disclosure controls and procedures (as defined
in Rules 13a-15(e) and 15d-15(e) under the Exchange Act), were effective and designed to ensure that (i) information required to be disclosed in our reports filed
under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and instructions, and

50

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(ii) information
is accumulated and communicated to management, including the Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required
disclosures.

The
management of Golden Minerals, including the Chief Executive Officer and Chief Financial Officer, does not expect that our disclosure controls and procedures or our internal controls
will prevent all error and all fraud. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are
met.

Further,
the design of a control system must reflect the fact that there are resource constraints and the benefits of controls must be considered relative to their costs. Because of the
inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within Golden Minerals have been detected.

Management's Report on Internal Control over Financial Reporting

Management is responsible for establishing and maintaining adequate internal control over financial reporting (as defined in
Rule 13a-15(f) under the Exchange Act, as amended). Management assessed the effectiveness of our internal control over financial reporting as of December 31, 2009.

In
making this assessment, management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission
("COSO") inInternal Control-Integrated Framework. Management has concluded that, as of
December 31, 2009, our internal control over financial reporting is effective based on these criteria.

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

Changes in Internal Control over Financial Reporting

There have been no changes to Golden Minerals' internal control over financial reporting during the quarter ended December 31,
2009 that have materially affected, or are reasonably likely to materially affect, Golden Minerals' internal control over financial reporting.

ITEM 9B:    OTHER INFORMATION

None.

51

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PART III

ITEM 10:    DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

Incorporated by reference from the information in our proxy statement for the 2010 Annual Meeting of Stockholders, which we will file
with the Securities and Exchange Commission within 120 days of the end of the fiscal year to which this report relates.

We
have adopted a code of ethics that applies to all of our employees, including principal executive officer, principal financial officer, principal accounting officer, and those of our
officers performing similar functions. The full text of our code of ethics can be found on the Corporate Governance Page on our website. In the event our board approves an amendment to or waiver from
any provision of our code of ethics, we will disclose the required information pertaining to such amendment or waiver on our website.

ITEM 11:    EXECUTIVE COMPENSATION

Incorporated by reference from the information in our proxy statement for the 2010 Annual Meeting of Stockholders, which we will file
with the Securities and Exchange Commission within 120 days of the end of the fiscal year to which this report relates.

ITEM 12:    SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

Incorporated by reference from the information in our proxy statement for the 2010 Annual Meeting of Stockholders, which we will file
with the Securities and Exchange Commission within 120 days of the end of the fiscal year to which this report relates.

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

Incorporated by reference from the information in our proxy statement for the 2010 Annual Meeting of Stockholders, which we will file
with the Securities and Exchange Commission within 120 days of the end of the fiscal year to which this report relates.

ITEM 14:    PRINCIPAL ACCOUNTING FEES AND SERVICES

Incorporated by reference from the information in our proxy statement for the 2010 Annual Meeting of Stockholders, which we will file
with the Securities and Exchange Commission within 120 days of the end of the fiscal year to which this report relates.

52

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PART IV

ITEM 15:    EXHIBITS, FINANCIAL STATEMENT SCHEDULES



EXHIBITS

Exhibit
Number

Description1.1

Form of Underwriting Agreement(6)3.1

Amended and Restated Certificate of Incorporation of Golden Minerals Company(1)3.2

Bylaws of Golden Minerals Company(1)4.1

Specimen of Common Stock Certificate(7)4.2

Common Stock Purchase Warrant, dated January 7, 2010(5)10.1

Management Services Agreement dated March 24, 2009 by and among Minera San Cristóbal, S.A., Apex Metals Marketing GmbH and Apex Silver Mines Corporation(1)10.2

Form of Indemnification Agreement(1)10.3

Form of Change of Control Agreement(1)10.4

Golden Minerals Company 2009 Equity Incentive Plan(2)10.5

Form of Restricted Stock Award Agreement Pursuant to the 2009 Equity Incentive Plan(3)10.6

Non-Employee Directors Deferred Compensation and Equity Award Plan(3)10.7

Common Stock Purchase Agreement, dated December 29, 2009, by and among Golden Minerals Company, Sentient Global Resources Fund III, LP and SGRF III Parallel I, LP(4)10.8

Purchase and Sale Agreement, dated December 31, 2009, by and among Golden Minerals Company, Silex Spain, S.L., Minera El Quevar S.A., and MH Argentina S.A.(4)10.9

Registration Rights Agreement, dated January 7, 2010, by and among Golden Minerals Company and MH Argentina S.A.(5)10.10

Registration Rights Agreement, dated January 7, 2010, by and among Golden Minerals Company, Sentient Global Resources Fund III, LP, and SGRF III Parallel I, LP(5)21.1

Subsidiaries of the Company(8)23.1

Consent of PricewaterhouseCoopers LLP*23.2

Consent of SRK Consulting (US), Inc.*23.3

Consent of Chlumsky, Armbrust and Meyer, LLC*


53

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Exhibit
Number

Description31.1

Certification of Chief Executive Officer of Periodic Report Pursuant to Rule 13a-14(a) and Rule 15d-14(a) (Section 302 of the Sarbanes-Oxley Act of 2002)*31.2

Certification of Chief Financial Officer of Periodic Report Pursuant to Rule 13a-14(a) and Rule 15d-14(a) (Section 302 of the Sarbanes-Oxley Act of 2002)*32.1

Certificate of Principal Executive Officer and Principal Financial Officer pursuant to 18 U.S.C. 1350 (Section 906 of the Sarbanes-Oxley Act of 2002)*


---

54

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SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this
report to be signed on its behalf by the undersigned, thereunto duly authorized.

Dated: March 29, 2010

GOLDEN MINERALS COMPANYRegistrantBy:

/s/ JEFFREY G. CLEVENGER Jeffrey G. Clevenger President and Chief Executive Officer


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

Signature

Title

Date/s/ JEFFREY CLEVENGER Jeffrey G. Clevenger

President and Chief Executive Officer (Principal Executive Officer) and Chairman of the Board of Directors

March 29, 2010/s/ ROBERT P. VOGELS Robert P. Vogels

Senior Vice President and Chief Financial Officer (Principal Financial and Accounting Officer)

March 29, 2010/s/ W. DURAND EPPLER W. Durand Eppler

Director

March 29, 2010/s/ IAN MASTERTON-HUME Ian Masterton-Hume

Director

March 29, 2010/s/ KEVIN R. MORANO Kevin R. Morano

Director

March 29, 2010/s/ TERRY M. PALMER Terry M. Palmer

Director

March 29, 2010/s/ DAVID WATKINS David Watkins

Director

March 29, 2010


55

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GOLDEN MINERALS COMPANY

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA INDEX



PageReport of Independent Registered Public Accounting Firm

F-2Consolidated Balance Sheets at December 31, 2009 and 2008

F-4Consolidated Statements of Operations and Comprehensive Income (Loss) for the periods January 1 through
March 24, 2009 and March 25 through December 31, 2009 and the years ended December 31, 2008 and 2007

F-5Consolidated Statements of Changes in Equity (Deficit) for the periods January 1 through March 24,
2009 and March 25 through December 31, 2009 and the year ended December 31, 2008

F-6Consolidated Statements of Cash Flows for the periods January 1 through March 24, 2009 and March 25
through December 31, 2009 and the years ended December 31, 2008 and 2007

F-7Notes to the Consolidated Financial Statements

F-8


F-1

---





Report of Independent Registered Public Accounting Firm

To
the Board of Directors and the Shareholders of Golden Minerals Company:

In
our opinion, the accompanying consolidated balance sheet and the related consolidated statements of operations and comprehensive income (loss), of equity and of cash flows present
fairly, in all material respects, the financial position of Golden Minerals Company and its subsidiaries (Successor Company) at December 31, 2009 and the results of its operations and its cash
flows for the period from March 25, 2009 to December 31, 2009 in conformity with accounting principles generally accepted in the United States of America. The Company's management is
responsible for these financial statements, for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial
reporting, included in Management's Report on Internal Control Over Financial Reporting appearing under Item 8A. Our responsibility is to express an opinion on these financial statements based
on our audit. We conducted our audit of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we
plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for our opinion.

As
discussed in Note 3 to the consolidated financial statements, the United States Bankruptcy Court for the Southern District of New York confirmed the Company's Joint Plan of
Reorganization (the "plan") on March 4, 2009. Confirmation of the plan resulted in the discharge of all claims against the Company
that arose before January 12, 2009 and substantially terminates all rights and interests of equity security holders as provided for in the plan. The plan was substantially consummated on
March 24, 2009 and the Company emerged from bankruptcy. In connection with its emergence from bankruptcy, the Company adopted fresh start accounting as of March 25, 2009.

/s/
PricewaterhouseCoopers LLP
Denver, Colorado
February 22, 2010, except for Note 2 and Note 27 as to which the date is March 23, 2010

F-2

---



Report of Independent Registered Public Accounting Firm

To
the Board of Directors and Shareholders of Apex Silver Mines Limited:

In
our opinion, the accompanying consolidated balance sheet and the related consolidated statements of operations and comprehensive income (loss), of equity and of cash flows present
fairly, in all material respects, the financial position of Apex Silver Mines Limited and its subsidiaries (Predecessor Company) at December 31, 2008 and the results of their operations and
their cash flows for the period from January 1, 2009 to March 24, 2009, and for each of the two years in the period ended December 31, 2008 in conformity with accounting
principles generally accepted in the United States of America. These financial statements are the responsibility of the Company's management; our responsibility is to express an opinion on these
financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those
standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

As
discussed in Note 15 to the consolidated financial statements, the Company adopted FASB Statement No. 157, Fair Value Measurements, as of January 1, 2008, which
did not require retrospective application. As discussed in Note 5 to the consolidated financial statements, the Company changed its method of accounting for noncontrolling interests effective
January 1, 2009, which required retrospective application for all periods presented.

As
discussed in Note 3 to the consolidated financial statements, the Company filed a petition on March 4, 2009 with the United States Bankruptcy Court for the Southern
District of New York for reorganization under the provisions of Chapter 11 of the Bankruptcy Code. The Company's Joint Plan of Reorganization was substantially consummated on March 24,
2009 and the Company emerged from bankruptcy. In connection with its emergence from bankruptcy, the Company adopted fresh start accounting.

/s/
PricewaterhouseCoopers LLP
Denver, Colorado
February 22, 2010

F-3

---







GOLDEN MINERALS COMPANY        CONSOLIDATED BALANCE SHEETS        (Expressed in United States dollars)

December 31,
2009

December 31,
2008(Successor)

(Predecessor)(in thousands, except
share data)AssetsCurrent assetsCash and cash equivalents

$
8,570

$
33,723Restricted cash





20,575Investments


444


16,351Trade receivables


1,460


7,315Inventories





75,008Prepaid expenses and other assets


2,087


15,550Total current assets


12,561


168,522Property, plant and equipment, net


7,774


202,534Assets held for sale


813


Ore stockpile inventories





72,628Value added tax recoverable





157,146Investments





5,487Prepaid expenses and other assets


552


30Total assets

$
21,700

$
606,347Liabilities and Equity (Deficit)Current liabilitiesAccounts payable and other accrued liabilities

$
2,428

$
48,861Accrued interest payable





8,660Other current liabilities


63


Current portion of long term debt





523,610Total current liabilities


2,491


581,131Long term debt





59,951Asset retirement obligation





9,155Other long term liabilities


651


4,398Total liabilities


3,142


654,635Commitments and contingencies (Note 21)Equity (deficit)Common stock, (Successor) $.01 par value, 50,000,000 shares authorized; 3,238,615 shares issued and outstanding, net of 3,885 treasury
shares


32


Ordinary Shares, (Predecessor) $.01 par value, 175,000,000 shares authorized; 59,000,832 shares issued and outstanding





590Additional paid in capital


37,854


680,901Accumulated deficit


(20,276
)

(880,020
)Accumulated other comprehensive income (loss)


154


(551
)Parent company's shareholder's equity (deficit)


17,764


(199,080
)Noncontrolling interest in subsidiaries


794


150,792Total equity (deficit)


18,558


(48,288
)Total liabilities and equity (deficit)

$
21,700

$
606,347


The accompanying notes form an integral part of these consolidated financial statements.

F-4

---







GOLDEN MINERALS COMPANY        CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)        (Expressed in United States dollars)

For The Period
March 25, 2009
Through
December 31, 2009

For The Period
January 1, 2009
Through
March 24, 2009

The Years Ended December 31,2008

2007(Successor)

(Predecessor)(in thousands except per share data)Revenue:Management service fees (Note 19)

$
11,067

$
1,350

$
5,400

$
5,400Costs and expenses:Costs of services (Note 19)


(3,751
)







Exploration expense


(12,617
)

(3,482
)

(25,397
)

(15,357
)Administrative expense


(8,430
)

(4,779
)

(17,348
)

(17,664
)Stock based compensation


(1,666
)

(2,717
)

(2,852
)

(2,609
)Depreciation, depletion and amortization


(626
)

(102
)

(527
)

(533
)Total costs and expenses


(27,090
)

(11,080
)

(46,124
)

(36,163
)Loss from operations


(16,023
)

(9,730
)

(40,724
)

(30,763
)Other income and expenses:Interest and other income


1,042


1,010


5,553


19,432Royalty income


399


88


351


1,319Interest and other expense





(345
)

(15,848
)

(5,733
)Gain on disposal of assets, net


261








Impairment of long lived assets


(1,687
)







Loss on foreign currency


(69
)

(13
)

(32
)

(48
)Gain on extingushment of debt





248,165





Loss on auction rate securities


(2,199
)

(828
)

(16,263
)

(34,537
)Reorganization costs, net


(1,032
)

(3,683
)

(2,153
)

Fresh start accounting adjustments





9,122





Other total income and expenses


(3,285
)

253,516


(28,392
)

(19,567
)Income (loss) from continuing operations before income taxes


(19,308
)

243,786


(69,116
)

(50,330
)Income taxes


(968
)

(165
)

(618
)

(879
)Net income (loss) from continuing operations


(20,276
)

243,621


(69,734
)

(51,209
)Loss from discontinued operations





(4,153
)

(166,625
)

(24,634
)Net income (loss)

$
(20,276
)
$
239,468

$
(236,359
)
$
(75,843
)Net (income) loss attributable to noncontrolling interest

$


$
(7,869
)
$
118,122

$
87,399Net income (loss) attributable to the Successor/Predecessor stockholder's

$
(20,276
)
$
231,599

$
(118,237
)
$
11,556Other comprehensive gain (loss):Unrealized gain (loss) on securities

$
154

$
940

$
(441
)
$
(86
)Comprehensive income (loss) attributable to Successor/Predecessor stockholder's

$
(20,122
)
$
232,539

$
(118,678
)
$
11,470Net income (loss) per Common/Ordinary SharebasicIncome (loss) from continuing operations attributable to the Successor/Predecessor stockholders

$
(6.78
)
$
4.13

$
(1.18
)
$
(0.87
)Income (loss) from discontinued operations attributable to the Successor/Predecessor stockholders





(0.20
)

(0.82
)

1.07Income (loss) attributable to the Successor/Predecessor stockholders

$
(6.78
)
$
3.93

$
(2.01
)
$
0.20Net income (loss) per Common/Ordinary SharedilutedLoss from continuing operations attributable to the Successor/Predecessor stockholders

$
(6.78
)
$
(0.06
)
$
(1.18
)
$
(0.87
)Loss from discontinued operations attributable to the Successor/Predecessor stockholders





(0.17
)

(0.82
)

1.07Loss attributable to the Successor/Predecessor stockholders

$
(6.78
)
$
(0.23
)
$
(2.01
)
$
0.20Weighted average Common Stock/Ordinary Shares outstandingbasic


2,989,562


59,000,832


58,947,025


58,714,935Weighted average Common Stock/Ordinary Shares outstandingdiluted


2,989,562


69,171,400


58,947,025


58,714,935


The accompanying notes form an integral part of these consolidated financial statements.

