----

----

| Canada                       | 1-12497               | 33-1084375          |
|------------------------------|-----------------------|---------------------|
| (State or other jurisdiction | (Commission File No.) | (IRS Employer       |
| of incorporation)            |                  | Identification No.) |

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

----

----

----

| PART I - FINANCIAL INFORMATION                                   |
|------------------------------------------------------------------|
|                                                             |   |   |   |   |   |   |
| Item 1. Financial Statements                                     |   |   |   |   |   |   |
|                                                             |   |   |   |   |   |   |
| ALTAIR NANOTECHNOLOGIES INC. AND SUBSIDIARIES                    |
| CONSOLIDATED BALANCE SHEETS                                      |
| (Expressed in thousands of United States Dollars, except shares) |
| (Unaudited)                                                      |

|                                                                                                                                                     |   | March 31, |     |   | December 31, |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------|----------|--------|--------------|--------|
|                                                                                                                                                     |   | 2011      |     |   | 2010         |   |
| ASSETS                                                                                                                                                   |   |      |     |   |         |   |
| Current assets                                                                                                                                           |   |      |     |   |         |   |
| Cash and cash equivalents                                                                                                                                |   | $         | 5,714    |   |         | $      | 4,695 |   |
| Accounts receivable, net                                                                                                                                 |   |      | 941      |   |         |   | 1,318 |   |
| Product inventories                                                                                                                                      |   |      | 5,919    |   |         |   | 6,825 |   |
| Prepaid expenses and other current assets                                                                                                                |   |      | 2,157    |   |         |   | 2,269 |   |
| Total current assets                                                                                                                                     |   |      | 14,731   |   |         |   | 15,107 |   |
|                                                                                                                                                     |   |      |     |   |         |   |   |   |
| Property, plant and equipment, net                                                                                                                       |   |      | 8,396    |   |         |   | 8,727 |   |
|                                                                                                                                                     |   |      |     |   |         |   |   |   |
| Patents, net                                                                                                                                             |   |      | 407      |   |         |   | 426 |   |
|                                                                                                                                                     |   |      |     |   |         |   |   |   |
| Total Assets                                                                                                                                             |   | $         | 23,534   |   |         | $      | 24,260 |   |
|                                                                                                                                                     |   |      |     |   |         |   |   |   |
| LIABILITIES AND STOCKHOLDERS' EQUITY                                                                                                                     |   |      |     |   |         |   |   |   |
| Current Liabilities                                                                                                                                      |   |      |     |   |         |   |   |   |
| Trade accounts payable                                                                                                                                   |   | $         | 2,661    |   |         | $      | 2,873 |   |
| Accrued salaries and benefits                                                                                                                            |   |      | 1,271    |   |         |   | 743 |   |
| Accrued warranty                                                                                                                                         |   |      | 219      |   |         |   | 211 |   |
| Accrued liabilities                                                                                                                                      |   |      | 431      |   |         |   | 387 |   |
| Deferred revenues                                                                                                                                        |   |      | 1,518    |   |         |   | 2,516 |   |
| Warrant liabilities                                                                                                                                      |   |      | 1,928    |   |         |   | - |   |
| Current portion of long-term debt                                                                                                                        |   |      | 98       |   |         |   | 216 |   |
| Total current liabilities                                                                                                                                |   |      | 8,126    |   |         |   | 6,946 |   |
|                                                                                                                                                     |   |      |     |   |         |   |   |   |
| Long Term Liabilities                                                                                                                                    |   |      |     |   |         |   |   |   |
| Long-term debt, less current portion                                                                                                                     |   |      | 11       |   |         |   | 16 |   |
| Total long term liabilities                                                                                                                              |   |      | 11       |   |         |   | 16 |   |
|                                                                                                                                                     |   |      |     |   |         |   |   |   |
| Total Liabilities                                                                                                                                        |   |      | 8,137    |   |         |   | 6,962 |   |
|                                                                                                                                                     |   |      |     |   |         |   |   |   |
|                                                                                                                                                     |   |      |     |   |         |   |   |   |
| Stockholders' equity                                                                                                                                     |   |      |     |   |         |   |   |   |
| Common stock, no par value, unlimited shares authorized; 30,615,680 and 27,015,680 shares issued and outstanding at March 31, 2011 and December 31, 2010 |   |      | 193,373  |   |         |   | 189,491 |   |
| Additional paid in capital                                                                                                                               |   |      | 12,425   |   |         |   | 12,297 |   |
| Accumulated deficit                                                                                                                                      |   |      | (190,401 | )      |         |   | (184,490 | ) |
| Total Stockholders' Equity                                                                                                                               |   |      | 15,397   |   |         |   | 17,298 |   |
|                                                                                                                                                     |   |      |     |   |         |   |   |   |
| Total Liabilities and Stockholders' Equity                                                                                                               |   | $         | 23,534   |   |         | $      | 24,260 |   |
|                                                                                                                                                     |   |      |     |   |         |   |   |   |
| See notes to the consolidated financial statements.                                                                                                      |   |      |     |   |         |   |   |   |

----

| ALTAIR NANOTECHNOLOGIES INC. AND SUBSIDIARIES                                          |
|----------------------------------------------------------------------------------------|
| CONSOLIDATED STATEMENTS OF OPERATIONS                                                  |
| (Expressed in thousands of United States Dollars, except shares and per share amounts) |
| (Unaudited)                                                                            |

|                                                                          |   | Three Months EndedMarch 31, |       |
|-------------------------------------------------------------------------------|--------|-----------------------------|------------|
|                                                                          |   | 2011                        |       |   | 2010 |   |
| Revenues                                                                      |   |                        |       |   |   |   |
| Product sales                                                                 |   | $                           | 2,366      |   |   | $ | 75 |   |
| License fees                                                                  |   |                        | 60         |   |   |   | - |   |
| Commercial collaborations                                                     |   |                        | 2          |   |   |   | 294 |   |
| Contracts and grants                                                          |   |                        | 123        |   |   |   | 823 |   |
| Total revenues                                                                |   |                        | 2,551      |   |   |   | 1,192 |   |
|                                                                          |   |                        |       |   |   |   |   |   |
| Cost of goods sold                                                            |   |                        |       |   |   |   |   |   |
| Product                                                                       |   |                        | 2,611      |   |   |   | 53 |   |
| Commercial collaborations                                                     |   |                        | -          |   |   |   | 178 |   |
| Contracts and grants                                                          |   |                        | 128        |   |   |   | 611 |   |
| Warranty and inventory reserves                                               |   |                        | 46         |   |   |   | 53 |   |
| Total cost of goods sold                                                      |   |                        | 2,785      |   |   |   | 895 |   |
|                                                                          |   |                        |       |   |   |   |   |   |
| Gross (loss) profit                                                           |   |                        | (234       | ) |   |   | 297 |   |
|                                                                          |   |                        |       |   |   |   |   |   |
| Operating expenses                                                            |   |                        |       |   |   |   |   |   |
| Research and development                                                      |   |                        | 2,056      |   |   |   | 2,439 |   |
| Sales and marketing                                                           |   |                        | 1,051      |   |   |   | 1,185 |   |
| General and administrative                                                    |   |                        | 2,171      |   |   |   | 2,239 |   |
| Depreciation and amortization                                                 |   |                        | 375        |   |   |   | 463 |   |
| Loss on disposal of assets                                                    |   |                        | 16         |   |   |   | 47 |   |
| Total operating expenses                                                      |   |                        | 5,669      |   |   |   | 6,373 |   |
| Loss from operations                                                          |   |                        | (5,903     | ) |   |   | (6,076 | ) |
|                                                                          |   |                        |       |   |   |   |   |   |
| Other income (expense)                                                        |   |                        |       |   |   |   |   |   |
| Interest expense                                                              |   |                        | (7         | ) |   |   | (8 | ) |
| Interest income                                                               |   |                        | -          |   |   |   | 26 |   |
| Loss on foreign exchange                                                      |   |                        | (1         | ) |   |   | - |   |
| Total other (expense) income, net                                             |   |                        | (8         | ) |   |   | 18 |   |
| Loss from continuing operations                                               |   |                        | (5,911     | ) |   |   | (6,058 | ) |
| Loss from discontinued operations                                             |   |                        | -          |   |   |   | (13 | ) |
| Net loss                                                                      |   |                        | (5,911     | ) |   |   | (6,071 | ) |
| Less:  Net loss attributable to non-controlling interest            |   |                        | -          |   |   |   | 4 |   |
| Net loss attributable to Altair Nanotechnologies Inc.                         |   | $                           | (5,911     | ) |   | $ | (6,067 | ) |
|                                                                          |   |                        |       |   |   |   |   |   |
| Net loss attributable to Altair Nanotechnologies Inc. shareholders:           |   |                        |       |   |   |   |   |   |
| Loss from continuing operations                                               |   | $                           | (5,911     | ) |   | $ | (6,058 | ) |
| Loss from discontinued operations                                             |   |                        | -          |   |   |   | (9 | ) |
| Net loss                                                                      |   | $                           | (5,911     | ) |   | $ | (6,067 | ) |
|                                                                          |   |                        |       |   |   |   |   |   |
| Earnings per share attributable to Altair Nanotechnologies Inc. shareholders: |   |                        |       |   |   |   |   |   |
| Basic and diluted:                                                            |   |                        |       |   |   |   |   |   |
| Loss from continuing operations                                               |   | $                           | (0.22      | ) |   | $ | (0.24 | ) |
| Loss from discontinued operations                                             |   | $                           | -          |   |   | $ | - |   |
| Loss per common share - Basic and diluted                                     |   | $                           | (0.22      | ) |   | $ | (0.24 | ) |
|                                                                          |   |                        |       |   |   |   |   |   |
| Weighted average shares - basic and diluted                                   |   |                        | 26,844,583 |   |   |   | 26,273,559 |   |
|                                                                          |   |                        |       |   |   |   |   |   |
| See notes to the consolidated financial statements.                           |   |                        |       |   |   |   |   |   |

