Document:

exv4w1

 

This document is important and requires your
immediate attention. If you have any questions as to how to deal
with it, you should consult your investment dealer, lawyer or
other professional advisor. No securities regulatory authority
in Canada or the United States has expressed an opinion about,
or passed upon the fairness or merits of, the offer contained in
this document, the securities offered pursuant to such offer or
the adequacy of the information contained in this document and
it is an offence to claim otherwise.

Legend for
U.S. Residents: Information contained herein is subject to
completion or amendment. A registration statement relating to
these securities has been filed with the United States
Securities and Exchange Commission. These securities may not be
sold nor may offers to buy be accepted prior to the time the
registration statement becomes effective. This offer and
circular shall not constitute an offer to sell or the
solicitation of an offer to buy, nor shall there be any sale of
these securities in any state in which such offer, solicitation
or sale would be unlawful prior to registration or qualification
under the securities laws of any such state.

January 7, 2005

GLAMIS GOLD LTD.

OFFER TO PURCHASE

all of the outstanding common shares
of

GOLDCORP INC.

on the basis of 0.89 of a common share of
Glamis Gold Ltd. for each common share of Goldcorp
Inc.

    
Glamis Gold Ltd. (“Glamis”) hereby
offers (the “Offer”) to purchase all of the
outstanding common shares (the “Goldcorp Shares”) of
Goldcorp Inc. (“Goldcorp”). Under the Offer, holders
of Goldcorp Shares (“Shareholders”) will be entitled
to receive 0.89 of a common share of Glamis (“Glamis
Shares”) for each Goldcorp Share held by them. The Offer
will be open for acceptance until 9:00 p.m. (Toronto time)
(the “Expiry Time”) on February 14, 2005 unless
extended or withdrawn.

    
The Offer is subject to certain conditions,
including, without limitation, that not less than 66 2/3%
of the Goldcorp Shares (on a fully diluted basis) will have been
validly deposited under the Offer and not withdrawn at the
Expiry Time, that the Shareholders do not approve the
issuance of Goldcorp Shares by Goldcorp in connection with its
offer to purchase all of the outstanding common shares of
Wheaton River Minerals Ltd. (“Wheaton River”) dated
December 29, 2004 (the “Goldcorp Offer for Wheaton
River”) and that the Acquisition Agreement dated
December 23, 2004 between Goldcorp and Wheaton River is
terminated. Goldcorp has stated that it will hold a meeting of
Shareholders on January 31, 2005 to consider a resolution
to be passed, by a majority of the votes cast at the meeting, to
approve the issuance of Goldcorp Shares to acquire Wheaton
River. If this resolution is approved by the Shareholders, a
condition of the Offer will not be satisfied and the Offer will
not proceed. The Offer is also subject to the condition that
the shareholders of Glamis approve, by a majority of votes cast
at a meeting of shareholders, the removal of the restriction on
the number of common shares that Glamis is authorized to issue.
Glamis has called a meeting of its shareholders to be held on
February 9, 2005, to approve this change in authorized
capital. See Section 2 of the Offer to Purchase,
“Conditions to the Offer”, for a complete description
of the conditions to the Offer. Subject to applicable law,
Glamis reserves the right to withdraw the Offer and not take up
and pay for Goldcorp Shares deposited under the Offer unless
each of the conditions to the Offer is satisfied or waived by
Glamis before the Expiry Time.

    
Glamis believes that the proposed business
combination of Glamis and Goldcorp that would result from the
consummation of the Offer is superior to the proposed
combination of Goldcorp and Wheaton River as set out in the
Goldcorp Offer for Wheaton River.

    
The Glamis Shares (NYSE:GLG; TSX:GLG) and the
Goldcorp Shares (NYSE:GG; TSX:G) are listed on the New York
Stock Exchange (the “NYSE”) and the Toronto Stock
Exchange (the “TSX”). Based on the volume-weighted
average trading price of the Glamis Shares and Goldcorp Shares
on the NYSE for the 30 trading days ended December 15,
2004, the day before Glamis’ announcement of its intention
to make the Offer, the Offer valued each Glamis Share at
U.S.$20.00 and each Goldcorp Share at U.S.$17.80. Based on these
share prices, the Offer represents a premium of 22.6% over the
value of the Goldcorp Shares for that period.

    
Based on the volume-weighted average trading
price of the Glamis Shares and the Goldcorp Shares on the TSX
for the 30 trading days ended December 15, 2004, the day
before Glamis’ announcement of its intention to make the
Offer, the Offer valued each Glamis Share at Cdn.$24.03 and each
Goldcorp Share at Cdn.$21.39. Based on these share prices, the
Offer represents a premium of 23.6% over the value of the
Goldcorp Shares for that period.

    
The closing prices of the Glamis Shares on
January 5, 2005 on the NYSE and the TSX were U.S.$15.74 and
Cdn.$19.26, respectively, and the closing price of the Goldcorp
Shares on January 5, 2005 on the NYSE and the TSX were
U.S.$13.86 and Cdn.$17.02, respectively.

    
For a discussion of risk factors you should
consider in evaluating the Offer, see Section 4 of the
Circular, “Purpose of the Offer and Glamis’ Plans for
Goldcorp — Business Combination Risks” and
“Annex A — Information Concerning
Glamis — Risk Factors”. Glamis has applied to the
NYSE and the TSX to list the Glamis Shares to be issued to
Shareholders in connection with the Offer. Listing will be
subject to Glamis fulfilling all the listing requirements of
such exchanges.

The Dealer Manager for the Offer is:

Orion Securities Inc.

	 	 	 
	
    In Canada	 	
    In the United States
	
    
    Orion Securities Inc. 

    	 	
    Orion Securities (USA) Inc.

 

NOTICE TO SHAREHOLDERS IN THE UNITED
STATES

    
This offering is made by a Canadian
corporation that is permitted, under a multijurisdictional
disclosure system adopted by the securities regulatory
authorities in Canada and the United States, to prepare this
Offer and Circular in accordance with the disclosure
requirements of Canada. Shareholders in the United States should
be aware that such requirements are different from those of the
United States. The financial statements included or incorporated
by reference herein have been prepared in accordance with
Canadian generally accepted accounting principles, and may be
subject to Canadian auditing and auditor independence standards,
and thus may not be comparable to financial statements of United
States companies.

    
The enforcement by investors of civil
liabilities under United States federal securities laws may be
affected adversely by the fact that Glamis is incorporated or
organized under the laws of British Columbia that some or all of
its officers and directors may be residents of a foreign
country, that some or all of the experts named herein may be
residents of a foreign country, and that all or a substantial
portion of the assets of Glamis and such persons may be located
outside the United States.

    
Glamis has filed with the U.S. Securities
and Exchange Commission (the “SEC”) a Registration
Statement on Form F-10, and expects to mail this Offer and
Circular to Shareholders concerning the proposed business
combination with Goldcorp. WE URGE SHAREHOLDERS TO READ THE
REGISTRATION STATEMENT AND OFFER AND CIRCULAR AND ANY OTHER
RELEVANT DOCUMENTS TO BE FILED WITH THE SEC, BECAUSE THEY WILL
CONTAIN IMPORTANT INFORMATION. Investors and security holders
will be able to obtain the documents free of charge at the
SEC’s website, www.sec.gov. In addition, documents filed
with the SEC by Glamis will be available free of charge from
Glamis. You should direct requests for documents to Investor
Relations, Glamis Gold Ltd., 5190 Neil Road,
Suite 310, Reno, Nevada 89502-8502, telephone
(775) 827-4600. To obtain timely delivery, such documents
should be requested not later than February 7, 2005, five
business days before the Expiry Date.

    
THE SECURITIES OFFERED PURSUANT TO THIS OFFER
AND CIRCULAR HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE UNITED
STATES SECURITIES AND EXCHANGE COMMISSION OR ANY UNITED STATES
STATE SECURITIES COMMISSION NOR HAS THE UNITED STATES SECURITIES
AND EXCHANGE COMMISSION OR ANY UNITED STATES STATE SECURITIES
COMMISSION PASSED UPON THE ACCURACY OR ADEQUACY OF THIS
PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL
OFFENCE.

    
U.S. resident Shareholders should be aware
that acceptance of the Offer by them as described herein may
have tax consequences both in the United States and in Canada.
See Sections 15 and 16 of the Circular, “Certain
Canadian Federal Income Tax Considerations” and
“Certain U.S. Income Tax Considerations”. Such
consequences may not be fully described herein and such holders
are urged to consult their tax advisors.

    
Shareholders who wish to accept the Offer must
properly complete and execute the accompanying Letter of
Transmittal (printed on BLUE PAPER) or a manually signed
facsimile thereof and deposit it, together with the certificates
representing their Goldcorp Shares, at one of the offices of
Computershare Investor Services Inc. (the
“Depositary”) in accordance with the instructions in
the Letter of Transmittal. Alternatively, Shareholders may
follow the procedure for guaranteed delivery set forth in
Section 5 of the Offer to Purchase contained herein,
“Procedure for Guaranteed Delivery,” by using the
accompanying Notice of Guaranteed Delivery (printed on YELLOW
PAPER) or a manually signed facsimile thereof. Shareholders
whose Goldcorp Shares are registered in the name of a nominee
should contact their broker, investment dealer, bank, trust
company or other nominee for assistance in depositing their
Goldcorp Shares to the Offer.

    
The Offer is made only for the Goldcorp Shares
and not for any Goldcorp Options or Goldcorp Warrants or other
rights to acquire Goldcorp Shares. Any holder of such securities
who wishes to accept the Offer must, to the extent permitted by
the terms thereof and applicable law, fully exercise such
securities sufficiently in advance of the Expiry Time in order
to obtain Goldcorp Shares that may be deposited in accordance
with the terms of the Offer. See Section 4 of the Circular,
“Purpose of the Offer and Glamis’ Plans for
Goldcorp — Treatment of Goldcorp Options and
Warrants”.

    
Questions and requests for assistance may be
directed to the Dealer Manager, the Depositary or Georgeson
Shareholder Communications Canada, Inc., the Information Agent
for the Offer. Contact details for
such persons may be found on the back page of this Offer and
Circular. Additional copies of this document and related
materials may be obtained without charge on request from the
Depositary at its offices specified on the back page of this
document. Additionally, copies of this document and related
materials may be found at www.sedar.com and www.sec.gov.

    
This document does not constitute an offer to
sell or a solicitation of an offer to buy any securities to any
person in any jurisdiction in which such offer or solicitation
is unlawful. The Offer is not being made or directed to, nor is
this document being mailed to, nor will deposits of Goldcorp
Shares be accepted from or on behalf of, Shareholders in any
jurisdiction in which the making or acceptance of the Offer
would not be in compliance with the laws of such jurisdiction.
However, Glamis may, in its sole discretion, take such action as
it may deem necessary to extend the Offer to Shareholders in any
such jurisdiction.

 

STATEMENTS REGARDING FORWARD-LOOKING
INFORMATION

     
This Offer and Circular, including the Annexes
attached thereto and the pro forma consolidated financial
statements of Glamis and some of the information incorporated by
reference in this Offer and Circular, contain forward-looking
statements. Forward-looking statements include, but are not
limited to, statements with respect to the future price of gold,
the estimation of mineral reserves, the realization of mineral
reserve estimates, the timing and amount of estimated future
production, costs of production, capital expenditures, costs and
timing of the development of new deposits, success of
exploration activities, Glamis’ hedging practices,
permitting time lines, currency fluctuations, requirements for
additional capital, government regulation of mining operations,
environmental risks, unanticipated reclamation expenses, title
disputes or claims, limitations on insurance coverage and the
timing and possible outcome of pending litigation. Often, but
not always, forward-looking statements can be identified by the
use of words such as “plans”, “expects” or
“does not expect”, “is expected”,
“budget”, “scheduled”,
“estimates”, “forecasts”,
“intends”, “anticipates” or “does not
anticipate”, or “believes”, or variation of such
words and phrases or state that certain actions, events or
results “may”, “could”, “would”,
“might” or “will” be taken, occur or be
achieved. Forward-looking statements involve known and unknown
risks, uncertainties and other factors which may cause the
actual results, performance or achievements of Glamis to be
materially different from any future results, performance or
achievements expressed or implied by the forward-looking
statements. Such factors include, among others, the actual
results of current exploration activities; actual results of
current reclamation activities; conclusions of economic
evaluations; changes in project parameters as plans continue to
be refined; future prices of gold; possible variations in ore
grade or recovery rates; failure of plant, equipment or
processes to operate as anticipated; accidents, labour disputes
and other risks of the mining industry; delays in obtaining
governmental approvals or financing or in the completion of
development or construction activities, as well as those factors
discussed in the section entitled “Risk Factors” in
Annex A to the Circular. Although Glamis has attempted to
identify important factors that could cause actual actions,
events or results to differ materially from those described in
forward-looking statements, there may be other factors that
cause actions, events or results not to be as anticipated,
estimated or intended. There can be no assurance that
forward-looking statements will prove to be accurate, as actual
results and future events could differ materially from those
anticipated in such statements. Accordingly, readers should not
place undue reliance on forward-looking statements.

     
The following factors, amongst others, related to
the business combination of Glamis and Goldcorp could cause
actual results to differ materially from the forward-looking
statements: the Glamis Shares issued in connection with the
Offer may have a market value lower than expected; the business
of Glamis and Goldcorp may not be integrated successfully or
such integration may be more difficult, time-consuming or costly
than expected; and the expected combination benefits from the
Glamis/ Goldcorp transaction may not be fully realized or not
realized within the expected time frame. See Section 4 of
the Circular, “Purpose of the Offer and Glamis’ Plans
for Goldcorp — Business Combination Risks”.

     
These factors are not intended to represent a
complete list of the factors that could affect Glamis and the
combination of Glamis and Goldcorp. Additional factors are noted
elsewhere in this Offer and Circular and in any documents
incorporated by reference into this Offer and Circular. Glamis
undertakes no obligation to update forward-looking statements.

NON-GAAP FINANCIAL MEASURES

     
Glamis uses certain non-GAAP financial
disclosures in its reports. The reported cash costs of
production should not be considered as an alternative to
operating profit or net profit attributable to shareholders, or
as an alternative to other Canadian or U.S. generally
accepted accounting principle measures and may not be comparable
to other similarly titled measures of other companies. However,
Glamis believes that cash costs of production per ounce of gold,
by mine, is a useful indicator to investors and management of a
mine’s performance as it provides: (i) a measure of
the mine’s cash margin per ounce, by comparison of the cash
operating costs per ounce by mine to the price of gold;
(ii) the trend in costs as the mine matures; and
(iii) an internal benchmark of performance to allow for
comparison against other mines. In addition, the difference
between cost of sales as presented in the consolidated
statements of operations and cash costs of production for

i

 

Glamis is due to the cost of any incremental
ounces put into or sold out of finished goods inventory,
compared to those ounces actually produced during the year. For
Glamis, there is no significant difference between the total
cash cost per ounce of production and total cash cost per ounce
sold.

INFORMATION CONCERNING GOLDCORP

     
Except as otherwise indicated, the information
concerning Goldcorp contained in this Offer and Circular has
been taken from or is based upon publicly available documents
and records on file with Canadian securities regulatory
authorities, the SEC and other public sources. Glamis has not
had access to the non-public books, records and financial
information of Goldcorp since early October, 2004. Although
Glamis has no knowledge that would indicate that any statements
contained herein concerning Goldcorp taken from or based upon
such documents and records are untrue or incomplete, neither
Glamis nor any of its directors or officers assumes any
responsibility for the accuracy or completeness of such
information, including any of Goldcorp’s financial
statements, or for any failure by Goldcorp to disclose events or
facts which may have occurred or which may affect the
significance or accuracy of any such information but which are
unknown to Glamis. Glamis has no means of verifying the accuracy
or completeness of any of the information contained herein that
is derived from Goldcorp’s publicly available documents or
records or whether there has been any failure by Goldcorp to
disclose events that may have occurred or may affect the
significance or accuracy of any information.

REPORTING CURRENCIES AND ACCOUNTING
PRINCIPLES

     
Unless otherwise indicated, all references to
“$” or “dollars” in this Offer and Circular
refer to U.S. dollars. Glamis’ financial statements
included herein and incorporated by reference are reported in
U.S. dollars and are prepared in accordance with Canadian
GAAP. Certain of the financial information in these financial
statements is reconciled to U.S. GAAP. For a discussion of
the principal differences between U.S. GAAP and Canadian
GAAP in the context of Glamis, see Note 15 to the Glamis
audited financial statements as at December 31, 2003 and
Note 8 to the Glamis unaudited interim financial statements
as at September 30, 2004. Goldcorp’s financial
statements that are incorporated herein by reference are
reported in U.S. dollars. According to Goldcorp, these
financial statements are prepared in accordance with Canadian
GAAP with certain financial information reconciled to
U.S. GAAP as stated in the Goldcorp audited financial
statements as at December 31, 2003.

EXCHANGE RATES

     
The following table sets forth the exchange rate
for one U.S. dollar expressed in Canadian dollars, for each
period indicated, the average of such exchange rates, and the
exchange rate at the end of such period, based upon the noon
buying rates provided by the Bank of Canada:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
			
			Year Ended December 31
			

			2004		2003		2002		2001		2000
			
		
		
		
		

	
    
    Rate at end of period
    

    	 	 	1.2036	 	 	 	1.2924	 	 	 	1.5796	 	 	 	1.5926	 	 	 	1.5002	 
	
    
    Average rate for period
    

    	 	 	1.3015	 	 	 	1.4015	 	 	 	1.5704	 	 	 	1.5484	 	 	 	1.4852	 

     
On September 30, 2004, the exchange rate for
one U.S. dollar expressed in Canadian dollars based upon
the noon buying rates provided by the Bank of Canada was
Cdn.$1.2639.

     
On January 5, 2005, the exchange rate for
one U.S. dollar expressed in Canadian dollars based upon
the noon buying rates provided by the Bank of Canada was
Cdn.$1.2238.

ii

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
			Pages
			

	
    
     STATEMENTS REGARDING
    FORWARD-LOOKING INFORMATION
    

    	 	 	i	 
	
    
     NON-GAAP FINANCIAL
    MEASURES
    

    	 	 	i	 
	
    
     INFORMATION CONCERNING
    GOLDCORP
    

    	 	 	ii	 
	
    
     REPORTING CURRENCIES AND
    ACCOUNTING PRINCIPLES
    

    	 	 	ii	 
	
    
     EXCHANGE RATES
    

    	 	 	ii	 
	
    
     SUMMARY
    

    	 	 	1	 
	
    
     SUMMARY OF GLAMIS AND
    GOLDCORP HISTORICAL AND PRO FORMA FINANCIAL DATA
    

    	 	 	7	 
	
    
     QUESTIONS AND ANSWERS ABOUT
    THE OFFER
    

    	 	 	10	 
	
    
     DEFINITIONS
    

    	 	 	15	 
	
    
     OFFER TO PURCHASE
    

    	 	 	19	 
	
    
     1.  The Offer
    

    	 	 	19	 
	
    
     2.  Conditions to
    the Offer
    

    	 	 	19	 
	
    
     3.  Payment for
    Deposited Goldcorp Shares
    

    	 	 	21	 
	
    
     4.  Time and
    Manner for Acceptance
    

    	 	 	22	 
	
    
     5.  Procedure for
    Guaranteed Delivery
    

    	 	 	23	 
	
    
     6.  Extensions,
    Variations and Changes to the Offer
    

    	 	 	23	 
	
    
     7.  Changes in
    Capitalization of Goldcorp; Dividends and Distributions;
    Liens
    

    	 	 	25	 
	
    
     8.  Right to
    Withdraw Deposited Goldcorp Shares
    

    	 	 	25	 
	
    
     9.  Return of
    Withdrawn Goldcorp Shares
    

    	 	 	27	 
	
    
     10. Mail Service
    Interruption
    

    	 	 	27	 
	
    
     11. Notice and
    Delivery
    

    	 	 	27	 
	
    
     12. General
    

    	 	 	28	 
	
    
     13. Market Purchases
    

    	 	 	28	 
	
    
     14. Other Terms of the
    Offer
    

    	 	 	29	 
	
    
     CIRCULAR
    

    	 	 	30	 
	
    
     1.  Glamis
    

    	 	 	30	 
	
    
     2.  Goldcorp
    

    	 	 	32	 
	
    
     3.  Background to
    the Offer
    

    	 	 	34	 
	
    
     4.  Purpose of the
    Offer and Glamis’ Plans for Goldcorp
    

    	 	 	41	 
	
    
     5.  Acquisition of
    Shares Not Deposited
    

    	 	 	43	 
	
    
     6.  Source of
    Offered Consideration
    

    	 	 	46	 
	
    
     7.  Beneficial
    Ownership of and Trading in Securities of Goldcorp
    

    	 	 	46	 
	
    
     8.  Prior
    Distributions of Goldcorp Shares and Dividend Policy
    

    	 	 	46	 
	
    
     9.  Commitments to
    Acquire Securities of Goldcorp
    

    	 	 	46	 
	
    
     10. Arrangements,
    Agreements, Commitments or Understandings
    

    	 	 	46	 
	
    
     11. Acceptance of the
    Offer
    

    	 	 	46	 
	
    
     12. Material Changes
    and Other Information
    

    	 	 	47	 
	
    
     13. Effect of the Offer
    on the Market for and Listing of Goldcorp Shares
    

    	 	 	47	 
	
    
     14. Regulatory
    Matters
    

    	 	 	47	 
	
    
     15. Certain Canadian
    Federal Income Tax Considerations
    

    	 	 	48	 
	
    
     16. Certain
    U.S. Income Tax Considerations
    

    	 	 	52	 
	
    
     17. Eligibility for
    Investment
    

    	 	 	58	 
	
    
     18. Depositary
    

    	 	 	58	 
	
    
     19. Dealer Manager and
    Soliciting Dealer Group
    

    	 	 	58	 
	
    
     20. Information
    Agent
    

    	 	 	59	 
	
    
     21. Offerees’
    Statutory Rights
    

    	 	 	59	 
	
    
     22. Directors’
    Approval
    

    	 	 	59	 
	
    
     23. Expenses of the
    Offer
    

    	 	 	59	 
	
    
     CONSENTS
    

    	 	 	60	 
	
    
     ANNEX A INFORMATION
    CONCERNING GLAMIS
    

    	 	 	A-1	 
	 	
    
     DOCUMENTS INCORPORATED BY
    REFERENCE
    

    	 	 	A-1	 
	 	
    
     HISTORY AND CURRENT
    OPERATIONS
    

    	 	 	A-1	 
	 	
    
     STRATEGY FOR GROWTH
    

    	 	 	A-2	 
	 	
    
     RECENT DEVELOPMENTS
    

    	 	 	A-2	 
	 	 	
    
     El Sauzal Mine, Mexico
    

    	 	 	A-3	 
	 	 	
    
     Marlin Project, Guatemala
    

    	 	 	A-3	 
	 	 	
    
     Marigold Mine, Nevada
    

    	 	 	A-4	 
	 	 	
    
     San Martin Mine,
    Honduras
    

    	 	 	A-5	 
	 	 	
    
     Cerro Blanco Project,
    Guatemala
    

    	 	 	A-5	 
	 	
    
     DESCRIPTION OF SHARE
    CAPITAL
    

    	 	 	A-5	 
	 	
    
     COMPARISON OF SHAREHOLDER
    RIGHTS
    

    	 	 	A-6	 
	 	
    
     CHANGES IN SHARE CAPITAL
    

    	 	 	A-12	 
	 	
    
     ELIGIBILITY FOR
    INVESTMENT
    

    	 	 	A-12	 
	 	
    
     TRANSFER AGENT AND
    REGISTRAR
    

    	 	 	A-12	 
	 	
    
     RISK FACTORS
    

    	 	 	A-12	 
	 	
    
     AVAILABLE INFORMATION
    

    	 	 	A-20	 
	 	
    
     EXPERTS
    

    	 	 	A-20	 
	 	
    
     LEGAL MATTERS
    

    	 	 	A-21	 
	
    
     ANNEX B PRO FORMA
    CONSOLIDATED FINANCIAL STATEMENTS
    

    	 	 	B-1	 
	 	
    
     COMPILATION REPORT
    

    	 	 	B-2	 
	
    
     ANNEX C CERTAIN INFORMATION
    REGARDING THE DIRECTORS AND EXECUTIVE OFFICERS OF GLAMIS GOLD
    LTD. 
    