F-5

---







GOLDEN MINERALS COMPANY        CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (DEFICIT)        (Expressed in United States dollars)

Accumulated
Other
Comprehensive
income
(loss)Common StockAdditional
Paid-in
Capital

Accumulated
Deficit

Noncontrolling
Interest

Total
Equity
(Deficit)Shares

Amount(in thousands except share data)(Predecessor)Balance, December 31, 2006


58,577,700

$
585.8

$
669,487

$
(773,339
)
$
(24
)
$
40

$
(103,250
)Stock compensation accrued








3,193











3,193Stock options exercised ($11.78 per share)


394,325


3.9


4,522











4,526Stock granted as compensation ($16.49 per share)


57,150


0.6














1Stock compensation restricted shares canceled (1)


(119,550
)

(1.2
)













(1
)Unrealized loss on marketable equity securities














(86
)




(86
)Gain attributable to non-controlling interest

















(40
)

(40
)Net income











11,556








11,556Balance, December 31, 2007


58,909,625

$
589

$
677,203

$
(761,783
)
$
(110
)
$


$
(84,101
)Stock compensation accrued








3,698











3,698Stock granted as compensation ($15.91 per share)


91,207


1














1Unrealized loss on marketable equity securities














(441
)




(441
)Capital contributions

















167,329


167,329Interest payable to non controlling interest

















19,737


19,737Line of credit barrowings

















150,000


150,000Net loss











(118,237
)




(186,274
)

(304,511
)Balance, December 31, 2008


59,000,832

$
590.0

$
680,901

$
(880,020
)
$
(551
)
$
150,792

$
(48,288
)Stock compensation accrued








2,920











2,920Ordinary Shares of Apex Silver Mines Limited to be canceled


(59,000,832
)

(590
)

(683,821
)










(684,411
)Unrealized loss on marketable equity securities














940





940Net income (loss)











231,599





7,869


239,468Capital contributions

















3,500


3,500Interest payable to non controlling interest

















7,899


7,899Elimination of Predecessor accumulated deficit











648,421








648,421Elimination of Predecessor accumulated OCI














(389
)




(389
)Elimination of Predecessor Noncontrolling Interest

















(170,060
)

(170,060
)Balance, March 24, 2009




$


$


$


$


$


$
(Successor)Issuance of new equity in connection with emergence from Chapter 11


3,000,000

$
30

$
36,230

$


$


$


$
36,260Stock compensation accrued, net of forfeitures


242,500


2


1,664











1,666Treasury shares acquired


(3,885
)




(40
)










(40
)Unrealized gain on marketable equity securities














154





154Noncontrolling interest in mineral properties

















794


794Net loss











(20,276
)







(20,276
)Balance, December 31, 2009


3,238,615

$
32

$
37,854

$
(20,276
)
$
154

$
794

$
18,558


The accompanying notes form an integral part of these consolidated financial statements.

F-6

---







GOLDEN MINERALS COMPANY        CONSOLIDATED STATEMENTS OF CASH FLOWS        (Expressed in United States dollars)

For the Years Ended
December 31,For The Period
March 25, 2009
Through
December 31, 2009

For The Period
January 1, 2009
Through
March 24, 20092008

2007(Successor)

(Predecessor)(in thousands)Cash flows from operating activities:Net cash used in operating activities (Note 20)

$
(23,247
)
$
(13,849
)
$
(139,554
)
$
(166,029
)Cash flows from investing activities:Purchase of available-for-sale investments





(4,447
)

(43,825
)

(558,784
)Sale of available-for-sale investments


3,386


21,113


79,754


793,390Sale of held-to-maturity investments








2,000


5,619Purchase of available for sale restricted investments











(32,150
)Sale of available for sale restricted investments











109,050Purchase of held-to-maturity restricted investments











(2,818
)Sale of held-to-maturity restricted investments











7,800Payment of derivative premiums and settlements, (net)








(273,157
)

(57,880
)Advance for construction of port facility











(4,000
)Released from (transfer to) restricted cash to collateralize credit facility, letters of credit and interest payments, net





5,732


82,737


(71,371
)Procceds from sale of interest in subsidiary





25,225


70,000


258Procceds from sale of assets


3,650Receipt of deferred payments








14,101


Additions to property, plant and equipment


(839
)

(4,580
)

(27,452
)

(148,860
)Net cash provided by (used in) investing activities


6,197


43,043


(95,842
)

40,254Cash flows from financing activities:Payment of debt issuance costs











(650
)Payment of notes and long term debt





(47,297
)

(8,551
)

(12,600
)Amounts drawn on DIP facility





6,500





Borrowings under project finance facility











45,000Minority interest contributions





3,500


236,934


80,395Proceeds from exercise of stock options and warrants











4,526Net cash provided by (used in) financing activities





(37,297
)

228,383


116,671Net decrease in cash and cash equivalents


(17,050
)

(8,103
)

(7,013
)

(9,104
)Cash and cash equivalents, beginning of period


25,620


33,723


40,736


49,840Cash and cash equivalents, end of period

$
8,570

$
25,620

$
33,723

$
40,736Supplemental information:Interest paid, net of amounts capitalized

$


$
3,326

$
29,180

$
16,595Income taxes paid

$


$


$
4,515

$
216Supplemental non-cash transactions: (Note 20)


The accompanying notes form an integral part of these consolidated financial statements.

F-7

---





GOLDEN MINERALS COMPANY        NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS        (Expressed in United States dollars)

1. Operations and Basis of Preparation of Financial Statements

Upon emergence from Chapter 11 bankruptcy on March 24, 2009 as discussed in Note 3, Golden Minerals Company (the "Company"), a Delaware corporation, became the
successor to Apex Silver Mines Limited ("ASML") for purposes of reporting under the U.S. federal securities laws. References in this Form 10-K to "Successor"
refer the Company and its subsidiaries on or after March 25, 2009, the day following emergence from Chapter 11. References to "Predecessor" refer to ASML and its subsidiaries prior to
March 25, 2009.

Prior
to the emergence from Chapter 11 and the sale of the San Cristóbal mine, ASML was the 65% owner and operator of the San Cristóbal silver and
zinc mine in Bolivia. Following emergence from Chapter 11 and the sale of the San Cristóbal mine to Sumitomo Corporation ("Sumitomo"), the Company is primarily engaged in the
exploration and advancement of its portfolio of exploration properties primarily located in South America and Mexico and in providing operations management services to Sumitomo for the San
Cristóbal mine. The financial statements have been prepared on a going concern basis under which an entity is considered to be able to realize its assets and satisfy its liabilities in
the normal course of business. While management believes the Company has a sufficient short term operating plan and cash resources to continue as a going concern through 2010, the ability of the
Company to operate beyond 2010 is dependent upon its ability to raise sufficient capital to continue funding its exploration activities with the ultimate goal of finding and developing future
profitable mining operations.

2. Liquidity and Capital Requirements

At December 31, 2009 the Company's aggregate cash and short-term investments totaled $9.0 million, which included $8.6 million of cash and cash
equivalents and $0.4 million of short term investments. Based on the success of the Company's March 2010 public offering of common stock and private placement to Sentient (see Subsequent Event
Note 27), it plans to spend the following amounts during 2010 pursuant to its long term business strategy:



F-8

---



GOLDEN MINERALS COMPANY

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Expressed in United States dollars)

2. Liquidity and Capital Requirements (Continued)

The
Company plans to fund the long term business strategy expenditures described above from the approximately $35.3 million net proceeds of the March 2010 public offering of
common stock and private placement to Sentient, from its existing cash and investment balances, from the approximately $7.0 million of annual net cash flow from its management services
agreement with San Cristóbal (comprised of the annual fee and bonus, net of reimbursed administrative expenses), and from the approximately $5.5 million in net proceeds it
received in the Sentient private placement in January 2010.

A
significant portion of the Company's expected 2010 cash inflows are payments to be received pursuant to the Management Services Agreement with Sumitomo (the "Management Agreement")
pursuant to which a wholly owned subsidiary of the Company, Golden Minerals Services Corporation ("Golden Services"), is providing certain operations management services to Sumitomo with respect to
the San Cristóbal mine. The initial term of the Management Agreement has been extended until June 30, 2010 and thereafter may be terminated by Golden Services with twelve months'
prior notice or by Sumitomo with six months' prior notice. If terminated by Sumitomo, Golden Services would be entitled to a $1.0 million termination fee. Golden Services would not be required
to pay a termination fee. Should Sumitomo terminate the Management Agreement on July 1, 2010, the Company will not receive cashflows from the Management Agreement subsequent to
December 31, 2010, and the Company will be unable to rely on the Management Agreement as a source of funding for its business plans subsequent to that date.

If
the El Quevar feasibility study is positive, it is anticipated that at least an additional $65.0 to $85.0 million would be needed beyond 2010 to complete development and
construction of an underground mine and processing facility at El Quevar. This is a preliminary estimate and the actual cost may vary significantly. If the project advances to development and
construction, the Company will need to obtain additional funding in addition to the planned securities offering to continue with the execution of its long term business strategy beyond 2010. There can
be no assurance that the Company will be successful in the anticipated offering or that it will be successful raising additional capital in the future on terms acceptable to the Company or at all.

3. Chapter 11 Proceedings, Financial Restructuring and Sale of the San Cristóbal Mine



In light of significant liquidity issues, on January 12, 2009, ASML and its wholly owned subsidiary, Apex Silver Mines
Corporation ("ASMC"), filed voluntary petitions for reorganization relief under Chapter 11 of the U.S. Bankruptcy Code (the "Bankruptcy Code"). ASML also commenced a provisional
liquidation proceeding in the Cayman Islands. ASML's subsidiaries outside of the United States, including Minera San Cristóbal S.A. ("MSC"), the Bolivian
subsidiary that owns and operates the San Cristóbal mine, were not included in the Chapter 11 filing or in any other bankruptcy or reorganization proceeding.

Under
Chapter 11, ASML operated its businesses between January 12, 2009 and March 24, 2009 as a debtor-in-possession under court protection
from creditors and claimants under the jurisdiction of the Bankruptcy Court and under the supervision of the joint provisional liquidators in the Cayman Islands.

F-9

---



GOLDEN MINERALS COMPANY

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Expressed in United States dollars)

3. Chapter 11 Proceedings, Financial Restructuring and Sale of the San Cristóbal Mine (Continued)

A
Joint Plan of Reorganization (the "Plan") was approved by the U.S. Bankruptcy Court for the Southern District of New York (the "Bankruptcy Court") on March 4, 2009, and
the Company emerged from Chapter 11 protection on March 24, 2009 (the "Effective Date"). At that time, and subsequent to the closing of the sale of the
San Cristóbal mine to Sumitomo as described below, all of the remaining
assets of ASML, other than a small cash reserve for the payment of ASML's liquidation expenses, were transferred to the Company. A compulsory liquidation proceeding was initiated for
ASML in the Cayman Islands and all of the ordinary shares of ASML were formally canceled in that proceeding.

Under
the Plan, holders of ASML's 2.875% and 4.0% Convertible Senior Subordinated Notes due 2024 (collectively, the "Notes") received in exchange for the cancellation of
the Notes a pro rata distribution of (i) 3,000,000 shares of common stock of the Company, and (ii) approximately $45.0 million of cash. To record the effect of the
reorganization, ASML wrote off the $290.0 million liability related to the Notes plus $3.2 million interest accrued through January 12, 2009, the Chapter 11 filing date,
and recorded a $248.2 million gain at March 24, 2009.

Other
holders of unsecured claims against ASML and ASMC, except ASML's equity holders received cash payments for their claims up to a maximum recovery of $10,000 per
claim. Through December 31, 2009 the Company has made cash payments of $52,000 in resolution of such claims. ASML's equity holders received no recovery under the Plan. In
November 2009 the Chapter 11 proceedings were closed, and in December 2009 ASML's liquidation proceeding in the Cayman Islands were completed and the ASML ordinary shares were
cancelled.



On the Effective Date, in accordance with the Plan, ASML sold to Sumitomo its remaining direct and indirect interests in the
San Cristóbal mine, including its 65% interest in MSC, for a cash purchase price of $27.5 million, plus $2.5 million in expense reimbursements and the assumption of
certain liabilities. On the Effective Date, Sumitomo and the other senior lenders waived and released ASML and the Company from any liability associated with amounts outstanding under the project
finance facility relating to the San Cristóbal mine.

On
the Effective Date, ASMC, renamed Golden Services, entered into the Management Agreement under which it is providing certain operations management services with respect to the
San Cristóbal mine. The initial term of the Management Agreement has been extended until June 30, 2010 and thereafter may be terminated by Golden Services with twelve
months' prior notice or by Sumitomo with six months' prior notice. If terminated by Sumitomo, Golden Services would be entitled to a $1.0 million termination fee. Golden Services would not be
required to pay a termination fee.