----

| ALTAIR NANOTECHNOLOGIES INC. AND SUBSIDIARIES                                          |
|----------------------------------------------------------------------------------------|
| CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY AND COMPREHENSIVE LOSS                 |
| (Expressed in thousands of United States Dollars, except shares and per share amounts) |
| (Unaudited)                                                                            |
|                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                   | Altair Nanotechnologies  Inc. Shareholders |   |  Non-controlling Interest in Subsidiary |   |   |
|   |               |          |              |          |  Accumulated |           |     |             |  Accumulated |           |        |   |
|--------|--------------------|---------------|-------------------|---------------|-------------------|----------------|----------|------------------|-------------------|----------------|-------------|--------|
|   |               |          |              |          |  Other       |           |     |             |  Other       |           |        |   |
|   |               |          |  Additional  |          | Compre-           |           |     |  Interest   | Compre-           |           |        |   |
|   |  Common Stock |  Paid In |  Accumulated |  hensive |              |           |  In |  hensive    |              |           |        |
|   |  Shares       |  Amount  |  Capital     |  Deficit |  Loss        |  Subtotal |     |  Subsidiary |  Gain (Loss) |  Subtotal |  Total |

| Balance, January 1, 2010                                      |   |   | 26,350,282 |   |   | $      | 188,515 |   |   | $      | 10,933 |   |   | $      | (162,204 | )      |   | $      | (1,560 | )      |   | $      | 35,684 |   |   | $      | 541    |   |   | $      | -      |   |   | $      | 541    |   |   | $      | 36,225 |   |
|---------------------------------------------------------------|--------|--------|------------|--------|--------|--------|---------|--------|--------|--------|--------|--------|--------|--------|----------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|                                                          |   |   |       |   |   |   |    |   |   |   |   |   |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive loss:                                           |   |   |       |   |   |   |    |   |   |   |   |   |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss                                                      |   |   | -          |   |   |   | -       |   |   |   | -      |   |   |   | (6,067   | )      |   |   | -      |   |   |   | (6,067 | )      |   |   | (4     | )      |   |   | -      |   |   |   | (4     | )      |   |   | (6,071 | )      |
| Other comprehensive loss                                      |   |   | -          |   |   |   | -       |   |   |   | -      |   |   |   | -        |   |   |   | (122   | )      |   |   | (122   | )      |   |   | -      |   |   |   | -      |   |   |   | -      |   |   |   | (122   | )      |
|        Comprehensive loss: |   |   |       |   |   |   |    |   |   |   |   |   |   |   |     |   |   |   |   |   |   |   | (6,189 | )      |   |   |   |   |   |   |   |   |   |   | (4     | )      |   |   | (6,193 | )      |
| Share-based compensation                                      |   |   | -          |   |   |   | 62      |   |   |   | 392    |   |   |   | -        |   |   |   | -      |   |   |   | 454    |   |   |   | -      |   |   |   | -      |   |   |   | -      |   |   |   | 454    |   |
| Balance,  March 31, 2010                            |   |   | 26,350,282 |   |   | $      | 188,577 |   |   | $      | 11,325 |   |   | $      | (168,271 | )      |   | $      | (1,682 | )      |   | $      | 29,949 |   |   | $      | 537    |   |   | $      | -      |   |   | $      | 537    |   |   | $      | 30,486 |   |
|                                                          |   |   |       |   |   |   |    |   |   |   |   |   |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                          |   |   |       |   |   |   |    |   |   |   |   |   |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

|   |                                                 |          |                                         |          |        |           |     |             |              |           |        |   |
|--------|------------------------------------------------------|---------------|----------------------------------------------|---------------|-------------|----------------|----------|------------------|-------------------|----------------|-------------|--------|
|   | Altair Nanotechnologies  Inc. Shareholders |          |  Non-controlling Interest in Subsidiary |          |        |
|   |                                                 |          |                                         |          | Accumulated |           |     |             |  Accumulated |           |        |   |
|   |                                                 |          |                                         |          |  Other |           |     |             |  Other       |           |        |   |
|   |                                                 |          |  Additional                             |          | Compre-     |           |     | Interest         | Compre-           |           |        |   |
|   |  Common Stock                                   |  Paid In |  Accumulated                            |  hensive |        |           |  In |  hensive    |              |           |        |
|   |  Shares                                         |  Amount  |  Capital                                |  Deficit |  Loss  |  Subtotal |     |  Subsidiary |  Gain (Loss) |  Subtotal |  Total |

| Balance, January 1, 2011                                                   |   |   | 27,015,680 |   |   | $      | 189,491 |   |   | $      | 12,297 |   |   | $      | (184,490 | )      |   | $      | -      |   |   | $      | 17,298 |   |   | $      | -      |   |   | $      | -      |   |   | $      | -      |   |   | $      | 17,298 |   |
|----------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|---------|--------|--------|--------|--------|--------|--------|--------|----------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|                                                                       |   |   |       |   |   |   |    |   |   |   |   |   |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss                                                                   |   |   | -          |   |   |   | -       |   |   |   | -      |   |   |   | (5,911   | )      |   |   | -      |   |   |   | (5,911 | )      |   |   | -      |   |   |   | -      |   |   |   | -      |   |   |   | (5,911 | )      |
| Share-based compensation                                                   |   |   | -          |   |   |   | 77      |   |   |   | 128    |   |   |   | -        |   |   |   | -      |   |   |   | 205    |   |   |   | -      |   |   |   | -      |   |   |   | -      |   |   |   | 205    |   |
| Common stock issued, net of issuance costs of $689 and warrant liabilities |   |   | 3,600,000  |   |   |   | 3,806   |   |   |   | -      |   |   |   | -        |   |   |   | -      |   |   |   | 3,806  |   |   |   | -      |   |   |   | -      |   |   |   | -      |   |   |   | 3,806  |   |
| Balance,  March 31, 2011                                         |   |   | 30,615,680 |   |   | $      | 193,373 |   |   | $      | 12,425 |   |   | $      | (190,401 | )      |   | $      | -      |   |   | $      | 15,397 |   |   | $      | -      |   |   | $      | -      |   |   | $      | -      |   |   | $      | 15,397 |   |

