| KPMG LLP                       | Telephone                      | (306) 934-6200 |
|--------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------|----------------|
| Chartered Accountants          | Fax                                                                         | (306) 934-6233 |
| 600-128 4th Avenue South       | Internet                                                               | www.kpmg.ca    |
| Saskatoon Saskatchewan S7K 1M8 |                                                                                                                                    |           |
| Canada                         |                                                                                                                                    |           |

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| KPMG LLP                       | Telephone                      | (306) 934-6200 |
|--------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------|----------------|
| Chartered Accountants          | Fax                                                                         | (306) 934-6233 |
| 600-128 4th Avenue South       | Internet                                                               | www.kpmg.ca    |
| Saskatoon Saskatchewan S7K 1M8 |                                                                                                                                    |           |
| Canada                         |                                                                                                                                    |           |

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|                                                                 |   | 2009   |     |   | 2008   |   |
|----------------------------------------------------------------------|--------|--------|----------|--------|--------|--------|
|                                                                 |   |   |     |   |   |   |
| Mineral Properties - under Canadian GAAP                             |   | $      | 94,170   |   |   | $      | 89,038 |   |
| Cumulative exploration expenditures expensed under U.S. GAAP (i)     |   |   | (47,631  | )      |   |   | (35,251 | ) |
| Cumulative Santoy 7 project expenditures (ii)                        |   |   | -        |   |   |   | (2,835 | ) |
| Cumulative write-down adjustment (iii)                               |   |   | (1,825   | )      |   |   | (1,825 | ) |
| Cumulative depreciation and depletion adjustment (iii)               |   |   | 1,720    |   |   |   | 1,683 |   |
| Mineral Properties - under U.S. GAAP                                 |   | $      | 46,434   |   |   | $      | 50,810 |   |
|                                                                 |   |   |     |   |   |   |   |   |
| Payables and accrued liabilities - under Canadian GAAP               |   | $      | 4,100    |   |   | $      | 5,794 |   |
| Cumulative liability for flow-through shares (v)                     |   |   | 326      |   |   |   | - |   |
| Payables and accrued liabilities - under U.S. GAAP                   |   | $      | 4,426    |   |   | $      | 5,794 |   |
|                                                                 |   |   |     |   |   |   |   |   |
|                                                                 |   |   |     |   |   |   |   |   |
| Shareholders’ equity                                           |   |   |     |   |   |   |   |   |
| Share capital - under Canadian GAAP                                  |   | $      | 111,957  |   |   | $      | 83,960 |   |
| Reduction of stated capital (iv)                                     |   |   | 55,000   |   |   |   | 55,000 |   |
| Adjustment for flow-through shares (v)                               |   |   | 7,964    |   |   |   | 7,964 |   |
| Adjustment for flow-through share premiums (v)                       |   |   | (4,462   | )      |   |   | (4,136 | ) |
| Share capital - under U.S. GAAP                                      |   |   | 170,459  |   |   |   | 142,788 |   |
|                                                                 |   |   |     |   |   |   |   |   |
| Contributed Surplus                                                  |   |   |     |   |   |   |   |   |
| Contributed Surplus - Under Canadian GAAP                            |   |   | 2,465    |   |   |   | 1,748 |   |
| Cumulative stock compensation costs implementation of FAS 123        |   |   | (25      | )      |   |   | (25 | ) |
| Contributed Surplus - under U.S. GAAP                                |   |   | 2,440    |   |   |   | 1,723 |   |
|                                                                 |   |   |     |   |   |   |   |   |
| Retained earnings (deficit) - under Canadian GAAP                    |   |   | (4,361   | )      |   |   | 1,896 |   |
| Reduction of stated capital (iv)                                     |   |   | (55,000  | )      |   |   | (55,000 | ) |
| Cumulative exploration expenses (i)                                  |   |   | (47,631  | )      |   |   | (35,251 | ) |
| Cumulative Santoy 7 project expenditures (ii)                        |   |   | -        |   |   |   | (2,835 | ) |
| Cumulative depreciation and depletion adjustment (iii)               |   |   | 1,720    |   |   |   | 1,683 |   |
| Cumulative write-down adjustment (iii)                               |   |   | (1,825   | )      |   |   | (1,825 | ) |
| Cumulative stock compensation costs implementation of FAS 123        |   |   | 25       |   |   |   | 25 |   |
| Cumulative impact of flow-through shares (v)                         |   |   | (7,964   | )      |   |   | (7,964 | ) |
| Cumulative renunciation of tax deductions on flow-through shares (v) |   |   | 4,136    |   |   |   | 4,136 |   |
| Deficit - under U.S. GAAP                                            |   |   | (110,900 | )      |   |   | (95,135 | ) |
|                                                                 |   |   |     |   |   |   |   |   |
| Accumulated other comprehensive income                               |   |   |     |   |   |   |   |   |
| Unrealized gain (loss) on available-for-sale securities              |   |   | 34       |   |   |   | (532 | ) |
| Shareholders’ equity - under U.S. GAAP                         |   | $      | 62,033   |   |   | $      | 48,844 |   |
|                                                                 |   |   |     |   |   |   |   |   |

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|                                                      |   |   |    |   |   |   |
|-----------------------------------------------------------|--------|--------|---------|--------|--------|--------|
|                                                      |   | 2009   |    |   | 2008   |   |
|                                                      |   |   |    |   |   |   |
| Net earnings (loss) - under Canadian GAAP                 |   | $      | (6,257  | )      |   | $      | 383 |   |
| Exploration expenditures (i)                              |   |   | (12,380 | )      |   |   | (9,908 | ) |
| Depreciation and depletion on Santoy 7 (ii)               |   |   | 2,835   |   |   |   | 2,754 |   |
| Depreciation and depletion adjustment on write down (iii) |   |   | 37      |   |   |   | 36 |   |
| Tax liability of flow-through shares (v)                  |   |   | -       |   |   |   | (2,240 | ) |
| Renunciation of tax deductions on flow-through shares (v) |   |   | -       |   |   |   | 1,438 |   |
| Net earnings (loss) - under U.S. GAAP                     |   |   | (15,765 | )      |   |   | (7,537 | ) |
| Other comprehensive income - under Canadian GAAP          |   |   | 566     |   |   |   | (227 | ) |
| Comprehensive loss under U.S. GAAP                        |   |   | (15,199 | )      |   |   | (7,764 | ) |
| Net loss per share under U.S. GAAP                        |   |   |    |   |   |   |   |   |
| Basic and diluted                                         |   | $      | (0.15   | )      |   | $      | (0.08 | ) |
|                                                      |   |   |    |   |   |   |   |   |

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