As required by GAAP, the Company adopted fresh start accounting effective March 25, 2009 following the guidance of Accounting
Standards Codification ("ASC") 805, "Business Combinations" ("ASC 805"), and ASC 852, "Reorganizations" ("ASC 852"), because (i) holders of existing voting shares of
the Predecessor immediately before the Effective Date received less than 50% of the voting shares of the Successor and (ii) the reorganized value of the Successor was less than its
post-petition liabilities and allowed claims. The Successor's consolidated financial statements reflect a new capital

F-10

---



GOLDEN MINERALS COMPANY

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Expressed in United States dollars)

3. Chapter 11 Proceedings, Financial Restructuring and Sale of the San Cristóbal Mine (Continued)

structure
and a new basis in the identifiable assets and liabilities assumed. Accordingly, the consolidated financial statements on or after March 25, 2009 are not comparable to the
consolidated financial statements prior to that date.

ASC 852
requires, among other things, the determination of the reorganization value of the Successor upon emergence from bankruptcy. Reorganization value approximates the fair
value of the entity, before considering liabilities, and approximates the amount a willing buyer would pay for the assets of the entity immediately after the restructuring. The fair value of the
Successor's assets was determined with the assistance of a third party valuation expert and a minerals engineering firm who used available comparable market data and quotations, discounted cash flow
analysis, and other methods in determining the appropriate asset fair values. Based on these valuations and applying the principles of ASC 805, the Company has adjusted upward the reported
amounts of certain of the Successor's individual assets, net of liabilities, by a combined total of $9.1 million and has reflected that adjustment in the Predecessor's statement of operations
in accordance with ASC 852. The upward adjustment relates primarily to recording at fair value certain exploration properties and a royalty interest that were previously reflected on the
Predecessor's balance sheet at a zero carrying value, because all exploration costs at such properties were expensed as incurred. Future costs of exploration will continue to be expensed as incurred.

The
total equity of the Successor at the Effective Date of $36.5 million has been adjusted to reflect no beginning retained earnings or deficit, after taking into account the
cancelation of the Notes, the issuance of new shares in the Company, and the fresh start accounting adjustments. The total equity of the Successor at the Effective Date reflects the estimated
enterprise value of the Company following the principles of ASC 852 and ASC 805. As part of the Company's bankruptcy proceedings, an enterprise value ranging from $15 million to
$30 million was initially projected based on a blend of valuations using market value multiples for peer companies and an assessment of the underlying values of the Company's mineral properties
at the time of the bankruptcy filing. As discussed above, and in conjunction with finalizing the fresh start accounting adjustments, additional valuation assessments of the fair value of the
Successor's assets were performed with the assistance of a third party valuation expert and a minerals engineering firm to arrive at the Company's reported equity value at the Effective Date of
$36.5 million. The asset valuations were derived using a combination of income, market and cost approach models depending on the asset. In applying the appropriate valuation model
or models, the valuation consultants employed a variety of economic factors and market data, including discount rates, income tax rates, projections of future metals prices, and third party market
surveys.

F-11

---



GOLDEN MINERALS COMPANY

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Expressed in United States dollars)

3. Chapter 11 Proceedings, Financial Restructuring and Sale of the San Cristóbal Mine (Continued)

The
balance sheet adjustments presented below summarize the impact of the reorganization, the sale of the San Cristóbal mine and the application of fresh start
accounting as of the Effective Date.

GOLDEN MINERALS COMPANY  REORGANIZED CONSOLIDATED BALANCE SHEETS  (Expressed in United States dollars)  (Unaudited)

March 24, 2009Predecessor
Balances

Sale of
San Cristóbal
Mine
(Note I)

Reorganization
Adjustments
(Note II)

Fresh Start
Adjustments
(Note III)

Successor
Balances(amounts in thousands)AssetsCurrent assetsCash and cash equivalents

$
43,120

$
27,500

$
(45,000
)
$


$
25,620Restricted cash


14,853


(14,853
)







Investments


88











88Trade receivables


19,208


(19,023
)







185Inventories


89,633


(89,633
)







Prepaid expenses and other assets


8,543


(7,025
)







1,518Total current assets


175,445


(103,034
)

(45,000
)




27,411Property, plant and equipment, net


190,439


(187,387
)




9,605


12,657Ore stockpile inventories


74,756


(74,756
)







Value added tax recoverable


168,842


(168,842
)







Investments


5,249











5,249Other


48


(44
)







4Total assets

$
614,779

$
(534,063
)
$
(45,000
)
$
9,605

$
45,321Liabilities and Equity (Deficit)Current liabilitiesAccounts payable and other accrued liabilities

$
44,889

$
(36,312
)
$


$


$
8,577Accrued interest payable


8,987


(5,809
)

(3,178
)




Current portion of long term debt


553,516


(263,529
)

(289,987
)




Total current liabilities


607,392


(305,650
)

(293,165
)




8,577Long term debt


37,517


(37,517
)







Asset retirement obligation


9,675


(9,675
)







Other long term liabilities


2,752


(2,752
)




483


483Total liabilities


657,336


(355,594
)

(293,165
)

483


9,060Equity (deficit)Ordinary Shares (Common Stock)


560





(530
)




30Additional paid in capital


684,122





(647,891
)




36,231Accumulated deficit


(897,299
)

(8,409
)

896,586


9,122


Parent company's shareholder's equity (deficit)


(212,617
)

(8,409
)

248,165


9,122


36,261Noncontrolling interest in subsidiaries


170,060


(170,060
)







Total equity (deficit)


(42,557
)

(178,469
)

248,165


9,122


36,261Total liabilities and equity (deficit)

$
614,779

$
(534,063
)
$
(45,000
)
$
9,605

$
45,321


Note I.The adjustments related to the sale of the San Cristóbal mine to Sumitomo
include $27.5 million of cash received from the sale, the write-off of $561.5 million of assets sold to Sumitomo, net of $355.6 million of liabilities assumed by
Sumitomo, the release of $170.1 million of noncontrolling interest primarily related to Sumitomo and a loss on the sale of $8.4 million.


F-12

---



GOLDEN MINERALS COMPANY

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Expressed in United States dollars)

3. Chapter 11 Proceedings, Financial Restructuring and Sale of the San Cristóbal Mine (Continued)

Note II.The reorganization adjustments include a $45.0 million reduction of cash for amounts
paid to the holders of the Notes, a write-off of the $290.0 million liability related to the Notes, plus $3.2 million of accrued interest and a $248.2 million gain on
extinguishment of debt. The reorganization adjustments also include the write-off of $896.3 million of accumulated deficit, $647.6 million of additional paid in capital and
$0.5 million of ordinary shares to reflect the elimination of the Predecessor's shareholder's equity. Note III.The fresh start adjustments reflect a write-up of property, plant and equipment
to estimated fair value including $7.3 million related to the Company's exploration properties, $2.0 million related to a mineral property royalty held by the Company and
$0.3 million related to an aircraft owned by the Company. The fresh start adjustment also includes $0.5 million deferred tax liability adjustment to reflect the tax effect of the
adjustments to property, plant and equipment. As the result of the above adjustments the Company recorded a positive $9.1 million fresh start adjustment in the statement of operations for the
period ended March 24, 2009.


4. Discontinued Operations

As a result of the sale of the San Cristóbal mine, results of operations of the San Cristóbal mine and related subsidiaries sold are presented
as discontinued operations for the periods on the Consolidated Statements of Operations and Comprehensive Income (Loss) through March 24, 2009, the date of the sale, including all direct
financing related to the San Cristóbal mine (see Note 3). Additionally, costs incurred for management service fees that were previously eliminated upon consolidation have
not been eliminated and are reflected as a cost of service between the discontinued operations and the Company.

The
Company determined that reporting discontinued operations is appropriate in accordance with ASC 805. The Company has determined that the continuing cash flows generated by the
Management Agreement for the San Cristóbal mine are not so significant as to constitute continuing involvement with the mine. In addition, management has evaluated the Company's
other ongoing involvement with the San Cristóbal mine as a result of the Management Agreement, and concluded that it does not represent significant continuing involvement as
defined in ASC 805.

F-13

---



GOLDEN MINERALS COMPANY

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Expressed in United States dollars)

4. Discontinued Operations (Continued)

The results of discontinued operations for the period January 1, 2009 through March 24, 2009 and for the years ended December 31, 2008 and 2007 are as follows
(amounts in thousands):

The years ended December 31,For The Period January 1, 2009 Through
March 24, 20092008

2007Revenue:Sale of concentrates, net

$
99,049

$
419,512

$
45,932Costs and expenses:Costs applicable to sales


(59,955
)

(346,199
)

(42,941
)Write down of inventories





(52,547
)

Production startup income/expense, net








(13,483
)Management fee


(1,350
)

(5,400
)

(5,400
)Asset retirement accretion expense


(232
)

(794
)

(600
)Gain (loss) on commodity derivatives





467,871


19,290Foreign currency gain


1,960


18,342


7,772Impairment of long lived assets





(625,649
)

Other costs





(1,960
)

(4,067
)Depreciation, depletion and amortization


(10,527
)

(37,415
)

(13,646
)Total costs and expenses


(70,104
)

(583,751
)

(53,075
)Loss from operations


28,945


(164,239
)

(7,143
)Other income and expenses:Interest and other income


67


478


2,606Interest expense and other borrowing costs


(22,233
)

(59,600
)

(18,112
)Total other income and expenses


(22,166
)

(59,122
)

(15,506
)Loss before income taxes


6,779


(223,361
)

(22,649
)Income taxes


(2,523
)

(7,735
)

(1,985
)Income before sale of interest in subsidiaries

$
4,256

$
(231,096
)
$
(24,634
)Gain (loss) on sale of interest in subsidiaries

$
(8,409
)

64,471

$
Loss from discontinued operations

$
(4,153
)
$
(166,625
)
$
(24,634
)


F-14

---



GOLDEN MINERALS COMPANY

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Expressed in United States dollars)

4. Discontinued Operations (Continued)

The
assets and liabilities of discontinued operations reported in the consolidated balance sheets at December 31, 2008 consisted of the following (amounts in thousands):

December 31, 2008AssetsCash and cash equivalents

$
992Restricted cash


20,070Accounts receivable


7,314Inventories


75,008Prepaid expenses and other assets


14,251Current assets


117,635Property, plant and equipment, net


199,040Ore inventories


72,628Value added tax recoverable


157,146Other assets


17$
546,466Liabilities and EquityAccounts payable and accrued liabilities

$
44,878Accrued interest payable


5,797Current portion of long term debt


233,623Current liabilities


284,298Long term debt


59,951Reclamation & remediation liabilities


9,155Other long term liabilities (income taxes)


4,398Noncontrolling interest


150,792Accumulated earnings


37,872$
546,466


The
Company reported no remaining assets or liabilities from discontinued operations at December 31, 2009.

5. Summary of Significant Accounting Policies

The Company's consolidated financial statements and those of the Predecessor have been prepared in accordance with accounting principles generally accepted in the United States of
America ("U.S. GAAP"). The preparation of the Company's consolidated financial statements and those of the Predecessor require management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and related disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and
expenses during the reporting period. The more significant areas requiring the use of management estimates and assumptions relate to mineral reserves and related future metals prices that are the
basis for future cash flow estimates utilized in impairment calculations and units-of-production depreciation, depletion and amortization calculations; environmental
reclamation and closure obligations; estimates of

F-15

---



GOLDEN MINERALS COMPANY

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Expressed in United States dollars)

5. Summary of Significant Accounting Policies (Continued)

recoverable
metals in stockpiles; valuation allowances for deferred tax assets and the fair value of financial instruments. The Company and the Predecessor based its estimates on historical experience
and on various other assumptions that are believed to be reasonable under the circumstances. Actual results may differ significantly from these estimates under different assumptions or conditions.

The
significant accounting policies discussed below pertain to both the Company and the Predecessor unless otherwise stated. The policies adopted, considered by management to be
significant, are summarized as follows:



Each of the Company and the Predecessor consolidates more-than-50%-owned subsidiaries that it controls and
entities over which control is achieved through means other than voting rights. If the Company or the Predecessor does not own 100% of a consolidated subsidiary, it recognizes a noncontrolling
interest in the subsidiary and a noncontrolling interest in the gains or losses recorded by the subsidiary. All intercompany transactions and balances have been eliminated at consolidation.



Substantially all expenditures and sales are made in U.S. dollars. Accordingly, the Company and the Predecessor and their subsidiaries
use the U.S. dollar as their functional and reporting currency.



The Company and the Predecessor consider all highly liquid investments with a maturity of three months or less when purchased to be
cash equivalents.



The Company and the Predecessor segregate cash and investments, the use of which is restricted by contractual agreement, and reports
these amounts separately in the financial statements. At December 31, 2008 the Predecessor had recorded $20.6 million, the use of which was restricted to providing operating capital for
the San Cristóbal mine and the payment of principal and interest under the San Cristobal project finance facility as current restricted cash.



Available for SaleAvailable for sale securities are recorded at fair value, with unrealized gains or losses recorded as a
component of equity (deficit), unless the value of the security is considered other than temporarily impaired. Realized gains and losses and non-temporary impairments in value are recorded
in the statement of operations.

Held to MaturityHeld to maturity investments are debt securities which the Company or the Predecessor has the ability and
intent to hold until maturity and are recorded at amortized cost. Income is recorded based upon the current yield of the security. Any non-temporary impairment in value will be recorded in
the statement of operations at the date of the impairment.

F-16

---



GOLDEN MINERALS COMPANY

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Expressed in United States dollars)

5. Summary of Significant Accounting Policies (Continued)



The Predecessor's ore stockpiles and concentrate inventories were carried at the lower of average cost or net realizable value. Net
realizable value represents the estimated future sales price of the product based on spot and future metals prices through estimated sale and settlement dates, less the estimated costs to complete
production and bring the product to sale. The $18.6 million of concentrate inventories and $72.6 million of ore stockpile inventories of the Predecessor at December 31, 2008 were
recorded at net realizable value.

Ore stockpilesThe Predecessor's ore stockpiles represent ore that has been mined and is available for further processing. Ore
stockpiles are measured by estimating the number of tonnes added and removed from the stockpile, the contained metals (based on assay data) and the estimated metallurgical recovery rates. Costs are
allocated to ore stockpiles based on relative values of material stockpiled and processed using current mining costs incurred up to the point of stockpiling the ore, including applicable overhead,
depreciation, depletion and amortization relating to mining operations. Material is removed from the stockpile at an average cost per tonne.