----

| ALTAIR NANOTECHNOLOGIES INC. AND SUBSIDIARIES     |
|---------------------------------------------------|
| CONSOLIDATED STATEMENTS OF CASH FLOWS             |
| (Expressed in thousands of United States Dollars) |
| (Unaudited)                                       |

|                                                                        |   | Three Months Ended March 31, |   |
|-----------------------------------------------------------------------------|--------|------------------------------|--------|
|                                                                        |   | 2011                         |   |   | 2010 |   |
| Cash flows from operating activities:                                       |   |                         |   |   |   |   |
| Net loss                                                                    |   | $                            | (5,911 | ) |   | $ | (6,071 | ) |
| Adjustments to reconcile net loss to net cash used in operating activities: |   |                         |   |   |   |   |   |   |
| Depreciation and amortization                                               |   |                         | 375    |   |   |   | 463 |   |
| Loss on discontinued operations                                             |   |                         | -      |   |   |   | 13 |   |
| Securities received in payment of license fees                              |   |                         | -      |   |   |   | (3 | ) |
| Share-based compensation                                                    |   |                         | 205    |   |   |   | 454 |   |
| Loss on disposal of fixed assets                                            |   |                         | 16     |   |   |   | - |   |
| Impairment of patents                                                       |   |                         | -      |   |   |   | 47 |   |
| Changes in operating assets and liabilities:                                |   |                         |   |   |   |   |   |   |
| Accounts receivable, net                                                    |   |                         | 377    |   |   |   | (157 | ) |
| Product inventories                                                         |   |                         | 1,021  |   |   |   | (847 | ) |
| Prepaid expenses and other current assets                                   |   |                         | 112    |   |   |   | 180 |   |
| Trade accounts payable                                                      |   |                         | (297   | ) |   |   | 535 |   |
| Accrued salaries and benefits                                               |   |                         | 528    |   |   |   | 942 |   |
| Accrued warranty                                                            |   |                         | 8      |   |   |   | 3 |   |
| Deferred revenues                                                           |   |                         | (998   | ) |   |   | - |   |
| Accrued liabilities                                                         |   |                         | 44     |   |   |   | (219 | ) |
| Net cash used in operating activities                                       |   |                         | (4,520 | ) |   |   | (4,660 | ) |
|                                                                        |   |                         |   |   |   |   |   |   |
| Cash flows from investing activities:                                       |   |                         |   |   |   |   |   |   |
| Purchase of property, plant and equipment                                   |   |                         | (76    | ) |   |   | (392 | ) |
| Proceeds from disposition of assets                                         |   |                         | 5      |   |   |   | - |   |
| Net cash used in investing activities                                       |   |                         | (71    | ) |   |   | (392 | ) |
|                                                                        |   |                         |   |   |   |   |   |   |
| Cash flows from financing activities:                                       |   |                         |   |   |   |   |   |   |
| Issuance of common shares for cash, net of issuance costs                   |   |                         | 5,734  |   |   |   | - |   |
| Payment of notes payable                                                    |   |                         | (119   | ) |   |   | (716 | ) |
| Repayment of long-term debt                                                 |   |                         | (5     | ) |   |   | (4 | ) |
| Net cash provided by (used in) financing activities                         |   |                         | 5,610  |   |   |   | (720 | ) |
|                                                                        |   |                         |   |   |   |   |   |   |
| Net increase (decrease) in cash and cash equivalents                        |   |                         | 1,019  |   |   |   | (5,772 | ) |
|                                                                        |   |                         |   |   |   |   |   |   |
| Cash and cash equivalents, beginning of period                              |   |                         | 4,695  |   |   |   | 18,122 |   |
|                                                                        |   |                         |   |   |   |   |   |   |
| Cash and cash equivalents, end of period                                    |   | $                            | 5,714  |   |   | $ | 12,350 |   |
|                                                                        |   |                         |   |   |   |   |   |   |
| Supplemental disclosures:                                                   |   |                         |   |   |   |   |   |   |
| Cash paid for interest                                                      |   | $                            | 1      |   |   | $ | 43 |   |
|                                                                        |   |                         |   |   |   |   |   |   |
| Cash paid for income taxes                                                  |   | None                         |   |   | None |   |
|                                                                        |   |                         |   |   |   |   |   |   |
| Non-cash transactions:                                                      |   |                         |   |   |   |   |   |   |
| Acquisition of assets included in accounts payable                          |   | $                            | 85     |   |   | $ | 69 |   |
| Unrealized loss on available for sale securities                            |   | $                            | -      |   |   | $ | 122 |   |
|                                                                        |   |                         |   |   |   |   |   |   |
|                                                                        |   |                         |   |   |   |   |   |   |
| See notes to the consolidated financial statements.                         |   |                         |   |   |   |   |   |   |

----

|   | ▪ | a freeze on all hiring,                                                         |
|--------|---------|---------------------------------------------------------------------------------|
|   | §  | a deferral of all inventory purchases not tied to a specific customer contract, |

|   | § | a delay in all development efforts not needed in the immediate timeframe, |
|--------|--------|---------------------------------------------------------------------------|
|   | § | a cancellation of a number of non-critical consulting contracts,          |

|   | § | sale of the auction rate securities that the Company was holding, and             |
|--------|--------|-----------------------------------------------------------------------------------|
|   | § | sale of the remaining Spectrum Pharmaceutical common stock that the Company held. |

----

|   | § | an immediate reduction in the manufacture of nano-lithium titanate that was to be shipped to YTE and termination of employment of the individuals performing this work, |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | § | elimination of all contract personnel not working directly on customer contract activities,                                                                             |

|   | § | renegotiation of payment terms with our suppliers and vendors,                                         |
|--------|--------|--------------------------------------------------------------------------------------------------------|
|   | § | elimination of all but essential travel related to customer contracts or this immediate financing, and |

|   | § | deferral of all activities requiring the purchase of supplies or material not tied directly to an existing customer contract. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------|

----

|   | Level 1  - | Quoted prices for identical instruments in active markets. |
|--------|----------------------|------------------------------------------------------------|

|   | Level 2  - | Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable. |
|--------|----------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Level 3  - | Significant inputs to the valuation model are unobservable. |
|--------|----------------------|-------------------------------------------------------------|

----

| Liabilities at fair value: |   | Total |   |   | Level 1 |   |   | Level 2 |   |   | Level 3 |   |
|----------------------------|--------|-------|--------|--------|---------|--------|--------|---------|--------|--------|---------|--------|
| Warrant liabilities        |   | $     | 1,928  |   |    | $      | -      |    |   | $      | -       |   |   | $ | 1,928 |   |
| Total                      |   | $     | 1,928  |   |    | $      | -      |    |   | $      | -       |   |   | $ | 1,928 |   |

|                               |   | 2011   |   |   | 2010   |   |
|------------------------------------|--------|--------|--------|--------|--------|--------|
|                               |   |   |   |   |   |   |   |   |   |   | Unrealized |   |   |   |   |   |   |   |   |   |   |   | Unrealized |   |
|                               |   |   |   |   | Fair   |   |   | Carrying |   |   | (loss)/gain |   |   |   |   |   | Fair |   |   | Carrying |   |   | loss |   |
|                               |   | Cost   |   |   | Value  |   |   | Value |   |   | accumulated |   |   | Cost |   |   | Value |   |   | Value |   |   | accumulated |   |
| Current marketable securities:     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Spectrum Pharmaceuticals, Inc.     |   |   | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 755 |   |   |   | 525 |   |   |   | 525 |   |   |   | (230 | ) |
| Total current                      |   | $      | -      |   |   | $      | - |   |   | $ | - |   |   | $ | - |   |   | $ | 755 |   |   | $ | 525 |   |   | $ | 525 |   |   | $ | (230 | ) |
| Non-current marketable securities: |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Auction rate corporate notes       |   |   | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 3,900 |   |   |   | 2,445 |   |   |   | 2,445 |   |   |   | (1,455 | ) |
| Total non-current                  |   | $      | -      |   |   | $      | - |   |   | $ | - |   |   | $ | - |   |   | $ | 3,900 |   |   | $ | 2,445 |   |   | $ | 2,445 |   |   | $ | (1,455 | ) |

|                                                                             |   | Warrant     |   |   | Auction rate    |   |
|----------------------------------------------------------------------------------|--------|-------------|--------|--------|-----------------|--------|
|                                                                             |   | liabilities |   |   | corporate notes |   |
|                                                                             | 2011   |        |   | 2010   |            |
| Beginning Balance, January 1                                                     |   | $           | -      |   |            | $      | 2,587 |   |
| Issuances                                                                        |   |        | 1,928  |   |            |   | - |   |
| Sale or settlements                                                              |   |        | -      |   |            |   | - |   |
| Realized losses                                                                  |   |        | -      |   |            |   | - |   |
| Unrealized (losses)                                                              |   |        | -      |   |            |   | (141 | ) |
| Other adjustments                                                                |   |        | -      |   |            |   | 2 |   |
| Reclassification adjustment for realized loss on securities included in net loss |   |        | -      |   |            |   | - |   |
| Ending Balance, March 31                                                         |   | $           | 1,928  |   |            | $      | 2,448 |   |