    	 	 	C-1	 

iii

 

SUMMARY

     
This summary highlights information more fully
discussed elsewhere in this offer and circular. This summary is
not intended to be complete and is qualified by reference to the
more detailed information contained in those documents. Goldcorp
shareholders are urged to read the more detailed information
about Glamis, the offer and the Glamis common shares provided
elsewhere in this offer and circular and in the documents
incorporated by reference, including the consolidated pro forma
financial statements and notes.

Glamis Gold Ltd.

     
We are a premier intermediate gold producer with
low-cost gold mines and development projects in Nevada, Mexico
and Central America. We remain 100 percent unhedged. Our
plan and budget reflects a near tripling of annual gold
production to more than 700,000 ounces by 2007 at a total cash
cost below $150 per ounce.

     
We are a British Columbia, Canada corporation,
with principal and executive offices located at 5190 Neil
Road, Suite 310, Reno, Nevada, USA 89502, telephone number
(775) 827-4600. Our registered and records offices are
located at 1500 — 1055 West Georgia Street, P.O.
Box 11117, Vancouver, British Columbia, Canada V6E 4N7.

     
Our common shares are listed and posted for
trading on the New York Stock Exchange and on the Toronto Stock
Exchange under the symbol “GLG”. See Section 1 of
the circular, “Glamis”.

Goldcorp

     
Goldcorp is a North American based gold producer.
The registered and head office of Goldcorp is located at
145 King Street West, Suite 2700, Toronto, Ontario,
Canada, M5J 1J8, telephone number (416) 865-0326.

     
The Goldcorp common shares are listed on the New
York Stock Exchange under the symbol “GG” and on the
Toronto Stock Exchange under the symbol “G”. See
Section 2 of the circular, “Goldcorp”.

The Offer

     
We are offering, on the terms and subject to the
conditions of the offer, to purchase all of the issued and
outstanding Goldcorp common shares, on the basis of 0.89 of a
common share of Glamis for each Goldcorp common share.

     
Assuming that all of the Goldcorp common shares
that are issued and outstanding as of December 22, 2004,
and all Goldcorp common shares issuable upon exercise of
Goldcorp options and Goldcorp common shares issuable upon
exercise of Goldcorp warrants outstanding as at
December 22, 2004, are tendered to the offer and that we
take up and pay for such Goldcorp common shares under this
offer, we will issue 187,010,954 of our common shares.

Purpose of the Offer

     
The purpose of the offer is to enable us to
acquire all of the outstanding Goldcorp common shares.

Benefits of the Offer

     
Glamis believes that the combination of Glamis
and Goldcorp will produce the following benefits:

			
	 	• 	
    A premier gold producer.
    The combined company will create a
    world-class, pure gold producer that we believe will attract
    substantial interest from gold investors.
    
	 
	 	• 	
    Expertise to Unlock Additional Value in Red
    Lake. Goldcorp’s Red Lake
    property is one of the premier high-grade gold mines in the
    world. However, we believe that the full potential of this asset
    has not been realized. We believe that the experience of our
    management in mine development and operations could lower unit
    costs and increase the production rate and asset value of Red
    Lake.
    

1

 

			
	 	• 	
    Professional, Operations-Oriented
    Management. We will bring to the
    combined company a professional, operations-oriented management
    team with a chief executive officer experienced in both
    acquisitions, and mine development and operation.
    
	 
	 	• 	
    Pure Unhedged Gold Producer.
    The combined company will remain a
    pure gold company, with no base metal exposure or reliance on
    base metal credits to achieve low operating costs and no gold
    hedging.
    
	 
	 	• 	
    Diversified Portfolio of Properties with
    Long Mine Life. We have
    established a diversified portfolio of new low-cost operations.
    The combination of our multiple-property portfolio with the
    primarily single-property portfolio of Goldcorp will provide
    diversity of operating risk that the Goldcorp shareholders
    currently do not have.
    
	 
	 	• 	
    Outstanding Growth
    Profile. The combination of
    expected growth at Red Lake with our existing growth projects
    provides superior opportunities for enhanced valuations from
    fully-permitted, and fully-financed growth projects that are
    already under construction.
    
	 
	 	• 	
    Financial
    Strength. The combined company
    will have approximately $500 million in cash and gold
    bullion with minimal debt.
    
	 
	 	• 	
    Reserves. The
    combined company will have over 11 million ounces of proven
    and probable gold reserves.
    
	 
	 	• 	
    Enhanced Market
    Liquidity. The combined company
    will have a much larger market capitalization than either Glamis
    or Goldcorp alone, which should provide enhanced market
    liquidity for the shareholders. In addition, we believe that the
    combined company will have a greater market following and offer
    greater attraction to a wider range of investors than either
    Glamis or Goldcorp do currently on their own.
    

Superiority to Proposed Combination of
Goldcorp and Wheaton River

     
We believe that our offer to the Goldcorp
shareholders will deliver superior value to Goldcorp’s
shareholders than Goldcorp’s offer dated December 29,
2004 to purchase all of the outstanding common shares of Wheaton
River. In particular, we believe our offer will deliver superior
value for the following reasons:

			
	 	• 	
    Premium Received versus Premium
    Paid. We are offering a premium to
    Goldcorp shareholders while Goldcorp is proposing to pay a
    premium under its offer to purchase all of the outstanding
    common shares of Wheaton River.
    
	 
	 	• 	
    Maintain Gold
    Premium. Our combination with
    Goldcorp is unlikely to jeopardize Goldcorp’s premium gold
    multiple. By combining with Wheaton River, Goldcorp’s new
    business will include significant base metal production (copper
    production accounted for approximately 45% of Wheaton
    River’s total revenues for the nine months ended
    September 30, 2004) which may jeopardize its ability to
    continue to attract a premium gold multiple.
    
	 
	 	• 	
    Mine Operator versus Minority
    Investor. We operate each of our
    mines. We have successfully developed and operated gold mines
    for the past 25 years. Many of the people responsible for
    this record of achievement are still with us in executive or
    operations roles. In contrast, Wheaton River’s largest
    asset is a minority, non-operating interest in a mine whose
    majority revenue stream is derived from copper.
    

Acquisition of Goldcorp Common Shares Not
Deposited in the Offer

     
If we take up and pay for the Goldcorp common
shares validly deposited under the offer, we currently intend to
take such action as is necessary, including causing a meeting of
Goldcorp shareholders to be held to consider an amalgamation,
statutory arrangement, consolidation, capital reorganization or
other transaction, to acquire any Goldcorp common shares not
deposited to the offer. It is our current intention that the

2

 

consideration to be offered for Goldcorp common
shares under such subsequent transaction will be the same
consideration offered under this offer to purchase. See
Section 4 of the circular, “Purpose of the Offer and
Glamis’ Plans for Goldcorp”, and Section 5 of the
circular, “Acquisition of Shares Not Deposited”.

Treatment of Goldcorp Options and Warrants in
the Offer

     
The offer is made only for outstanding Goldcorp
common shares and not for any Goldcorp options or Goldcorp
warrants or other rights to acquire Goldcorp common shares. Any
holder of such securities who wishes to accept the offer must,
to the extent permitted by the terms thereof and applicable law,
fully exercise such securities sufficiently in advance of the
expiry time of the offer in order to obtain Goldcorp common
shares that may be deposited in accordance with the terms of the
offer.

     
If we take up and pay for Goldcorp common shares
under the offer, we currently intend to implement a subsequent
acquisition transaction, implement a transaction which will be
structured in a manner, or take such other action as may be
available, so that the holders of Goldcorp options and Goldcorp
warrants will, pursuant to the terms thereof, receive our common
shares upon the proper exercise of the Goldcorp options or
Goldcorp warrants. The number of our common shares so issued and
the exercise price will reflect the exchange ratio used in our
offer.

     
If our offer is successful, and after the
completion of any subsequent acquisition transaction, we intend
to apply to delist Goldcorp’s common shares from the New
York Stock Exchange and the Toronto Stock Exchange and to cause
Goldcorp’s common shares to be deregistered under the
United States Securities Exchange Act of 1934. We currently
intend, subject to regulatory approval, to maintain the listing
of Goldcorp warrants currently listed on the Toronto Stock
Exchange. However, if our offer is successful and after
completion of any subsequent acquisition transaction, such
warrants will, in effect, become warrants to acquire
our shares.

Treatment of Fractional Shares

     
We will not issue fractional common shares.
Instead, Goldcorp’s registered shareholders will receive a
cash payment equal to such fraction of our common share they
would otherwise have received multiplied by the closing price of
our common shares on the New York Stock Exchange on the date we
first take up and pay for any shares under our offer.

Conditions to the Offer

     
We reserve the right to withdraw our offer and
not take up and pay for any Goldcorp common shares deposited
under our offer unless all of the conditions of our offer
contained in Section 2 of the offer to purchase are
satisfied or, where permitted, waived. These conditions include,
among others, the conditions that:

			
	 	• 	
    not less than 66 2/3% of the Goldcorp common
    shares (on a fully diluted basis) will have been validly
    deposited under the offer and not withdrawn at the expiry
    time; and
    
	 
	 	• 	
    the Goldcorp shareholders do not approve, by a
    majority of the votes cast at a meeting of shareholders, the
    issuance of Goldcorp common shares in connection with
    Goldcorp’s offer to purchase all of the outstanding common
    shares of Wheaton River dated December 29, 2004, and the
    Acquisition Agreement dated December 23, 2004 between
    Goldcorp and Wheaton River is terminated.
    

     
Our offer is also subject to the condition that
our shareholders approve the removal of the restriction on the
number of our common shares that we are authorized to issue. The
removal of this restriction will provide us with a sufficient
number of our authorized common shares to allow us to complete
the offer. We have called a meeting of our shareholders to be
held on February 9, 2005 to approve this change in
authorized capital. The approval is to be provided by a majority
vote of our shareholders who vote on this matter at the meeting.
See Section 2 of the offer to purchase, “Conditions to
the Offer” for additional conditions to the offer.

3

 

Time for Acceptance

     
Our offer is open for acceptance until
9:00 p.m. (Toronto time) on February 14, 2005 or until
such later time and date to which we may extend our offer at our
discretion, unless we withdraw this offer earlier. See
Section 4 of the offer to purchase, “Time and Manner
for Acceptance”.

Manner of Acceptance

     
The offer may be accepted by Goldcorp
shareholders by depositing certificates representing Goldcorp
common shares that are being deposited, together with a duly
completed and signed letter of acceptance and transmittal in the
form accompanying our offer and circular (printed on BLUE
PAPER), referred to in this summary as the “letter of
transmittal”, at the offices of the depositary specified in
the letter of transmittal at or before the expiry time. The
offer will be deemed to be accepted only if the depositary has
actually received these documents at or before the expiry time.
Goldcorp shareholders whose Goldcorp common shares are
registered in the name of a nominee should contact their broker,
investment dealer, bank, trust company or other nominee for
assistance in depositing their Goldcorp common shares to our
offer. See Section 4 of the offer to purchase, “Time
and Manner for Acceptance”.

     
Goldcorp shareholders whose certificates for
Goldcorp common shares are not immediately available may use the
procedures for guaranteed delivery set forth in the notice of
guaranteed delivery accompanying this offer and circular
(printed on YELLOW PAPER), referred to in this summary as
the “notice of guaranteed delivery”. See
Section 5 of the offer to purchase, “Procedure for
Guaranteed Delivery”.

Subsequent Offering Period

     
We may provide a subsequent offering period of at
least 10 calendar days but in no event more than 20 United
States business days, following the expiration of the offer. A
subsequent offering period would be an additional period of
time, during which any Goldcorp shareholders may tender their
Goldcorp common shares that were not tendered in the offer. We
will promptly accept for exchange any Goldcorp common shares
tendered during the subsequent offering period at the same
exchange ratio as in the offer and we will pay for such shares
within three business days of our acceptance of your Goldcorp
common shares. Any subsequent offering period will be announced
simultaneously with an announcement that we have accepted
Goldcorp common shares for exchange in the offer. See
Section 6 of the offer to purchase, “Extensions,
Variations and Changes to the Offer”.

Payment for Deposited Shares

     
If all of the conditions of the offer have been
satisfied or, where permitted, waived by us, we will become
obligated to take up and pay for Goldcorp common shares validly
deposited under, and not withdrawn from, the offer within the
time periods prescribed by applicable securities laws. Any
Goldcorp common shares deposited under the offer after the first
date on which Goldcorp common shares have been taken up and paid
for by us will be taken up within 10 days of that deposit.
See Section 3 of the offer to purchase, “Payment for
Deposited Goldcorp Shares”.

Right to Withdraw Deposited Shares

     
All deposits of Goldcorp common shares under the
offer are irrevocable, except as provided in Section 8 of
the offer to purchase, “Right to Withdraw Deposited
Goldcorp Shares”. Section 8 of the offer to purchase
permits withdrawal of the Goldcorp common shares deposited under
the offer at any time before the Goldcorp common shares
deposited under the offer are taken up by us, if such Goldcorp
common shares have not been paid for by us within three business
days after having been taken up and in certain other
circumstances.

4

 

Certain Canadian Federal Income Tax
Considerations

     
A Canadian resident Goldcorp shareholder who
holds Goldcorp common shares as capital property and sells such
shares pursuant to the offer will generally not realize a
capital gain or capital loss under the Tax Act unless the
Goldcorp shareholder chooses to recognize a capital gain or
capital loss.

     
A Goldcorp shareholder who is not a resident of
Canada who holds Goldcorp common shares as capital property and
sells such shares pursuant to the offer will generally not be
subject to tax in Canada if the Goldcorp common shares are not
taxable Canadian property.

     
All Goldcorp shareholders should review the more
detailed information under Section 15 of the circular,
“Certain Canadian Federal Income Tax Considerations”.

Certain U.S. Income Tax
Considerations

     
The offer has been structured to cause the
exchange of Goldcorp common shares pursuant to the offer to be
treated as a reorganization for U.S. income tax purposes.
If reorganization treatment applies to the exchange, a
U.S. holder who exchanges Goldcorp common shares and owns,
immediately after the exchange, less than 5% of us (by voting
power and value, directly and by attribution) will generally not
recognize a capital gain or capital loss for U.S. tax
purposes on the receipt of our common shares for Goldcorp common
shares, except with respect to cash received in lieu of a
fractional share. If reorganization treatment does not apply,
the U.S. holder will generally be required to recognize a
capital gain or loss. We have not sought or received a letter or
ruling from the United States Internal Revenue Service.
Accordingly, we cannot provide any assurance that reorganization
treatment will apply to the exchange. See Section 16 of the
circular, “Certain U.S. Income Tax
Considerations”.

Risk Factors

     
An investment in our common shares and the
business combination with Goldcorp is subject to certain risks.
You should consider carefully the risk factors set out in the
offer and circular before depositing your Goldcorp common shares
pursuant to the offer. See Section 4 of the circular,
“Purpose of the Offer and Glamis’ Plans for
Goldcorp — Business Combination Risks” and
“Annex A — Information Concerning
Glamis — Risk Factors”.

Pro Forma Financial Information

     
For pro forma information regarding the combined
company as at September 30, 2004, for the nine months ended
September 30, 2004 and for the year ended December 31,
2003, see “Annex B — Pro Forma Consolidated
Financial Statements”. For a summary of such information,
see “Summary of Glamis and Goldcorp Historical and Pro
Forma Financial Data” below.

Accounting Treatment

     
We will account for the business combination of
Glamis and Goldcorp using the purchase method of accounting in
Canada and the United States. See “Annex B —
Notes to the Pro Forma Consolidated Financial Statements”.

Depositary

     
Computershare Investor Services Inc. is acting as
depositary under the offer. The depositary will be responsible
for receiving certificates representing deposited Goldcorp
common shares and accompanying letters of transmittal and other
documents. The depositary is also responsible for receiving
notices of guaranteed delivery, giving notices, if required, and
making payment for all Goldcorp common shares purchased by us
under the terms of the offer.

5

 

Dealer Manager and Information Agent

     
Orion Securities Inc. and Orion Securities
(USA) Inc., its U.S. affiliate, have been retained to
act as dealer manager in connection with the offer. In Canada,
Orion Securities Inc. may form a soliciting dealer group
comprised of members of the Investment Dealers Association of
Canada and members of the stock exchanges in Canada to solicit
acceptances of the offer who are not resident in the United
States. Orion Securities (USA) Inc. has the right to appoint
sub-agents who are registered under applicable U.S. securities
laws to solicit acceptances of the offer in the United States.
In addition, Georgeson Shareholder Communications has been
retained to act as information agent in connection with the
offer. Contact details for such persons may be found on the back
page of this document.

Regulatory Requirement

     
The offer will be subject to the approval of the
listing of the our common shares issued under this offer by each
of the New York Stock Exchange and the Toronto Stock Exchange,
as well as certain approvals from regulatory authorities in
Canada and the United States, if applicable, including the
United States Securities and Exchange Commission.

     
We have applied to the New York Stock Exchange
and the Toronto Stock Exchange to list our common shares that
will be issued to Goldcorp shareholders in connection with the
offer. Listing will be subject to our fulfilling all the listing
requirements of these exchanges.

No Dissenter Rights

     
No Goldcorp shareholder will have
dissenters’ or appraisal rights in connection with the
offer. However, holders of Goldcorp common shares who do not
tender their Goldcorp common shares to the offer may have rights
of dissent in the event we elect to acquire such Goldcorp common
shares by way of a subsequent acquisition transaction. See
Section 5 of the circular, “Acquisition of Shares Not
Deposited”.

6

 

SUMMARY OF GLAMIS AND GOLDCORP

HISTORICAL AND PRO FORMA FINANCIAL
DATA

     
The following tables present our summary
historical consolidated financial information as at and for the
years ended December 31, 2003 and 2002 and our consolidated
financial information as at and for the nine months ended
September 30, 2004, which financial statements are
incorporated by reference in this offer and circular. The tables
also present our pro forma consolidated financial information as
at and for the nine months ended September 30, 2004 and for
the year ended December 31, 2003 after giving effect to our
acquisition of all of the Goldcorp common shares pursuant to the
offer. This information is derived from and should be read in
conjunction with the financial statements and the related notes
to those financial statements incorporated by reference or
included herein. Copies of the financial statements and related
notes incorporated herein by reference can be found at
www.sedar.com and www.sec.gov.

     
This historical information presented for
Goldcorp is derived from the historical consolidated financial
information for Goldcorp as at and for the years ended
December 31, 2003 and 2002 and the consolidated financial
information for Goldcorp as at and for the nine months ended
September 30, 2004, which statements are incorporated by
reference in this offer and circular.

     
The selected pro forma consolidated financial
information set forth below should be read in conjunction with
our unaudited pro forma consolidated financial statements, the
accompanying notes thereto and the compilation report of KPMG
LLP thereon included in this offer and circular. The pro forma
consolidated balance sheet has been prepared from the unaudited
consolidated balance sheet of each of Glamis and Goldcorp as at
September 30, 2004 and gives pro forma effect to the
acquisition of Goldcorp as if the transaction occurred on
September 30, 2004. The pro forma consolidated statement of
operations for the nine-month period ended September 30,
2004 and for the year ended December 31, 2003 has been
prepared from the unaudited statements of operations of each of
Glamis and Goldcorp for the nine months ended September 30,
2004 and from the audited statements of operations of each of
Glamis and Goldcorp for the year ended December 31, 2003
and gives pro forma effect to the acquisition of Goldcorp as if
the transaction occurred on January 1, 2003.

Glamis Summary of Financial Condition and Pro
Forma Financial Data

(Dollar amounts in millions except per share
and gold price data)

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
							
							Glamis Actual
							

									
			Pro Forma		Pro Forma				As at December 31
			as at		as at		As at		(restated)(2)
			September 30,		December 31,		September 30,		

			2004		2003(1)		2004		2003		2002
			
		
		
		
		

	
    
    Working capital
    

    	 	$	436.1	 	 	 	—	 	 	$	27.4	 	 	$	145.4	 	 	$	169.1	 
	
    
    Total assets
    

    	 	$	4,414.9	 	 	 	—	 	 	$	571.8	 	 	$	534.1	 	 	$	477.8	 
	
    
    Long-term liabilities
    

    	 	$	602.7	 	 	 	—	 	 	$	92.1	 	 	$	88.6	 	 	$	77.7	 
	
    
    Shareholders’ equity
    

    	 	$	3,763.2	 	 	 	—	 	 	$	452.9	 	 	$	434.7	 	 	$	388.6	 
	
    
    Common shares outstanding
    

    	 	 	305,252,769	 	 	 	—	 	 	 	130,694,678	 	 	 	130,133,678	 	 	 	125,978,115	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
							
							Glamis Actual
							

			Pro Forma		Pro Forma				
			for the Nine		For the		For the Nine		For the Year Ended December 31
			Months Ended		Year Ended		Months Ended		(restated)(2)
			September 30,		December 31,		September 30,		

			2004		2003		2004		2003		2002
			
		
		
		
		

	
    
    Revenue
    

    	 	$	200.4	 	 	$	346.6	 	 	$	61.3	 	 	$	84.0	 	 	$	80.8	 
	
    
    Net earnings
    

    	 	$	16.0	 	 	$	43.2	 	 	$	14.8	 	 	$	18.2	 	 	$	13.7	 
	
    
    Basic earnings per share
    

    	 	$	0.05	 	 	$	0.14	 	 	$	0.11	 	 	$	0.14	 	 	$	0.14	 
	
    
    Net cash provided by operating activities
    

    	 	$	55.9	 	 	$	122.2	 	 	$	25.2	 	 	$	27.0	 	 	$	28.3	 
	
    
    Ounces of gold produced
    

    	 	 	611,678	 	 	 	833,139	 	 	 	149,927	 	 	 	230,294	 	 	 	251,919	 
	
    
    Average gold price realized per ounce
    

    	 	$	403	 	 	$	367	 	 	$	404	 	 	$	368	 	 	$	313	 

		
	(1) 	
    In accordance with the U.S. and Canadian
    regulatory pronouncements, a Canadian GAAP pro forma balance
    sheet was not required to be prepared as at December 31,
    2003.
    