Concentrate inventoriesThe Predecessor's concentrate inventories represent silver bearing zinc and lead concentrates
available for shipment. Concentrate inventories are valued at the average cost of the ore sent to the processing plant from the mine or from the ore stockpiles plus the plant processing costs
incurred, including applicable depreciation related to the processing facilities and an allocable portion of mine site administrative costs and related overhead. Costs are added to and removed from
the concentrate inventory based on tonnes of concentrate produced or sold and are valued at the lower of average cost or net realizable value.

Materials and suppliesThe Predecessor materials and supplies were valued at the lower of average cost or net realizable
value. Cost includes applicable taxes and freight. The Company routinely counts and evaluates its material and supplies to determine the existence of obsolete stock that is subject to impairment.

All
of the inventories at December 31, 2008 were associated with the San Cristóbal mine which was sold during the first quarter 2009 (see Note 3). The
Company has no inventories at December 31, 2009.



The Company and the Predecessor expense general prospecting costs and the costs of acquiring and exploring unevaluated mineral
properties. When a mineral property is determined to have proven and probable reserves, subsequent development costs are capitalized to mineral properties. For acquired mineral properties with proven
and probable reserves, the Company capitalizes acquisition costs and subsequent development costs. When mineral properties are developed and operations commence, capitalized costs are charged to
operations using the units-of-production method over proven and probable reserves. Upon abandonment or sale of a mineral property, all capitalized costs relating to the
specific property are written off in the period abandoned or sold and a gain or loss is recognized.

As
required by GAAP, the Company applied fresh start accounting upon emergence from Chapter 11 reorganization, per the guidance of ASC 805 and ASC 852. As a result
of fresh start accounting the Company adjusted upward to fair value certain exploration properties and a royalty

F-17

---



GOLDEN MINERALS COMPANY

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Expressed in United States dollars)

5. Summary of Significant Accounting Policies (Continued)

interest
that were previously reflected on the Predecessor's balance sheet at a zero carrying value, because all exploration costs at such properties were expensed as incurred. The total adjustment
recorded to property, plant and equipment related to the exploration properties and royalty interest was $9.6 million (see Note 3). Future costs of exploration will continue to be
expensed as incurred.



Buildings are depreciated using the straight-line method over useful lives of 30 to 40 years or the life of the mine whichever
is shorter. Mining equipment and machinery excluding the plant are depreciated using the straight-line method over useful lives of three to eight years or the lease period, whichever is
shorter. Mineral properties and the plant are depreciated using units of production based on estimated mine reserves. Other furniture and equipment are depreciated using the straight-line
method over estimated useful lives of three to five years. Depreciation on plant and equipment used in the construction of an asset is capitalized to the constructed asset.

The
Company and the Predecessor record a lease as a capital lease if at the lease inception it meets one or more of four criteria in accordance with ASC 840 "Leases",
("ASC 840"). The Company records capital leases as an asset and an obligation at the lesser of an amount equal to the present value at the beginning of the lease term of minimum lease payments
during the lease term or the fair value of the leased assets.

Property,
plant and equipment are recorded at cost and per the guidance of ASC 360 "Property, Plant and Equipment", ("ASC 360"), the Company assesses the recoverability of
its property, plant and equipment whenever events or changes in circumstances indicate that the carrying value of the assets may not be recoverable. If the sum of estimated future net cash flows on an
undiscounted basis is less than the carrying amount of the related asset, impairment is considered to exist. The related impairment loss is measured by comparing estimated future net cash flows on a
discounted basis to the carrying amount of the asset.

During
2009 the Company recorded a $1.7 million impairment of its Paca Pulacyo property in Bolivia which was reported as held for sale at December 31, 2009 (see
Note 37). During 2008 the Predecessor recorded a $625.6 million impairment of the San Cristóbal asset group.



The Predecessor recorded asset retirement obligations ("ARO") in accordance with ASC 410 "Asset Retirement and Environmental
Obligations", ("ASC 410"), which establishes a uniform methodology for accounting for estimated reclamation and abandonment costs. According to ASC 410, the fair value of an ARO is
recognized in the period in which it is incurred if a reasonable estimate of fair value can be made. An offsetting asset retirement cost is capitalized as part of the carrying value of the assets with
which it is associated, and depreciated over the useful life of the
asset (see Note 13). The Company had no ARO recorded at December 31, 2009 and the Predecessor had recorded ARO of $9.2 million at December 31, 2008.



Direct costs incurred in connection with obtaining financing are deferred and amortized over the life of the respective financing.
During the fourth quarter 2008 the Predecessor wrote off its remaining

F-18

---



GOLDEN MINERALS COMPANY

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Expressed in United States dollars)

5. Summary of Significant Accounting Policies (Continued)

deferred
financing costs. The Company had no deferred financing costs recorded at December 31, 2009.



The Company recognizes service fees and reimbursements for administrative costs and withholding taxes as "Revenue from Services" in the
statement of operations following the guidance of ASC 605 "Revenue Recognition" ("ASC 605") regarding "income statement characterization of reimbursements received for
"out-of-pocket" expenses incurred" and "reporting revenue gross as a principal versus net as an agent". ASC 605 supports recording as gross revenue fees received for the
reimbursement of expenses in situations where the recipient is the primary obligor and has certain discretion in the incurrence of the reimbursable expense. The actual costs incurred for the
reimbursed direct administrative expenses and withholding taxes are reported as costs of services and income tax expense, respectively in the statement of operations. The Company recognizes service
fees during the period that the services are rendered.

The
Predecessor sold its concentrates directly to smelters. The Predecessor recognized a sale upon receipt of provisional payment, the earliest point that both risk of loss and title
transferred to the smelter.



Stock based compensation costs are recognized per the guidance of ASC 718 "CompensationStock Compensation",
("ASC 718") and using a graded vesting attribution method whereby costs are recognized over the requisite service period for each separately vesting portion of the award (see Note 17).



Basic income (loss) per share is computed by dividing net income (loss) available to holders of the Company's Common Stock or the
Predecessors Ordinary Shares, as the case may be, by the weighted average number of Common Stock/Ordinary Shares outstanding for the period. Diluted income (loss) per share reflects the potential
dilution that would occur if securities or other contracts to issue Common Stock or Ordinary Shares were exercised or converted into Common Stock or Ordinary Shares.

At
December 31, 2009, 2008 and 2007, all potentially dilutive shares were excluded from the computation of diluted earnings per share because to include them would have been
anti-dilutive. For the period January 1, 2009 through March 24, 2009 the Predecessor included 10,170,568 of dilutive shares related to the convertible debt to calculate the
diluted income per share for that period.



The Predecessor recorded all open derivative positions on its consolidated balance sheet at estimated fair value per the guidance of
ASC 815 "Derivatives and Hedging", ("ASC 815"). Changes in the fair value of the open derivative positions were recorded each period in earnings as the Predecessor did not account for
any of its derivatives as hedge transactions. The Predecessor liquidated its entire remaining derivative position during the fourth quarter 2008. The Predecessor recognized gains on its

F-19

---



GOLDEN MINERALS COMPANY

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Expressed in United States dollars)

5. Summary of Significant Accounting Policies (Continued)

derivative
positions of $467.9 million and $19.3 million for the years ended December 31, 2008 and 2007, respectively.

At
December 31, 2009 and 2008 the Company and the Predecessor had no open derivative positions.



The Predecessor determined that the company that provided electrical transmission services to the San Cristobal mine met the
requirements of a variable interest entity ("VIE") per the guidance of ASC 810 "Consolidations", ("ASC 810"). As such the transmission company's books were fully consolidated with the
books of the Predecessor. At December 31, 2008 the consolidation of the transmission company's books with those of the Predecessor resulted in the elimination of a $21.2 million note
receivable and the recognition of $18.3 million of additional property, plant and equipment, net and $3.5 million of additional value added tax recoverable. In addition,
$4.5 million of electrical transmission revenue was eliminated and the Predecessor recognized a noncontrolling interest offset to net income (loss) subject to limitations in such offset by
U.S. GAAP.

At
December 31, 2009 the Company did not have any contractual relationships that qualified as a VIE.



Comprehensive income (loss) is defined as all changes in equity (deficit), exclusive of transactions with stockholders, such as capital
investments. Comprehensive income (loss) includes net income (loss) and changes in certain assets and liabilities that are reported directly in equity. For the years ended December 31, 2009,
2008 and 2007 Comprehensive Income (Loss) included the change in the market value of available for sale securities and is reported on the Consolidated Statements of Operations and Comprehensive Income
(Loss).



The Company accounts for income taxes in accordance with the provisions of ASC 740 "Income Taxes" ("ASC 740") on a tax
jurisdictional basis as did the Predecessor. The Company files United States and certain other foreign country income tax returns, and pays taxes reasonably determined to be due. The tax rules and
regulations in these countries are highly complex and subject to interpretation. The Company's income tax returns are subject to examination by the relevant taxing authorities and in connection with
such examinations, disputes can arise with the taxing authorities over the interpretation or application of certain tax rules within the country involved. In accordance with ASC 740, the
Company identifies and evaluates uncertain tax positions, and recognizes the impact of uncertain tax positions for which there is a less than more-likely-than-not
probability of the position being upheld when reviewed by the relevant taxing authority. Such positions are deemed to be unrecognized tax benefits and a corresponding liability is established on the
balance sheet.

The
Company has recorded a full valuation allowance against its deferred tax assets based on the judgment that it is more likely than not that these deferred tax assets will not be
utilized before their expiration. As the Company has not generated net income from operations, it is more likely than not that the Company will not generate sufficient taxable income to utilize its
deferred tax assets in the future.

F-20

---



GOLDEN MINERALS COMPANY

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Expressed in United States dollars)

5. Summary of Significant Accounting Policies (Continued)



During the third quarter 2009, the Company adopted the Financial Accounting Standards Board ("FASB") Accounting Standards Codification
("ASC"). The ASC is the single source of authoritative U.S. GAAP to be applied by nongovernmental entities. Following the Codification, the FASB will not issue new standards in the form of
Statements, FASB Staff Positions or Emerging Issues Task Force Abstracts. Instead, it will issue Accounting Standards Updates ("ASU") which will serve to update the Codification, provide background
information about the guidance and provide the basis for conclusions on the changes to the Codification. Rules and interpretive releases of the Securities and Exchange Commission ("SEC") under
authority of federal securities laws are also sources of authoritative GAAP for SEC registrants. Adoption of the ASC did not have an impact on the Company's consolidated financial position, results of
operations or cash flows.

During
May 2008 the FASB issued an update to ASC 470 "Debt" (ASC 470 Update") which applies to convertible debt instruments that, by their stated terms, may be settled in
cash (or other assets) upon conversion, including partial cash settlement, unless the embedded conversion option is required to be separately accounted for as a derivative under ASC 815
"Derivatives and Hedging" ("ASC 815"). ASC 470 Update requires the liability and equity components of convertible debt instruments to be separately accounted for in a manner that
reflects the entity's nonconvertible debt borrowing rate when interest cost is recognized in subsequent periods. As the Predecessor did not have the ability or requirement to cash settle the Notes
upon conversion, it did not have any instruments that fell within the scope of ASC 470 Update and accordingly there was no impact on the Predecessor's consolidated financial position, results
of operations or cash flows.

On
January 1, 2009 the Predecessor adopted certain provisions of ASC 820 "Fair Value Measurements and Disclosures" ("ASC 820") related to non-financial
assets and non-financial liabilities that are recognized or disclosed at fair value in the financial statements on a nonrecurring basis. The adoption of these provisions of ASC 820
has not had a material impact on the consolidated financial statements of the Company or the Predecessor.

During
March 2008 the FASB issued an update to ASC 815 ("ASC 815 Update") which enhances the disclosure requirements pertaining to how and why an entity uses derivative
instruments, how derivative instruments and related hedge items are accounted for under ASC 815, and how derivative instruments and related hedge items affect an entity's financial position,
financial performance, and cash flows. The adoption of provisions of ASC 815 Update did not impact the disclosure requirements of the Company or the Predecessor.

ASC 805
"Business Combinations" ("ASC 805") provides guidance on how an acquirer in a business combination recognizes and measures in its financial statements the
identifiable assets acquired, the liabilities assumed, non-controlling interests acquired, and goodwill acquired. Under fresh-start accounting, the Company re-measured the
assets and liabilities assumed from ASML at fair value and recorded a $9.1 million gain on reorganization per the guidance of ASC 805.

On
January 1, 2009 the Predecessor adopted certain provisions of ASC 810 "Consolidation" ("ASC 810") related to noncontrolling interests. A noncontrolling interest,
formerly called a minority interest, is the portion of equity in a subsidiary not attributable, directly or indirectly, to a parent. The objective of this Standard is to improve the relevance,
comparability, and transparency of the financial

F-21

---



GOLDEN MINERALS COMPANY

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Expressed in United States dollars)

5. Summary of Significant Accounting Policies (Continued)

information
that a reporting entity provides in its consolidated financial statements by establishing accounting and reporting standards related to noncontrolling interests. The provisions of
ASC 810 have been applied prospectively, except for the provisions related to the presentation of noncontrolling interests, which have been applied retrospectively for all periods presented.
The Company and the Predecessor no longer report minority interest in the "mezzanine," but reflect such noncontrolling interests as a component of total equity in the consolidated balance sheets. Upon
adoption of ASC 810, noncontrolling interests of approximately $150.8 million as of December 31, 2008 were recast to a component of total equity in the Predecessor's consolidated
balance sheet. At December 31, 2009 the Company had recorded $0.8 million of noncontrolling interest related to its El Quevar project in Argentina (see Note 18).

During
April 2009, the FASB issued an update to ASC 820 regarding the determination of fair value when the volume and level of activity for the asset or liability have
significantly decreased and identifying transactions that are not orderly. This update relates to determining fair values when there is no active market or where the price inputs being used represent
distressed sales. It reaffirms the need to exercise judgment to ascertain if a formerly active market has become inactive and in determining fair values when markets have become inactive. The Company
adopted these provisions beginning during the interim period ended June 30, 2009 (see Note 15). The adoption of these provisions did not have a material impact on the Company's
consolidated financial statements.

During
April 2009, the FASB issued an update to ASC 320 "InvestmentsDebt and Equity Securities" (ASC 320"), regarding the recognition and presentation of
other-than-temporary impairments. This update applies to investments in debt securities for which other-than-temporary impairments may be recorded. If
an entity's management asserts that it does not have the intent to sell a debt security and it is more likely than not that it will not have to sell the security before recovery of its cost basis,
then an entity may separate other-than-temporary impairments into two components: i) the amount related to credit losses (recorded in earnings) and ii) all other
amounts (recorded in Other comprehensive income). The Company adopted these provisions beginning during the interim period ended June 30, 2009. The adoption of these provisions did not have a
material impact on the Company's consolidated financial statements.