----

| In thousands of dollars   |   |           |   |   |              |   |
|---------------------------|--------|----------------|--------|--------|-------------------|--------|
|                      |   | March 31, 2011 |   |   | December 31, 2010 |   |
| Raw materials             |   | $              | 2,918  |   |              | $      | 2,979 |   |
| Work in process           |   |           | 1,001  |   |              |   | 920 |   |
| Finished goods            |   |           | 2,000  |   |              |   | 2,926 |   |
| Total product inventories |   | $              | 5,919  |   |              | $      | 6,825 |   |

| In thousands of dollars                         |   |           |   |   |              |   |
|-------------------------------------------------|--------|----------------|--------|--------|-------------------|--------|
|                                            |   | March 31, 2011 |   |   | December 31, 2010 |   |
|  Prepaid inventory purchases               |   | $              | 547    |   |              | $      | 568 |   |
|  Prepaid insurance                         |   |           | 154    |   |              |   | 269 |   |
|  Deposits                                  |   |           | 340    |   |              |   | 340 |   |
|  Prepaid financing costs                   |   |           | 902    |   |              |   | 831 |   |
|  Deferred contract costs                   |   |           | 39     |   |              |   | 87 |   |
|  Other prepaid expenses and current assets |   |           | 176    |   |              |   | 174 |   |
| Total prepaid expenses and other current assets |   | $              | 2,157  |   |              | $      | 2,269 |   |

| In thousands of dollars               |   |           |   |   |              |   |
|---------------------------------------|--------|----------------|--------|--------|-------------------|--------|
|                                  |   | March 31, 2011 |   |   | December 31, 2010 |   |
| Patents and patent applications       |   | $              | 1,366  |   |              | $      | 1,366 |   |
| Less accumulated amortization         |   |           | (959   | )      |              |   | (940 | ) |
| Total patents and patent applications |   | $              | 407    |   |              | $      | 426 |   |

----

| In thousands of dollars                     |   |           |   |   |              |   |
|---------------------------------------------|--------|----------------|--------|--------|-------------------|--------|
|                                        |   | March 31, 2011 |   |   | December 31, 2010 |   |
|                                        |   |           |   |   |              |   |
| Note payable to Imperial Credit Corporation |   | $              | 78     |   |              | $      | 196 |   |
| Capital leases                              |   |           | 30     |   |              |   | 36 |   |
|      Subtotal      |   |           | 109    |   |              |   | 232 |   |
| Less current portion                        |   |           | (98    | )      |              |   | (216 | ) |
| Long-term portion                           |   | $              | 11     |   |              | $      | 16 |   |

|                    |   | 2011   |   |   | 2010   |
|-------------------------|--------|--------|--------|--------|--------|
| Dividend yield          |   |   | N/A    |   |   | None |   |
| Expected volatility     |   |   | N/A    |   |   | 84% |   |
| Risk-free interest rate |   |   | N/A    |   |   | 1.96% |   |
| Expected life (years)   |   |   | N/A    |   |   | 5.88 |   |

----

|                                    |   | 2011   |      |   | 2010     |   |
|-----------------------------------------|--------|--------|-----------|--------|----------|--------|
|                                    |   |   |      |   |     |   |   | Weighted |   |   |   |   |   |   |   |   |   |   |   | Weighted |   |   |   |   |
|                                    |   |   |      |   | Weighted |   |   | Average |   |   |   |   |   |   |   |   | Weighted |   |   | Average |   |   |   |   |
|                                    |   |   |      |   | Average  |   |   | Remaining |   |   | Aggregate |   |   |   |   |   | Average |   |   | Remaining |   |   | Aggregate |   |
|                                    |   |   |      |   | Exercise |   |   | Contractual |   |   | Intrinsic |   |   |   |   |   | Exercise |   |   | Contractual |   |   | Intrinsic |   |
|                                    |   | Shares |      |   | Price    |   |   | Term |   |   | Value |   |   | Shares |   |   | Price |   |   | Term |   |   | Value |   |
| Outstanding at January 1,               |   |   | 1,514,025 |   |     | $      | 7.93 |   |   |   | 7.5 |   |   | $ | - |   |   |   | 1,230,034 |   |   | $ | 9.60 |   |   |   | 7.8 |   |   | $ | 2,000 |   |
| Granted                                 |   |   | -         |   |     |   | - |   |   |   |   |   |   |   |   |   |   |   | 371,000 |   |   |   | 4.08 |   |   |   |   |   |   |   |   |   |
| Exercised                               |   |   | -         |   |     |   | - |   |   |   |   |   |   |   |   |   |   |   | - |   |   |   | - |   |   |   |   |   |   |   |   |   |
| Forfeited/expired                       |   |   | (45,633   | )      |     |   | 7.92 |   |   |   |   |   |   |   |   |   |   |   | (29,626 | ) |   |   | 12.48 |   |   |   |   |   |   |   |   |   |
|                                    |   |   |      |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Outstanding at March 31,                |   |   | 1,468,392 |   |     | $      | 7.93 |   |   |   | 7.3 |   |   | $ | - |   |   |   | 1,571,408 |   |   | $ | 8.23 |   |   |   | 8.1 |   |   | $ | - |   |
|                                    |   |   |      |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Exercisable at March 31,                |   |   | 843,715   |   |     | $      | 9.96 |   |   |   | 6.6 |   |   | $ | - |   |   |   | 675,500 |   |   | $ | 11.28 |   |   |   | 6.9 |   |   | $ | - |   |
|                                    |   |   |      |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Vested or expected to vest at March 31, |   |   | 1,394,972 |   |     | $      | 7.93 |   |   |   | 7.3 |   |   | $ | - |   |   |   | 1,492,838 |   |   | $ | 8.23 |   |   |   | 8.1 |   |   | $ | - |   |

|                            |   | 2011   |     |   | 2010       |   |
|---------------------------------|--------|--------|----------|--------|------------|--------|
|                            |   |   |     |   | Weighted   |   |   |   |   |   | Weighted |   |
|                            |   |   |     |   | Average    |   |   |   |   |   | Average |   |
|                            |   |   |     |   | Grant Date |   |   |   |   |   | Grant Date |   |
|                            |   | Shares |     |   | Fair Value |   |   | Shares |   |   | Fair Value |   |
| Non-vested shares at January 1, |   |   | 844,153  |   |       | $      | 5.17 |   |   |   | 675,180 |   |   | $ | 7.52 |   |
| Granted                         |   |   | -        |   |       |   | - |   |   |   | 371,000 |   |   |   | 4.08 |   |
| Vested                          |   |   | (207,194 | )      |       |   | 6.43 |   |   |   | (135,646 | ) |   |   | 8.55 |   |
| Forfeited/expired               |   |   | (12,282  | )      |       |   | 7.50 |   |   |   | (14,626 | ) |   |   | 7.85 |   |
|                            |   |   |     |   |       |   |   |   |   |   |   |   |   |   |   |   |
| Non-vested shares at March 31,  |   |   | 624,677  |   |       | $      | 5.10 |   |   |   | 895,908 |   |   | $ | 5.41 |   |

----

|                            |   | 2011   |    |   | 2010       |   |
|---------------------------------|--------|--------|---------|--------|------------|--------|
|                            |   |   |    |   | Weighted   |   |   |   |   |   | Weighted |   |
|                            |   |   |    |   | Average    |   |   |   |   |   | Average |   |
|                            |   |   |    |   | Grant Date |   |   |   |   |   | Grant Date |   |
|                            |   | Shares |    |   | Fair Value |   |   | Shares |   |   | Fair Value |   |
| Non-vested shares at January 1, |   |   | 210,996 |   |       | $      | 2.16 |   |   |   | 76,624 |   |   | $ | 4.64 |   |
| Granted                         |   |   | -       |   |       |   | - |   |   |   | - |   |   |   | - |   |
| Vested                          |   |   | -       |   |       |   | - |   |   |   | - |   |   |   | - |   |
| Forfeited/expired               |   |   | -       |   |       |   | - |   |   |   | - |   |   |   | - |   |
|                            |   |   |    |   |       |   |   |   |   |   |   |   |   |   |   |   |
| Non-vested shares at March 31,  |   |   | 210,996 |   |       | $      | 2.16 |   |   |   | 76,624 |   |   | $ | 4.64 |   |

|                     |   | March 31, 2011 |   |
|--------------------------|--------|----------------|--------|
| Stock Price              |   | $1.58          |   |
| Exercise Price           |   | $2.56          |   |
| Expected Volatility      |   | 94%            |   |
| Expected Dividend Yield  |   | None           |   |
| Expected Term (in years) |   | 5.5            |   |
| Risk-free Interest Rate  |   | 2.26%          |   |