	 
	(2) 	
    Effective January 1, 2004, we adopted:
    

		
	    (a) 	
    retroactively without restatement the use of the
    fair value method of accounting for stock-based compensation
    issued to employees; and
    
	 
	    (b) 	
    retroactively with restatement new guidance with
    respect to the measurement and recognition of asset retirement
    obligations.
    

		
		
    The amounts presented for 2003 and 2002 have been
    restated from those previously presented to give effect to the
    change in the accounting for asset retirement obligations.
    

7

 

Goldcorp Summary of Financial
Condition

(Dollar amounts in millions except per share
and gold price data)

	 	 	 	 	 	 	 	 	 	 	 	 	 
					
					As at December 31
			As at September 30,		

			2004		2003		2002
			
		
		

	
    
    Working capital
    

    	 	$	378.4	 	 	$	362.2	 	 	$	274.3	 
	
    
    Total assets
    

    	 	$	648.9	 	 	$	638.5	 	 	$	457.7	 
	
    
    Long-term liabilities
    

    	 	$	86.6	 	 	$	69.7	 	 	$	55.8	 
	
    
    Goldcorp shareholders’ equity
    

    	 	$	540.1	 	 	$	507.7	 	 	$	348.9	 
	
    
    Common shares outstanding
    

    	 	 	189,961,000	 	 	 	189,274,000	 	 	 	182,390,000	 

	 	 	 	 	 	 	 	 	 	 	 	 	 
					
			For the Nine		For the Year Ended December 31
			Months Ended		

			September 30, 2004		2003		2002
			
		
		

	
    
    Revenue
    

    	 	$	139.1	 	 	$	262.6	 	 	$	185.2	 
	
    
    Net earnings
    

    	 	$	36.4	 	 	$	98.8	 	 	$	68.2	 
	
    
    Basic earnings per share
    

    	 	$	0.19	 	 	$	0.54	 	 	$	0.39	 
	
    
    Net cash provided by operating activities
    

    	 	$	30.7	 	 	$	95.2	 	 	$	104.1	 
	
    
    Ounces of gold produced
    

    	 	 	461,751	 	 	 	602,845	 	 	 	607,919	 
	
    
    Average gold price realized per ounce
    

    	 	$	402	 	 	$	367	 	 	$	312	 

Comparative Per Share Information

     
The following table sets forth, for the periods
indicated, the basic earnings, book value and cash dividends
declared per common share separately for Glamis and Goldcorp on
an historical basis and for Glamis on a pro forma consolidated
basis. The conversion ratio is 0.89 of a Glamis common share for
each Goldcorp common share.

	 	 	 	 	 	 	 	 	 
			Nine Months Ended		Year Ended
			September 30, 2004		December 31, 2003
			
		

	
    
    Pro Forma Consolidated

    	 	 	 	 	 	 	 	 
	
    
    Basic earnings per share
    

    	 	$	0.05	 	 	$	0.14	 
	
    
    Book value per share
    

    	 	$	12.33	 	 	$	—(1	)
	
    
    Cash dividends per share
    

    	 	$	0.08	 	 	$	0.17	 
	 
	
    
    Glamis Historical(2)

    	 	 	 	 	 	 	 	 
	
    
    Basic earnings per share
    

    	 	$	0.11	 	 	$	0.14	 
	
    
    Book value per share
    

    	 	$	3.47	 	 	$	3.34	 
	
    
    Cash dividends per share
    

    	 	 	Nil	 	 	 	Nil	 
	 
	
    
    Goldcorp Historical

    	 	 	 	 	 	 	 	 
	
    
    Basic earnings per share
    

    	 	$	0.19	 	 	$	0.54	 
	
    
    Book value per share
    

    	 	$	2.84	 	 	$	2.68	 
	
    
    Cash dividends per share
    

    	 	$	0.14	 	 	$	0.27	 

		
	(1) 	
    In accordance with the U.S. and Canadian
    regulatory pronouncements, a Canadian GAAP pro forma balance
    sheet was not required to be prepared as at December 31,
    2003.
    
	 
	(2) 	
    Effective January 1, 2004, we adopted:
    

		
	    (a) 	
    retroactively without restatement the use of the
    fair value method of accounting for stock-based compensation
    issued to employees; and
    

		
	    (b) 	
    retroactively with restatement new guidance with
    respect to the measurement and recognition of asset retirement
    obligations.
    

		
		
    The amounts presented for 2003 have been restated
    from those previously presented to give effect to the change in
    the accounting for asset retirement obligations.
    

8

 

Per Share Market Data

     
Our common shares are currently traded on the New
York Stock Exchange and on the Toronto Stock Exchange under the
symbol “GLG”. Goldcorp common shares are currently
traded on the New York Stock Exchange under the symbol
“GG” and on the Toronto Stock Exchange under the
symbol “G”. The following table sets forth the closing
prices per common share of each of Glamis and Goldcorp as
reported on the New York Stock Exchange and the Toronto Stock
Exchange on (1) December 15, 2004, the last business
day before the public announcement of our intention to make this
offer to acquire all the issued and outstanding shares of
Goldcorp, and (2) on January 5, 2005, the most recent
trading day practicable before the date of this offer and
circular:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
					
			NYSE		TSX
			
		

			December 15,		January 5,		December 15,		January 5,
	Issuer		2004		2005		2004		2005
	
		
		
		
		

	
    
    Goldcorp
    

    	 	$	13.98	 	 	$	13.86	 	 	Cdn.$	17.10	 	 	Cdn.$	17.02	 
	
    
    Glamis
    

    	 	$	19.17	 	 	$	15.74	 	 	Cdn.$	23.50	 	 	Cdn.$	19.26	 

9

 

QUESTIONS AND ANSWERS ABOUT THE
OFFER

		
	Q: 	
    Who is offering to buy my Goldcorp common
    shares?
	 
	A: 	
    We are Glamis Gold Ltd., a premier, intermediate
    gold producer with low-cost gold mines and development projects
    in Nevada, Mexico and Central America. We are a British
    Columbia, Canada, company and our common shares are listed on
    the New York Stock Exchange and the Toronto Stock Exchange under
    the symbol “GLG”.
    
	 
	Q: 	
    What is Glamis proposing?
	 
	A: 	
    We are offering to purchase all of the issued and
    outstanding common shares of Goldcorp Inc., subject to the terms
    and conditions set forth in the following offer to purchase and
    circular.
    
	 
	Q: 	
    What would I receive in exchange for each of
    my Goldcorp common shares?
	 
	A: 	
    We are offering 0.89 of a common share of Glamis
    for each Goldcorp common share held by you.
    
	 
	Q: 	
    What are some of the significant conditions to
    the offer?
	 
	A: 	
    The offer is subject to several conditions, some
    of the most important of which are as follows:
    

			
	 	• 	
    not less than 66 2/3% of the Goldcorp common
    shares (on a fully diluted basis) will have been validly
    deposited under the offer and not withdrawn at the expiry time;
    
	 
	 	• 	
    the Goldcorp shareholders do not approve, by a
    majority of the votes cast at a meeting of shareholders, the
    issuance of Goldcorp common shares in connection with
    Goldcorp’s offer to purchase all of the outstanding common
    shares of Wheaton River dated December 29, 2004, and the
    Acquisition Agreement dated December 23, 2004 between
    Goldcorp and Wheaton River is terminated; and
    
	 
	 	• 	
    our shareholders approve the removal of the
    restriction on the number of our common shares that we are
    authorized to issue by majority vote of our shareholders who
    vote on this matter at a meeting of our shareholders to be held
    on February 9, 2005.
    

		
	Q: 	
    What happens if Goldcorp shareholders vote to
    approve the issuance of Goldcorp common shares to Wheaton River
    shareholders?
	 
	A: 	
    A condition of our offer will not be satisfied
    and our offer will not proceed.
    
	 
	Q: 	
    Why is the Glamis offer better for Goldcorp
    shareholders than the Goldcorp proposal to buy Wheaton
    River?
	 
	A: 	
    We believe that our offer will deliver superior
    value to Goldcorp shareholders because:
    

			
	 	• 	
    We are offering a premium to Goldcorp
    shareholders while Goldcorp is proposing to pay a premium to
    Wheaton River shareholders;
    
	 
	 	• 	
    We believe that our operations-based culture,
    founded in proven exploration, development and operations
    skills, will enhance operations at Red Lake;
    
	 
	 	• 	
    We will remain a pure gold company with no base
    metal exposure. A Glamis-Goldcorp combination is unlikely to
    jeopardize Goldcorp’s premium gold multiple through the
    inclusion of base metal production;
    
	 
	 	• 	
    Our existing growth projects are fully permitted
    and under construction; and
    
	 
	 	• 	
    We will remain a simple, easy to understand
    company with four cornerstone operations in the Americas. We
    operate each of our mines. In contrast, Wheaton River’s
    largest asset is a minority, non-operating interest in a mine
    whose majority revenue stream is derived from copper.
    

		
	Q: 	
    Will Goldcorp shareholders continue to receive
    a dividend?
	 
	A: 	
    Before the collapse of gold prices in 1997, we
    paid a dividend to our shareholders for 10 consecutive years.
    While the decision to pay a dividend to our shareholders after
    completion of the offer will be the
    

10

 

		
		
    responsibility of our board of directors, our
    management currently intends to recommend to the board that we
    pay a dividend to our shareholders.
    

		
	Q: 	
    Will Glamis continue Goldcorp’s policy of
    holding back gold for sale from production at Red
    Lake?
	 
	A: 	
    Our management intends to seek the views of our
    shareholders prior to making a decision in this regard, however
    we are a strong believer in higher gold prices in the future and
    therefore we understand the logic of the policy. We are also
    aware of the highly taxable situation of the Red Lake mine and
    the benefits that will accrue to shareholders from the deferral
    of tax.
    
	 
	Q: 	
    Does Glamis intend to remain a pure gold
    producer?
	 
	A: 	
    Our strategy is to remain a pure gold producer
    and become the “go to” gold stock for gold investors
    by providing the market with the opportunity to invest in a
    large and liquid, low cost, high quality, pure gold producer. We
    believe that the market will reward us in the future, as it has
    Goldcorp in the past, with a superior valuation if we remain a
    pure gold producer.
    
	 
	Q: 	
    What is Glamis’ policy towards gold
    hedging?
	 
	A: 	
    We intend to remain 100% unhedged. None of our
    production or reserves will be hedged and we will maintain 100%
    of the upside to the gold price for our shareholders.
    
	 
	Q: 	
    Why is Glamis buying Goldcorp?
	 
	A: 	
    We believe that there are significant
    opportunities to enhance value at Red Lake with careful
    attention to improving mining practices and accelerated
    exploration investment.
    
	 
	Q: 	
    Is Glamis committed to the Americas?
	 
	A: 	
    Our strategy is to remain focused in the Americas
    in stable operating jurisdictions. Approximately 75% of our
    reserves will be located in North American Free Trade Agreement
    (NAFTA) countries and our Marlin Project in Guatemala enjoys the
    backing of the World Bank (IFC).
    
	 
	Q: 	
    How will Goldcorp options and warrants be
    treated in the offer?
	 
	A: 	
    The offer is made only for outstanding Goldcorp
    common shares and not for any Goldcorp options or Goldcorp
    warrants or other rights to acquire Goldcorp common shares. Any
    holder of such securities who wishes to accept the offer must,
    to the extent permitted by the terms thereof and applicable law,
    fully exercise such securities sufficiently in advance of the
    expiry time of the offer in order to obtain Goldcorp common
    shares that may be deposited in accordance with the terms of the
    offer.
    
	 
	   	
    If we take up and pay for Goldcorp common shares
    under the offer, we currently intend to implement a subsequent
    acquisition transaction, implement a transaction which will be
    structured in a manner, or take such other action as may be
    available, so that the holders of Goldcorp options and Goldcorp
    warrants will, pursuant to the terms thereof, receive our common
    shares upon the proper exercise of the Goldcorp options or
    Goldcorp warrants. The number of our common shares so issued and
    the exercise price will reflect the exchange ratio used in our
    offer.
    
	 
	   	
    We intend to maintain the listing of Goldcorp
    warrants that are currently listed on the Toronto Stock
    Exchange. However, the effect of completing a transaction which
    results in the holders of Goldcorp warrants receiving our common
    shares on the exercise thereof will, in effect, result in such
    warrants becoming warrants to acquire our common shares.
    
	 
	Q: 	
    Will fractional shares be issued in the
    offer?
	 
	A: 	
    No. We will not issue fractional common
    shares. Instead, Goldcorp’s registered shareholders will
    receive a cash payment equal to such fraction of our common
    share they would otherwise have received multiplied by the
    closing price of our common shares on the New York Stock
    Exchange on the date we first take up and pay for shares under
    our offer.
    

11

 

		
	Q: 	
    How many Glamis common shares could be issued
    pursuant to the offer?
	 
	A: 	
    Assuming that all of the Goldcorp common shares
    that are issued and outstanding as of December 22, 2004,
    and all Goldcorp common shares issuable upon exercise of
    Goldcorp options to purchase Goldcorp common shares and Goldcorp
    common shares issuable upon exercise of Goldcorp warrants to
    purchase Goldcorp common shares outstanding as at
    December 22, 2004, are tendered to the offer and that we
    take up and pay for such Goldcorp common shares under this
    offer, we will issue 187,010,954 of our common shares.
    
	 
	Q: 	
    How long do I have to decide whether to tender
    in the offer?
	 
	A: 	
    The offer is open for acceptance until
    9:00 p.m. (Toronto time) on February 14, 2005, or
    until such later time and date to which we may extend our offer
    (as described below) at our discretion, unless we withdraw this
    offer earlier.
    
	 
	Q: 	
    Can the offer be extended?
	 
	A: 	
    Yes. We may, in our sole discretion, elect to
    extend the offer. If we elect to the extend the offer, we will
    publicly announce the extension and mail you a copy of the
    notice of extension.
    
	 
	Q: 	
    How do I tender my common shares?
	 
	A: 	
    If you hold Goldcorp common shares in your own
    name, you may accept this offer by depositing certificates
    representing your Goldcorp common shares, together with a duly
    completed and signed letter of acceptance and transmittal, at
    the offices of the depositary specified in the letter of
    acceptance and transmittal. If your Goldcorp common shares are
    registered in the name of a nominee (commonly referred to as
    “in street name” or “street form”), you
    should contact your broker, investment dealer, bank, trust
    company or other nominee for assistance in tendering your
    Goldcorp common shares to our offer. You should request your
    nominee to effect the transaction.
    
	 
	Q: 	
    What if I have lost my common shares of
    Goldcorp but want to tender them to the offer?
	 
	A: 	
    You should complete your letter of transmittal as
    fully as possible and state in writing the circumstances
    surrounding the loss and forward the documents to the
    depositary. The depositary will advise you of replacement
    requirements which must be completed and returned before the
    expiry of the offer.
    
	 
	Q: 	
    Who is the depositary under the
    offer?
	 
	A: 	
    Computershare Investor Services Inc. is acting as
    depositary under the offer. The depositary will be responsible
    for receiving certificates representing deposited Goldcorp
    common shares and accompanying letters of transmittal and other
    documents. The depositary is also responsible for receiving
    notices of guaranteed delivery, giving notices, if required, and
    making payment for all Goldcorp common shares purchased by us
    under the terms of the offer.
    
	 
	Q: 	
    Will I be able to withdraw previously tendered
    common shares?
	 
	A: 	
    Yes. You may withdraw Goldcorp common shares
    previously tendered by you at any time before Goldcorp common
    shares deposited under the offer are taken up by us, if your
    common shares have not been paid for by us within three business
    days after having been taken up and in certain other
    circumstances.
    
	 
	Q: 	
    How do I withdraw previously tendered
    shares?
	 
	A: 	
    You must send a notice of withdrawal to the
    depositary prior to the occurrence of certain events and within
    the time periods set forth in Section 8 of the offer to
    purchase, “Right to Withdraw Deposited Goldcorp
    Shares,” and the notice must contain specific information
    outlined therein.
    
	 
	Q: 	
    Will I have to pay any fees or
    commissions?
	 
	A: 	
    If you are the registered owner of your Goldcorp
    common shares and you tender your Goldcorp common shares
    directly to the depositary, or if you use the services of a
    dealer manager or a member of the soliciting dealer group, you
    will not have to pay brokerage fees or incur similar expenses.
    If you own your
    

12

 

		
		
    common shares through a broker or other nominee
    who is not a member of the soliciting dealer group, and your
    broker tenders the common shares on your behalf, your broker or
    nominee may charge you a fee for doing so. You should consult
    your broker or nominee to determine whether any charges will
    apply.
    
	 
	Q: 	
    What will happen if the offer lapses or is
    withdrawn?
	 
	A: 	
    In the event that the offer lapses or we withdraw
    the offer prior to the satisfaction or waiver of all of the
    conditions to the offer, all your common shares that were
    deposited will be returned to you with no payment.
    
	 
	Q: 	
    How will Canadian residents be taxed for
    Canadian income tax purposes?
	 
	A: 	
    A Canadian resident Goldcorp shareholder who
    holds Goldcorp common shares as capital property and who sells
    such shares pursuant to the offer will generally not realize a
    capital gain or capital loss under the Income Tax Act (Canada)
    unless the Goldcorp shareholder chooses to recognize a capital
    gain or capital loss.
    
	 
	Q: 	
    How will U.S. taxpayers be taxed for United
    States federal income tax purposes?
	 
	A: 	
    The offer has been structured to cause the
    exchange of Goldcorp common shares pursuant to the offer to be
    treated as a reorganization for U.S. income tax purposes, and
    accordingly, a Goldcorp shareholder resident in the United
    States that owns less than 5% of us immediately after the
    exchange (by voting power and value, directly and by
    attribution) will generally not recognize a capital gain or
    capital loss for U.S. income tax purposes, except with respect
    to cash received in lieu of a fractional share. If
    reorganization treatment does not apply to the exchange, the
    U.S. holder will generally be required to recognize a
    capital gain or loss in connection with the exchange. We have
    not sought or received a letter or ruling from the United States
    Internal Revenue Service. Accordingly, we cannot provide any
    assurance that reorganization treatment will apply to the
    exchange.
    
	 
	Q: 	
    Will I be able to trade the Glamis common
    shares I receive?
	 
	A: 	
    You will be able to trade the Glamis common
    shares that you will receive under the offer. Statutory
    exemptions allow such trading in Canada and upon our
    registration statement on Form F-10 becoming effective in
    the United States, non-affiliates will be able to trade their
    Glamis common shares received under the offer in the United
    States.
    
	 
	Q: 	
    Is Glamis’ financial condition relevant
    to my decision to tender my common shares in the
    offer?
	 
	A: 	
    Yes. Our common shares will be issued to
    shareholders who tender their Goldcorp common shares, so you
    should consider our financial condition before you decide to
    become one of our shareholders through the offer. In considering
    our financial condition, you should review the documents
    included and incorporated by reference in the offer to purchase
    and circular because they contain detailed business, financial
    and other information about us.
    
	 
	Q: 	
    If I decide not to tender, how will my
    Goldcorp common shares be affected?
	 
	A: 	
    If we take up and pay for the Goldcorp common
    shares validly tendered, we currently intend to take such action
    as is necessary, including causing a meeting of shareholders to
    be held to consider an amalgamation, statutory arrangement,
    capital reorganization or other transaction, to acquire any
    Goldcorp common shares not tendered. It is our current intention
    that the consideration to be offered for Goldcorp common shares
    under such subsequent transactions will be the same
    consideration offered under this offer to purchase. In
    connection with such a transaction, you may have
    dissenters’ rights.
    
	 
	Q: 	
    Do I have dissenters’ rights under the
    offer?
	 
	A: 	
    No. Goldcorp shareholders will not have
    dissenters’ or appraisal rights in connection with the
    offer. However, holders of Goldcorp common shares who do not
    tender their Goldcorp common shares to the offer may have rights
    of dissent in the event we elect to acquire such Goldcorp common
    shares by way of a subsequent acquisition transaction. See
    Section 5 of the circular, “Acquisition of Shares Not
    Deposited”.
    

13

 

		
	Q: 	
    Will Goldcorp continue as a public
    company?
	 
	A: 	
    If, as a result of the offer and any subsequent
    transaction, the number of holders of Goldcorp common shares is
    sufficiently reduced, the Goldcorp common shares may become
    eligible for termination of registration. The rules and the
    regulations of the New York Stock Exchange and the Toronto Stock
    Exchange could, upon the consummation of the offer and/or a
    subsequent transaction, lead to the delisting of the Goldcorp
    common shares from these exchanges. To the extent permitted by
    applicable law, we intend to delist the Goldcorp common shares
    from the Toronto Stock Exchange and the New York Stock Exchange
    and, where applicable, to cause Goldcorp to cease to be a public
    company.
    
	 
	Q: 	
    Who can I call with questions about the offer
    or for more information?
	 
	A: 	
    You can call our information agent, Georgeson
    Shareholder Communications, if you have questions or requests
    for additional copies of this offer to purchase and circular.
    Questions and requests should be directed to the following
    telephone numbers:
    

		
	 	
    North American Toll Free Telephone: 1-877-288-7946
	 	
    U.S. Banks and Brokers Call Collect: 212-440-9800

14

 

DEFINITIONS

		
	 	     
    In the Offer and Circular, unless the context
    otherwise requires, the following terms have the meanings set
    forth below. All references to “$” or
    “dollars” are to the currency of the United
    States.

     
“AMF”
means Autorité des marchés financiers (Québec).

     
“Appropriate
Approvals” means those sanctions,
rulings, decisions, declarations, waivers, certificates,
consents, orders, exemptions, permits and other approvals
(including the lapse, without objection, of a prescribed time
under a statute or regulation that states that a transaction may
be implemented if a prescribed time lapses following the giving
of notice without an objection being made) of Governmental
Entities or approvals of shareholders of Glamis or Goldcorp
required in connection with the consummation of the Offer or the
Subsequent Acquisition Transaction.

     
“business
day” means any day of the week
other than a Saturday, Sunday or a statutory or civic holiday
observed in Toronto, Ontario in Canada or Reno, Nevada in the
United States.

     
“Canadian
GAAP” means Canadian generally
accepted accounting principles.