During
April 2009, the FASB issued an update to ASC 320 regarding the interim disclosures of fair value of financial instruments. This update requires fair value disclosures for
financial instruments that are not currently reflected on the balance sheet at fair value on a quarterly basis. The Company adopted these provisions during the interim period ended June 30,
2009. The adoption of these provisions did not have a material impact on the Company's consolidated financial statements.

In
May 2009, the FASB issued ASC 855, "Subsequent Events" ("ASC 855") which establishes accounting and reporting standards for events that occur after the balance sheet
date but before financial statements are issued or are available to be issued. The statement sets forth (i) the period after the balance sheet date during which management of a reporting entity
should evaluate events or transactions that may occur for potential recognition or disclosure in the financial statements, (ii) the circumstances under which an entity should recognize events
or transactions occurring after the balance sheet in its financial statements, and (iii) the disclosures that an entity should make about events or transactions occurring after the balance
sheet date in its financial statements. The Company adopted the provisions of ASC 855 beginning with the interim period ended June 30, 2009. The adoption of

F-22

---



GOLDEN MINERALS COMPANY

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Expressed in United States dollars)

5. Summary of Significant Accounting Policies (Continued)

ASC
855 had no impact on the Company's consolidated financial position, results of operations or cash flows.

In
August 2009, the FASB issued ASU No. 2009-05 ("ASU 2009-05"), an update to ASC 820, "Fair Value Measurements and Disclosures". This update
provides amendments to reduce potential ambiguity in financial reporting when measuring the fair value of liabilities. Among other provisions, this update provides clarification that in circumstances
in which a quoted price in an active market for the identical liability is not available, a reporting entity is required to measure fair value using one or more of the valuation techniques described
in ASU 2009-05. The Company adopted the provisions of ASU 2009-05 for the fiscal year ended December 31, 2009, and the Company's statements of financial position,
results of operations and cash flows were not significantly impacted by the adoption.



In June 2009, the ASC guidance for consolidation accounting was updated to require an entity to perform a qualitative analysis to
determine whether the enterprise's variable interest gives it a controlling financial interest in a VIE. This analysis identifies a primary beneficiary of a VIE as an entity that has both of the
following characteristics: (i) the power to direct the activities of a VIE that most significantly impact the entity's economic performance and (ii) the obligation to absorb losses or
receive benefits from the entity that could potentially be significant to the VIE. The updated guidance also requires ongoing reassessments of the primary beneficiary of a VIE. The updated guidance is
effective for the Company's fiscal year beginning January 1, 2010. The Company currently has no VIE's.

In
January 2010, the ASC guidance for fair value measurements and disclosure was updated to require additional disclosures. The updated guidance requires additional disclosures around
level 1 and 2 fair value measurements, disaggregation of fair value assets and liabilities, clarifying guidance regarding
input and valuation techniques, and enhanced detail in the level 3 roll-forward disclosure. The updated guidance is effective for the Company's fiscal year beginning
January 1, 2010, with the exception of the level 3 disaggregation which is effective for the Company's fiscal year beginning January 1, 2011. The Company is evaluating the
potential impact of adopting this guidance on the Company's consolidated financial position, results of operations and cash flows.

6. Investments

The Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. Short-term investments include investments
with maturities greater than 3 months, but not exceeding 12 months. Long-term investments include investments with maturities greater than 12 months.

The
Company determines the appropriate classification of its investments in debt and equity securities at the time of purchase and re-evaluates those classifications at each
balance sheet date. Debt securities are classified as held to maturity when the Company has the intent and ability to hold the securities to maturity. Held to maturity debt securities are stated at
amortized cost and include government agency and corporate obligations. Available for sale investments are marked to market at the end of each reporting period with changes in value recorded as a
component of other

F-23

---



GOLDEN MINERALS COMPANY

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Expressed in United States dollars)

6. Investments (Continued)

comprehensive
income (loss). If declines in value are deemed other than temporary, a charge is made to net income (loss) for the period. The Company invests only in government and corporate securities
rated "investment grade" or better.

At
December 31, 2008 the Predecessor held auction rate securities ("ARS") with a carrying value of approximately $5.1 million. The ARS market lacked liquidity as a result
of failed auctions beginning in 2007. During 2009, the Company sold all of its remaining ARS investments in a secondary market for $3.0 million through two brokerage firms. The Company
recognized losses of $2.2 million related to the
sale of these ARS securities and at December 31, 2009 the Company had no remaining ARS investments.

The
following tables summarize the Company's and the Predecessor's investments at December 31, 2009 and December 31, 2008:

December 31, 2009

Cost

Estimated
Fair Value

Carrying
ValueSuccessor

(in thousands)Investments:Short-term:Available for saleCommon stock

$
199

$
444

$
444Total available for sale


199


444


444Total short term

$
199

$
444

$
444




December 31, 2008

Cost

Estimated
Fair Value

Carrying
ValuePredecessor

(in thousands)Investments:Short-term:Available for saleCommon stock

$
761

$
124

$
124Corporate notes


223


224


224Government bonds


15,924


16,003


16,003Total available for sale


16,908


16,351


16,351Total short term

$
16,908

$
16,351

$
16,351Long-term:Available for saleCorporate notes

$
405

$
386

$
386Auction rate securities


5,101


5,101


5,101Total available for sale


5,506


5,487


5,487Total long term

$
5,506

$
5,487

$
5,487


F-24

---



GOLDEN MINERALS COMPANY

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Expressed in United States dollars)

6. Investments (Continued)

The
Company's investments at December 31, 2009 represent shares of stock in two junior mining companies acquired in transactions related to the Company's exploration activities.

Quoted
market prices at December 31, 2009 and 2008 respectively were used to determine the fair values of the above investments, except with respect to the ARS. See Note 15
for further discussion on the fair value measurement techniques used by the Company to value the above investments.

Credit Risk

Credit risk is the risk that a third party might fail to fulfill its performance obligations under the terms of a financial instrument.
For cash and equivalents and investments, credit
risk represents the carrying amount on the balance sheet. The Company mitigates credit risk for cash and equivalents and investments by placing its funds and investments with high credit-quality
financial institutions, limiting the amount of exposure to each of the financial institutions, monitoring the financial condition of the financial institutions and investing only in government and
corporate securities rated "investment grade" or better.

The
Company invests with financial institutions that maintain a net worth of not less than $1 billion and are members in good standing of the Securities Investor Protection
Corporation.

7. Prepaid Expenses and Other Assets

Prepaid expenses and other assets consist of the following:

December 31,2009

2008(Successor)

(Predecessor)(in thousands)Current portion of note receivable

$


$
2,079Prepaid insurance


306


3,356Accrued interest receivable





236Prepaid contractor fees and vendor advances


191


7,266Deferred leasehold costs


329


Prepaid offering costs


576


Insurance premium refund receivable





778Recoupable deposits and other


685


1,835$
2,087

$
15,550




The deferred leasehold costs are related to the Company's headquarters office lease in Golden, Colorado. Prepaid contractor fees and
vendor advances consist primarily of advance payments made to contractors and suppliers for exploration related services. Prepaid offering costs are related to direct costs and fees associated with
the anticipated public offering of common stock, that has not been completed, which will be recorded net of proceeds from the offering upon completion of the offering or expensed if the offering is
not completed. Included in recoupable deposits and other is a $188,000

F-25

---



GOLDEN MINERALS COMPANY

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Expressed in United States dollars)

7. Prepaid Expenses and Other Assets (Continued)

receivable
related to the sale of certain investments which settled January 4, 2010 and a $152,000 recoupable deposit made to a firm providing legal services related to the reorganization that
was returned to the Company during the first quarter 2010.

In
addition included in non-current assets is approximately $498,000 of prepaid insurance on which amortization will be recognized through 2015.



The current portion of notes receivable is related to funds previously advanced by the Predecessor to the contractor that constructed
the load out facilities at the Port of Mejillones. Prepaid contractor fees and vendor advances consist primarily of advance payments made to contractors and suppliers for mining and processing
supplies and services at the San Cristóbal mine.

8. Inventories



The Company has no operating mines at December 31, 2009 and consequently does not carry any inventories.



The inventories at December 31, 2008 were all related to the San Cristóbal mine which was sold during the first
quarter 2009 (see Note 3).

Predecessor
inventories at December 31, 2008 consist of the following:

December 31,
2008(Predecessor)
(in thousands)Current:Concentrate inventories

$
18,638Sulfide ore stockpiles


Material and supplies


56,370Total current inventories

$
75,008Long-Term:Sulfide ore stockpiles

$
Oxide ore stockpiles


72,628$
72,628


Concentrate
inventories at December 31, 2008 consist of approximately 46,467 tonnes of concentrates, and are carried at the lower of cost or market. The long term stockpile
inventories consist of stockpiled ore that will be processed later in the mine life and are carried at the lower of cost or market. Material and supplies inventory consist primarily of fuel, reagents
and operating supplies at the San Cristóbal mine and are carried at the lower of cost or market.

F-26

---



GOLDEN MINERALS COMPANY

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Expressed in United States dollars)

9. Value Added Tax Recoverable

At December 31, 2009, the Company had no recoverable value added tax ("VAT") as all recoverable VAT was associated with the San Cristóbal assets sold (see
Notes 2).

The
Predecessor recorded VAT paid in Bolivia related to the San Cristóbal mine as a recoverable asset. At December 31, 2008 the VAT recoverable amount was
$157.1 million and included $19.5 million of recoverable Bolivian import duties.

The
Company has also paid VAT in various countries related to its exploration activities, which is charged to expense as incurred because of the uncertainty of recoverability.

10. Property, Plant and Equipment and Assets Held for Sale



The components of property, plant, and equipment, net were as follows:

December 31,
2009

December 31,
2008(Successor)

(Predecessor)(in thousands)Mineral properties

$


$
49,596Exploration properties


4,228


Royalty properties


1,207


Construction in progress





14,782Buildings


383


3,709Mining equipment and machinery


1,984


123,139Other furniture and equipment


601


5,1288,403


196,354Less: Accumulated depreciation


(629
)

(56,446
)7,774


139,908Equipment under capital lease





72,425Less: Accumulated depreciation





(21,337
)


51,088Port facilities under lease





12,283Less: Accumulated depreciation





(745
)


11,538$
7,774

$
202,534


The
increase in exploration properties at December 31, 2009 is the result of recording certain of the Company's exploration properties at fair market value per the requirements of
fresh start accounting as discussed in Note 3. The royalty properties consist of two properties in Mexico that are not owned by the Company but on which the Company has retained net smelter
return royalty rights.

Property,
plant and equipment with a net book value of $187.4 million were included in the net assets and liabilities sold with the San Cristóbal mine on
March 24, 2009.

F-27

---



GOLDEN MINERALS COMPANY

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Expressed in United States dollars)

10. Property, Plant and Equipment and Assets Held for Sale (Continued)

During
2009 the Company sold the following assets:



The
losses and gains on the above transactions are included in gain (loss) on the disposal of assets, net.

After
conducting evaluations on several of its exploration properties during 2009, the Company determined that certain of the properties did not meet the Company's minimum requirements
for continued evaluation and the rights to those properties were relinquished. The Company recorded an approximately $0.7 million write down of the carrying value of those properties to gain
(loss) on the disposal of assets, net.

Most
of the property, plant and equipment held at December 31, 2008 was related to the San Cristóbal mine which was sold during the first quarter 2009 (see
Notes 2 and 3).



The Company has obtained approval from its board of directors to sell its Paca Pulacyo property in Bolivia. During the fourth quarter
2009 the Company recorded a $1.7 million impairment charge on the property to write it down to its current fair value of $0.8 million. The property had a carrying value of
$2.5 million established using fresh start accounting principles at the time of the Company's emergence from bankruptcy on March 25, 2009. The fresh start accounting valuation of the
property was performed by an independent third party mineral properties valuation expert who utilized a modified income approach to determine a fair value for the property. In late January 2010, the
Company entered into a non-binding term sheet with Apogee Minerals Ltd. ("Apogee") calling for the sale of the property for 5 million common shares of Apogee at closing of
the transaction and an additional 3 million common shares of Apogee and $0.5 million of cash to be paid 18 months following

F-28

---



GOLDEN MINERALS COMPANY

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Expressed in United States dollars)

10. Property, Plant and Equipment and Assets Held for Sale (Continued)

closing.
The Company used a probability weighted discounted cash flow approach to determine the fair value of the consideration to be received in the transaction. Prior to the impairment charge taken
during the fourth quarter 2009 the Company had not reached agreement with any parties for a sale of the property and had not determined that it would be unable to sell the property for an amount equal
to or greater than its original holding cost. The remaining $0.8 million carrying value of the property is reflected in assets held for sale in the accompanying consolidated balance sheets at
December 31, 2009, per the guidance of ASC 360, "Property, Plant and Equipment", ("ASC 360"). Completion of the transaction is subject to negotiation and execution of definitive
agreements, approval of our board of directors, consents and approvals of third parties including governmental entities and the Toronto Stock Exchange, and other customary closing conditions.

11. Accounts Payable and Other Accrued Liabilities

The Company's accounts payable and other accrued liabilities consist of the following:

December 31,
2009

December 31,
2008(Successor)

(Predecessor)(in thousands)Accounts payable and accruals

$
1,863

$
27,502Deferred revenue





3,227Amounts due smelters





7,974Income taxes payable


22


1,764Accrued employee compensation and benefits


543


8,394$
2,428

$
48,861




Accounts payable and accruals are primarily related to amounts due to contractors and suppliers in the amounts of $0.9 million
and $1.0 million related to our exploration and corporate administrative activities, respectively.

Accrued
employee compensation and benefits at December 31, 2009 consist of $0.2 million of accrued vacation payable and $0.3 million related to withholding taxes and
benefits payable.



Accounts payable and accruals at December 31, 2008 were primarily related to activities at our San Cristóbal mine
which was sold during the first quarter 2009 (see Notes 2 and 3).

F-29

---



GOLDEN MINERALS COMPANY

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Expressed in United States dollars)

12. Debt

Subsequent to December 31, 2008 all of the Company's debt was sold or extinguished as a result of the sale of the net assets and liabilities of the San Cristóbal
mine and Chapter 11 reorganization (see Notes 2 and 3). At December 31, 2009 the Company had no obligations related to the Debt set forth in the table below.