----

| In thousands of dollars   |   |     |      |   |     |   |   |     |   |   |      |   |
|---------------------------|--------|----------|-----------|--------|----------|--------|--------|----------|--------|--------|-----------|--------|
|                      |   |     |      |   |     |   |   |     |   |   |      |   |
|                      |   | 2011     |      |   | 2010     |   |
|                      |   |     |      |   | Weighted |   |   |     |   |   | Weighted  |   |
|                      |   |     |      |   | Average  |   |   |     |   |   | Average   |   |
|                      |   |     |      |   | Exercise |   |   |     |   |   | Exercise  |   |
|                      |   | Warrants |      |   | Price    |   |   | Warrants |   |   | Price     |   |
| Outstanding at January 1, |   |     | 1,757,115 |   |     | $      | 4.61   |     |   |   | 1,757,115 |   |   | $ | 4.61 |   |
| Issued                    |   |     | 1,800,000 |   |     |   | 2.56   |     |   |   | -         |   |   |   | - |   |
| Expired                   |   |     | -         |   |     |   | -      |     |   |   | -         |   |   |   | - |   |
| Exercised                 |   |     | -         |   |     |   | -      |     |   |   | -         |   |   |   | - |   |
| Outstanding at March 31,  |   |     | 3,557,115 |   |     | $      | 3.23   |     |   |   | 1,757,115 |   |   | $ | 4.61 |   |
| Currently exercisable     |   |     | 1,757,115 |   |     | $      | 4.61   |     |   |   | 1,757,115 |   |   | $ | 4.61 |   |

|             |   | Warrants Outstanding and Exercisable |      |
|------------------|--------|--------------------------------------|-----------|
|             |   |                                 |      |   | Weighted |   |   |   |   |
|             |   |                                 |      |   | Average |   |   | Weighted |   |
|             |   |                                 |      |   | Remaining |   |   | Average |   |
| Range of         |   |                                 |      |   | Contractual |   |   | Exercise |   |
| Exercise Prices  |   | Warrants                             |      |   | Life (Years) |   |   | Price |   |
| $1.00 to $3.00   |   |                                 | 1,800,000 |   |   |   | 5.5 |   |   | $ | 2.56 |   |
| $3.01 to $4.00   |   |                                 | 1,649,244 |   |   |   | 5.2 |   |   |   | 4.00 |   |
| $4.01 to $13.50  |   |                                 | 57,871    |   |   |   | 0.7 |   |   |   | 13.50 |   |
| $13.51 to $14.56 |   |                                 | 50,000    |   |   |   | 0.3 |   |   |   | 14.56 |   |
|             |   |                                 | 3,557,115 |   |   |   | 5.3 |   |   | $ | - |   |

----

| In thousands of dollars: |   |      |   |   |            |   |   |         |   |   |   |   |
|--------------------------|--------|-----------|--------|--------|-----------------|--------|--------|--------------|--------|--------|--------|--------|
|                     |   |      |   |   |            |   |   | Depreciation |   |   |   |   |
|                     |   |      |   |   | Loss (Gain)     |   |   | and          |   |   |   |   |
|                     |   | Net Sales |   |   | From Operations |   |   | Amortization |   |   | Assets |   |
| March 31, 2011           |   |      |   |   |            |   |   |         |   |   |   |   |
| Power & Energy Group |   | $         | 2,297  |   |            | $      | 3,429  |         |   | $      | 258    |   |   | $ | 10,969 |   |
| All Other                |   |      | 254    |   |            |   | (69    | )            |   |   | 19     |   |   |   | 528 |   |
| Corporate                |   |      | -      |   |            |   | 2,551  |         |   |   | 98     |   |   |   | 12,037 |   |
| Consolidated Total       |   | $         | 2,551  |   |            | $      | 5,911  |         |   | $      | 375    |   |   | $ | 23,534 |   |
|                     |   |      |   |   |            |   |   |         |   |   |   |   |   |   |   |   |
|                     |   |      |   |   |            |   |   |         |   |   |   |   |   |   |   |   |
| March 31, 2010           |   |      |   |   |            |   |   |         |   |   |   |   |   |   |   |   |
| Power & Energy Group |   | $         | 903    |   |            | $      | 3,387  |         |   | $      | 296    |   |   | $ | 12,234 |   |
| All Other                |   |      | 289    |   |            |   | 102    |         |   |   | 123    |   |   |   | 3,354 |   |
| Corporate                |   |      | -      |   |            |   | 2,578  |         |   |   | 44     |   |   |   | 19,600 |   |
| Consolidated Total       |   | $         | 1,192  |   |            | $      | 6,067  |         |   | $      | 463    |   |   | $ | 35,188 |   |

| In thousands of dollars: |   |
|--------------------------|--------|
|                     |   | Sales |   |   | Accounts Receivable |   |
|                     |   | Three Months Ended |   |   | Balance at |   |
| Customer                 |   | March 31, 2011 |   |   | March 31, 2011 |   |
| Power and Energy Group:  |   |   |   |   |   |   |
| Yintong Energy (YTE)     |   | $ | 1,713 |   |   | $ | 150 |   |
| Proterra, LLC            |   | $ | 512 |   |   | $ | 379 |   |
|                     |   |   |   |   |   |   |   |   |
| All Other Division:      |   |   |   |   |   |   |   |   |
|                     |   | $ | - |   |   | $ | - |   |

| In thousands of dollars: |
|--------------------------|
|                     |   | Sales |   |   | Accounts Receivable |   |
|                     |   | Three Months Ended |   |   | Balance at |   |
| Customer                 |   | March 31, 2010 |   |   | March 31, 2010 |   |
| Power and Energy Group:  |   |   |   |   |   |   |
| Office of Naval Research |   | $ | 602 |   |   | $ | 528 |   |
| Proterra, LLC            |   | $ | 283 |   |   | $ | 85 |   |
|                     |   |   |   |   |   |   |   |   |
| All Other Division:      |   |   |   |   |   |   |   |   |
| US Army RDECOM           |   | $ | 203 |   |   | $ | 193 |   |

----

| In thousands of dollars                                                 |
|-------------------------------------------------------------------------|
|                                                                    |   | Sales |   | Sales |   |
|                                                                    |   | Three Months Ended |   | Three Months Ended |   |
| Geographic information (a):                                             |   | March 31, 2011 |   | March 31, 2010 |   |
|                                                                    |   |   |   |   |   |   |
| United States                                                           |   | $ | 826 |   |   | $ | 1,192 |   |
| China                                                                   |   |   | 1,713 |   |   |   | - |   |
| Other foreign countries                                                 |   |   | 12 |   |   |   | - |   |
| Total                                                                   |   | $ | 2,551 |   |   | $ | 1,192 |   |
|                                                                    |   |   |   |   |   |   |   |   |
| (a) Revenues are attributed to countries based on location of customer. |   |

----

----

| ▪   | Based on the success of the 2008 AES two-megawatt frequency regulation trial, as validated in the KEMA, Inc. analysis and report, and more importantly, on two years of successful commercial operation of the ALTI-ESS system installed at PJM Interconnect in Southeast Pennsylvania we have experienced a substantial amount of interest in our large scale battery systems from other entities and are in active sales development discussions with a number of them. On February 4, 2011, we accepted a $1.6 million purchase order to supply the University of Hawaii - Hawaii Natural Energy Institute (“HNEI”) a 1 megawatt ALTI-ESS energy storage system for a test of wind energy integration.  We anticipate installing this system for HNEI during the fourth quarter of 2011. |
|---------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ▪   | On February 9, 2011 we signed a contract with Inversiones Energéticas, S.A. de C.V. (INE), a major utility in El Salvador, to install a 10 Megawatt ALTI-ESS advanced battery system for frequency control at their Talnique Power Station.  Unfortunately on April 15, 2011, as a result of unexpected regulatory issues, INE notified us that they needed to cancel the contract in accordance with the terms of the agreement.  We are continuing to work with INE in an attempt to resolve the regulatory issues. |
|---------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ▪   | In June 2010, we signed a contract with Proterra, LLC, a Golden, Colorado based leading designer and manufacturer of heavy-duty drive systems, energy storage systems, vehicle control systems and transit buses to sell them battery modules for their all-electric and hybrid-electric buses. Proterra’s systems are scalable to all forms of commercial buses and Class 6-8 trucks.  During 2010 we sold $2.4 million of battery modules to Proterra.  Although Proterra experienced financial challenges with its primary investor during the first quarter, we expect to sell at least a comparable amount of battery modules to Proterra during 2011 and anticipate substantial growth starting in 2012 and future years as they resume the scale up of their business. |
|---------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ▪   | Based on the demonstrated success of our battery in the Proterra bus application, we have also entered into discussions with a number of other bus manufacturers and systems integrators regarding the purchase of our battery products for their specific applications. |
|---------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ▪   | We are in discussions with a number of industrial manufacturers of fork lifts, elevators and other equipment whose use requires the long-life, rapid recharge, extreme operating temperature range or other differentiating attributes of our battery technology. |
|---------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ▪   | In September of 2010 we signed a supply agreement with YTE, an affiliate of Canon, to provide them with 122 metric tons of nano-lithium titanate by the end of 2011.  This agreement was temporarily suspended in February 2011 in order to allow YTE to resolve a number of internal manufacturing issues.  We anticipate renewing this agreement as YTE gains proficiency in using our nano-lithium titanate in their batteries.  As specified in the Share Subscription Agreement with Canon (YTE’s corporate parent), if such transaction closes, we will explore the establishment of a nano-lithium titanate manufacturing plant in China to supply YTE with over 1,000 metric tons of nano-lithium titanate per year. |
|---------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ▪   | reducing production levels; |
|---------------------|-----------------------------|

| ▪   | deferring discretionary expenditures such as capital purchases, internal research costs, training, and routine equipment and building maintenance; |
|---------------------|----------------------------------------------------------------------------------------------------------------------------------------------------|

| ▪   | eliminating or deferring filling non-critical positions through attrition; and |
|---------------------|--------------------------------------------------------------------------------|

| ▪   | reductions in workforce. |
|---------------------|--------------------------|