     
“Circular”
means the offering circular accompanying the Offer to Purchase,
including the Annexes attached thereto.

     
“Current Market
Price” means the closing price of
the Glamis Shares on the NYSE on the day that Glamis first takes
up and pays for Goldcorp Shares under the Offer.

     
“Dealer
Manager” means Orion Securities
Inc. in Canada and Orion Securities (USA) Inc. in the
United States.

     
“Depositary”
means Computershare Investor Services Inc.

     
“Eligible
Institution” means a Canadian
Schedule 1 chartered bank, a major trust company in Canada,
a member of a Securities Transfer Agents Medallion Program
(STAMP), a member of the Stock Exchange Medallion Program
(SEMP) or a member of the New York Stock Exchange, Inc.
Medallion Signature Program (MSP). Members of these programs are
usually members of a recognized stock exchange in Canada or the
United States, members of the Investment Dealers Association of
Canada, members of the National Association of Securities
Dealers or banks and trust companies in the United States.

     
“Exchanges”
means the NYSE and the TSX, and “Exchange”
means either one of them.

     
“Expiry
Date” means February 14,
2005 or such later date as is set out in a notice of extension
of the Offer issued at any time and from time to time extending
the period during which Goldcorp Shares may be deposited to the
Offer, provided that, if such day is not a business day, then
the Expiry Date will be the next business day.

     
“Expiry
Time” means 9:00 p.m.
(Toronto time) on the Expiry Date.

     
“Glamis”
means Glamis Gold Ltd., a company existing under the laws of
British Columbia.

     
“Glamis
Share” means a common share in
the capital of Glamis.

     
“Goldcorp”
means Goldcorp Inc., a company existing under the laws of
Ontario, and its Subsidiaries.

     
“Goldcorp Material Adverse
Change” means any change, effect,
event, occurrence or state of facts that is, or would reasonably
be expected to be, material and adverse to the assets, business,
operations, prospects or financial condition of Goldcorp and its
Subsidiaries taken as a whole, other than any change, effect,
event, occurrence or state of facts relating to the economy,
securities markets or precious metal markets in general.

     
“Goldcorp Offer for Wheaton
River” means Goldcorp’s
offer to purchase all of the outstanding common shares of
Wheaton River dated December 29, 2004 and made pursuant to
the Goldcorp/Wheaton River Acquisition Agreement.

15

 

     
“Goldcorp
Option” means an option to
purchase Goldcorp Shares granted under the Goldcorp Option Plan.

     
“Goldcorp Option
Plan” means the stock option plan
for directors, officers and employees of Goldcorp.

     
“Goldcorp
Share” means a common share in
the capital of Goldcorp.

     
“Goldcorp
Warrant” means a warrant to
purchase Goldcorp Shares.

     
“Goldcorp/Wheaton River Acquisition
Agreement” means the acquisition
agreement dated December 23, 2004 between Goldcorp and
Wheaton River.

     
“Governmental
Entity” means (a) any
foreign, multinational, federal, provincial, state, regional,
municipal, local or other government, governmental or public
department, central bank, court, tribunal, arbitral body,
administrative agency, commission, board, bureau or agency,
domestic or foreign; (b) any subdivision, agent,
commission, board, or authority of any of the foregoing;
(c) any self-regulatory authority or any of the Exchanges;
or (d) any quasi-governmental or private body exercising
any regulatory, expropriation or taxing authority under or for
the account of any of the foregoing.

     
“HSR Act”
means the United States Hart-Scott-Rodino
Antitrust Improvements Act.

     
“Laws”
means all laws, by-laws, statutes, rules, regulations,
principles of law, policies, orders, ordinances, decisions,
declarations, rulings, directives, judgments, decrees or other
requirements of any Governmental Entity and the terms and
conditions of any grant of approval, permission, authority or
license of any Governmental Entity and the term
“applicable” with respect to such laws and in a
context that refers to one or more Persons, means such laws as
are applicable to such Person or its business, undertaking,
property or securities and emanate from a Person having
jurisdiction over the Person or Persons or its or their
business, undertaking, property or securities.

     
“Letter of
Transmittal” means the letter of
acceptance and transmittal in the form accompanying the Offer
and Circular (printed on BLUE PAPER).

     
“Minimum Tender
Condition” means that there will
have been validly deposited under the Offer and not withdrawn at
the Expiry Time that number of Goldcorp Shares which constitutes
at least 66 2/3% of the Goldcorp Shares (on a fully diluted
basis) at the Expiry Time.

     
“Notice of Guaranteed
Delivery” means the accompanying
notice of guaranteed delivery (printed on YELLOW PAPER).

     
“NYSE”
means the New York Stock Exchange.

     
“OBCA”
means the Business Corporations Act (Ontario), as amended.

     
“Offer”
means Glamis’ offer to purchase the Goldcorp Shares made
hereby, the terms and conditions of which are set forth in the
Offer to Purchase, the Circular, the Letter of Transmittal and
the Notice of Guaranteed Delivery.

     
“Offer and
Circular” means the Offer to
Purchase and the Circular, collectively.

     
“Offer to
Purchase” means the offer to
purchase Goldcorp Shares as described herein.

     
“Offered
Consideration” means the
consideration to be paid by Glamis for the Purchased Securities.

     
“Ontario Securities
Act” means the Securities Act
(Ontario), as amended, and the regulations and rules made
thereunder.

     
“OSC”
means the Ontario Securities Commission.

     
“Person”
includes an individual, partnership, association, body
corporate, joint venture, business organization, trustee,
executor, administrator, legal representative, government
(including any Governmental Entity) or any other entity, whether
or not having legal status.

16

 

     
“Policy
Q-27” means Policy No. Q-27
of the AMF entitled “Protection of Minority Securityholders
in the course of Certain Transactions”.

     
“Purchased
Securities” means Goldcorp Shares
taken up and paid for by Glamis under the Offer.

     
“Restricted
Event” means, with respect to
Goldcorp, any of the following:

		
	 	     
    (i) the issuance of any securities (except
    upon the exercise of options or warrants to purchase Goldcorp
    Shares which were outstanding as of December 22, 2004);
    
	 
	 	     
    (ii) declaring, paying, authorizing or
    making any distribution, payment or dividend on any of its
    securities (except for the payment of a monthly dividend not
    greater in amount than the last monthly dividend declared and
    otherwise consistent with past practice);
    
	 
	 	     
    (iii) acquiring or disposing of any assets
    or securities (except where immaterial in amount and in the
    ordinary course of business consistent with past practice);
    
	 
	 	     
    (iv) making any capital expenditures (except
    where immaterial in amount and in the ordinary course of
    business consistent with past practice);
    
	 
	 	     
    (v) entering into, modifying or terminating
    any agreement with any officer, director or employee;
    
	 
	 	     
    (vi) increasing or otherwise modifying
    (except where the modification would result in a decrease in the
    total amount of compensation paid or payable) the compensation
    paid or payable to any director, officer, or employee including,
    without limitation, the granting of additional securities,
    options or bonuses;
    
	 
	 	     
    (vii) instituting, modifying or cancelling
    any employee benefit plan (except where instituting, modifying
    or cancelling any employee benefit plan is required by Law);
    
	 
	 	     
    (viii) the payment of any amount, or the
    triggering or potential triggering of the payment of any amount
    to any director, officer or employee pursuant to any change of
    control or severance arrangements that have not otherwise been
    publicly disclosed which disclosure included the amount of such
    payments to be made thereunder;
    
	 
	 	     
    (ix) any default, termination, acceleration
    or other adverse event under any instrument or agreement to
    which Goldcorp is a party or to which any of its properties or
    assets are bound whether as a result of making the Offer, the
    taking up and paying for the Goldcorp Shares under the Offer,
    the completion of the Subsequent Acquisition Transaction or
    otherwise;
    
	 
	 	     
    (x) the impairment (which impairment has not
    been cured or waived), or the threatened impairment of any
    property right, franchise or license whether as a result of
    making the Offer, taking up and paying for the Goldcorp Shares
    under the Offer, the completion of the Subsequent Acquisition
    Transaction or otherwise;
    
	 
	 	     
    (xi) any take-over bid other than the Offer
    (including an exempt take-over bid for securities of Goldcorp)
    or tender offer (including, without limitation, an issuer bid or
    self tender offer) or exchange offer, merger, amalgamation, plan
    of arrangement, reorganization, reverse take-over, sale or lease
    of all or substantially all of its assets, dissolution,
    liquidation or other similar transaction or any other
    transaction that could reasonably be expected to impede,
    interfere with or materially delay the consummation of the Offer;
    
	 
	 	     
    (xii) entering into any other transaction
    not in the ordinary course of business;
    
	 
	 	     
    (xiii) entering into any agreement with
    Wheaton River other than the Goldcorp/ Wheaton River Acquisition
    Agreement or entering into any amendment of that agreement;
    
	 
	 	     
    (xiv) any amendment or waiver by Goldcorp of
    any condition in its favour in the Goldcorp/ Wheaton River
    Acquisition Agreement, including any amendment or waiver by
    Goldcorp of the condition in the Goldcorp/ Wheaton River
    Acquisition Agreement requiring Shareholder approval of the
    issuance of Goldcorp Shares to Wheaton River shareholders; or
    

17

 

		
	 	     
    (xv) proposing, planning or intending to do
    any of the foregoing or the entering into any agreement to do
    any of the foregoing.
    

     
“Rule 61-501”
means OSC Rule 61-501 entitled “Insider Bids, Issuer
Bids, Going Private Transactions and Related Party
Transactions”.

     
“SEC”
means the U.S. Securities and Exchange Commission.

     
“Shareholder”
means a holder of Goldcorp Shares.

     
“Subsequent Acquisition
Transaction” has the meaning
ascribed thereto in Section 5 of the Circular,
“Acquisition of Shares Not Deposited”.

     
“Subsidiary”
means, with respect to a specified body corporate, any body
corporate of which more than 50% of the outstanding shares
ordinarily entitled to elect a majority of the board of
directors thereof (whether or not shares of any other class or
classes will or might be entitled to vote upon the happening of
any event or contingency) are at the time owned directly or
indirectly by such specified body corporate and will include any
body corporate, partnership, joint venture or other entity over
which such specified body corporate exercises direction or
control or which is in a like relation to a Subsidiary.

     
“Tax Act”
means the Income Tax Act (Canada), as amended.

     
“TSX”
means the Toronto Stock Exchange.

     
“United States Business
Day” means any day, other than a
Saturday, Sunday or United States federal holiday, and shall
consist of the time period from 12:01 a.m. through 12:00
midnight Eastern time.

     
“U.S. Exchange
Act” means the United States
Securities Exchange Act of 1934, as amended, and the rules and
regulations promulgated thereunder.

     
“U.S. GAAP”
means U.S. generally accepted accounting principles.

     
“U.S. Securities
Act” means the United States
Securities Act of 1933, as amended, and the rules and
regulations promulgated thereunder.

     
“Wheaton
River” means Wheaton River
Minerals Ltd., a company existing under the laws of Ontario.

18

 

OFFER TO PURCHASE

TO:     THE HOLDERS
OF COMMON SHARES OF GOLDCORP

     
The accompanying Circular contains important
information and should be read carefully before making a
decision with respect to the Offer. This Offer to Purchase and
the Circular, which are incorporated into and form part of the
Offer, constitute the take-over bid circular required under
applicable Canadian securities laws.

 

		
	1.	
    The Offer

     
Subject to the terms and conditions set forth in
Section 2 below and in the Letter of Transmittal and the
Notice of Guaranteed Delivery, Glamis hereby offers to purchase
all of the issued and outstanding Goldcorp Shares on the basis
of 0.89 of a Glamis Share for each Goldcorp Share.

     
The Offer is made only for the Goldcorp Shares
and not for any Goldcorp Options or Goldcorp Warrants or other
rights to acquire Goldcorp Shares. Any holder of such securities
who wishes to accept the Offer must, to the extent permitted by
the terms thereof and applicable Law, fully exercise such
securities sufficiently in advance of the Expiry Time in order
to obtain Goldcorp Shares that may be deposited in accordance
with the terms of the Offer. See Section 4 of the Circular,
“Purpose of the Offer and Glamis’ Plans for
Goldcorp — Treatment of Goldcorp Options and
Warrants”.

     
Fractional Glamis Shares will not be issued.
Instead of receiving a fractional Glamis Share, Shareholders
will receive a cash payment equal to such fraction multiplied by
the Current Market Price. For purposes of determining the amount
of any such cash payment, all Glamis Shares deposited by a
registered holder will be aggregated.

     
The Offer will be open for acceptance until the
Expiry Time unless withdrawn or extended.

 

		
	2.	
    Conditions to the Offer

     
Glamis reserves the right to withdraw the Offer
and not take up, purchase or pay for, and will have the right to
extend the period of time during which the Offer is open and
postpone taking up and paying for, any Goldcorp Shares deposited
under the Offer unless all of the following conditions are
satisfied or waived by Glamis before the Expiry Time:

		
	 	     
    (a) the Minimum Tender Condition;
    
	 
	 	     
    (b) the Shareholders do not approve, by a
    majority of votes cast at a meeting of Shareholders, the
    issuance of Goldcorp Shares in connection with the Goldcorp
    Offer for Wheaton River, and the Goldcorp/Wheaton River
    Acquisition Agreement is terminated;
    
	 
	 	     
    (c) the shareholders of Glamis approve the
    removal of the restriction on the number of Glamis Shares that
    Glamis is authorized to issue;
    
	 
	 	     
    (d) Glamis will have determined in its
    reasonable judgment that on or after December 6, 2004, that
    neither Goldcorp nor any third party has taken or proposed to
    take any action or has failed to take any action or disclosed a
    previously undisclosed action, in each case, which might reduce
    the expected economic value to Glamis of the acquisition of
    Goldcorp, make it inadvisable for Glamis to proceed with the
    Offer, or make it inadvisable for Glamis to take-up and pay for
    the Goldcorp Shares tendered to the Offer, including, without
    limiting the generality of the foregoing, Glamis will have
    determined in its reasonable judgement that on or after
    December 6, 2004 there has not occurred or there will not
    occur a Restricted Event;
    
	 
	 	     
    (e) Glamis will have determined in its
    reasonable judgement that there will not have occurred,
    developed or come into effect or existence any event, action,
    state, condition or financial occurrence of national or
    international consequence or any law, regulation, action,
    government regulation, inquiry or other occurrence of any nature
    whatsoever which adversely affects or involves, or may adversely
    affect or involve, the general economic, financial, currency
    exchange, securities, mining or precious metals
    

19

 

		
	 	
    industries in Canada or elsewhere, or the
    financial condition, business, operations, assets, affairs or
    prospects of Goldcorp or any of its Subsidiaries, or which makes
    it inadvisable for Glamis to proceed with the Offer or take up
    and pay for Goldcorp Shares deposited under the Offer;
    
	 
	 	     
    (f) Glamis will have determined in its
    reasonable judgment that: (i) Goldcorp has not adopted a
    shareholder rights plan that provides rights to the shareholders
    of Goldcorp to purchase any securities of Goldcorp as a result
    of this Offer or Subsequent Acquisition Transaction (the
    “Goldcorp Rights Plan”), or (ii) if a Goldcorp
    Rights Plan is adopted, it does not and will not adversely
    affect the Offer or Glamis, either before or on consummation of
    the Offer, or the purchase of any Goldcorp Shares under any
    Subsequent Acquisition Transaction;
    
	 
	 	     
    (g) all Appropriate Approvals (including,
    without limitation, those of the Exchanges and those of the
    securities regulatory authorities), that in the reasonable
    judgment of Glamis are necessary or desirable, will have been
    obtained or all waiting or suspensory periods, that in the sole
    judgment of Glamis are necessary or desirable, have expired or
    been terminated, each on terms satisfactory to Glamis in its
    sole judgment;
    
	 
	 	     
    (h) Glamis will have determined in its
    reasonable judgment that (i) no act, action, suit or
    proceeding (including a stop order issued or issuable by the
    SEC) will have been threatened or taken before or by any
    Governmental Entity or by any elected or appointed public
    official or private person (including, without limitation, any
    individual, company, firm, group or other entity) in Canada or
    elsewhere, whether or not having the force of Law, and
    (ii) no Laws (including, without limiting the generality of
    the foregoing, any tax Laws) will have been proposed, enacted,
    promulgated or applied:
    

		
	 	     
    (A) to cease trade, enjoin, prohibit or
    impose material limitations or conditions on (1) Glamis
    making or maintaining the Offer, (2) the purchase by or the
    sale to Glamis of the Goldcorp Shares, (3) Glamis taking up
    and paying for any Goldcorp Shares deposited under the Offer,
    (4) Glamis issuing Glamis Shares in consideration therefor,
    (5) Glamis completing a Subsequent Acquisition Transaction,
    or (6) the right of Glamis to own or exercise full rights
    of ownership of the Goldcorp Shares, including voting rights;
    
	 
	 	     
    (B) which challenges or would prevent or
    make uncertain the ability of Glamis or its affiliates to effect
    a Subsequent Acquisition Transaction; or
    
	 
	 	     
    (C) which has or may have adverse
    significance with respect to (1) the current or anticipated
    business or operations of Glamis or Goldcorp or any of their
    affiliates or (2) the regulatory regime applicable to their
    respective businesses and operations;
    

		
	 	     
    (i) Glamis will have determined in its
    reasonable judgment that there does not exist nor will have
    occurred (or if there will have occurred before the commencement
    of the Offer, it will not have been generally disclosed or
    Glamis will not otherwise have discovered) any change (or any
    condition, event, circumstance or development involving a
    prospective change) in the business, operations (including
    results of operations), cash flows, assets, capitalization,
    condition (financial or otherwise), prospects, share or debt
    ownership, articles, by-laws, licenses, permits, rights,
    privileges or liabilities (including any contingent liabilities
    that may arise through outstanding, pending or threatened
    litigation or otherwise), whether contractual or otherwise, of
    Goldcorp which, when considered either individually or in the
    aggregate, may result in a Goldcorp Material Adverse Change;
    
	 
	 	     
    (j) the Offer, if completed, will not be
    reasonably likely to cause or result in a Goldcorp Material
    Adverse Change;
    
	 
	 	     
    (k) Glamis will not have become aware of any
    untrue statement of a material fact, or an omission to state a
    material fact that is required to be stated or that is necessary
    to make a statement not misleading in the light of the
    circumstances in which it was made and at the date it was made
    (after giving effect to all subsequent filings in relation to
    all matters covered in earlier filings), in any document filed
    by or on behalf of Goldcorp with any regulatory authority in
    Canada or elsewhere; and
    

20

 

		
	 	     
    (l) the directors of Goldcorp will have made
    commitments satisfactory to Glamis in its reasonable judgement
    to (i) effect an orderly transition of the board of
    directors of Goldcorp contemporaneously with or forthwith after
    Glamis takes up and pays for the Goldcorp Shares, including, if
    requested, resigning in favour of such nominees as may be
    specified by Glamis and (ii) release Goldcorp from all
    claims as directors, other than existing rights to
    indemnification and insurance and customary directors fees and
    expenses for attendance at meetings of the board of directors.
    

     
The foregoing conditions are for the exclusive
benefit of Glamis and may be asserted by Glamis regardless of
the circumstances giving rise to any such condition. Each of the
foregoing conditions is independent of and in addition to each
other. Glamis may, in Glamis’ sole discretion, waive any of
the foregoing conditions, in whole or in part, at any time and
from time to time, without prejudice to any other rights which
Glamis may have. The failure by Glamis at any time to exercise
any of the foregoing rights will not be deemed to be a waiver of
any such right and each such right will be deemed to be an
ongoing right which may be asserted at any time and from time to
time. Glamis reserves the right to terminate the Offer on or
prior to the Expiry Time if any condition to the Offer remains
unsatisfied or has not been waived. Any determination by Glamis
concerning any event or other matter described in the foregoing
conditions will be final and binding on all parties.

     
Any waiver of a condition or the withdrawal of
the Offer will be effective upon written notice or other
communication confirmed in writing by Glamis to that effect to
the Depositary at its principal office in Calgary, Alberta.
Glamis, forthwith after giving any such notice, will make a
public announcement of such waiver or withdrawal, will cause the
Depositary, if required by Law, as soon as practicable
thereafter to notify Shareholders in the manner set forth below
in Section 11 of the Offer to Purchase and will provide a
copy of such notice to the NYSE and the TSX. Any notice of
waiver will be deemed to have been given and to be effective on
the day on which it is delivered or otherwise communicated to
the Depositary at its principal office in Calgary, Alberta. In
the event of any waiver, all Goldcorp Shares deposited
previously and not taken up or withdrawn will remain subject to
the Offer and may be accepted for purchase by Glamis in
accordance with the terms of the Offer. If the Offer is
withdrawn, Glamis will not be obligated to take up or pay for
any Goldcorp Shares deposited under the Offer and the Depositary
will promptly return all Goldcorp Shares to the parties by whom
they were deposited in acceptance of the Offer. See
Section 9 of the Offer to Purchase, “Return of
Withdrawn Goldcorp Shares”.

 

		
	3.	
    Payment for Deposited Goldcorp
    Shares

     
If all of the conditions referred to above in
Section 2 of the Offer to Purchase have been fulfilled or,
where permitted, waived at the Expiry Time, Glamis will become
obligated to take up and pay for the Goldcorp Shares deposited
under the Offer and not withdrawn no later than 10 days
after the Expiry Date, and to pay for the Goldcorp Shares taken
up as soon as possible, but in any event not later than three
business days after taking up the Goldcorp Shares. In accordance
with applicable Law, Glamis will take up and pay for Goldcorp
Shares deposited under the Offer after the date on which it
first takes up Goldcorp Shares deposited under the Offer not
later than 10 days after the deposit of such Goldcorp
Shares.

     
Subject to applicable Law, including
Rule 14e-1(c) under the U.S. Exchange Act, which
requires that Glamis pay the consideration offered or return the
deposited Goldcorp Shares promptly after the termination of the
Offer or withdrawal of Goldcorp Shares, Glamis expressly
reserves the right in its sole discretion to delay or otherwise
refrain from taking up and paying for any Goldcorp Shares or to
terminate the Offer and not take up or pay for any Goldcorp
Shares if any condition specified in the section entitled
“Conditions of the Offer” in this Offer is not
satisfied or waived by Glamis by giving written notice thereof,
or other communication confirmed in writing, to the Depositary
at its principal office in Calgary, Alberta. Subject to
compliance with Rule 14e-1(c) under the U.S. Exchange
Act, Glamis also expressly reserves the right, in its sole
discretion and notwithstanding any other condition of the Offer,
to delay taking up and paying for Goldcorp Shares in order to
comply, in whole or in part, with any applicable Law. Glamis
will not, however, take up and pay for any Goldcorp Shares
deposited under the Offer unless it simultaneously takes up and
pays for all Goldcorp Shares then validly deposited under the
Offer and not withdrawn.