The
Company's debt at December 31, 2008 consisted of the following:

December 31, 2008Current

Long-term(Predecessor)(in thousands)2.875% Convertible Senior Subordinated Notes due 2024

$
180,000

$
4.0% Convertible Senior Subordinated Notes due 2024


109,987


Project finance facility


225,000


Note assigned to Sumitomo





9,060Capital leases


8,307


39,549Port lease liability


316


11,342$
523,610

$
59,951


2.875% and 4.0% Convertible Senior Subordinated Notes due 2024 (collectively, the "Notes")

Under the Plan, holders of the Notes received a pro rata distribution of (i) 3,000,000 shares of the Company's common stock and
(ii) approximately $45.0 million of cash in exchange for the cancellation of the Notes. To record the effect of the reorganization, the Predecessor wrote off the $290.0 million
liability related to the Notes plus $3.2 million of accumulated interest and recorded a $248.2 million gain at March 24, 2009 (see Note 3). At December 31, 2009, the
Company had no further obligations related to the Notes. Had the Predecessor not been in Chapter 11 bankruptcy between January 12, 2009 and the Effective Date, the Notes would have
accrued an additional $1.9 million of interest.

San Cristóbal Mine Finance Facility

On December 17, 2008, Sumitomo purchased 90% of the loans under the San Cristóbal project finance facility from
the senior lenders. The Predecessor's guarantee and other obligations to Sumitomo with respect to the 90% of the facility owned by Sumitomo were terminated as part of the Plan and the sale of the San
Cristóbal mine (see Note 3). The remaining 10% of the project finance facility held by the senior lenders was canceled in connection with the Company's emergence from bankruptcy
under the Plan. The Predecessor recognized a $22.5 million gain on the termination of its obligations related to the facility and recorded the gain as a reduction of the loss on the sale of
interest in subsidiaries as the facility was the primary obligation of MSC. At December 31, 2009, the Company had no obligations related to the facility.

Cash
that is restricted by contractual agreement, is segregated and reported separately in the financial statements. At December 31, 2008 the Predecessor reported as current
restricted cash $20.6 million that was restricted to provide operating capital for the San Cristóbal mine and the payment of principal and interest under the facility.

F-30

---



GOLDEN MINERALS COMPANY

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Expressed in United States dollars)

12. Debt (Continued)

Sumitomo Note Assignment

The Sumitomo note assignment was all related to activities of the Predecessor. During 2006 and 2007 ASML loaned funds to San
Cristóbal Transportadad de Eletricidad S.A. ("SC TESA"), the contractor that constructed the power line for the San Cristóbal mine, and received a promissory note
from SC TESA in the amount of $21.2 million. In connection with the September 2006 sale of 35% of the San Cristóbal mine to Sumitomo, ASML sold 35% of this note to Sumitomo. At
December 31, 2008 ASML had recorded a note payable to Sumitomo in the amount of $9.1 million, which included accrued interest, as a result of the assignment of the 35% interest in the SC
TESA promissory note. In connection with the sale of the San Cristóbal mine to Sumitomo, the remaining amount of the SC TESA note receivable was sold to Sumitomo and the note payable to
Sumitomo was terminated (see Note 3). At December 31, 2009, the Company had no obligations related to the note assignment.

Capital Leases

The capital leases were all related to activities of the Predecessor. Certain mining equipment used by the contractor that provides
mining services for the San Cristóbal mine had been recorded as capital leases because the equipment is used exclusively at the San Cristóbal mine. At December 31,
2008 ASML had recorded on its balance sheet $51.1 million of equipment, net of accumulated depreciation, and a capital lease obligation of $47.9 million related to the leased equipment.
Following the sale of the San Cristóbal mine to Sumitomo, the Company retained no interest in the mining contract or equipment (see Note 3). At December 31, 2009 the
Company had no capital lease obligations.

Port Lease Liability

The port lease liability was all related to activities of the Predecessor. Certain assets were constructed at the Port of Mejillones
for the exclusive use of the San Cristóbal mine, including concentrate reception, unloading and storage facilities. ASML determined that a leasing arrangement exists with respect to
those assets. As of December 31, 2008 ASML had recorded on its balance sheet $11.5 million of plant and equipment, net of accumulated depreciation, and a financing obligation of
$11.7 million related to the port facility. Following the sale of the San Cristóbal mine to Sumitomo, (see Note 3) the Company has no interest in the contracts or other
rights or obligations related to the port.

Sumitomo working capital line of credit

During 2008, Sumitomo provided $150.0 million in funding to the San Cristóbal mine under a working capital credit
line to augment cash flow from concentrate sales in order to fund San Cristóbal's operating costs, income and other taxes, capital costs and financing costs. All obligations of the
Company with respect to the Sumitomo working capital line of credit were terminated with the sale of the San Cristóbal mine to Sumitomo, (see Note 3). At December 31, 2009
the Company had no obligations related to the working capital line of credit.

F-31

---



GOLDEN MINERALS COMPANY

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Expressed in United States dollars)

13. Asset Retirement Obligations ("ARO")

The Predecessor had developed an asset retirement plan for the San Cristóbal mine which included estimated reclamation, remediation and closure requirements based on
Bolivian government requirements, World Bank financing requirements and the Company's policies.

The
following table summarizes activity in the Predecessor's ARO:

The 83 Day
Period Ended
March 24, 2009

Year Ended
December 31,
2008(Predecessor)(in thousands)Beginning balance

$
9,155

$
6,981ARO arising in the period


288


1,380Changes in estimates, and other





Liabilities settled





Accretion expense


232


794Obligation assumed in sale of MSC


(9,675
)

Ending balance

$


$
9,155


All
ARO of the Company were terminated in connection with the sale of the San Cristóbal mine (see Note 3). At December 31, 2009 the Company had no ARO
related to the San Cristóbal mine or any of its exploration properties.

14. Other Long Term Liabilities

At December 31, 2009 other long term liabilities of $0.6 million consisted of $0.2 million of deferred tax liabilities and $0.4 million of deferred leasehold
liability related to the corporate headquarters office space. The deferred leasehold liability represents the recording of rent expense on a straight-line basis while actual rent payments
are escalating over the course of the lease and where certain leasehold improvement costs, reimbursable by the landlord, are being amortized, on a straight-line basis, against rent expense
over the life of the lease which expires in November 2014. The deferred tax liability was recognized for fresh start purposes for assets whose fresh start value exceeded the tax basis (see
Note 17).

15. Fair Value Measurements

Effective January 1, 2008 the Predecessor adopted ASC 820 for the financial assets and liabilities and nonfinancial assets and liabilities which are measured at fair value
on a recurring (annual) basis. ASC 820 establishes a framework for measuring fair value in the form of a fair value hierarchy which prioritizes the inputs into valuation techniques used to
measure fair value into three broad levels. This hierarchy gives the highest priority to quoted prices (unadjusted) in active markets and the lowest priority to unobservable inputs. Further, financial
assets and liabilities should be classified by level in their entirety based upon the lowest level of input that was significant to the fair value measurement. The three levels of the fair value
hierarchy per ASC 820 are as follows:

Level 1:Unadjusted quoted market prices in active markets for identical assets or liabilities that are accessible at the
measurement date.

F-32

---



GOLDEN MINERALS COMPANY

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Expressed in United States dollars)

15. Fair Value Measurements (Continued)

Level 2:Quoted prices in inactive markets for identical assets or liabilities, quoted prices for similar assets or liabilities in
active
markets, or other observable inputs either directly related to the asset or liability or derived principally from corroborated observable market data.

Level 3:Unobservable inputs due to the fact that there is little or no market activity. This entails using
assumptions in models which estimate what market participants would use in pricing the asset or liability.

The
following table summarizes the Company's and the Predecessor's financial assets and liabilities at fair value at December 31, 2009 and 2008, respectively, by respective level
of the fair value hierarchy:

December 31, 2009

Level 1

Level 2

Level 3

Total(Successor)

(amounts in thousands)Assets:Cash equivalents

$
8,570

$


$


$
8,570Short-term available for sale securities


444








444$
9,014

$


$


$
9,014




December 31, 2008

Level 1

Level 2

Level 3

Total(Predecessor)

(amounts in thousands)Assets:Cash equivalents

$
2,503

$


$


$
2,503Short-term available for sale securities


16,351








16,351Trade receivables


7,315








7,315Auction rate securities








5,101


5,101$
26,169

$


$
5,101

$
31,270Liabilities:Amounts due smelters

$
7,974

$


$


$
7,974$
7,974

$


$


$
7,974


The
Company's cash equivalents, comprised principally of time deposits, are classified within Level 1 of the fair value hierarchy.

The
Company's short-term available for sale securities are classified within Level 1 of the fair value hierarchy. These securities are comprised of common stock, which
have been valued using quoted prices in active markets.

The
Company's ARS which were sold during 2009 were classified within Level 3 of the fair value hierarchy. These securities were valued by the Company, with the assistance of a
third party valuation firm. They were valued based upon the estimated present value of expected cash flows using a Monte Carlo simulation model taking into account significant assumptions regarding
coupon payments, recovery, and redemption values. The Company used these significant Level 3 inputs as there was no current market activity for these, or similar, securities nor relevant
corroborating market data with readily observable inputs to support a Level 1 or 2 valuation.

F-33

---



GOLDEN MINERALS COMPANY

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Expressed in United States dollars)

15. Fair Value Measurements (Continued)

The
following table summarizes the change in fair value of the Company's Level 3 financial assets (ARS):

For The Period
March 25, 2009
Through
December 31, 2009

For The Period
January 1, 2009
Through
March 24, 2009

The Year Ended
December 31, 2008(Successor)

(Predecessor)Beginning balance

$
5,249

$
5,101

$
21,510Realized losses


(2,199
)

(828
)

(16,799
)Unrealized gains





976


536Proceeds from sale


(3,050
)




(146
)Ending balance

$


$
5,249

$
5,101


16. Income Taxes

The Company accounts for income taxes in accordance with the provisions of ASC 740, "Income Taxes" ("ASC 740"), on a tax jurisdictional basis.

The
provision for income taxes consists of the following:

For the Years Ended
December 31,For the Period
March 25, 2009
Through
December 31, 2009

For the Period
January 1, 2009
Through
March 24, 20092008

2007(Successor)

(Predecessor)(in thousands)CURRENT TAXES:United States

$
6

$
(4
)
$
(47
)
$
82Other Countries


1,308


169


665


797$
1,314

$
165

$
618

$
879DEFERRED TAXES:United States

$
(299
)
$


$


$
Other Countries


(47
)







$
(346
)
$


$


$
Total Income Tax Provision (Benefit)

$
968

$
165

$
618

$
879


Income
(loss) from continuing operations before income taxes by country consists of the following:

For the Years Ended
December 31,For the Period
March 25, 2009
Through
December 31, 2009

For the Period
January 1, 2009
Through
March 24, 20092008

2007(Successor)

(Predecessor)(in thousands)United States

$
(10,846
)
$
(14,368
)
$
(1,407
)
$
1,830Other Countries


(8,462
)

258,154


(67,709
)

(52,160
)$
(19,308
)
$
243,786

$
(69,116
)
$
(50,330
)


F-34

---



GOLDEN MINERALS COMPANY

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Expressed in United States dollars)

16. Income Taxes (Continued)

For
the period March 25 through December 31, 2009, the Company incurred operating losses, and recognized tax expense of $1.0 million consisting of
$1.3 million withholding tax on management services
provided to Bolivia, less $0.3 million deferred tax benefits. The Predecessor recognized income tax of $0.2 million for the period January through March 24, 2009, also due to
Bolivia withholding tax on management services, and income tax of $1.9 million is included in discontinued operations for the same period in the accompanying consolidated statement of
operations and comprehensive income (loss). The Predecessor recognized income tax of $0.6 million and $0.9 million for the years ended December 31, 2008 and 2007, respectively,
also due primarily to Bolivia withholding tax on management services, and income tax of $7.7 million and $2.0 million is included in discontinued operations.

A
reconciliation of the provision for income taxes computed at the statutory rate to the provision for income taxes as shown in the consolidated statements of operations and
comprehensive income, loss for the periods March 25, 2009 through December 31, 2009, the period January 1, 2009 through March 24, 2009, and for the years ended
December 31, 2008, and 2007 is summarized below.

For the Years Ended
December 31,For the Period
March 25, 2009
Through
December 31, 2009

For the Period
January 1, 2009
Through
March 24, 20092008

2007(Successor)

(Predecessor)(in thousands)Tax expense (benefit) at Bolivia rate of 37.5% for 2007, 2008 and 2009 through March 24, 2009; U.S. rate of 34% for March 25 through
December 31, 2009

$
(6,565
)
$
91,420

$
(26,333
)
$
(18,874
)Withholding taxes on intercompany fees and interest


1,305


169


675


824Other adjustments:Rate differential of other jurisdictions


1


(27,801
)

4,112


2,602Effects of foreign earnings


(5,842
)







Effects of bankruptcy proceeding





(54,086
)




Change in valuation allowance


6,451


(10,177
)

21,492


20,309Foreign statutory rate change











(3,676
)Limitation of loss carryforwards in the U.S.


5,546








Other


72


640


672


(306
)Income tax provision

$
968

$
165

$
618

$
879


F-35

---



GOLDEN MINERALS COMPANY

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Expressed in United States dollars)

16. Income Taxes

The components of the deferred tax assets and deferred tax liabilities are as follows:

For the years ended
December 31,2009

2008(Successor)

(Predecessor)(in thousands)Deferred tax assets:Net operating loss carryforwards

$
58,575

$
111,703Stock-based compensation


568


3,253Property, plant and equipment


6,365


5,892Accrued liabilities





18,300Other


1,380


4,55866,888


143,706Less: Valuation allowance


(65,791
)

(113,928
)Total deferred tax assets


1,097


29,778Deferred tax liabilities:Property, plant and equipment


(1,234
)

(22,212
)Accrued liabilities





(5,953
)Other


(91
)

(1,613
)Total deferred tax liabilities


(1,325
)

(29,778
)Net deferred tax asset (liability)

$
(228
)
$



At
December 31, 2009, the Company had net operating loss carryforwards in certain non-U.S. jurisdictions. Of these, $200.8 million in Bolivia,
Luxembourg, Australia, Sweden and Chile have no expiration, while $30.4 million in other countries will expire in future years through 2024. In the U.S., there are $3.4 million of net
operating loss carryforwards which will expire in 2029.