----

| In thousands of dollars        |   |   |   |      |   |   |    |   |    |   |       |   |
|--------------------------------|--------|--------|--------|-----------|--------|--------|---------|--------|---------|--------|------------|--------|
|                           |   |   |   |      |   |   |    |   |    |   |       |   |
| Contractual Obligations        |   | Total  |   | < 1 yr |   |   | 1-3 yrs |   | 3-5 yrs |   | > 5 yrs |   |
| Notes payable                  |   | $      | 78     |      | $      | 78     |    |   | $       | -      |       | $      | - |   | $ | - |   |
| Contractual service agreements |   |   | 447    |      |   | 447    |    |   |    | -      |       |   | - |   |   | - |   |
| Capital leases                 |   |   | 30     |      |   | 19     |    |   |    | 11     |       |   | - |   |   | - |   |
| Operating leases               |   |   | 439    |      |   | 365    |    |   |    | 74     |       |   | - |   |   | - |   |
| Purchase obligations           |   |   | 3,957  |      |   | 3,957  |    |   |    | -      |       |   | - |   |   | - |   |
| Total                          |   | $      | 4,951  |      | $      | 4,865  |    |   | $       | 85     |       | $      | - |   | $ | - |   |

----

| In thousands of dollars                                            |
|--------------------------------------------------------------------|
|                                                               |
| ALTAIR NANOTECHNOLOGIES INC. AND SUBSIDIARIES                      |
| CONSOLIDATED STATEMENTS OF OPERATIONS                              |
| (Expressed in thousands of United States Dollars)                  |
| (Unaudited)                                                        |
|                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                               | Power and Energy Group |   |   | All Other |   |   | Corporate |   |   | Consolidated |
|                                                               | Three Months Ended |   |   | Three Months Ended |   |   | Three Months Ended |   |   | Three Months Ended |
|                                                               | March 31 |   |   | March 31 |   |   | March 31 |   |   | March 31 |
|                                                               | 2011 | 2010 |   |   | 2011 | 2010 |   |   | 2011 | 2010 |   |   | 2011 | 2010 |
| Revenues                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Product sales                                                      |  $        2,302 |  $                - |   |   |  $          64 |  $               75 |   |   |  $              - |  $                  - |   |   |  $     2,366 |  $               75 |
| Less: Sales returns                                                |                     - |                    - |   |   |                 - |                     - |   |   |                  - |                      - |   |   |                   - |                     - |
| License fees                                                       |                     - |                    - |   |   |              60 |                     - |   |   |                  - |                      - |   |   |               60 |                     - |
| Commercial collaborations                                          |                     - |              283 |   |   |                2 |                    11 |   |   |                  - |                      - |   |   |                  2 |               294 |
| Contracts and grants                                               |                   (5) |              620 |   |   |            128 |               203 |   |   |                  - |                      - |   |   |              123 |               823 |
| Total revenues                                                     |            2,297 |              903 |   |   |            254 |               289 |   |   |                  - |                      - |   |   |           2,551 |              1,192 |
|                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cost of goods sold                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Product                                                            |            2,605 |                    - |   |   |                6 |                  53 |   |   |                  - |                      - |   |   |           2,611 |                  53 |
| Commercial collaborations                                          |                     - |               170 |   |   |                 - |                    8 |   |   |                  - |                      - |   |   |                   - |                 178 |
| Contracts and grants                                               |                     - |              465 |   |   |            128 |                146 |   |   |                  - |                      - |   |   |              128 |                 611 |
| Warranty and inventory reserves                                    |                  46 |                 53 |   |   |                 - |                     - |   |   |                  - |                      - |   |   |               46 |                  53 |
| Total cost of goods sold                                           |             2,651 |              688 |   |   |            134 |                207 |   |   |                  - |                      - |   |   |          2,785 |                895 |
| Gross (loss) profit                                                |              (354) |               215 |   |   |            120 |                  82 |   |   |                  - |                      - |   |   |           (234) |                297 |
|                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating expenses                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Research and development                                           |             1,644 |            1,976 |   |   |              32 |                     5 |   |   |            380 |                 458 |   |   |          2,056 |            2,439 |
| Sales and marketing                                                |              1,051 |             1,185 |   |   |                 - |                     - |   |   |                  - |                      - |   |   |            1,051 |              1,185 |
| General and administrative                                         |                 121 |               144 |   |   |                 - |                     - |   |   |         2,050 |             2,095 |   |   |            2,171 |            2,239 |
| Depreciation and amortization                                      |                258 |              296 |   |   |               19 |                123 |   |   |               98 |                   44 |   |   |              375 |               463 |
| Loss on diposal of assets                                          |                     - |                    - |   |   |                 - |                  47 |   |   |                16 |                      - |   |   |                16 |                  47 |
| Total operating expenses                                           |            3,074 |           3,601 |   |   |               51 |                 175 |   |   |         2,544 |              2,597 |   |   |          5,669 |            6,373 |
| (Loss) income from operations                                      |          (3,428) |        (3,386) |   |   |              69 |                (93) |   |   |       (2,544) |            (2,597) |   |   |        (5,903) |          (6,076) |
|                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other income (expense)                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest expense                                                   |                   (1) |                  (1) |   |   |                 - |                     - |   |   |               (6) |                    (7) |   |   |                (7) |                  (8) |
| Interest income                                                    |                     - |                    - |   |   |                 - |                     - |   |   |                  - |                   26 |   |   |                   - |                  26 |
| Loss on foreign exchange                                           |                     - |                    - |   |   |                 - |                     - |   |   |                (1) |                      - |   |   |                 (1) |                     - |
| Total (expense) other income, net                                  |                   (1) |                  (1) |   |   |                 - |                     - |   |   |                (7) |                    19 |   |   |                (8) |                   18 |
| (Loss) income from continuing operations                           |          (3,429) |         (3,387) |   |   |              69 |                (93) |   |   |         (2,551) |            (2,578) |   |   |          (5,911) |          (6,058) |
| Loss from discontinued operations                                  |                     - |                    - |   |   |                 - |                 (13) |   |   |                  - |                      - |   |   |                   - |                 (13) |
| Net (loss) gain                                                    |          (3,429) |         (3,387) |   |   |              69 |              (106) |   |   |         (2,551) |            (2,578) |   |   |          (5,911) |           (6,071) |
| Less:  Net gain attributable to noncontrolling interests |                     - |                    - |   |   |                 - |                    4 |   |   |                  - |                      - |   |   |                   - |                    4 |
| Net (loss) gain attributable to Altair Nanotechnologies Inc.       |  $      (3,429) |  $     (3,387) |   |   |  $          69 |  $          (102) |   |   |  $     (2,551) |  $        (2,578) |   |   |  $      (5,911) |  $      (6,067) |
|                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Amounts attributable to Altair Nanotechnologies Inc. shareholders: |   |   |   |   |   |   |   |   |   |   |   |   |   |
| (Loss) gain from continuing operations                             |  $      (3,429) |  $     (3,387) |   |   |  $          69 |  $            (93) |   |   |  $     (2,551) |  $        (2,578) |   |   |  $      (5,911) |  $      (6,058) |
| Loss from discontinued operations                                  |                     - |                    - |   |   |                 - |                  (9) |   |   |                  - |                      - |   |   |                   - |                  (9) |
| Net (loss) gain                                                    |  $      (3,429) |  $     (3,387) |   |   |  $          69 |  $          (102) |   |   |  $     (2,551) |  $        (2,578) |   |   |  $      (5,911) |  $      (6,067) |