21

 

     
Glamis will be deemed to have taken up and
accepted for payment Goldcorp Shares validly deposited and not
withdrawn under the Offer if, as and when Glamis gives written
notice or other communication confirmed in writing to the
Depositary to that effect.

     
Glamis will pay for Goldcorp Shares validly
deposited under the Offer and not withdrawn by providing the
Depositary with the Offered Consideration in the form of
sufficient certificates for Glamis Shares and funds to pay for
fractional Glamis Shares otherwise issuable, if any, for
transmittal to Persons depositing Goldcorp Shares under the
Offer. Under no circumstances will interest accrue or be paid on
the Offered Consideration by Glamis or the Depositary to Persons
depositing Goldcorp Shares, regardless of any delay in making
such payment. Fractional Glamis Shares will not be issued.
Instead of receiving a fraction of a Glamis Share, the
registered Shareholder will receive a cash payment equal to such
fraction multiplied by the Current Market Price. For the
purposes of determining the amount of any such cash payment, all
Goldcorp Shares deposited by a registered holder will be
aggregated.

     
The Depositary will act as the agent of the
Persons who have deposited Goldcorp Shares under the Offer for
the purposes of receiving payment from Glamis and transmitting
such payment to such Persons. Receipt of the share certificates
and cash, if any, representing the Offered Consideration by the
Depositary will be deemed to constitute receipt of payment by
Persons depositing Goldcorp Shares.

     
Settlement with each Shareholder who has
deposited Goldcorp Shares under the Offer will be made by the
Depositary forwarding (a) for the Goldcorp Shares (other
than those representing fractional Glamis Shares), a certificate
for the Glamis Shares to which such Shareholder is entitled
under the Offer, provided that the Shareholder is a resident of
a province of Canada or another jurisdiction in which the Glamis
Shares may be lawfully delivered without further action by
Glamis and (b) if applicable, a cheque in U.S. dollars
in payment for the cash equivalent of any fractional Glamis
Shares determined in accordance with the Offer, that is payable
to such registered Shareholder. Subject to the foregoing and
unless otherwise directed by the Letter of Transmittal, the
certificates and any cheque will be issued in the name of the
registered Shareholder of the Goldcorp Shares so deposited.
Unless the Person depositing the Goldcorp Shares instructs the
Depositary to hold the certificate representing the Glamis
Shares and any cheque for pick-up by checking the appropriate
box in the Letter of Transmittal, the certificate and any cheque
will be forwarded by first class insured mail to such Person at
the address specified in the Letter of Transmittal. If no such
address is specified, the certificate and any cheque will be
sent to the address of the Shareholder as shown on the
securities register maintained by or on behalf of Goldcorp.
Certificates and cheques mailed in accordance with this
paragraph will be deemed to be delivered at the time of mailing.

 

		
	4.	
    Time and Manner for Acceptance

     
The Offer is open for acceptance, unless
withdrawn or extended at the sole discretion of Glamis until the
Expiry Time, being 9:00 p.m. (Toronto time), on the Expiry
Date, unless the Offer is withdrawn or extended. See
Section 6 of the Offer, “Extensions, Variations and
Changes to the Offer”.

     
The Offer may be accepted by Shareholders by
depositing the following documents with the Depositary at the
offices specified in the Letter of Transmittal no later than the
Expiry Time:

			
	 	(a) 	
    the certificate or certificates representing
    Goldcorp Shares in respect of which the Offer is being accepted;
    
	 
	 	(b) 	
    a properly completed and duly signed copy of the
    Letter of Transmittal (or a manually signed facsimile copy),
    with the signature or signatures guaranteed in accordance with
    the instructions set out in the Letter of Transmittal; and
    
	 
	 	(c) 	
    any other relevant document required by the
    instructions set forth on the Letter of Transmittal.
    

     
The Offer will be deemed to be accepted only if
the Depositary actually has received these documents at or
before the Expiry Time at one of the addresses for the
Depositary indicated on the Letter of Transmittal. Shareholders
who cannot comply on a timely basis with these procedures for
deposit of the requisite

22

 

certificates for Goldcorp Shares may deposit
certificates representing Goldcorp Shares pursuant to the
Procedures for Guaranteed Delivery described in Section 5
below.

 

		
	5.	
    Procedure for Guaranteed Delivery

     
If a Shareholder wishes to accept the Offer and
either (i) the certificates representing such
Shareholder’s Goldcorp Shares are not immediately available
or (ii) such Shareholder cannot deliver the certificates
and Letter of Transmittal to the Depositary by the Expiry Time,
those Goldcorp Shares may nevertheless be deposited under the
Offer, provided that all of the following conditions are met:

			
	 	(a) 	
    such deposit is made only at the principal office
    of the Depositary in Toronto by or through an Eligible
    Institution;
    
	 
	 	(b) 	
    a properly completed and duly executed Notice of
    Guaranteed Delivery (or a manually signed facsimile) is received
    by the Depositary at its principal office in Toronto at or
    before the Expiry Time; and
    
	 
	 	(c) 	
    the certificate or certificates representing the
    deposited Goldcorp Shares, in proper form for transfer, together
    with a properly completed and duly signed Letter of Transmittal
    (or a manually signed facsimile copy) and other documents
    required by such Letter of Transmittal, are received at the
    Toronto office of the Depositary by 5:00 p.m. (Toronto
    time) on the third trading day on the TSX after the Expiry Time.
    

     
The Notice of Guaranteed Delivery may be
delivered by hand, transmitted by electronic facsimile or mailed
to the Depositary only at its principal office in Toronto and
must include a guarantee by an Eligible Institution in the form
set forth in the Notice of Guaranteed Delivery.

 

		
	6.	
    Extensions, Variations and Changes to the
    Offer

     
The Offer will be open for acceptance at the
places of deposit specified in the Letter of Transmittal until
the Expiry Time, unless the Offer is withdrawn or extended by
Glamis.

     
Glamis may, at any time and from time to time
while the Offer is open for acceptance, vary the terms of the
Offer or extend the Expiry Time by giving notice in writing to
the Depositary at its principal office in Calgary, Alberta.
Also, if at any time before the Expiry Time, or at any time
after the Expiry Time, but before the expiry of all rights of
withdrawal with respect to the Offer, a change occurs in the
information contained in this Offer or Circular, as amended from
time to time, that would reasonably be expected to affect the
decision of a Shareholder to accept or reject the Offer (other
than a change that is not within the control of Glamis or an
affiliate of Glamis, unless it is a change in a material fact
relating to the Glamis Shares), Glamis will give written notice
of such change to the Depositary at its principal office in
Calgary, Alberta. Upon the giving of such notice to the
Depositary, the Expiry Time or withdrawal rights, as applicable,
will be deemed to be extended to the date specified in such
notice or in the case of a variation the Offer will be deemed to
be varied in the manner described in such notice, as the case
may be. Glamis will, as soon as practicable after giving any
such notice to the Depositary, publicly announce the extension,
variation or change and cause the Depositary to mail a copy of
any such notice to Shareholders as required by applicable
securities legislation at their respective addresses appearing
in the share register of Goldcorp. In addition, Glamis will
provide a copy of such notice to the TSX and the NYSE. Any
notice of extension, variation or change will be deemed to have
been given and be effective on the day on which it is delivered
or otherwise communicated to the Depositary at its principal
office in Calgary, Alberta. During any extension of the Offer,
all Goldcorp Shares previously deposited and not taken up and
paid for or withdrawn will remain subject to the Offer and,
subject to applicable Law, may be accepted for purchase by
Glamis on or before the Expiry Time in accordance with the terms
of the Offer.

     
An extension of the Expiry Time will not, in and
of itself, constitute a waiver by Glamis of any of its rights
under Section 2 of the Offer to Purchase.

23

 

     
Under applicable Canadian provincial securities
Law, if there is a variation in the terms of the Offer, the
period during which Goldcorp Shares may be deposited under the
Offer will not expire before 10 days after the notice of
variation has been delivered. If, before the Expiry Time, Glamis
in its sole discretion elects to increase the Offered
Consideration, such increase will be applicable to all holders
whose Goldcorp Shares are taken up under the Offer.

     
Notwithstanding the foregoing, the Offer may not
be extended by Glamis if all the terms and conditions of such
Offer have been complied with, except those waived by Glamis,
unless Glamis first takes up and pays for all Goldcorp Shares
validly deposited under the Offer and not withdrawn.

     
Pursuant to U.S. federal securities laws,
Glamis, subject to the conditions listed below, may elect to
make available a subsequent offering period by extending the
Offer for a period of at least three United States Business Days
and not to exceed 20 United States Business Days (the
“Subsequent Offering Period”) following the Expiry
Time. Pursuant to such rule, Glamis may include a Subsequent
Offering Period with respect to the Offer so long as:

			
	 	(a) 	
    the Offer was open for at least 20 United States
    Business Days and has expired;
    
	 
	 	(b) 	
    the Offer was for all outstanding Goldcorp Shares
    that are the subject of the Offer;
    
	 
	 	(c) 	
    Glamis immediately takes up and promptly pays for
    all Goldcorp Shares deposited in accordance with the terms of
    the Offer;
    
	 
	 	(d) 	
    Glamis announces the results of the Offer,
    including the approximate number and percentage of Goldcorp
    Shares deposited, no later than 9:00 a.m., Eastern time, on
    the next United States Business Day after the Expiry Time and
    immediately begins the Subsequent Offering Period;
    
	 
	 	(e) 	
    Glamis immediately takes up and promptly pays for
    Goldcorp Shares as they are deposited during the Subsequent
    Offering Period with respect to the Offer; and
    

			
	 	(f) 	
    Glamis pays the same form and amount of
    consideration for all Goldcorp Shares deposited during the
    Subsequent Offering Period with respect to the Offer.
    

     
A Subsequent Offering Period, if one is included,
does not constitute an extension of the Offer for purposes of
U.S. federal securities laws although it may constitute an
extension of the Offer under Canadian securities laws. For
purposes of U.S. federal securities laws, a Subsequent
Offering Period is an additional period of time beginning on the
day after the Expiry Time during which Shareholders may deposit
Goldcorp Shares not deposited during the Offer. For purposes of
applicable Canadian securities laws, a Subsequent Offering
Period is an additional period of time by which the Offer is
extended, following the satisfaction or waiver of all conditions
of the Offer and the take-up of all Goldcorp Shares then
deposited under the Offer, and during which period Shareholders
may deposit Goldcorp Shares not deposited prior to the
commencement of the Subsequent Offering Period with respect to
the Offer.

     
If Glamis elects to include a Subsequent Offering
Period with respect to the Offer, for purposes of applicable
U.S. federal securities laws, Glamis will include a
statement of its intention to do so in the press release
announcing the results of the Offer disseminated no later than
9:00 a.m., Eastern time, on the next business day after the
previously scheduled Expiry Time. For purposes of applicable
Canadian securities laws, Glamis will provide a written notice
of extension of the Offer with respect to the implementation of
the Subsequent Offering Period, including the period during
which the Offer will be open for acceptance, to the Depositary
and will cause the Depositary to provide as soon as practicable
thereafter a copy of such notice to all holders of Goldcorp
Shares that have not been taken up pursuant to the Offer at the
date of the extension. The same form and amount of consideration
will be paid to Shareholders depositing Goldcorp Shares during
the Subsequent Offering Period, if one is included, as would
have been paid prior to the commencement of such period. Subject
to the following sentence, the Expiry Time with respect to a
Subsequent Offering Period shall be 9:00 p.m., Eastern
time, on the last day of the Subsequent Offering Period, unless
determined otherwise pursuant to the provisions of this section.
The foregoing sentence will not limit the requirement that the
conditions to the Offer set forth in Section 2 of the Offer
to Purchase, “Conditions to the Offer”, be satisfied
or waived prior to the initial Expiry Time, which will be before
the commencement of the Subsequent

24

 

Offering Period. If the consideration being
offered for the Goldcorp Shares under the Offer is increased,
the increased consideration will be paid to all depositing
Shareholders whose Goldcorp Shares are taken up under the Offer
without regard to when such Goldcorp Shares are taken up under
the Offer by Glamis.

     
Glamis reserves the right to conduct a Subsequent
Offering Period. In order to comply with the applicable laws of
Canada and the U.S. federal securities laws, if Glamis
elects to make a Subsequent Offering Period available with
respect to the Offer, the Subsequent Offering Period will be
open for at least 10 calendar days from the date of notice of
extension and will not exceed 20 United States Business Days
from the Expiry Time. Glamis will promptly take up and pay,
within three business days, for all Goldcorp Shares validly
deposited during the Subsequent Offering Period with respect to
the Offer.

 

		
	7.	
    Changes in Capitalization of Goldcorp;
    Dividends and Distributions; Liens

     
If, on or after the date of the Offer, Goldcorp
should divide, combine, reclassify, consolidate, convert or
otherwise change any of the Goldcorp Shares or its
capitalization, or should disclose that it has taken or intends
to take any such action, then Glamis may, in its sole discretion
and without prejudice to its rights under Section 2 of the
Offer to Purchase, “Conditions to the Offer,” make
such adjustments as it deems appropriate to reflect such
division, combination, reclassification, consolidation,
conversion or other change in the Offered Consideration, the
number of Glamis Shares to be issued or other terms of the Offer
(including, without limitation, the type of securities offered
to be purchased and the consideration payable therefor).

     
If, on or after the date of the Offer, Goldcorp
should declare or pay any dividend (other than its current
regular monthly dividend) or declare, make or pay any other
distribution or payment on or declare, allot, reserve or issue
any securities, rights or other interests with respect to the
Goldcorp Shares that is payable or distributable to the holders
of such Goldcorp Shares on a record date that precedes the date
of transfer of such Goldcorp Shares into the name of Glamis or
its nominees or transferees on the share register maintained by
or on behalf of Goldcorp, then, without prejudice to
Glamis’ rights under Section 2 of the Offer to
Purchase, “Conditions to the Offer”, in the case of
cash dividends, distributions or payments, the amount of the
dividends, distributions or payments will be received and held
by the depositing Shareholders, and to the extent that such
dividends, distributions or payments do not exceed the value of
the consideration per Goldcorp Share payable by Glamis pursuant
to the Offer (as determined by Glamis), the Offered
Consideration will be reduced by that number of Glamis Shares
having a value, based upon the Current Market Price, equal to
the amount of such dividend, distribution or payment.

     
Goldcorp Shares acquired pursuant to the Offer
will be transferred by the holder of Goldcorp Shares and
acquired by Glamis, free and clear of all liens, restrictions,
charges, encumbrances, security interests, claims and equities
or rights of others of any nature or kind whatsoever and
together with all rights and benefits arising therefrom,
including (subject to the payment of dividends as described
above) the right to all other securities which may be declared,
paid, issued, accrued, distributed, made or transferred on or
after the date of the Offer on in respect of the Goldcorp Shares.

 

		
	8.	
    Right to Withdraw Deposited Goldcorp
    Shares

     
Except as otherwise provided in this
Section 8, all deposits of Goldcorp Shares under the Offer
are irrevocable. Goldcorp Shares may be withdrawn by or on
behalf of a depositing Shareholder (unless otherwise required or
permitted by applicable Law):

			
	 	(a) 	
    at any time when the Goldcorp Shares have not
    been taken up by Glamis;
    
	 
	 	(b) 	
    at any time before the expiration of 10 United
    States Business Days from the date upon which either:
    

			
	 	(i)  	
    a notice of change relating to a change which has
    occurred in the information contained in the Offer and Circular,
    each as amended from time to time, which change is one that
    would reasonably be expected to affect the decision of a
    Shareholder to accept or reject the Offer (other than a change
    that is not within the control of the Glamis) in the event that
    such change
    

25

 

			
	 		
    occurs before the Expiry Time or after the Expiry
    Time but before the expiry of all rights of withdrawal in
    respect of the Offer; or
    
	 
	 	(ii) 	
    a notice of variation concerning a variation in
    the terms of the Offer (other than a variation consisting solely
    of an increase in the consideration offered for the Goldcorp
    Shares under the Offer where the time for deposit is not
    extended for a period greater than 10 days);
    

			
	 		
    is mailed, delivered or otherwise properly
    communicated, but only if such deposited Goldcorp Shares have
    not been taken up by Glamis at the time of the notice and
    subject to abridgement of that period pursuant to such order or
    orders as may be granted by Canadian courts or securities
    regulatory authorities;
    

			
	 	(c) 	
    if the Shareholder’s Goldcorp Shares have
    not been paid for by Glamis within three business days after
    having been taken up; or
    
	 
	 	(d) 	
    as required by the U.S. Exchange Act, at any
    time after March 8, 2005 provided that the Goldcorp Shares
    have not been accepted for payment by Glamis before the receipt
    by the Depositary of the notice of withdrawal in respect of such
    Goldcorp Shares.
    

     
If Glamis waives any terms or conditions of the
Offer and extends the Offer in circumstances where the rights of
withdrawal set forth in paragraph (b) above are applicable,
the Offer shall be extended without Glamis first taking up
Goldcorp Shares that are subject to the rights of withdrawal.

     
A notice of withdrawal of deposited Goldcorp
Shares must:

			
	 	(a) 	
    be made by a method that provides the Depositary
    with a written or printed copy of such notice (which includes a
    telegraphic or electronic facsimile communication);
    
	 
	 	(b) 	
    be made by or on behalf of the depositing
    Shareholder;
    
	 
	 	(c) 	
    be signed by or on behalf of the Person who
    signed the Letter of Transmittal (or Notice of Guaranteed
    Delivery) that accompanied the Goldcorp Shares being withdrawn;
    
	 
	 	(d) 	
    specify that Person’s name, the number of
    Goldcorp Shares to be withdrawn, the name of the registered
    holder of the Goldcorp Shares to be withdrawn, and the
    certificate number shown on each certificate evidencing the
    Goldcorp Shares to be withdrawn; and
    
	 
	 	(e) 	
    actually be received by the Depositary at the
    place of deposit within the applicable time specified above.
    

     
In addition, any signature in the withdrawal
notice must be guaranteed in the same manner as in the Letter of
Transmittal or Notice of Guaranteed Delivery, except where the
Goldcorp Shares were deposited for the account of an Eligible
Institution.

     
The ability of Glamis to delay the payment for
Goldcorp Shares that Glamis has taken up is limited by
Rule 14e-1(c) under the U.S. Exchange Act, which
requires that a bidder pay the consideration offered or return
the securities deposited by or on behalf of securityholders
promptly after the termination or withdrawal of such
bidder’s offer, unless such bidder elects to offer a
subsequent offering period and pays for the securities deposited
during the subsequent offering period in accordance with
Rule 14d-11 under the U.S. Exchange Act. The
Depositary, of behalf of Glamis, is bound by Rule 14e-1(c)
under the U.S. Exchange Act in retaining deposited Goldcorp
Shares under these circumstances.

     
Withdrawals may not be rescinded and any Goldcorp
Shares withdrawn will thereafter be deemed not validly deposited
for purposes of the Offer. However, withdrawn Goldcorp Shares
may be redeposited at any time before the Expiry Time by again
following one of the procedures described in Section 4 of
the Offer to Purchase.

     
Notwithstanding the provisions of United States
federal securities laws relating to subsequent offering periods,
Glamis will permit withdrawal of deposited Goldcorp Shares
during any Subsequent Offering Period, if there is one, at any
time prior to such Goldcorp Shares being purchased by Glamis.

26

 

     
If Glamis is delayed in taking up or paying for
Goldcorp Shares or is unable to take up or pay for Goldcorp
Shares for any reason, then, without prejudice to Glamis’
other rights, Goldcorp Shares may not be withdrawn except to the
extent that depositing Shareholders are entitled to withdrawal
rights as set forth in this Section 8 or pursuant to
applicable Laws.

     
In addition to the foregoing rights of
withdrawal, Shareholders in certain provinces of Canada are
entitled to statutory rights of rescission or damages or both in
certain circumstances. See Section 21 of the Circular,
“Offerees’ Statutory Rights”.

     
All questions as to the validity (including
timely receipt) and form of notices of withdrawal will be
determined by Glamis in its sole discretion and such
determinations will be final and binding. None of Glamis, the
Depositary, or any other Person will be under any duty to give
notice of any defect or irregularity in any notice of withdrawal
or will incur any liability for failure to give such notice.

 

		
	9.	
    Return of Withdrawn Goldcorp Shares

     
If any deposited Goldcorp Shares are not taken up
by Glamis pursuant to the terms and conditions of the Offer for
any reason, the Goldcorp Shares that are not purchased will be
returned, at the expense of Glamis, to the depositing
Shareholder by first class registered or insured mail to the
address of the depositing Shareholder specified in the Letter of
Transmittal or, if no such address is specified, to the address
of such Shareholder as shown on the share register maintained by
or on behalf of Goldcorp. Certificates and other relevant
documents will be returned as promptly as practicable following
the Expiry Time or withdrawal or early termination of the Offer.

 

		
	10.	
    Mail Service Interruption

     
Notwithstanding the provisions of the Offer to
Purchase, the Circular, the Letter of Transmittal and the Notice
of Guaranteed Delivery, cheques, share certificates and any
other relevant documents will not be mailed if Glamis determines
that delivery thereof by mail may be delayed. A person entitled
to cheques, share certificates and any other relevant documents
which are not mailed for the foregoing reason may take delivery
thereof at the office of the Depositary at which the Goldcorp
Shares were delivered, upon application to the Depositary, until
such time as Glamis has determined that delivery by mail will no
longer be delayed. Notwithstanding Section 11 of the Offer
to Purchase, the deposit of cheques, share certificates and any
other relevant documents with the Depositary in such
circumstance will constitute delivery to the persons entitled
thereto and the Goldcorp Shares will be deemed to have been paid
for immediately upon such deposit. Notice of any determination
regarding mail service delay or interruption made by Glamis will
be given in accordance with Section 11 of the Offer to
Purchase.

 

		
	11.	
    Notice and Delivery

     
Without limiting any other lawful means of giving
notice, any notice which Glamis or the Depositary may give or
cause to be given under the Offer will be deemed to have been
properly given to Shareholders if it is mailed by prepaid, first
class mail to the registered holders of such securities at their
respective addresses appearing in the appropriate registers
maintained by Goldcorp and will be deemed, unless otherwise
specified by applicable Law, to have been received on the first
business day following the date of mailing. These provisions
apply notwithstanding any accidental omission to give notice to
any one or more Shareholders and notwithstanding any
interruption of mail service in Canada or the United States
following mailing. In the event of any interruption of mail
service in Canada or the United States, Glamis intends to make
reasonable efforts to disseminate the notice by other means such
as publication. In the event that post offices are not open for
the deposit of mail, or there is reason to believe that there is
or could be a disruption in all or any part of the postal
service, any notice which Glamis or the Depositary may give or
cause to be given under the Offer will be deemed to have been
properly given and to have been received by Shareholders if it
is given to the TSX and the NYSE for dissemination through their
facilities or if it is published in a newspaper or newspapers of
general circulation in Toronto and New York or if it is given to
CCN Matthews News Service.