The
valuation allowance for the deferred tax assets of the Company of $65.8 million at December 31, 2009, and $113.9 million at December 31, 2008 for the
Predecessor, relates principally to the uncertainty of the utilization of certain deferred tax assets, primarily net operating loss carryforwards in various tax jurisdictions. The Company continually
assesses both positive and negative evidence to determine whether it is more likely than not that the deferred tax assets can be realized prior to their expiration.

As
part of the Plan, the Company received the remaining assets of the Predecessor, including investments in subsidiaries, some of which are in entities which are disregarded for
U.S. tax purposes. The US tax basis of the assets received from the Predecessor is limited to the fair value placed on them for fresh start purposes. A deferred tax liability of
$0.5 million was recognized for fresh start purposes for assets whose fresh start value exceeded the tax basis. Deferred tax liabilities were reduced
to $0.2 million as of December 31, 2009, as a result of the recognition of $0.3 million of deferred tax benefits incurred during the year.

F-36

---



GOLDEN MINERALS COMPANY

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Expressed in United States dollars)

16. Income Taxes (Continued)

The
Company, a Delaware corporation, and its subsidiaries file tax returns in the United States and in various foreign jurisdictions. The tax rules and regulations in these countries are
highly complex and subject to interpretation. The Company's tax returns are subject to examination by the relevant taxing authorities and in connection with such examinations, disputes can arise with
the taxing authorities over the interpretation or application of certain tax rules within the country involved. In accordance with ASC 740, the Company identifies and evaluates uncertain tax
positions, and recognizes the impact of uncertain tax positions for which there is a less than more-likely-than-not probability of the position being upheld when
reviewed by the relevant taxing authority. Such positions are deemed to be unrecognized tax benefits which require additional disclosure and potential recognition of a liability within the financial
statements. If recognized, none of the unrecognized tax benefits would affect the effective tax rate. During 2009, as a result of the reorganization pursuant to the Plan, the Company reduced
unrecognized tax benefits of the Predecessor by $0.9 million. A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows:

For the Period
March 25, 2009
Through
December 31, 2009

For the Period
January 1, 2009
Through
March 24, 2009

The Year Ended
December 31, 2008

The Year Ended
December 31, 2007(Successor)

(Predecessor)(in thousands)Gross unrecognized tax benefits at beginning of period

$
1,425

$
2,341

$
1,792

$
1,792Additions for tax positions of prior years








520


Additions for tax positions of current year








29


Reductions due to positions related to Predecessor





(916
)




Gross unrecognized tax benefits at end of period

$
1,425

$
1,425

$
2,341

$
1,792


Tax
years as early as 2004 remain open and are subject to examination in the Company's and the Predecessor's principal tax jurisdictions. Management has estimated that unrecognized tax
benefits will not significantly increase or decrease within the next twelve months. There is no significant interest or penalty estimated on the underpayment of income taxes as a result of these
unrecognized tax benefits. The Company and the Predecessor classify tax related interest and penalties as income tax expense.

17. Equity (Deficit)

Equity Incentive PlansThe Predecessor had established stock plans to issue share options and other share awards to officers,
directors, employees, consultants and agents of the Predecessor and its subsidiaries (the "Stock Plans").

The
Predecessor recognized stock-based compensation costs using a graded vesting attribution method whereby costs are recognized over the requisite service period for each
separately vesting portion of the award.

F-37

---



GOLDEN MINERALS COMPANY

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Expressed in United States dollars)

17. Equity (Deficit) (Continued)

As
discussed in Note 3, the Predecessor's equity holders received no recovery under the Plan following emergence from Chapter 11. As such, the following shares underlying
awards granted under the Stock
Plans were cancelled and the holders of grants under the Stock Plans have no further rights or recovery: approximately 2.5 million stock option grants to employees and directors, with an
average exercise price of $14.83; 211,975 restricted share grants to employees, with a weighted average grant date fair value of $15.22 per share; and 55,549 restricted stock units granted to
directors, with a weighted average grant date fair value of $11.70 per unit. Per the guidance of ASC 718 "CompensationStock Compensation" ("ASC 718") ASML recognized
$2.4 million of compensation expense related to the cancelled stock options, restricted share grants and restricted stock unit grants. The compensation expense recognized was the unrecognized
grant date fair value of the options and grants remaining at the date of cancellation. In addition, 350,000 warrants, held by third parties, to purchase Ordinary Shares at a price of $20.79 per
Ordinary Share were cancelled.

On
April 3, 2009, the Company adopted the 2009 Equity Incentive Plan (the "Equity Plan") and the Company's board of directors granted 270,000 shares of restricted common stock to
the Company's executive officers and employees pursuant to the Equity Plan. One-half of the shares awarded will vest on the first anniversary of the grant date and one-half
will vest on the second anniversary of the grant date, provided that the officer or employee is employed by or continues to serve the Company on the applicable vesting date. The Company recognizes
stock-based compensation costs using a graded vesting attribution method whereby costs are recognized over the requisite service period for each separately vesting portion of the award.

The
following table summarizes the status of the Company's restricted stock grants issued under the Equity Plan at December 31, 2009 and changes during the period April 3,
2009 through December 31, 2009:

Restricted Stock Grants

Number of
Shares

Weighted Average
Grant Date Fair
Value Per ShareOutstanding at beginning of the period




$
Granted during the period


280,000


10.78Restrictions lifted during the period


(12,500
)

10.92Forfeited during the period


(37,500
)

10.92Outstanding at end of the period


230,000


10.75


A
former officer of the Company terminated employment on December 31, 2009 and the Board of Directors lifted the restriction on one half of his original restricted stock grant.
The Company recognized a $33,500 charge related to the accelerated lifting of the restriction and the remaining half of the grant was forfeited.

As
the Company's shares had not yet traded at the time of the initial restricted stock grants of April 3, 2009, the grant date fair value was calculated by dividing the total
shares of common stock available under the Joint Plan of Reorganization by the net fair value of the reorganized company following the principles of ASC 852 and ASC 805 (see
Note 3). Additional grants were valued at the closing price of the Company's stock on the date of grant as reported in over the counter markets. For the period April 3, 2009 through
December, 2009 the Company recognized $1.5 million of

F-38

---



GOLDEN MINERALS COMPANY

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Expressed in United States dollars)

17. Equity (Deficit) (Continued)

compensation
expense related to the restricted stock grants and the Company expects to recognize additional compensation expense of approximately $1.1 million over the next 15 months.

Also,
pursuant to the Equity Plan, the Company's board of directors adopted the Non-Employee Director's Deferred Compensation and Equity Award Plan (the "Deferred
Compensation Plan"). Pursuant to the Deferred Compensation Plan the non-employee directors have received a portion of their compensation in the form of Restricted Stock Units ("RSUs")
issued under the Equity Plan. The non-employee directors were granted 25,000 RSUs, with a grant date of May 20, 2009. The RSUs will vest on April 2, 2010 so long as the
holder is still serving as a director. Each Restricted Stock Unit entitles the director to receive one unrestricted share of common stock for each vested Restricted Stock Unit upon the termination of
the director's board service.

The
following table summarizes the status of the RSU grants issued under the Deferred Compensation Plan at December 31, 2009 and changes during the period May 20, 2009
through December, 2009:

Restricted Stock Units

Number of
Underlying
Shares

Weighted Average
Grant Date Fair
Value Per ShareOutstanding at beginning of the period




$
Granted during the period


25,000


10.92Restrictions lifted during the period





Forfeited during the period





Outstanding at end of the period


25,000


10.92


For
the period May 20, 2009 through December 31, 2009 the Company recognized $0.2 million of compensation expense related to the RSUs and the Company expects to
recognize additional compensation expense of approximately $.1 million over the next 3 months.

The
Predecessor recognized stock based compensation expense of $2.7 million, $2.9 million and $2.6 million for the 83 day period ended March 24, 2009,
and for the years ended December 31, 2008 and 2007, respectively.

18. Noncontrolling Interest

On January 1, 2009 the Company adopted the provisions of ASC 810 related to noncontrolling interest, previously called a minority interest. A noncontrolling interest is the
portion of equity in a subsidiary not attributable, directly or indirectly, to a parent. The Company applied the provisions of ASC 810 prospectively, except for the provisions related to the
presentation of noncontrolling interests, which were applied retrospectively for all periods presented. Upon adoption of ASC 810, noncontrolling interests of approximately $150.8 million
as of December 31, 2008 were recast to a component of total equity in the consolidated balance sheet.

F-39

---



GOLDEN MINERALS COMPANY

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Expressed in United States dollars)

18. Noncontrolling Interest (Continued)

The
following schedule sets forth the amounts of income from continuing operations and discontinued operations attributable to the Company:

For The Period
March 25, 2009
Through
December 31, 2009

For The Period
January 1, 2009
Through
March 24, 2009

The Year Ended
December 31, 2008

The Year Ended
December 31, 2007(Successor)

(Predecessor)(in thousands, except share data)Amounts attributable to Golden Minerals common stockholders and Predecessor's ordinary shareholders:Income (loss) from continuing operations

$
(20,276
)
$
243,621

$
(69,734
)
$
(51,209
)Gain (loss) from discontinued operations





(12,022
)

(48,503
)

62,765Net income (loss)

$
(20,276
)
$
231,599

$
(118,237
)
$
11,556


Hochschild Mining

At December 31, 2009 certain concessions at the Company's El Quevar project were held in a joint venture of which the
Company held a 65% interest and Hochschild Mining Group ("Hochschild") held the remaining 35%. On August 3, 2009, Hochschild's transferred certain of its mineral properties to the
El Quevar project joint venture and the Company recorded the fair value of these properties as an $0.8 million increase to mineral properties and a noncontrolling interest of
$0.8 million included as a component of equity to reflect Hochschild's 35% interest. At December 31, 2009 the El Quevar project joint venture was carried in mineral properties at
its full carrying value and Hochschild's 35% interest is reflected in noncontrolling interest in subsidiaries on the accompanying consolidated balance sheets. During January 2010 the Company
purchased Hochschild's 35% interest in the joint venture (see Note 27).

Sumitomo Corporation

The Predecessor consolidated 100% of the accounts of the San Cristóbal mine and recorded Sumitomo's 35%
noncontrolling interest in the gains or losses of the San Cristóbal mine and its subsidiaries for the period reported. In addition, the Predecessor recorded certain advances and
loan proceeds from Sumitomo and interest due Sumitomo to noncontrolling interest. Net income attributable to the Predecessor for the period January 1, 2009 through March 24, 2009
includes $7.9 million of noncontrolling interest expense related to Sumitomo's interest in the San Cristóbal mine earnings during that period (see Note 4). At
December 31, 2009, subsequent to the sale of the San Cristóbal mine, the Company has no noncontrolling interest related to Sumitomo recorded on its books.

F-40

---



GOLDEN MINERALS COMPANY

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Expressed in United States dollars)

18. Noncontrolling Interest (Continued)

SC TESA

During 2005 the Predecessor entered into a long-term contract with SC TESA to construct a power line and transport power to
the San Cristóbal mine from the Bolivian power grid. In accordance with the guidance of ASC 810 related to variable interest entities the Predecessor fully consolidated
the accounts of SC TESA for financial reporting purposes. Because
SC TESA was consolidated for financial reporting purposes, the intercompany profit earned by SC TESA was eliminated and the Company recognized a noncontrolling interest offset to SC TESA's earnings or
loss.

Loss
from discontinued operations for the period January 1, 2009 through March 24, 2009, includes $0.3 million of noncontrolling interest expense related to SC
TESA's intercompany profit (see Note 4).

At
December 31, 2009, subsequent to the sale of the San Cristóbal mine, the Company has no noncontrolling interest related to SC TESA recorded on its books.

19. Revenue and Cost of Services

On the Effective Date, the Company entered into the Management Agreement under which it provides certain management services with respect to the San Cristóbal mine.
The Management Agreement, as amended, provides for an annual fee of $11.4 million which includes approximately $5.4 million that constitutes reimbursement for direct administrative
expenses the Company incurs on behalf of the San Cristóbal mine. Under the terms of the Management Agreement, the Company receives the fee and any reimbursements net of Bolivian
withholding taxes. The fee and reimbursements for administrative costs and Bolivian withholding taxes are reported as "Revenue from Services" in the statement of operations following the guidance of
ASC 605 (see Note 5k). Also, pursuant to the Management Agreement, the Company earned a pro-rata annual incentive fee for 2009 of $1.125 million, which will not be
paid until 2010 but which was included in revenue at December 31, 2009. The actual costs incurred for the reimbursed direct administrative expenses are reported as costs of services in the
Company's statement of operations. Reimbursed Bolivian withholding taxes are reported as income taxes in the statement of operations. Prior to entering into the Management Agreement, the Predecessor
received a management fee of $0.45 million per month from San Cristóbal to cover certain costs incurred directly by the Predecessor.

For
the period March 25, 2009 through December 31, 2009 the Company recorded $10.6 million as revenue related to the Management Agreement, comprised of
$8.2 million of fees, the $1.1 million
annual incentive fee and $1.3 million for reimbursed withholding taxes. The Company also recorded corresponding charges of $3.2 million to cost of services and $1.3 million to
income taxes for the actual administrative costs and withholding taxes reimbursable under the Management Agreement. In addition, during the period March 25, 2009 through December 31,
2009 the Company recorded $0.5 million of revenue and $0.5 million of cost of services related to services provided to other third parties.