----

| Item 3. | Quantitative and Qualitative Disclosures about Market Risk |
|---------|------------------------------------------------------------|

| Item 4. | Controls and Procedures |
|---------|-------------------------|

----

| ▪   | market factors affecting the availability and cost of capital generally, including increases or decreases in major stock market indexes, the stability of the banking and investment banking systems and general economic stability or instability; |
|---------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ▪   | the price, volatility and trading volume of our common shares; |
|---------------------|----------------------------------------------------------------|

| ▪   | our financial results, particularly the amount of revenue we are generating from product sales; |
|---------------------|-------------------------------------------------------------------------------------------------|

| ▪   | the market's perception of our ability to execute our business plan and any specific projects identified as uses of proceeds; |
|---------------------|-------------------------------------------------------------------------------------------------------------------------------|

| ▪   | our ownership structure and recent or anticipated dilution; |
|---------------------|-------------------------------------------------------------|

| ▪   | the amount of our capital needs; |
|---------------------|----------------------------------|

| ▪   | the market's perception of our company and companies in our line of business; |
|---------------------|-------------------------------------------------------------------------------|

| ▪   | restrictive covenants in Share Subscription Agreement prohibiting any additional capital raise prior to the closing, or termination, of the Share Subscription Agreement; |
|---------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ▪   | covenants in the Securities Purchase Agreement dated March 28, 2011 including a 15-month right of first offer in favor of the purchasers,  a 100-day restriction on additional financing by us and restrictions on subsequent equity sales by  use at a price below $2.23 per share for a two-year period; and |
|---------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ▪   | the economics of projects being pursued. |
|---------------------|------------------------------------------|

----

| ▪   | market factors affecting the availability and cost of capital generally, including increases or decreases in major stock market indexes, the stability of the banking and investment banking systems and general economic stability or instability; |
|---------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ▪   | the price, volatility and trading volume of our common shares; |
|---------------------|----------------------------------------------------------------|

| ▪   | our financial results, particularly the amount of revenue we are generating from product sales; |
|---------------------|-------------------------------------------------------------------------------------------------|

| ▪   | the market's perception of our ability to execute our business plan and any specific projects identified as uses of proceeds; |
|---------------------|-------------------------------------------------------------------------------------------------------------------------------|

| ▪   | our ownership structure and recent or anticipated dilution; |
|---------------------|-------------------------------------------------------------|

| ▪   | the amount of our capital needs; |
|---------------------|----------------------------------|

| ▪   | the market's perception of our company and companies in our line of business; |
|---------------------|-------------------------------------------------------------------------------|

| ▪   | restrictive covenants in Share Subscription Agreement prohibiting any additional capital raise prior to the closing, or termination, of the Share Subscription Agreement; |
|---------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ▪   | covenants in the Securities Purchase Agreement dated March 28, 2011 including a 15-month right of first offer in favor of the purchasers,  a 100-day restriction on additional financing by us and restrictions on subsequent equity sales by  use at a price below $2.23 per share for a two-year period; and |
|---------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ▪   | the economics of projects being pursued. |
|---------------------|------------------------------------------|

----

| ▪   | After the close of the Canon transaction, YTE may be unable to use our nano-lithium titanate or battery technology in its products and, as a result, may not purchase products from us long term; |
|---------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ▪   | Even if YTE is able to integrate our nano-lithium titanate and/or technology into its products, it may not be able to achieve significant sales with its products; |
|---------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ▪   | We may be unable to continue to reach agreement with YTE on the pricing of any products or services we supply them or may, as a result of market or other circumstances, be compelled to agree to prices that are not consistent with profitability; |
|---------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ▪   | As a result of the terms of the Conditional Supply and Technology Licensing Agreement, subsequent agreements or gaps in our intellectual property protection, Canon or YTE may be able to exploit our technology under circumstances in which we do not receive significant economic benefits; |
|---------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ▪   | Canon may not be able to, or exert significant efforts to, provide us access to the Chinese markets, particularly if our products could compete with products produced by YTE. |
|---------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ▪   | Certain of our existing or potential customers or suppliers may be reluctant to do business with a company controlled by a single shareholder, or a China-based affiliate of a battery manufacturer, and, as a result, may cancel or choose not to make, orders. |
|---------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ▪   | We may experience significant turnover in key management, technical or other employees; |
|---------------------|-----------------------------------------------------------------------------------------|

| ▪   | Because of the physical distance, cultural differences and language difference between the United States and China, we may experience conflicts or inefficiencies in Board-management communication, management-employee communication, strategy formation and other parts of our business; this risk may be exacerbated by the fact that most of the nominees proposed by Canon do not speak English, and none of our current management speaks Chinese; |
|---------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ▪   | We have agreed to potentially spend a portion, which may be substantial, of the proceeds from the Canon transaction on a nano-lithium titanate manufacturing plant in China; this project may divert management attention and consume a significant amount of capital; and |
|---------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ▪   | As a majority shareholder, Canon may be able to influence our Board of Directors to enter into transactions with Canon affiliates, or third parties, that are more favorable to such Canon affiliate or third party than would be negotiated by an independent Board of Directors. |
|---------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ▪   | fluctuations in the size, quantity and timing of customer orders; |
|---------------------|-------------------------------------------------------------------|

| ▪   | timing of delivery of our services and products; |
|---------------------|--------------------------------------------------|

| ▪   | additions of new customers or losses of existing customers; |
|---------------------|-------------------------------------------------------------|

| ▪   | positive or negative business or financial developments announced by us or our key customers; |
|---------------------|-----------------------------------------------------------------------------------------------|

| ▪   | our ability to commercialize and obtain orders for products we are developing; |
|---------------------|--------------------------------------------------------------------------------|

| ▪   | costs associated with developing our manufacturing capabilities; |
|---------------------|------------------------------------------------------------------|

| ▪   | the retention of our key employees; |
|---------------------|-------------------------------------|

| ▪   | new product announcements or introductions by our competitors or potential competitors; |
|---------------------|-----------------------------------------------------------------------------------------|

| ▪   | the effect of variations in the market price of our common shares on our equity-based compensation expenses; |
|---------------------|--------------------------------------------------------------------------------------------------------------|

| ▪   | disruptions in the supply of raw materials or components used in the manufacture of our products; |
|---------------------|---------------------------------------------------------------------------------------------------|

| ▪   | the pace of adoption of regulation facilitating our ability to sell our products in our target markets; |
|---------------------|---------------------------------------------------------------------------------------------------------|

| ▪   | technology and intellectual property issues associated with our products; |
|---------------------|---------------------------------------------------------------------------|

| ▪   | general political, social, geopolitical and economic trends and events; and |
|---------------------|-----------------------------------------------------------------------------|

| ▪   | availability of components sourced from Korea if tensions between North Korea and South Korea erupt into a greater military conflict. |
|---------------------|---------------------------------------------------------------------------------------------------------------------------------------|

----

| ▪   | Our pending patent applications may not be granted for various reasons, including the existence of conflicting patents or defects in our applications, if there was in existence relevant prior art or the invention was deemed by the examiner to be obvious to a person skilled in the art whether or not there were other existing patents. Risks associated with patent applications are enhanced because patent applications of others remain confidential for a period of approximately 18 months after filing; as a result, our belief that we are the first creator of an invention or the first to patent it may prove incorrect, as information related to conflicting patents is first published or first brought to our attention; |
|---------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ▪   | The patents we have been granted may be challenged, invalidated, narrowed or circumvented because of the pre-existence of similar patented or unpatented intellectual property rights or for other reasons; |
|---------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ▪   | The costs associated with enforcing patents, confidentiality and invention agreements or other intellectual property rights may make aggressive enforcement cost prohibitive; |
|---------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ▪   | We have not filed for patent protection in many countries in which we are currently selling produce or seek to sell product; as a result, we may be unable to prevent competitors in such markets from selling infringing products; |
|---------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ▪   | Even if we enforce our rights aggressively, injunctions, fines and other penalties may be insufficient to deter violations of our intellectual property rights; and |
|---------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ▪   | Other persons may independently develop proprietary information and techniques that, although functionally equivalent or superior to our intellectual proprietary information and techniques, do not breach proprietary rights. |
|---------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