27

 

     
Unless post offices are not open for the deposit
of mail, the Offer to Purchase, the Circular, the Letter of
Transmittal and the Notice of Guaranteed Delivery will be mailed
to registered Shareholders. In addition, Glamis will use its
reasonable efforts to furnish such documents to brokers, banks
and similar persons whose names, or the names of whose nominees,
appear on the security holder list, or, if applicable, who are
listed as participants in a clearing agency’s security
position listing, for subsequent transmission to beneficial
owners of Goldcorp Shares when such list or listing is received.

     
Wherever the Offer to Purchase calls for
documents to be delivered to the Depositary, such documents will
not be considered delivered unless and until they have been
received at one of the offices specified in the Letter of
Transmittal.

 

		
	12.	
    General

     
The method of delivery of certificates
representing Goldcorp Shares and all other documents is at the
option and risk of each Shareholder and delivery will be
effective only when such documents are actually received by the
Depositary. Glamis recommends that certificates and accompanying
Letters of Transmittal be delivered by hand to the Depositary
and that a receipt be obtained for their deposit. If the
documents are mailed, Glamis recommends that registered mail
with return receipt or acknowledgement of receipt be used and
that proper insurance be obtained.

     
Shareholders whose Goldcorp Shares are registered
in the name of a broker, investment dealer, bank, trust company
or other nominee should contact that nominee for assistance in
depositing those Goldcorp Shares under the Offer.

     
No fee or commission will be payable by a
Shareholder who delivers Goldcorp Shares directly to the
Depositary. See Section 19 of the Circular, “Dealer
Manager and Soliciting Dealer Group”.

     
Glamis reserves the right to permit a Shareholder
to accept the Offer in a manner other than as set out above.

     
All questions as to the validity, form,
eligibility (including timely receipt) and acceptance of any
Goldcorp Shares deposited under the Offer, including the
propriety and effect of the execution of the Letter of
Transmittal will be determined by Glamis in its sole discretion,
and depositing holders of Goldcorp Shares agree that such
determination will be final and binding. Glamis reserves the
absolute right to reject any and all deposits which it
determines not to be in proper form, or which, in the opinion of
counsel, it may be unlawful to accept under the Laws of any
jurisdiction. Glamis’ interpretation of the terms and
conditions of the Offer, the Circular, the Letter of Transmittal
and the Notice of Guaranteed Delivery will be final and binding.
Glamis reserves the absolute right to waive any defects or
irregularities in the deposit of any Goldcorp Shares. There will
be no obligation on Glamis, the Depositary, or any other Person
to give notice of any defect or irregularity in acceptance and
no liability will be incurred by any of them to any Person for
failure to give such notice.

     
The deposit of Goldcorp Shares pursuant to the
procedures described in this Offer to Purchase will constitute a
binding agreement between the depositing Shareholder and Glamis
and such agreement will be subject to the conditions of the
Offer and include representations and warranties of the
depositing Shareholder that: (i) such person has full power
and authority to deposit, sell, assign and transfer the Goldcorp
Shares being deposited; (ii) such person owns the Goldcorp
Shares being deposited; (iii) the deposit of such Goldcorp
Shares complies with applicable securities Laws; and
(iv) when such Goldcorp Shares are taken up and paid for by
Glamis, in accordance with the Offer, Glamis will acquire good
title thereto free and clear of all liens, restrictions,
charges, encumbrances, claims and equities.

 

		
	13.	
    Market Purchases

     
Neither Glamis nor its affiliates will bid for or
make purchases of Goldcorp Shares during the Offer other than
Goldcorp Shares deposited to the Offer or other than as
described in the next following paragraph.

28

 

     
Subject to compliance with applicable securities
Laws, Glamis reserves the right to make or enter into an
arrangement, commitment or understanding prior to the Expiry
Time to sell after the Expiry Time any Goldcorp Shares taken up
and paid for under the Offer although Glamis has no current
intention to do so.

 

		
	14.	
    Other Terms of the Offer

     
No broker, dealer or other Person has been
authorized to give any information or to make any representation
or warranty on behalf of Glamis other than as contained in the
Offer to Purchase and Circular and as set forth on the SEC
Form F-10 filed by Glamis in connection with the Offer,
and, if any such information, representation or warranty is
given or made, it must not be relied upon as having been
authorized.

     
The provisions of the Circular, the Letter of
Transmittal and the Notice of Guaranteed Delivery accompanying
the Offer to Purchase, including the instructions and rules
contained therein, as applicable, form part of the terms and
conditions of the Offer to Purchase.

     
Glamis reserves the right to transfer or assign
to one or more of its affiliates the right to purchase all or
any portion of the Goldcorp Shares deposited pursuant to the
Offer.

     
The Offer and all contracts resulting from the
acceptance thereof will be governed by and construed in
accordance with the Laws of the Province of British Columbia and
the federal Laws of Canada applicable therein. Each party to any
agreement resulting from the acceptance of the Offer
unconditionally and irrevocably attorns to the exclusive
jurisdiction of the courts of the Province of British Columbia.

     
This document does not constitute an offer to
sell or a solicitation to any person in any jurisdiction in
which such offer or solicitation is unlawful. The Offer is not
being made or directed to, nor is the document being mailed to,
nor will deposits be accepted from or on behalf of, Shareholders
residing in any jurisdiction in which the making or acceptance
of the Offer would not be in compliance with the Laws of such
jurisdiction.

     
The Offer, together with the documents forming
part of the Offer, constitute the take-over bid circular
required under applicable Canadian provincial securities
legislation with respect to the Offer. Shareholders are urged to
refer to the accompanying Circular for additional information
relating to the Offer. Glamis, in its sole discretion, shall be
entitled to make a final and binding determination on all
questions relating to the Offer, the Circular, the Letters of
Transmittal, the Notices of Guaranteed Delivery, the validity of
any acceptance of the Offer and the validity of the withdrawal
of any Goldcorp Shares.

     
Glamis has filed with the SEC a Tender Offer
Statement on Schedule TO pursuant to Rule 14d-3 of the
U.S. Exchange Act, together with exhibits furnishing
additional information with respect to the Offer, and may file
amendments thereto. In addition, Goldcorp is required to file
with the SEC a Tender Offer Solicitation/ Recommendation
Statement on Schedule 14d-9, setting forth the position of
Goldcorp’s board of directors with respect to the Offer and
the reasons for such position and furnishing additional related
information within 10 business days of the date of the Offer and
Circular. Shareholders will be able to obtain copies of such
documents free of charge at the SEC’s website, www.sec.gov.
In addition, documents filed with the SEC by Glamis will be
available free of charge from Glamis. You should direct requests
for documents to Investor Relations, Glamis Gold Ltd., 5190 Neil
Road, Suite 310, Reno, Nevada 89502-8502, telephone
(775) 827-4600.

Dated: January 7, 2005

		
	 	
    GLAMIS GOLD LTD.
    
	 
	 	
    (Signed) C. KEVIN MCARTHUR
    
	 	
    

	 	
             President
    and Chief Executive Officer
    

29

 

CIRCULAR

     
This Circular is supplied by Glamis with
respect to the accompanying Offer to Purchase. The terms and
provisions of the Offer to Purchase are incorporated into and
form part of this Circular and Shareholders should refer to the
Offer to Purchase for details of the terms and conditions of the
Offer, including details as to payment and withdrawal rights.
Annex A (Information Concerning Glamis), Annex B (Pro
Forma Consolidated Financial Statements) and Annex C
(Certain Information Regarding Directors and Executive Officers
of Glamis) also form a part of this Circular. Capitalized words
and terms used in this Circular but not defined herein will have
the meanings given to them above under the heading
“Definitions” at the front of the Offer to
Purchase.

 

		
	1.	
    Glamis

     
Glamis is engaged in exploration, mine
development, and the mining and extraction of precious metals.
Glamis produces gold from the Marigold Mine, located in Nevada,
the San Martin Mine, located in Honduras, the El Sauzal
Mine located in Mexico and the Rand Mine, located in California.
Glamis has other properties under development: the Marlin
Project and the Cerra Blanco Project, both in Guatemala.

     
Glamis’ approach to the acquisition of
mining properties has generally been to seek opportunities
where, in its view, there is significant opportunity to improve
existing mining operations or considerable potential to expand
the mineable reserves certified to date. In 1998, a strategic
plan was adopted to seek out growth opportunities to take
advantage of lower acquisition costs available as a result of
the lower gold price and weak junior share market conditions at
that time. To that end, Glamis completed the acquisition of
Mar-West Resources Ltd. in October 1998, the acquisition of
Rayrock Resources Inc. in February 1999, the acquisition of
Cambior de Mexico, S.A. de C.V. in May 2000, and the acquisition
of Francisco Gold Corp. in July 2002.

     
For the fiscal year ended December 31, 2003,
Glamis had revenue of approximately $84 million and net
earnings of approximately $18 million. For the nine months
ended September 30, 2004, Glamis had revenues of
approximately $61.3 million and net earnings of
approximately $14.8 million.

     
Based on the ounces of gold contained in the
proven and probable mineral reserves as at December 31,
2003 on the properties in which Glamis has an interest, and the
ownership interests and rights in such properties held, Glamis
estimates its proven and probable mineral gold reserves to be
approximately 6.3 million contained ounces.

     
In the past five years, Glamis has not been
convicted in a criminal proceeding, and has not been a party to
any judicial or administrative proceeding that resulted in a
judgment, decree or final order enjoining Glamis from future
violations of, or prohibiting activities subject to,
U.S. federal or state securities laws, or a finding of any
violation of U.S. federal or state securities laws.

     
Certain information concerning the directors and
executive officers of Glamis is attached as Annex C to this
Circular.

     
Glamis is a reporting issuer or the equivalent in
all provinces of Canada and files its continuous disclosure
documents with the Canadian securities regulatory authorities
and the SEC. Such documents are available at www.sedar.com and
at www.sec.gov, respectively.

     
Glamis is a British Columbia, Canada, corporation
with its principal place of business and head office located at
5190 Neil Road, Suite 310, Reno, Nevada 89502-8502,
telephone number (775) 827-4600. Glamis’ registered
and records office is located at 1500-1055 West Georgia
Street, Vancouver, British Columbia V6E 4N7.

Authorized and Outstanding Share
Capital

     
The authorized share capital of Glamis currently
consists of 205,000,000 shares divided into 200,000,000
Glamis Shares, of which 130,863,953 were issued and outstanding
as at January 5, 2005, and 5,000,000 preferred shares
having a par value of Cdn.$10, issuable in series, of which none
are issued. Glamis has called a meeting of its shareholders for
February 9, 2005 to approve an amendment to its authorized
capital to

30

 

remove the restriction on the number of Glamis
Shares that it is authorized to issue. This amendment to the
authorized number of Glamis Shares is necessary for Glamis to
complete the Offer. See Section 2 of the Offer to Purchase,
“Conditions to the Offer”.

     
The holders of Glamis Shares are entitled to
receive notice of any meeting of shareholders of Glamis and to
attend and vote on matters brought before the meeting, except
those meetings at which only the holders of shares of another
class or of a particular series are entitled to vote. Each
Glamis Share entitles its holder to one vote at meetings at
which they are entitled to attend and vote. The holders of
Glamis Shares are entitled to receive on a pro rata basis such
dividends as the Board of Directors of Glamis may declare out of
funds legally available for the payment of dividends. In the
event of the dissolution, liquidation, winding-up or other
distribution of the assets of Glamis, holders of Glamis Shares
are entitled to receive on a pro rata basis all of the assets of
Glamis remaining after payment of all of Glamis’
liabilities and subject to the prior rights attached to the
preferred shares of Glamis to receive a return of capital and
unpaid dividends. The Glamis Shares carry no pre-emptive or
conversion rights.

     
Assuming that all of the Goldcorp Shares that
were issued and outstanding as at December 22, 2004 are
tendered, and all Goldcorp Shares issuable upon exercise of
Goldcorp Options and Goldcorp Warrants that were outstanding on
December 22, 2004 are exercised and tendered to the Offer
and that Glamis takes up and pays for such Goldcorp Shares under
the Offer, Glamis will issue an additional 187,010,954 Glamis
Shares.

Price Range and Trading Volumes of Glamis
Shares

     
The Glamis Shares are listed and posted for
trading on the NYSE and the TSX under the symbol “GLG”.

     
The following table sets forth, for the periods
indicated, the reported high and low prices and the average
daily volume of trading of the Glamis Shares on the NYSE and the
TSX:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
					
			NYSE		TSX
			
		

					Average				Average
					Daily				Daily
	Calendar Period		High		Low		Volume		High		Low		Volume
	
		
		
		
		
		
		

			$		$				(Cdn.$)		(Cdn.$)		
	
    
    2003

    	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
    
    1st Quarter
    

    	 	 	12.98	 	 	 	9.14	 	 	 	1,287,830	 	 	 	19.73	 	 	 	13.42	 	 	 	753,270	 
	
    
    2nd Quarter
    

    	 	 	12.08	 	 	 	9.55	 	 	 	869,927	 	 	 	16.83	 	 	 	14.00	 	 	 	624,253	 
	
    
    3rd Quarter
    

    	 	 	14.57	 	 	 	10.94	 	 	 	947,458	 	 	 	20.40	 	 	 	15.20	 	 	 	532,232	 
	
    
    4th Quarter
    

    	 	 	17.90	 	 	 	12.88	 	 	 	944,429	 	 	 	23.33	 	 	 	17.21	 	 	 	475,299	 
	
    
    2004

    	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
    
    1st Quarter
    

    	 	 	18.09	 	 	 	14.58	 	 	 	864,334	 	 	 	23.70	 	 	 	19.40	 	 	 	486,372	 
	
    
    2nd Quarter
    

    	 	 	18.80	 	 	 	13.50	 	 	 	856,437	 	 	 	24.65	 	 	 	18.43	 	 	 	516,239	 
	
    
    3rd Quarter
    

    	 	 	18.73	 	 	 	14.97	 	 	 	618,239	 	 	 	24.52	 	 	 	19.78	 	 	 	318,557	 
	
    
    4th Quarter
    

    	 	 	21.62	 	 	 	17.13	 	 	 	806,681	 	 	 	25.50	 	 	 	20.56	 	 	 	628,701	 
	
    
    2005

    	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
    
    January 1 - 5
    

    	 	 	16.32	 	 	 	15.74	 	 	 	1,026,733	 	 	 	19.60	 	 	 	19.26	 	 	 	1,064,305	 

Note: Source for data in table is Bloomberg.

    
Glamis announced its proposed business
combination with Goldcorp on December 16, 2004. On
December 15, 2004, the closing price of the Glamis Shares
on the TSX and the NYSE was Cdn.$23.50 and $19.17, respectively.
The volume-weighted average trading price of the Glamis Shares
on the TSX and the NYSE for the 30 trading days ending on
December 15, 2004 was Cdn.$24.03, and $20.00, respectively.

Further Information Regarding
Glamis

     
Further information with respect to Glamis is set
forth in Annex A (Information Concerning Glamis) and
Annex B (Pro Forma Consolidated Financial Statements),
which are incorporated into and form part of

31

 

this Circular. The following documents of Glamis,
copies of which can be found at www.sedar.com and www.sec.gov,
are specifically incorporated by reference into this Circular:

			
	 	(a) 	
    the Annual Information Form of Glamis dated
    March 8, 2004 for the fiscal year ended December 31,
    2003;
    
	 
	 	(b) 	
    the audited consolidated financial statements of
    Glamis, including notes thereto, as at December 31, 2003
    and 2002 and for each of the years in the three-year period
    ended December 31, 2003, together with the auditors’
    report thereon;
    
	 
	 	(c) 	
    management’s discussion and analysis of
    financial condition and results of operations of Glamis for the
    fiscal year ended December 31, 2003;
    
	 
	 	(d) 	
    the Management Information Circular (Proxy
    Statement) of Glamis dated March 1, 2004 distributed in
    connection with the annual general meeting of shareholders held
    on May 6, 2004 (excluding the sections entitled
    “Performance Graphs,” “Report of the Compensation
    and Nominating Committee on Compensation of Executive Officers
    and Others” and “Corporate Governance and
    Committees”);
    
	 
	 	(e) 	
    the unaudited interim consolidated financial
    statements of Glamis for the three months and nine months ended
    September 30, 2004 and notes thereto and management’s
    discussion and analysis of financial condition and results of
    operations for the three months and nine months ended
    September 30, 2004; and
    

			
	 	(f) 	
    the material change report of Glamis dated
    December 20, 2004 relating to the Offer.
    

     
Any documents of Glamis of the type referred to
above (excluding confidential material change reports) together
with any material change reports filed with a securities
commission or similar regulatory authority in Canada on or after
the date of this Offer and Circular and prior to the Expiry Time
will be deemed to be incorporated by reference into this
Circular.

     
Any statement related to Glamis contained in
the Offer and Circular or in a document of Glamis incorporated
or deemed to be incorporated by reference herein will be deemed
to be modified or superseded, for the purposes of the Offer and
Circular, to the extent that a statement related to Glamis
contained in the Offer and Circular, or in any other
subsequently filed Glamis document that also is or is deemed to
be incorporated by reference in the Offer and Circular, modifies
or supersedes such statement. Any statement so modified or
superseded will not be deemed, except as so modified or
superseded, to constitute a part of the Offer and
Circular.

 

		
	2.	
    Goldcorp

     
The information concerning Goldcorp contained in
the Offer and Circular has been taken from or is based upon
publicly available documents and records on file with Canadian
and U.S. securities regulatory authorities and other public
sources. Although Glamis has no knowledge that would indicate
that any statements contained herein taken from or based on such
documents and records are untrue or incomplete, Glamis does not
assume any responsibility for the accuracy or completeness of
the information contained in such documents and records, or for
any failure by Goldcorp to disclose events which may have
occurred or may affect the significance or accuracy of any such
information but which are unknown to Glamis.

Corporate Overview

     
Goldcorp explores for precious metals and
develops mines. Goldcorp produces gold from the Red Lake Mine,
located in Ontario and the Wharf Mine located in South Dakota.
Goldcorp also owns an industrial minerals operation in
Saskatchewan, Canada, which produces sodium sulphate used
primarily in the detergent industry.

32

 

     
According to Goldcorp’s financial statements
for the fiscal year ended December 31, 2003, Goldcorp had
revenue of approximately $262.6 million (of which
approximately $249.0 million were revenues derived from
gold sales) and net earnings of approximately $98.8 million.

     
For the nine months ended September 30,
2004, Goldcorp had revenues of approximately $139.1 million
(of which approximately $129.6 million were revenues
derived from gold sales) and net earnings of approximately
$36.4 million.

     
Goldcorp is a reporting issuer or the equivalent
in all provinces and territories of Canada and files its
continuous disclosure documents with the Canadian securities
regulatory authorities and the SEC. Such documents are available
at www.sedar.com and www.sec.gov, respectively.

     
Goldcorp’s principal executive offices are
located at Suite 2700, 145 King Street West, Toronto,
Ontario, Canada M5H 1J8, telephone number (416) 865-0326.

Authorized and Outstanding Share
Capital

     
Goldcorp is authorized to issue an unlimited
number of Goldcorp Shares. As of December 22, 2004,
189,980,188 Goldcorp Shares (excluding Goldcorp Shares issuable
upon the exercise of outstanding Goldcorp Options and Goldcorp
Warrants) were issued and outstanding. As at December 22,
2004, Goldcorp Options and Goldcorp Warrants to acquire up to a
maximum of 20,144,479 Goldcorp Shares were outstanding.

     
Each Goldcorp Share entitles the holder thereof
to one vote at all meetings of shareholders other than meetings
at which only holders of another class or series of shares are
entitled to vote. Each Goldcorp Share entitles the holder
thereof to receive any dividends declared by the directors of
Goldcorp and the remaining property of Goldcorp upon dissolution.

Price Range and Trading Volume of Goldcorp
Shares

     
The Goldcorp Shares are listed and posted for
trading on the NYSE under the symbol “GG” and the TSX
under the symbol “G”. The following table sets forth,
for the periods indicated, the reported high and low sale prices
and the average daily volume of trading of the Goldcorp Shares
on the NYSE and the TSX:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
					
			NYSE		TSX
			
		

					Average				Average
					Daily				Daily
	Calendar Period		High		Low		Volume		High		Low		Volume
	
		
		
		
		
		
		

			$		$				(Cdn.$)		(Cdn.$)		
	
    
    2003

    	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
    
    1st Quarter
    

    	 	 	13.07	 	 	 	9.55	 	 	 	2,136,090	 	 	 	20.59	 	 	 	13.95	 	 	 	1,007,401	 
	
    
    2nd Quarter
    

    	 	 	12.72	 	 	 	10.10	 	 	 	1,343,181	 	 	 	17.10	 	 	 	14.59	 	 	 	668,366	 
	
    
    3rd Quarter
    

    	 	 	14.89	 	 	 	10.94	 	 	 	1,545,317	 	 	 	20.06	 	 	 	15.14	 	 	 	634,478	 
	
    
    4th Quarter
    

    	 	 	18.30	 	 	 	13.73	 	 	 	1,996,017	 	 	 	23.80	 	 	 	18.46	 	 	 	779,290	 
	
    
    2004

    	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
    
    1st Quarter
    

    	 	 	16.27	 	 	 	13.08	 	 	 	2,130,174	 	 	 	20.84	 	 	 	17.40	 	 	 	814,111	 
	
    
    2nd Quarter
    

    	 	 	14.78	 	 	 	10.50	 	 	 	1,728,667	 	 	 	19.35	 	 	 	14.56	 	 	 	948,811	 
	
    
    3rd Quarter
    

    	 	 	13.86	 	 	 	11.00	 	 	 	1,183,438	 	 	 	17.50	 	 	 	14.68	 	 	 	531,085	 
	
    
    4th Quarter
    

    	 	 	15.62	 	 	 	13.15	 	 	 	1,896,920	 	 	 	18.91	 	 	 	16.25	 	 	 	1,173,529	 
	
    
    2005

    	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
    
    January 1 - 5
    

    	 	 	14.22	 	 	 	13.86	 	 	 	1,821,467	 	 	 	17.19	 	 	 	17.02	 	 	 	1,938,233	 

Note: Source for data in table is Bloomberg.

    
Glamis announced its proposed business
combination with Goldcorp on December 16, 2004. On
December 15, 2004, the closing price of the Goldcorp Shares
on the TSX and the NYSE was Cdn.$17.10 and

33

 

$13.98, respectively. The volume-weighted average
trading price of the Goldcorp Shares on the TSX and the NYSE for
the 30 trading days ending on December 15, 2004 was
Cdn.$17.31, and $14.52, respectively.