F-41

---



GOLDEN MINERALS COMPANY

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Expressed in United States dollars)

20. Cash Flow Information

The following table reconciles net income (loss) for the period to cash from operations:

For the years ended
December 31,For the Period
March 25, 2009
Through
December 31, 2009

For the Period
January 1, 2009
Through
March 24, 20092008

2007(Successor)

(Predecessor)(in thousands)Cash flows from operating activities:Net income (loss)

$
(20,276
)
$
239,468

$
(118,237
)
$
11,556Adjustments to reconcile net loss to net cash used in operating activities:Amortization and depreciation


626


10,977


37,942


14,179Amortization of deferred financing costs








4,266


1,999Write off of deferred financing costs








11,724


Loss on auction rate securities


2,199


828


16,263


34,537(Gain) loss on sale of investments


(467
)




767


Accretion of asset retirement obligation





232


794


600Amortization of premiums and discounts





37


(225
)

(246
)(Gain) loss on derivative positions





36


(467,871
)

(19,290
)Impairment of long lived assets


1,687





625,649


Impairment of inventories








52,547


Fair value of stock received for option payment


(168
)







Gain on sale of assets


(261
)







Gain on extingushment of debt





(248,165
)




Gain on sale of interest in subsidiary





8,409


(64,471
)

Minority interest in loss of consolidated subsidiary








(118,122
)

(87,399
)Fresh start accounting adjustment





(9,122
)




Stock compensation


1,666


2,920


3,699


2,765Changes in operating assets and liabilities:Increase in trade accounts receivable


(1,275
)

(11,893
)

(4,204
)

(3,111
)Decrease in accrued interest receivable


152


84


169


120(Increase) decrease in prepaid expenses and other assets net of amounts capitalized


(1,031
)

6,063


(3,596
)

(2,136
)Port fees applied to Port of Mejillones note receivable





709


2,799


1,818Increase in inventories





(12,000
)

(70,841
)

(91,462
)Increase in value added tax recoverable (net)





(11,696
)

(61,819
)

(41,169
)Increase in accrued interest payable net of amounts capitalized





11,496


18,311


6,212Increase (decrease) in deferred revenue





(3,227
)

3,227


Increase (decrease) in accounts payable and accrued liabilities net of amounts capitalized


(6,149
)

2,462


(7,354
)

4,998Increase in deferred leasehold payments


485








Increase in income taxes payable, net


(346
)

(2,262
)

(1,898
)

Other increase (decrease)


(89
)

795


927


Net cash used in operating activities

$
(23,247
)
$
(13,849
)
$
(139,554
)
$
(166,029
)


F-42

---



GOLDEN MINERALS COMPANY

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Expressed in United States dollars)

20. Cash Flow Information (Continued)

The following table details supplemental non-cash transactions:

For the years ended
December 31,For the Period
March 25, 2009
Through
December 31, 2009

For the Period
January 1, 2009
Through
March 24, 20092008

2007(Succssessor)

(Predecessor)(in thousand except per share)Capitalized stock based compensation costs

$


$


$


$
428Depreciation expense capitalized

$


$


$


$
3,214Debt and equity offering costs incurred

$


$


$


$
Initial measurement of asset retirement obligation

$


$
288

$
1,380

$
620Equipment acquired through capital lease

$


$


$
3,318

$
46,924Capitalized port facility lease

$


$


$


$
12,283


21. Commitments and Contingencies

LeasesThe Company has non-cancelable operating lease commitments as follows:

2010

2011

2012

2013

2014El Quevar mining concessions

$
29,000

$
29,000

$
29,000

$
29,000

$
29,000Corporate headquarters office space

$
338,000

$
388,000

$
397,000

$
405,000

$
378,000Purchase option agreements

$
700,000

$
1,400,000

$
750,000

$


$



The
Company is required to make mining patent lease payments to the Argentinean government to maintain its rights to the El Quevar mining concessions. The Company has made such
payments totaling approximately $29,000 for the year ended December 31, 2009.

The
lease for the corporate headquarters office space expires in November 2014. Payments associated with this lease were recorded to rent expense by the Company in the amounts of
$28,000 for the year ended December 31, 2009.

The
purchase option agreements are payments we are required to make to certain of the current El Quevar concession owners in order to retain title to the properties. Amounts shown
only include the concessions held by Minera El Quevar, which include the Yaxtché zone, the main mineralized area of interest. Payments associated with other concessions at the
El Quevar project are not included because the Company has not completed exploration work in these areas. Exploration success is historically low and the Company has the right to terminate the
payments and release these concessions at any time.

Other ContingenciesAs previously disclosed, the Predecessor concluded, based on the results of an internal investigation
conducted under the direction of its Audit Committee in late 2005 and early 2006, that certain former senior employees of one of its South American subsidiaries were involved in making impermissible
payments of approximately $125,000 to government officials in 2003 and 2004. The Predecessor contacted the Department of Justice ("DOJ") and SEC during 2006 and reported the results of the internal
investigation and was informed that the SEC and DOJ would commence investigations with respect to these matters, including possible violations of the Foreign Corrupt

F-43

---



GOLDEN MINERALS COMPANY

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Expressed in United States dollars)

21. Commitments and Contingencies (Continued)

Practices
Act. Subsequently, the Predecessor and then the Company entered into discussions with the SEC staff concerning a settlement of the conduct subject to the SEC's investigation. As a result,
the Company reached an agreement in principle with the SEC staff which, if approved by the Commission, would resolve this matter with the SEC. Under the terms of the proposed settlement, the Company,
on neither an admit nor deny basis, would agree to the entry of an administrative cease and desist order prohibiting the Company from future violations of Sections 13(b)(2)(A), 13(b)(2)(B) and
30A of the Exchange Act. Moreover, under the terms of the proposed settlement, the SEC staff would not recommend that the Commission require the payment of disgorgement, civil money penalties,
prejudgment interest or the appointment of a corporate monitor. The proposed settlement is subject to Commission approval, negotiation of the terms of the settlement papers and approval by the
Company's Board of Directors. The Company cannot guarantee that the Commission will ultimately accept the terms of the proposed settlement.

In
August 2009, the DOJ informed the Company that it has closed its investigation based on, among other things, the Company's pending settlement with the Commission.

22. Royalty Income

During 2004 the Predecessor sold the mineral rights on a portion of the Company's Platosa property in Mexico to Excellon Resources Inc. ("Excellon") and retained a 5% net smelter
return ("NSR") royalty interest that decreases to a 2% NSR after the Company has received $4.0 million of royalty payments. During 2006 Excellon began mining on the royalty section of the
property and produced and sold silver, zinc and lead. The Predecessor and the Company earned NSR royalties from Excellon of $0.4 million, $0.4 million and $1.3 million during the
years ended December 31, 2009, 2008 and 2007, respectively.

During
the fourth quarter 2009 the Company sold its remaining interest in the Platosa property to Excellon for $2.0 million in cash and a retained 1% net smelter return royalty
(see Note 10).

23. Foreign Currency

The Company and the predecessor conducts operations primarily in South America and Mexico and gains and losses on foreign currency translation are related to those activities. The
Company's and the
Predecessor's functional currency is the U.S. dollar but certain transactions are conducted in the local currencies resulting in foreign currency transaction gains or losses.

24. Fair Value of Financial Instruments

At December 31, 2009 the Company's financial instruments consist of cash and cash equivalents, investments, receivables, accounts payable and other current liabilities. The
carrying amounts of these financial instruments approximate fair value due to their short maturities.

At
December 31, 2008 the Predecessors financial instruments consisted of cash and cash equivalents, investments, receivables, VAT recoverable, accounts payable, other current
liabilities, derivative positions and long-term debt. Except for the VAT, long-term investments and long-term debt, the carrying amounts of these financial
instruments approximate fair value due to their short maturities.

F-44

---



GOLDEN MINERALS COMPANY

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Expressed in United States dollars)

24. Fair Value of Financial Instruments (Continued)

The estimated fair values of the Predecessor's long-term financial instruments as measured on December 31, 2008 were as follows:

December 31, 2008Carrying
Amount

Fair
Value(Predecessor)
(in thousands)Value added tax recoverable

$
157,146

$
153,924Long-term investments

$
5,487

$
5,4872.875% Convertible Senior Notes due 2024

$
180,000

$
11,2504.00% Convertible Senior Notes due 2024

$
109,987

$
3,575Project finance facility

$
225,000

$
202,500Capital lease obligations

$
47,856

$
47,856Port lease liability

$
11,658

$
11,658


The
fair value of the VAT recoverable is estimated based on the expected timing of future cash flows and the two-year treasury interest rate of 0.76%. The fair value of
long-term investments is based upon quoted market prices except for auction rate securities as discussed in Note 6. The fair value of the Convertible Senior Notes is based on quoted
market values. The fair value of the project finance facility is based on a market rate of interest and adjusted for the Company's non-performance risk. The fair value of capital lease
obligations and the port lease liability have market rates of interest and the fair value is equal to the carrying value.

Upon
emergence from Chapter 11 reorganization and the Sale of the San Cristóbal mine, the Company has no rights or obligations associated with any of the
financial instruments set forth in the table above, except for long-term investments (see Note 3).

25. Segment Information

The Company's primary activity is the exploration and development of mineral properties. Substantially all of the Company's long-lived assets are related to the Company's
exploration properties in South America and Mexico. The Company's other principle assets consist primarily of cash and investments. The Company's chief operating decision maker reviews the Company's
consolidated financial information for purposes of allocating resources based on a single segment.

F-45

---



GOLDEN MINERALS COMPANY

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Expressed in United States dollars)

26. Quarterly Results of Operations (Unaudited)

The following table summarizes the Company's and the Predecessor's quarterly results of operations for the years ended December 31, 2009 and 2008:

First
Quarter

Second
Quarter

Third
Quarter

Fourth
Quarter(Successor)The Period March 25, through December 31, 2009

(in thousands except per share)Loss from continuing operations

$
(683
)
$
(6,491
)
$
(6,140
)
$
(6,962
)Loss attributable to the Company's shareholders

$
(683
)
$
(6,491
)
$
(6,140
)
$
(6,962
)Net income (loss) per Ordinary Sharebasic and diluted:Income (loss) from continuing operations attributable to the Company's shareholders

$
(0.23
)
$
(2.17
)
$
(2.06
)
$
(2.33
)Income (loss) attributable to the Company's shareholders

$
(0.23
)
$
(2.17
)
$
(2.06
)
$
(2.33
)(Predecessor)The Period January 1, through March 24, 2009Income from continuing operations

$
243,621Loss from discontinued operations

$
(4,153
)(Income) attributable to noncontrolling interest

$
(7,869
)Income attributable to the Predecessor's shareholders

$
231,599Net income (loss) per Ordinary Sharebasic and diluted:Income from continuing operations attributable to the Predecessor's shareholders

$
4.13Loss from discontinued operations attributable to the Predecessor's shareholders

$
(0.20
)Income attributable to the Predecessor's shareholders

$
3.93The Year Ended December 31, 2008Loss from continuing operations

$
(12,077
)
$
(15,792
)
$
(18,838
)
$
(23,027
)Income (loss) from discontinued operations

$
10,103

$
256,157

$
(481,112
)
$
48,227(Income) loss attributable to noncontrolling interest

$
27,694

$
(62,824
)
$
168,172

$
(14,920
)Income (loss) attributable to the Predecessor's shareholders

$
25,720

$
177,541

$
(331,778
)
$
10,280Net income (loss) per Ordinary Sharebasic and diluted:Income (loss) from continuing operations attributable to the Predecessor's shareholders

$
(0.20
)
$
(0.27
)
$
(0.32
)
$
(0.39
)Income (loss) from discontinued operations attributable to the Predecessor's shareholders

$
0.64

$
3.28

$
(5.31
)
$
0.56Income (loss) attributable to the Predecessor's shareholders

$
0.44

$
3.01

$
(5.63
)
$
0.17


F-46

---



GOLDEN MINERALS COMPANY

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Expressed in United States dollars)

26. Quarterly Results of Operations (Unaudited) (Continued)

Income from continuing operations for the period January 1 through March 25, 2009 includes a $248.2 million gain on the
extinguishment of debt related to the Predecessor's emergence from Chapter 11 reorganization.

For
the year ended December 31, 2008, the quarterly results have been reclassified to reflect discontinued operations and the retroactive application of ASC 810 to reflect
amounts attributable to noncontrolling interest.

Net
income (loss) from discontinued operations for the first quarter 2008 includes a $27.8 million loss and the second quarter through fourth quarter of 2008 include,
$223.5 million, $163.3 million and $109.0 million of gains on metals derivatives, respectively, primarily related to marking to market the Company's open derivative positions
required by the project finance facility. Net income (loss) from discontinued operations for the third and fourth quarters also included impairment charges of $615.0 million and
$10.6 million, respectively. In addition, net income (loss) from discontinued operations for the third and fourth quarters included inventory write downs of $34.4 million and
$18.1 million, respectively.

27. Subsequent Events

Completion of public offering and private placement of common stock

In March 2010, the Company closed a public offering of 3,652,234 shares of common stock, at a price per share of $8.50. Concurrent with
the public offering, Sentient exercised its existing pre-emptive right and purchased in a private placement pursuant to Regulation S under the Securities Act an additional 905,065
shares of common stock at the public offering price of $8.50. The aggregate net proceeds from the sale of new shares in the public offering and the Sentient private placement was approximately
$35.3 million, net of estimated offering expenses of approximately $1.1 million, the underwriting discount of approximately $2.1 million, and the placement agent commission of
approximately $0.3 million.

Purchase of 35% interest in El Quevar joint venture

During January 2010, the Company acquired Hochschild's 35% interest in Minera El Quevar S.A. in exchange for
400,000 shares of its common stock and warrants to acquire 300,000 shares of common stock exercisable for three years at an exercise price of $15.00 per share. With the completion of this transaction,
the Company now owns 100% of Minera El Quevar S.A.

Private placement of the Company's common stock

During January 2010, the Company completed a private placement of 844,694 shares of its common stock to two investment funds
managed by The Sentient Group ("Sentient"), which includes 745,318 shares issued in the initial private placement plus an additional 99,376 shares issued upon exercise of Sentient's contractual
pre-emptive right in order to maintain its 19.9% equity interest in the Company following completion of the Hochschild transaction. All shares issued to Sentient were sold at a purchase
price of Cdn$7.06 per share, resulting in gross proceeds to the Company of $5.75 million.

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GOLDEN MINERALS COMPANY

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Expressed in United States dollars)

27. Subsequent Events (Continued)

Nonbinding agreement in principle to sell Paca Pulacayo property in Bolivia

In late January 2010 the Company entered into a non-binding term sheet with ApogeeMinerals Ltd. ("Apogee")
for the sale of the Company's Paca Pulacyo property in Bolivia for 5 million common shares of Apogee at closing and an additional 3 million common shares of Apogee and
$0.5 million of cash to be paid 18 months following closing. The property is currently subject to a joint venture arrangement pursuant to which Apogee has the right to earn up to a 60%
interest in the property. Completion of the transaction is subject to negotiation and execution of definitive agreements, approval of the Company's board of directors, consents and approvals of third
parties including governmental entities and the Toronto Stock Exchange, and other customary closing conditions. At December 31, 2009 the fair value of the Paca Pulacyo property was carried as
assets held for sale on the accompanying consolidated balance sheets (see Note 10).

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