| ▪   | we may not be able to enter into development, licensing, supply and other agreements with commercial partners with appropriate resources, technology and expertise on reasonable terms or at all; |
|---------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ▪   | our commercial partners may not place the same priority on a project as we do, may fail to honor contractual commitments, may not have the level of resources, expertise, market strength or other characteristics necessary for the success of the project, may dedicate only limited resources to, and/or may abandon, a development project for reasons, including reasons such as a shift in corporate focus, unrelated to its merits; |
|---------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ▪   | our commercial partners may be in the early stages of development and may not have sufficient liquidity to invest in joint development projects, expand their businesses and purchase our products as expected or honor contractual commitments; |
|---------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ▪   | our commercial partners may terminate joint testing, development or marketing projects on the merits of the projects for various reasons, including determinations that a project is not feasible, cost-effective or likely to lead to a marketable end product; |
|---------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ▪   | at various stages in the testing, development, marketing or production process, we may have disputes with our commercial partners, which may inhibit development, lead to an abandonment of the project or have other negative consequences; and |
|---------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ▪   | even if the commercialization and marketing of jointly developed products is successful, our revenue share may be limited and may not exceed our associated development and operating costs. |
|---------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ▪   | economic conditions and capital financing and liquidity constraints; |
|---------------------|----------------------------------------------------------------------|

| ▪   | short-term and long-term trends in the supply and price of natural gas, gasoline, diesel, coal and other fuels; |
|---------------------|-----------------------------------------------------------------------------------------------------------------|

| ▪   | the anticipated or actual granting or elimination by governments of tax and other financial incentives favoring electric or hybrid electric vehicles and renewable energy production; |
|---------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ▪   | the ability of the various regulatory bodies to define the rules and procedures under which this new technology can be deployed into the electric grid; |
|---------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------|

| ▪   | the anticipated or actual funding, or elimination of funding, for programs that support renewable energy programs and electric grid improvements; |
|---------------------|---------------------------------------------------------------------------------------------------------------------------------------------------|

| ▪   | changes in public and investor interest for financial and/or environmental reasons, in supporting or adopting alternatives to gasoline and diesel for transportation and other purposes; |
|---------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ▪   | the overall economic environment and the availability of credit to assist customers in purchasing our large battery systems; |
|---------------------|------------------------------------------------------------------------------------------------------------------------------|

| ▪   | the expansion or contraction of private and public research and development budgets as a result of global and U.S. economic trends; and |
|---------------------|-----------------------------------------------------------------------------------------------------------------------------------------|

| ▪   | the speed of incorporation of renewable energy generating sources into the electric grid. |
|---------------------|-------------------------------------------------------------------------------------------|

----

| ▪   | we may have difficulty integrating our assets, technologies, operations and personnel in connection with a business combination; |
|---------------------|----------------------------------------------------------------------------------------------------------------------------------|

| ▪   | our ongoing business and management's attention may be disrupted or diverted by transition or integration issues and the complexity of managing, or being a part of, a geographically or culturally diverse enterprises; |
|---------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ▪   | we may find that the transaction does not further our business strategy or that the economic and strategic assumptions underlying the transaction have proved inaccurate; |
|---------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ▪   | we may encounter difficulty entering and competing in new product or geographic markets; |
|---------------------|------------------------------------------------------------------------------------------|

| ▪   | we may face business, product, structural or other limitations or prohibitions as our business becomes subject to the laws or customs of other jurisdictions; and |
|---------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ▪   | we may experience significant problems or liabilities associated with product quality, technology and legal contingencies relating to the integrated business or technology, such as intellectual property or employment matters. |
|---------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ▪   | If we fail to supply products in accordance with contractual terms, including terms related to time of delivery and performance specifications, we may be required to repair or replace defective products and may become liable for direct, special, consequential and other damages, even if manufacturing or delivery was outsourced; |
|---------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ▪   | Raw materials used in the manufacturing process, labor and other key inputs may become scarce and expensive, causing our costs to exceed cost projections and associated revenues; |
|---------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ▪   | Manufacturing processes typically involve large machinery, fuels and chemicals, any or all of which may lead to accidents involving bodily harm, destruction of facilities and environmental contamination and associated liabilities; |
|---------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ▪   | As our manufacturing operations expand, we expect that a significant portion of our manufacturing will be done overseas, either by third-party contractors or in a plant owned by the company.  Any manufacturing done overseas presents risks associated with quality control, currency exchange rates, foreign laws and customs, timing and loss risks associated with overseas transportation and potential adverse changes in the political, legal and social environment in the host county; and |
|---------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ▪   | We have made, and may be required to make, representations as to our right to supply and/or license intellectual property and to our compliance with laws. Such representations are usually supported by indemnification provisions requiring us to defend our customers and otherwise make them whole if we license or supply products that infringe on third-party technologies or violate government regulations. |
|---------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ▪   | intentional manipulation of our stock price by existing or future shareholders or a reaction by investors to trends in our stock rather than the fundamentals of our business; |
|---------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ▪   | a single acquisition or disposition, or several related acquisitions or dispositions, of a large number of our shares, including by short sellers covering their position; |
|---------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ▪   | the interest of the market in our business sector, without regard to our financial condition, results of operations or business prospects; |
|---------------------|--------------------------------------------------------------------------------------------------------------------------------------------|

| ▪   | positive or negative statements or projections about our company or our industry, by analysts, stock gurus and other persons; |
|---------------------|-------------------------------------------------------------------------------------------------------------------------------|

| ▪   | the adoption of governmental regulations or government grant programs and similar developments in the United States or abroad that may enhance or detract from our ability to offer our products and services or affect our cost structure; and |
|---------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ▪   | economic and other external market factors, such as a general decline in market prices due to poor economic conditions, investor distrust or a financial crisis. |
|---------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| a)   | See Exhibit Index attached hereto following the signature page. |
|----------------|-----------------------------------------------------------------|

----

|   |        |   | Altair Nanotechnologies Inc.                    |   |
|--------|-------------|--------|-------------------------------------------------|--------|
|   |        |   |                                            |   |
|   |        |   |                                            |   |
|   | May 6, 2011 |   | By:  /s/  Terry M. Copeland |   |
|   | Date        |   | Terry M. Copeland,                              |   |
|   |        |   | President and Chief Executive Officer           |   |
|   |        |   |                                            |   |
|   |        |   |                                            |   |
|   | May 6, 2011 |   | By:  /s/  John Fallini      |   |
|   | Date        |   | John Fallini,                                   |   |
|   |        |   | Chief Financial Officer and Secretary           |   |

----

| EXHIBIT INDEX |
|---------------|
|          |   |   |   |   |
| Exhibit No.   |   | Exhibit |   | Incorporated by Reference/ Filed Herewith |
|          |   | Placement Agent Agreement, dated March 28, 2011, by and between Altair Nanotechnologies Inc. and JMP Securities LLC. |   | Incorporated by reference to the Current Report on Form 8-K filed with the SEC on March 29, 2011, File No. 001-12497 |
|  3.1     |   |  Articles of Continuance |   |  Incorporated by reference to the Company’s Quarterly Report on Form 10-Q filed with the SEC on November 4, 2010, File No. 001-12497  |
| 3.2           |   | Bylaws |   | Incorporated by reference to the Annual Report on Form 10-K for the year ended December 31, 2004  filed with the SEC on March 9, 2005, File No. 001-12497  |
| 4.1           |   | Form of Series A Common Share Purchase Warrant |   | Incorporated by reference to the Current Report on Form 8-K filed with the SEC on March 29, 2011, File No. 001-12497  |
| 10.1          |   | First Amendment to Share Subscription Agreement dated February 16, 2011 by and between Altair Nanotechnologies Inc. and Canon Investment Holdings Limited.  |   | Incorporated by reference to the Current Report on Form 8-K filed with the SEC on February 16, 2011, File No. 001-12497 |
| 10.2          |   | Form of Securities Purchase Agreement dated March 28, 2011 |   | Incorporated by reference to the Current Report on Form 8-K filed with the SEC on March 29, 2011, File No. 001-12497  |
| 10.3          |   | Note Secured By A Deed of Trust |   | Incorporated by reference to the Current Report on Form 8-K filed with the SEC on May 2, 2011, File No. 001-12497  |
| 10.4          |   | Deed of Trust |   | Incorporated by reference to the Current Report on Form 8-K filed with the SEC on May 2, 2011, File No. 001-12497  |
| 10.5          |   | Guaranty |   | Incorporated by reference to the Current Report on Form 8-K filed with the SEC on May 2, 2011, File No. 001-12497  |
| 10.6          |   | Hazardous Materials Indemnity Agreement |   | Incorporated by reference to the Current Report on Form 8-K filed with the SEC on May 2, 2011, File No. 001-12497  |
| 31.1          |   | Section 302 Certification of Chief Executive Officer  |   | Filed herewith |
| 31.2          |   | Section 302 Certification of Chief Financial Officer  |   | Filed herewith |
| 32.1          |   | Section 906 Certification of Chief Executive Officer  |   | Filed herewith |
| 32.2          |   | Section 906 Certification of Chief Financial Officer |   | Filed herewith |