Goldcorp Documents Incorporated by
Reference

     
Information regarding Goldcorp has been
incorporated by reference in this Offer and Circular from
documents filed by Goldcorp with securities commissions or
similar authorities in Canada. Glamis
believes that copies of the documents incorporated herein by
reference regarding Goldcorp may be obtained on request without
charge from Goldcorp’s Legal Department, Suite 2700,
145 King Street West, Toronto, Ontario, Canada,
M5H 1J8 (telephone: (416) 865-0326).

     
Although Glamis has no knowledge that would
indicate that any statements contained in such documents filed
by Goldcorp are untrue or incomplete, Glamis does not assume any
responsibility for the accuracy or completeness of the
information contained in such documents, or for any failure by
Goldcorp to disclose events which may have occurred or may
affect the significance or accuracy of any such information but
which are unknown to Glamis.

     
The following documents of Goldcorp, copies of
which can be found at www.sedar.com and www.sec.gov, are
specifically incorporated by reference into this Circular:

			
	 	(a) 	
    the audited comparative financial statements of
    Goldcorp (except for the Goldcorp auditors’ report as
    Glamis has not obtained the consent of the auditors to
    incorporate this report), including the notes thereto, as at
    December 31, 2003 and 2002 and for each of the years in the
    three-year period ended December 31, 2003 as set out on
    pages 18 to 36 of Goldcorp’s 2003 annual report for
    the year ended December 31, 2003; and
    
	 
	 	(b) 	
    unaudited comparative interim consolidated
    financial statements for the nine months and three months ended
    September 30, 2004, as set out on pages 9 to 17 of
    Goldcorp’s Third Quarter Report to Shareholders for the
    quarter ended September 30, 2004.
    

 

		
	3.	
    Background to the Offer

 

		
		
    Initial Discussions

     
Glamis first discussed a possible business
combination with Goldcorp in November 2003 when Robert McEwen,
Chief Executive Officer of Goldcorp telephoned C. Kevin
McArthur, President and Chief Executive Officer of Glamis, and
suggested that Goldcorp and Glamis discuss a combination of the
companies. Mr. McEwen and Mr. McArthur agreed to meet
and discuss a proposed business combination. In a meeting held
in Palm Desert, California on November 21, 2003,
Mr. McEwen suggested an all-share transaction whereby
Goldcorp would acquire Glamis at a premium to Glamis’ share
price but that the management of Glamis would operate the merged
company.

     
The closing prices of the Goldcorp Shares and the
Glamis Shares on the NYSE on November 20, 2003 were $17.21
and $16.16, respectively. These share prices represented a share
exchange ratio of 1.065 Glamis Shares per Goldcorp Share.

     
Following the meeting in Palm Desert, the parties
continued discussions and a mutual confidentiality agreement was
executed on December 12, 2003. The confidentiality
agreement did not include a “standstill” provision in
favour of either Glamis or Goldcorp. At this time, Glamis began
working with Orion Securities Inc. (“Orion”) as its
financial advisor in connection with the consideration of a
business combination with Goldcorp. The formal engagement letter
with Orion was not executed until October 20, 2004.
Throughout December, 2003 and January, 2004, Glamis and Goldcorp
exchanged information about their respective properties,
reserves, operations, plans and budgets, and financial results.
Representatives of Glamis conducted a field visit to
Goldcorp’s Red Lake operation and other mines during
January, 2004 and conducted corporate due diligence in Toronto,
Ontario from February 9 to February 10, 2004. Glamis
employed both its own personnel and third-party independent
consultants to conduct its due diligence investigations of
Goldcorp. Goldcorp conducted corporate due diligence at
Glamis’ head office in Reno, Nevada and conducted site
visits

34

 

at Glamis’ Marigold, El Sauzal,
San Martin and Marlin mines and development projects from
February 17 through February  21, 2004. On
February 13, 2004, at a regularly-scheduled meeting in
Reno, Nevada, management of Glamis presented to the Glamis board
of directors the status of its discussions with Goldcorp, the
initial results of its due diligence investigations and its
initial financial analyses, including those financial analyses
prepared by Orion. No action was requested of or taken by the
Glamis board of directors at that time.

     
On March 2, 2004, Mr. McEwen,
Mr. McArthur, Charles Jeannes, Senior Vice-President
Administration, General Counsel and Secretary of Glamis and
Christopher Bradbrook, then Vice-President, Corporate
Development for Goldcorp, met in Tampa, Florida to continue
discussion of a possible combination of Glamis and Goldcorp. At
that meeting Mr. McEwen suggested the companies combine on
the basis of an “at-market” deal. The parties agreed
that Mr. Jeannes and Mr. Bradbrook should meet to
compare financial models.

     
The closing prices of the Goldcorp Shares and the
Glamis Shares on the NYSE on March 1, 2004 were $13.65 and
$16.00, respectively. These share prices represented a share
exchange ratio of 0.853 of a Glamis Share per Goldcorp Share.

     
On March 8, 2004, Mr. Jeannes, together
with Doug Bell and Ken Gillis of Orion, met in Toronto with
Mr. Bradbrook and Bruce Humphrey, then Vice President and
Chief Operating Officer of Goldcorp. Data was exchanged and the
parties agreed to each revise their models accordingly and talk
again shortly. Representatives of Glamis and Goldcorp held
further telephone discussions during March 2004. However, on
April 6, 2004, Mr. McEwen contacted Mr. McArthur
by telephone and advised that an “at-market” deal was
no longer advantageous to Goldcorp’s shareholders and he
terminated discussions.

     
The closing prices of the Goldcorp Shares and the
Glamis Shares on the NYSE on April 5, 2004 were $14.10 and
$18.47, respectively. These share prices represented a share
exchange ratio of 0.763 of a Glamis Share per Goldcorp Share.

 

		
		
    Renewed Discussions

     
On August 12, 2004, Ronald J. Vance of N M
Rothschild & Sons (“Rothschild”),
Goldcorp’s financial advisor, met with Mr. McArthur
and Mr. Jeannes at Glamis’ office in Reno, Nevada to
reopen discussions on a possible business combination.
Mr. Vance advised Mr. McArthur and Mr. Jeannes
that he was acting at Mr. McEwen’s request, and that
Goldcorp was prepared to reconsider a combination with Glamis
provided that Goldcorp shareholders received a premium to the
current market price for Goldcorp Shares.

     
The closing prices of the Goldcorp Shares and the
Glamis Shares on the NYSE on August 11, 2004 were $11.48
and $15.33, respectively. These share prices represented a share
exchange ratio of 0.749 of a Glamis Share per Goldcorp Share.

     
In response to the August 12, 2004 meeting,
Glamis updated its financial models in anticipation of further
negotiations. On September 1, 2004, when Goldcorp released
Mr. McEwen’s letter disclosing his intention to resign
as the Chief Executive Officer of Goldcorp, Rothschild advised
Glamis that a business combination with Goldcorp remained
possible.

     
On September 9, 2004, Mr. McArthur
provided Mr. McEwen with a non-binding written indication
of interest for Glamis to acquire Goldcorp at an approximate 15%
premium to Goldcorp’s share price based upon recent trading
prices of the shares of both companies (the “Glamis
September Proposal”). In a telephone conversation on
September 20, 2004, Mr. McEwen stated that he had
shared the Glamis September Proposal with the Goldcorp board of
directors, and while he personally felt the premium offered was
too low, he wished to continue the negotiations.

     
On September 28, 2004, Mr. McArthur,
Mr. Jeannes and James S. Voorhees, Vice-President
Operations and Chief Operating Officer of Glamis, and
Mr. McEwen, R. Gregory Laing, Goldcorp’s
Vice-President, Legal and Mike Hoffman, Vice President, Projects
of Goldcorp, met in Denver, Colorado to continue discussions in
respect of the Glamis September Proposal. At the meeting,
Mr. McEwen indicated that the premium proposed in the
Glamis September Proposal would need to be increased before the
offer would be considered acceptable. Mr. McArthur told
Mr. McEwen that Glamis would consider increasing its
premium,

35

 

but only if justified based on additional due
diligence at the Red Lake property. Mr. McEwen agreed to
proceed on this basis and further due diligence reviews of
Goldcorp’s operations were conducted by representatives of
Glamis at Red Lake and Toronto on October 6, 2004.
Additionally, further due diligence reviews of Glamis’
operations at Marigold, El Sauzal and Marlin were conducted by
Goldcorp personnel from October 12 through October 17, 2004.

     
On October 15, 2004, Glamis provided
Goldcorp with an offer letter, conditioned on Glamis’ board
of directors approval and execution of a definitive agreement,
proposing a substantial increase in consideration for a share
exchange under a plan of arrangement, being 0.871 of a Glamis
Share exchanged for each Goldcorp Share (the “Glamis
October Proposal”). The letter indicated that the offer
represented an approximate 23% premium to Goldcorp’s share
price based on recent trading prices of the shares of both
companies. Glamis also invited Goldcorp representation on the
Glamis board of directors, proposed a 3% break fee and a 15-day
exclusive negotiating period. Glamis understands that in
response to this proposal, Goldcorp formed a special committee
of independent directors (the “Goldcorp Independent Special
Committee”) composed of the following three directors:
Ronald M. Goldsack, Michael L. Stein and Dr. Donald R.M.
Quick. On October 21, 2004, Glamis management updated the
Glamis board of directors as to the status of discussions with
Goldcorp, and presented its updated financial analyses,
including those financial analyses prepared by Orion, and due
diligence findings. No action was requested of the board of
directors pending response by Goldcorp to the Glamis October
Proposal.

     
On October 22, 2004, Mr. McEwen
telephoned Mr. McArthur and proposed an increase in the
share exchange ratio to one Glamis share for each Goldcorp share
(being an approximate 43.7% premium to Goldcorp’s then
trading price), that Goldcorp be the acquiring company and that
a termination fee of $30 million be paid by Goldcorp if the
transaction was terminated for certain reasons. After
considering Mr. McEwen’s proposal and discussing it
with Orion, Mr. McArthur telephoned Mr. McEwen on
October 25, 2004, to advise Mr. McEwen that the
exchange ratio proposed by Mr McEwen was not acceptable to
Glamis. On October 25, 2004, Mr. Laing of Goldcorp
advised Mr. Jeannes of Glamis that the Goldcorp board of
directors had determined that only persons specifically
authorized by the Goldcorp Independent Special Committee were to
respond to the Glamis October Offer or otherwise communicate
with Glamis.

     
Notwithstanding Mr. McEwen’s
communication, Glamis understands that the Goldcorp Independent
Special Committee continued to function and engaged Ogilvy
Renault as its legal counsel, and Rothschild as its financial
advisor. On November 2, 2004, Mr. Laing advised
Mr. Jeannes that the Goldcorp Independent Special Committee
determined that the exchange ratio in the Glamis October
Proposal was “of interest” and asked Glamis to attend
a meeting with the Goldcorp Independent Special Committee to
continue negotiations in respect of the Glamis October Proposal.

     
On November 8, 2004, Mr. McArthur and
Mr. Jeannes, together with Doug Bell and Ken Gillis of
Orion Securities met in Toronto with the members of the Goldcorp
Independent Special Committee, Mr. Laing and
Mr. Vance, Hugo Dryland and Jim Gilbert of Rothschild.
Negotiations were conducted over a three-day period and resulted
in Glamis and the Goldcorp Independent Special Committee
settling on a proposed business combination to be implemented
through a plan of arrangement on the basis of a share exchange
ratio of 0.89 of a Glamis Share for each Goldcorp Share (the
“Agreed Proposal”). Additionally, Glamis and the
Goldcorp Independent Special Committee reached an understanding
regarding deal protection terms. At this time Mr. McArthur
offered to make a presentation regarding Glamis and his vision
for the combined company to the entire Goldcorp board of
directors. The offer was declined.

     
Mr. Goldsack informed Glamis that Rothschild
had confirmed to the Goldcorp Independent Special Committee that
the Agreed Proposal was fair to Goldcorp’s shareholders
from a financial point of view and that the Goldcorp Independent
Special Committee would recommend the transaction to
Goldcorp’s board of directors. He also stated that
Mr. McEwen was now opposed to the Agreed Proposal, but that
Mr. Goldsack strongly believed a majority of the Goldcorp
board of directors would approve the Agreed Proposal and that a
meeting of the Goldcorp board of directors would be held on
November 10, 2004. Mr. McArthur then called a meeting
of the Glamis board of directors for November 11, 2004 in
Toronto, in anticipation of a positive decision from the
Goldcorp board of directors.

36

 

     
On November 11, the Glamis board of
directors met to review the recommendations of management and to
hear presentations from its third party mining consultant
regarding the conclusions derived from his due diligence
investigations at Red Lake. At this time, Orion presented a
detailed financial review of the Glamis proposal of 0.89 Glamis
Shares for each Goldcorp Share, and advised that a transaction
at this level would be fair to Glamis shareholders from a
financial point of view.

     
Also on November 11, Mr. Goldsack
informed Glamis that the board of directors of Goldcorp had met
but that no vote was taken on the Agreed Proposal because
further information on the combination was requested by the
directors. Mr. McArthur was advised by Mr. Goldsack on
November 17 that another meeting of the Goldcorp board of
directors was held that day, but again, no action was taken on
the Agreed Proposal, this time because one board member was
travelling in Australia and there had been difficulties in
communications with him. Mr. Goldsack advised that the
board was now split, but that he remained confident the Agreed
Proposal would be approved. The Goldcorp board of directors then
held an additional meeting on November 22, 2004.
Mr. Goldsack telephoned Mr. McArthur late on
November 22, 2004 to advise him that, notwithstanding the
recommendation of the Goldcorp Independent Special Committee and
Rothschild, its independent financial advisor, the Agreed
Proposal was voted down by the Goldcorp board of directors. No
reasons were given for the decision, and no attempt was made at
further negotiation of any term in the Agreed Proposal. Glamis
then temporarily suspended its efforts with respect to pursuing
a business combination with Goldcorp and turned its focus to
preparing for an analysts’ tour of its El Sauzal mine in
Mexico from December 5 through December 7, 2004.

 

		
		
    Glamis Response to Announcement of Goldcorp
    and Wheaton River Proposed Combination

     
On December 6, 2004, Goldcorp and Wheaton
River announced that they had entered into an agreement in
principle to combine their companies pursuant to a share
exchange take-over bid whereby Goldcorp would offer one Goldcorp
Share for every four common shares of Wheaton River,
representing a premium of approximately 7% over the average
closing market price of the common shares of Wheaton River for
the previous 30 days on the TSX. Goldcorp and Wheaton River
announced further that the making of the offer was subject to
board approval of a definitive agreement between Goldcorp and
Wheaton River, the satisfactory completion of due diligence
investigations and the receipt by Wheaton River of an opinion
from its financial advisor that the consideration offered under
the offer is fair, from a financial point of view, to its
shareholders. They also stated in the release that they had
agreed to negotiate exclusively with each other for 21 days
and to exchange confidential information with a view to
completing their due diligence investigations and settling a
definitive agreement as soon as possible.

     
In response to the announcement of the proposed
combination between Goldcorp and Wheaton River, Glamis’
management considered making its offer previously negotiated
with the Goldcorp Independent Special Committee directly to the
shareholders of Goldcorp. From December 7 through
December 15, 2004, Glamis’ management met with its
financial advisors and legal counsel to discuss the proposed
combination between Goldcorp and Wheaton River, and to consider
its potential response. In those discussions, management also
reviewed the terms of the proposed combination between Goldcorp
and Wheaton River, as announced by Goldcorp and Wheaton River on
December 6, 2004, and how those conditions might
disenfranchise Goldcorp’s shareholders from having an
opportunity to choose to tender their shares to a take-over bid
by Glamis.

     
Glamis’ board of directors met on
December 10, 2004 to consider Glamis’ response. The
board of directors unanimously authorized the making of this
Offer.

 

		
		
    Glamis Bid for Goldcorp

     
On December 16, 2004, Glamis issued a press
release and held a conference call announcing its proposed offer
to acquire all outstanding Goldcorp Shares. Immediately before
this announcement, Mr. McArthur telephoned Mr. McEwen
to advise him of the Glamis announcement, but Mr. McArthur
was unable to reach Mr. McEwen.

37

 

     
At Glamis’ instruction, on December 16,
2004, Osler, Hoskin & Harcourt LLP (“Osler”),
special counsel to Glamis, delivered a letter to the board of
directors of Goldcorp regarding the proposed combination between
Goldcorp and Wheaton River. The letter outlined the proposal of
Glamis to acquire all outstanding shares of Goldcorp. In
particular, the letter advised that the offer of Glamis would be
subject to a number of conditions, including that Goldcorp does
not acquire any shares of Wheaton River or become committed to
acquire such shares unless the terms of acquisition provide that
Goldcorp may terminate the purchase, without penalty, if the
Glamis offer is successful. The letter also brought to the
attention of the board of directors the provisions of National
Policy 62-202 of the Canadian Securities
Administrators — Take-Over Bids — Defensive
Tactics which provides that if a board of directors of a target
company has reason to believe that a bid might be imminent, the
entering into of a contract out of the normal course of
business, or agreeing to acquire assets of a material amount,
may come under scrutiny of the regulator where the effect of
taking such steps may be to deprive shareholders of the ability
to respond to a take-over bid or to deny or limit severely the
ability of the shareholders of the target company to respond to
a take-over bid. A copy of the letter was also delivered to the
Ontario Securities Commission and the Toronto Stock Exchange.

     
On December 17, 2004, Goldcorp issued a
press release responding to the announcement by Glamis of its
intention to make an offer to acquire the shares of Goldcorp. In
its press release, Goldcorp stated that it “has become
aware through a press release dated December 16, 2004
issued by Glamis Gold Ltd. that they may make an offer to
purchase all of the issued and outstanding shares of Goldcorp.
The Board of Directors will review and evaluate the proposal if
a take-over bid circular is sent to Goldcorp shareholders.”
In response, Glamis issued a press release later that day
disclosing that it had delivered the December 16 letter of Osler
to the board of directors of Goldcorp and reiterated its
intention to make its offer to the Goldcorp shareholders.

     
On December 20, 2004, Osler delivered a
letter to the TSX requesting that the TSX exercise its
discretion under the TSX Company Manual when assessing the
proposed combination between Goldcorp and Wheaton River to
require Goldcorp shareholder approval as a condition to Goldcorp
issuing any of its securities with respect to the transaction.

     
On December 23, 2004, Goldcorp announced
that it had signed a definitive agreement with Wheaton River
whereby Goldcorp would make a share exchange take-over bid for
Wheaton River. Under the bid, one Goldcorp Share would be issued
for every four common shares of Wheaton River. It was disclosed
that Goldcorp’s offer would be conditional upon the
approval of the issuance of the Goldcorp Shares under the offer
by a majority of votes cast by Goldcorp’s shareholders at a
shareholders meeting scheduled for January 31, 2005.
Wheaton River would be entitled to a $35 million
termination fee in certain circumstances, including if the
Goldcorp shareholders do not approve the issuance of Goldcorp
Shares under the offer.

     
On December 24, 2004, Glamis announced its
intention to continue with its previously announced take-over
bid for Goldcorp conditional upon, amongst other things,
Goldcorp shareholders not approving, by a majority of votes cast
at a meeting of Goldcorp shareholders, the issuance of Goldcorp
Shares by Goldcorp in connection with its offer to purchase all
outstanding shares of Wheaton River.

     
Goldcorp commenced its bid for Wheaton River on
December 29, 2004.

 

		
		
    Reasons for the Proposed
    Combination

     
Glamis believes that the combination of Glamis
and Goldcorp is a unique opportunity to create a world-class,
pure gold producer by combining the complementary strengths of
Glamis and Goldcorp. Further, based on the trading prices at the
time of announcement of the Offer, the shareholders of Goldcorp
will receive an immediate, substantial share price premium. See
Section 4 of the Circular, “Purpose of the Offer and
Glamis’ Plans for Goldcorp”. Given the public
announcement by Goldcorp on September 1, 2004 in which
Goldcorp revealed Robert McEwen’s intention to resign as
Goldcorp’s Chief Executive Officer and in which
Goldcorp’s board of directors disclosed the initiation of a
search for a new Chief Executive Officer for Goldcorp, the Offer
would also address the Goldcorp board’s need for a new
Chief Executive Officer through the succession to Glamis’
knowledgeable and experienced management.

38

 

     
Glamis believes that the combination of Glamis
and Goldcorp will produce the following benefits:

     
A premier gold producer.
Glamis believes the combined
company will create a world-class, pure gold producer that will
attract substantial interest from gold investors. The combined
company will be substantially larger than the intermediate gold
company group, but its simple, low-cost operations in stable
political jurisdictions will present a positive alternative to
the senior producers, combining the market liquidity of a senior
producer with the growth potential of an intermediate producer.
The combined company will have projected gold production in 2005
of nearly 1.0 million ounces and Glamis projects production
to grow to over 1.4 million ounces by 2007. The combined
company would have a large reserve base, with over
11 million ounces of proven and probable gold reserves as
at December 31, 2003.

     
Expertise to Unlock Additional Value in Red
Lake. Goldcorp’s Red Lake
property is one of the premier high-grade gold mines in the
world. However, in completing its detailed due diligence of Red
Lake, Glamis determined that the full potential of this asset
has not been realized. Glamis believes that the experience of
its management in mine development and operations could lower
unit costs and increase the production rate and asset value of
Red Lake. In particular, Glamis believes that there are good
opportunities to enhance the value of Red Lake by the discovery
of more reserves and lengthening of mine life, achieving cost
savings through mine optimization, increasing throughput and
lowering unit costs, and by considering ways to achieve
meaningful consolidation in the Red Lake camp.

     
Professional, Operations-Oriented
Management. Glamis will bring to
the combined company a professional, operations-oriented
management team with a chief executive officer experienced in
both acquisitions, and mine development and operation.
Glamis’ approach to operations has always been a bottom-up
approach with the head office providing guidance and direction
to the technical staff at the operations and driving efficiency
through empowerment of local management. Based on discussions to
date with the mining staff at Goldcorp, Glamis is confident that
this approach would be highly successful at Red Lake. Glamis has
successfully developed and operated gold mines for the past
25 years. Many of the people responsible for this record of
achievement are still with Glamis in executive or operations
roles.

     
Financial Strength.
On a pro forma basis, the combined
company will have a strong, liquid balance sheet, with
approximately $500 million in cash, cash equivalents and
bullion as of 2004 year-end, with total long-term debt of
approximately $30 million. The annual average cash cost of
the combined company over the next five years is projected to be
approximately $120 per ounce, approximately 45% below the
average of the senior North American gold producers. Subject to
final board approval, Glamis’ management currently expects
that Glamis will pay a dividend to shareholders of the combined
company. Glamis’ management also intends to seek input from
shareholders regarding the practice of withholding from sale a
portion of gold production in order to take advantage of
expected higher gold prices in the future.

     
Pure, Unhedged Gold Producer.
The combined company will remain a
pure gold company, with no base metal exposure or reliance on
base metal credits to achieve low operating costs. In addition
the combined company will remain committed to its strategy of
not hedging, with 100% of its gold production and gold reserves
being unhedged.

     
Diversified Portfolio of Properties with
Long Mine Life. Glamis has
established a diversified portfolio of new low-cost operations.
The combination of the multiple-property portfolio of Glamis and
the primarily single property portfolio of Goldcorp will provide
diversity of operating risk that the Goldcorp shareholders
currently do not have. Each of the main operations of the
combined Glamis and Goldcorp has considerable mine
life — approximately 10 years for the Glamis
operations and approximately eight years for the Red Lake
property of Goldcorp, based on current reserve estimates for
these properties.

     
Outstanding Growth
Profile. The combination of
expected growth at Red Lake with Glamis’ existing growth
projects provides superior opportunities for enhanced valuations
from fully-permitted, and fully-financed growth projects that
are already under construction. Glamis currently expects annual
production of the combined company to grow by 66% to
1.4 million ounces by 2007. Additionally, Glamis believes
that each of its mines and Red Lake have excellent prospects for
discovery and reserve expansion, again providing an

39

 

additional, new opportunity to Goldcorp
shareholders to participate in the exploration potential offered
by the Marigold and El Sauzal mines and the Marlin and Cerro
Blanco development projects of Glamis.

     
Low Geopolitical Risk.
The combined new company will have
a relatively low geopolitical risk with all operations in the
Americas and over 75% of reserves located in North American Free
Trade Agreement (NAFTA) countries and the backing of the World
Bank (IFC) at Marlin in Guatemala, through the
establishment of a $45 million term loan facility.

     
Enhanced Market
Liquidity. The combined company
will have a much larger market capitalization than either Glamis
or Goldcorp alone, which should provide enhanced market
liquidity for the shareholders. In addition, Glamis believes
that the combined company will have a greater market following
and offer greater attraction to a wider range of investors than
either Glamis or Goldcorp do currently on their own.

 

		
		
    Comments Regarding Offer by Goldcorp to
    Acquire Wheaton River

     
Glamis believes the combination of Goldcorp with
Glamis will deliver superior value to Goldcorp’s
shareholders than the proposed take-over of Wheaton River by
Goldcorp, for the following reasons:

     
Premium
Offer. Glamis’ Offer of 0.89
of a Glamis Share for each Goldcorp Share represents a 22.6%
premium for Goldcorp Shares based on the volume-weighted average
trading price for both companies for the 30 trading days on the
NYSE immediately before the announcement of the Offer on
December 16, 2004. The Wheaton River proposal requires
Goldcorp to pay a premium to shareholders of Wheaton River.

     
Operations Focused
Culture. Glamis provides Goldcorp
with an operations-focused management team with proven
exploration, development and operations skills necessary to
enhance Red Lake operations and continue Glamis’
outstanding track record of successful growth in the Americas.

     
Track Record of Acquisition Integration
Success. Glamis has demonstrated
its ability to effectively build value through acquisition,
having successfully identified and implemented important mining
and process enhancements at Marigold and El Sauzal and having
significantly expanded reserves and resources at
San Martin, Marigold, Marlin and Cerro Blanco. Since 1998,
current management has completed four significant acquisitions.

     
Pure Gold and Gold
Premium. The combination of Glamis
and Goldcorp will maintain and enhance Goldcorp’s
successful branding as a pure gold producer, and will report
cash costs of production among the lowest in the industry
without reliance on base metal by-product credits and without
risk of base metal price fluctuations. In contrast, Wheaton
River relies heavily on base metal by-product credits to reduce
its cash costs of production. For the nine month period ending
September 30, 2004, Wheaton River’s revenue from
copper production accounted for approximately 45% of total
revenues. Glamis believes that investors prefer single commodity
companies and reward them with higher valuation multiples
relative to those companies with revenue streams derived from a
combination of precious and base metals. A Glamis-Goldcorp
combination is unlikely to jeopardize the ability of Glamis to
continue to attract a gold premium share price multiple. By
combining with Wheaton River, Goldcorp’s new business will
include significant base metal production which may affect the
ability of Goldcorp to continue to attract a premium
gold multiple.

     
Outstanding Low-Risk Growth
Profile. The combination of
expected growth at Red Lake with Glamis’ existing growth
projects provides superior opportunities for enhanced valuations
from fully-permitted growth projects that are already under
construction. Additionally, each of the projects of the combined
company exhibits significant exploration opportunities for
reserve growth and additional mineral discoveries.

     
Simple Operations in the
Americas. The combination of
Goldcorp and Glamis will be based upon four outstanding
low-cost, long-lived mines in the Americas: Red Lake, Marigold,
El Sauzal and Marlin. Glamis is the operator of each of its
mines and is in control of the future direction of its assets.
In contrast, Wheaton River has a non-operating, minority
interest in its most valuable asset. Glamis also believes that
enhanced management focus and efficient administrative costs are
possible when managing operations within similar time zones and
all within a single day’s travel.

40

 

 

		
	4.	
    Purpose of the Offer and Glamis’ Plans
    for Goldcorp

 

		
		
    Purpose of the Offer

     
The purpose of the Offer is to enable Glamis to
acquire beneficial ownership of all of the Goldcorp Shares. The
effect of the Offer is to give to all Shareholders the
opportunity to receive the Offered Consideration in respect of
their Goldcorp Shares.

     
If Glamis takes up and pays for the Goldcorp
Shares validly deposited under the Offer, Glamis intends to
cause a meeting of Shareholders to be held to consider an
amalgamation, statutory arrangement, capital reorganization or
other transaction whereby Glamis will acquire any Goldcorp
Shares not deposited under the Offer. See Section 5 of the
Circular, “Acquisition of Shares Not Deposited”.

     
If permitted by applicable Law, subsequent to the
completion of the Offer and, if necessary, any Subsequent
Acquisition Transaction, Glamis intends to delist the Goldcorp
Shares from the TSX and the NYSE and, where applicable, to cause
Goldcorp to cease to be a reporting issuer under Canadian
securities legislation and to have the Goldcorp Shares
deregistered under the U.S. Exchange Act. See
Section 13 of the Circular, “Effect of the Offer on
the Market for and Listing of the Goldcorp Shares”.

 

		
		
    Plans for Glamis and Goldcorp following the
    Completion of the Offer

     
The acquisition of Goldcorp will further
strengthen the position of Glamis as a premier gold producer.
While Glamis will take action to optimize the combined
operations of Glamis and Goldcorp if the Offer is successful, as
the operations of Goldcorp are focused primarily on the
operation of the Red Lake mine, Glamis does expect that it will
retain Goldcorp’s offices in Toronto and Red Lake. Glamis
also may increase the size of its board of directors and appoint
new directors of its choice to the board. Glamis also intends to
examine the re-establishment of a dividend program for the
combined company.

     
Other than any Subsequent Acquisition Transaction
or as described herein, Glamis currently does not have any plans
or proposal that would result in any extraordinary corporate
transaction, such as a merger, amalgamation, reorganization or
liquidation, any purchase, sale, lease or transfer of a material
amount of assets involving Goldcorp or any of its subsidiaries,
any material change in the indebtedness or capitalization of
Goldcorp or any material change in Goldcorp’s corporate
structure of business.

Treatment of Goldcorp Options and
Warrants

     
The Offer is made only to acquire the Goldcorp
Shares. Glamis is not offering to acquire the Goldcorp Options
and Goldcorp Warrants. Holders of Goldcorp Options and Goldcorp
Warrants who wish to tender into the Offer must first exercise
their Goldcorp Options or Goldcorp Warrants and then tender the
Goldcorp Shares acquired on such exercise. If Glamis takes up
and pays for Goldcorp Shares under the Offer, Glamis currently
intends to implement a Subsequent Acquisition Transaction,
implement a transaction which will be structured in a manner, or
take such other action as may be available, so that the holders
of Goldcorp Options and Goldcorp Warrants will, pursuant to the
terms thereof, receive Glamis Shares upon the proper exercise of
the Goldcorp Options or Goldcorp Warrants. The number of Glamis
Shares so issued and the exercise price will reflect the
exchange ratio used in this Offer.

     
Glamis intends to maintain the listing of
Goldcorp Warrants that are currently listed on the TSX. However,
the effect of completing a transaction which results in the
holders of Goldcorp Warrants receiving Glamis Shares on the
exercise thereof will, in effect, result in such warrants
becoming warrants to acquire Glamis Shares.

41

 

 

		
		
    Business Combination Risks

     
The combination of Glamis with Goldcorp is
subject to certain risks, including the following:

 

		
		
    The Glamis Shares issued in connection with
    the Offer may have a market value lower than expected.

     
Glamis is offering to pay 0.89 of a Glamis Share
for each Goldcorp Share tendered to the Offer and not withdrawn.
Based on the volume-weighted average trading price of the Glamis
Shares and Goldcorp Shares on the NYSE for the 30 trading days
ended December 15, 2004, the day immediately before the
date Glamis announced its intention to make the Offer, the Offer
valued each Glamis Share at $20.00 and each Goldcorp Share at
$17.80. Based on these share prices, the Offer represents a
premium of 22.6% to Goldcorp shareholders. If the market price
of Glamis Shares declines relative to the market price of the
Goldcorp Shares or if the market price of Goldcorp Shares
increases relative to the market price of the Glamis Shares, the
value of the consideration received by Goldcorp Shareholders
will decline as well. For example, during the 12-month period
ending on December 31, 2004, the closing price of Glamis
Shares on the NYSE varied from a low of $13.50 to a high of
$21.62 and ended that period at $17.16. Variations like these
may occur as a result of changes in, or market perceptions of
changes in, the business, operations or prospects of Glamis,
including short-term changes in gold prices, market assessments
of the likelihood the Offer will be consummated, regulatory
considerations, general market and economic conditions and other
factors over which Glamis has no control.

 

		
		
    The integration of Glamis and Goldcorp may not
    occur as planned.

     
The Offer has been made with the expectation that
its successful completion will result in cost savings by taking
advantage of the enhanced growth opportunities of the combined
company. These anticipated benefits will depend in part on
whether Glamis and Goldcorp’s operations can be integrated
in an efficient and effective manner. Most operational and
strategic decisions, and certain staffing decisions, with
respect to the combined company have not yet been made. These
decisions and the integration of the two companies will present
challenges to management, including the integration of systems
and personnel of the two companies, and special risks, including
possible unanticipated liabilities, unanticipated costs, and the
loss of key employees. The performance of Goldcorp’s
operations after completion of the Offer could be adversely
affected if the combined company cannot retain selected key
employees to assist in the integration and operation of Goldcorp
and Glamis.

 

		
		
    After the consummation of the Offer, Goldcorp
    would become a majority-owned subsidiary of Glamis and
    Glamis’ interest could differ from that of the remaining
    minority Shareholders.

     
Notwithstanding that Glamis intends to carry out
a Subsequent Acquisition Transaction (see Section 5 of the
Circular, “Acquisition of Shares Not Deposited”),
after the consummation of the Offer, Glamis would have the power
to elect the directors, appoint new management, approve certain
actions requiring the approval of Goldcorp Shareholders,
including adopting certain amendments to Goldcorp’s
constating documents and approving mergers or sales of
Goldcorp’s assets. In particular, after the consummation of
the Offer, Glamis intends to integrate Goldcorp and Glamis, by
merger or other transaction whereby the operations of Goldcorp
and Glamis are combined. Glamis’ interests with respect to
Goldcorp may differ from those of any remaining minority
Shareholders.

The exchange of Goldcorp Shares pursuant to
the Offer may be taxable for U.S. holders.

     
The Offer has been structured to cause the
exchange of Goldcorp Shares pursuant to the Offer to be treated
as a reorganization for U.S. income tax purposes. If
reorganization treatment does not apply to the exchange, the
U.S. holder will generally be required to recognize a
capital gain or loss in connection with the exchange. Glamis has
not sought or received a letter or ruling from the United States
Internal Revenue Service. Accordingly, Glamis cannot provide any
assurance that reorganization treatment will apply to the
exchange.

42

 

Glamis has not paid dividends
recently.

     
Glamis has not paid dividends on the Glamis
Shares for a number of years. Glamis’ board of directors
currently intends to consider the re-establishment of a dividend
program for the combined company. However, there is no guarantee
that the combined company will be able to pay or continue to pay
dividends.

Glamis has not been given an opportunity to
verify the reliability of the information regarding Goldcorp
included in, or which may have been omitted from, this
Circular.

     
While management of Glamis has conducted due
diligence on Goldcorp, management of Glamis has not conducted
due diligence on Goldcorp since early October, 2004.
Furthermore, for the Goldcorp information provided herein,
Glamis has relied on publicly available information. Any
inaccuracy in the information provided to Glamis by Goldcorp in
Goldcorp’s publicly available information, or in the
information about Goldcorp contained in this Offer and Circular,
could result in unanticipated liabilities or expenses, increase
the cost of integrating the two companies or adversely affect
the operational plans of the combined company and its results of
operations and financial condition.

Shareholders of Goldcorp will realize dilution
of their interest.

     
Glamis will be issuing (on a fully diluted basis
using Goldcorp Shares, Goldcorp Options and Goldcorp Warrants
outstanding on December 22, 2004) up to a maximum of
187,010,954 Glamis Shares under the Offer, resulting in Glamis
having a total issued share capital of 317,874,907 Glamis
Shares, as at December 22, 2004. As a result of this
issuance, the Shareholders’ ownership interest in the
combined company will be diluted. Based on the above, the
Shareholders will hold approximately 59% of the Glamis Shares
upon the completion of the Offer and any Subsequent Acquisition
Transaction. Based on the Glamis Pro Forma Consolidated
Financial Statements attached hereto as Annex B, the basic
earnings per share for the nine-month period ended
September 30, 2004 for the combined company will be $0.05
per share, compared to the basic earnings per share for Goldcorp
for the nine-month period ended September 30, 2004 of
$0.19 per share. This reduction in basic earnings per share
reflects the accounting treatment of the costs of the
transaction to Glamis as the acquiror. On a cash basis, Goldcorp
realized $30.7 million of net cash provided by operating
activities ($0.16 per Goldcorp Share) for the nine month
period ended September 30, 2004 and on a pro forma basis
(using the same assumptions as those stated in the Glamis Pro
Forma Financial Statements appended hereto as Annex B) the
net cash provided by operating activities for the combined
Glamis and Goldcorp is $55.9 million ($0.18 per Glamis
Share).

The enforcement of shareholder rights by
shareholders of Goldcorp resident in the United States may be
adversely affected by the combination of Goldcorp and
Glamis.

     
The enforcement by Shareholders of civil
liabilities under the U.S. federal securities laws may be
affected adversely by the fact that Goldcorp and Glamis are
organized and have locations and assets in foreign countries,
and that some or all of the Goldcorp and Glamis officers and
directors, some of the experts named in this Offer and Circular
and the Canadian Dealer Manager are residents of foreign
countries.

     
For additional risk factors relating to
Glamis’ business and operations generally, see
“Annex A — Information Concerning
Glamis — Risk Factors”.

 

		
	5.	
    Acquisition of Shares Not Deposited

     
If Glamis takes up and pays for Goldcorp Shares
validly deposited under the Offer, Glamis currently intends to
take such action as is necessary, including causing a special
meeting of Shareholders to be called to consider an
amalgamation, statutory arrangement, consolidation, capital
reorganization or other transaction involving Goldcorp and
Glamis or an affiliate of Glamis, to enable Glamis or an
affiliate of Glamis to acquire all Goldcorp Shares not acquired
pursuant to the Offer (a “Subsequent Acquisition
Transaction”). The timing and details of any such
transaction will depend on a number of factors, including the
number of Goldcorp Shares acquired pursuant to the Offer. If the
Minimum Tender Condition is satisfied and Glamis takes up and
pays for the Goldcorp Shares deposited under the Offer, Glamis
should own sufficient Goldcorp Shares to

43

 

effect such Subsequent Acquisition Transaction.
Glamis currently intends to complete a Subsequent Acquisition
Transaction no later than 120 days after expiry of the
Offer and intends to acquire such affected securities at the
same price per Goldcorp Share as in the Offer.

     
Each type of Subsequent Acquisition Transaction
described above is governed by certain applicable Canadian
securities Laws (collectively, the “Regulations”),
including Rule 61-501 and Policy Q-27 and would be a
“business combination” within the meaning of
Rule 61-501 and a “going private transaction”
within the meaning of the Regulations and Policy Q-27
(collectively, hereinafter referred to as “going private
transactions”). In certain circumstances, the provisions of
Rule 61-501 and Policy Q-27 may also deem certain
types of Subsequent Acquisition Transactions to be “related
party transactions”. However, if the Subsequent Acquisition
Transaction is a “going private transaction” carried
out in accordance with Rule 61-501 or an exemption
therefrom and Policy Q-27 or an exemption therefrom, the
“related party transaction” provisions of
Rule 61-501 and Policy Q-27 would not apply to such
transaction. Glamis intends to carry out any such going private
transaction in accordance with Rule 61-501 and
Policy Q-27 or exemptions therefrom such that the related
party transaction provisions of Rule 61-501 and
Policy Q-27 will not apply to the going private transaction.

     
The Regulations, Rule 61-501 and
Policy Q-27 provide that, unless exempted, a corporation
proposing to carry out a going private transaction is required
to prepare a valuation of the affected securities (and subject
to certain exceptions, any non-cash consideration being offered
therefor) and provide to the holders of the affected securities
a summary of such valuation or the entire valuation. In
connection therewith, Glamis intends to rely on any exemption
then available or to seek waivers pursuant to Rule 61-501
and Policy Q-27 from the OSC and AMF, respectively, exempting
Glamis or Goldcorp or their affiliates, as appropriate, from the
requirement to prepare a valuation in connection with any
Subsequent Acquisition Transaction. An exemption is available
under Rule 61-501 and Policy Q-27 for certain going
private transactions completed within 120 days after the
expiry of a formal take-over bid where the consideration under
such transaction is at least equal in value and is in the same
form as that paid in the take-over bid, provided certain
disclosure is given in the take-over bid disclosure documents.
Glamis expects that these exemptions will be available.

     
Depending on the nature of the Subsequent
Acquisition Transaction, the provisions of the OBCA may require
the approval of at least 66 2/3% of the votes cast by
holders of the outstanding Goldcorp Shares at a meeting duly
called and held for the purpose of approving a Subsequent
Acquisition Transaction. Rule 61-501 and Policy Q-27
would in effect also require that, in addition to any other
required securityholder approval, in order to complete a going
private transaction, the approval of a majority of the votes
cast by “minority” holders of the affected securities
must be obtained unless an exemption is available or
discretionary relief is granted by the OSC and the AMF. In
relation to any Subsequent Acquisition Transaction, the
“minority” holders will be, subject to any available
exemption or discretionary relief granted by the OSC and the AMF
as required, all Shareholders other than Glamis, any
“interested party” (for the purpose of
Rule 61-501 and Policy Q-27), any “related
party” of Glamis or of any “interested party”
(for the purpose of Rule 61-501), including the directors
and senior officers of Glamis, an associate, affiliate or an
insider of Glamis or any of their directors or senior officers,
and any person or company acting jointly or in concert with any
of the foregoing persons. However, Rule 61-501 and Policy
Q-27 also provide that Glamis may treat Goldcorp Shares acquired
pursuant to the Offer as “minority” shares and to vote
them, or to consider them voted, in favour of a Subsequent
Acquisition Transaction that is a going private transaction if,
among other things, the consideration for each security in the
Subsequent Acquisition Transaction is at least equal in value to
and in the same form as the consideration paid pursuant to the
Offer. Glamis currently intends that the consideration offered
under any Subsequent Acquisition Transaction proposed by it
would be the same consideration paid to Shareholders under the
Offer, and Glamis intends to cause Goldcorp Shares acquired
pursuant to the Offer to be voted in favour of such transaction
and to be counted as part of any minority approval required in
connection with any such transaction.

     
The Goldcorp management information circular and
proxy statement given as of March 31, 2004 disclosed that
Mr. McEwen has entered into a change of control agreement
with Goldcorp which provides that, among other things, if his
employment is terminated by Goldcorp, or in certain
circumstances at his election, at any time within 24 months
following the change of control, Mr. McEwen will be
entitled to

44

 

receive, among other things, an amount equal to
four times his annual salary and other remuneration. It is
unclear whether this agreement remains in effect following
Mr. McEwen’s announcement in September 2004 that he is
intending to retire as Chief Executive Officer of Goldcorp.

     
As noted above, Rule 61-501 will allow the
votes attached to the Goldcorp Shares acquired under a formal
bid to be included as votes in favour of a Subsequent
Acquisition Transaction in determining whether minority approval
has been obtained if certain conditions are met. One of the
conditions is that the security holder that tendered the
securities in the bid not receive an advantage in connection
with the bid, such as a collateral benefit, that was not
available to other security holders. If Mr. McEwen tenders
his shares to the Offer, it is possible that
Mr. McEwen’s change of control agreement will confer
upon him a collateral benefit. This may prohibit Glamis from
voting Mr. McEwen’s Goldcorp Shares in a Subsequent
Acquisition Transaction unless it receives the co-operation of
Mr. McEwen and an independent committee of Goldcorp’s
board of directors. If this co-operation is not provided, it is
Glamis’ intention to make an application to the OSC to
request applicable exemptive relief to permit Glamis to vote
Mr. McEwen’s shares should he tender to the Offer.

     
Except for Mr. McEwen’s Goldcorp Shares
as described above, after reasonable inquiry, Glamis knows of no
other Goldcorp Shares the votes attached to which would be
required to be excluded in determining whether minority approval
for a Subsequent Acquisition Transaction had been obtained.

     
In addition, under Rule 61-501 and Policy
Q-27, if, following the Offer, Glamis and its affiliates are the
registered holders of 90% or more of the Goldcorp Shares at the
time the Subsequent Acquisition Transaction is initiated, the
requirement for minority approval would not apply to the
transaction if a statutory right to dissent and seek fair value
or a substantially equivalent enforceable right is made
available to the minority shareholders. If Glamis decides not to
propose a Subsequent Acquisition Transaction involving Goldcorp,
or proposes a Subsequent Acquisition Transaction but cannot
promptly obtain any required approval or exemption, Glamis will
evaluate its other alternatives. Such alternatives could
include, to the extent permitted by applicable laws, purchasing
additional Goldcorp Shares in the open market, in privately
negotiated transactions, in another take-over bid or exchange
offer or otherwise, or from Goldcorp, or taking no further
action to acquire additional Goldcorp Shares. Any additional
purchases of Goldcorp Shares could be at a price greater than,
equal to or less than the price to be paid for Goldcorp Shares
under the Offer and could be for cash and/or securities or other
consideration. Alternatively, Glamis may sell or otherwise
dispose of any or all Goldcorp Shares acquired pursuant to the
Offer or otherwise. Such transactions may be effected on terms
and at prices then determined by Glamis, which may vary from the
terms and the price paid for Goldcorp Shares under the Offer.

     
Any Subsequent Acquisition Transaction may also
result in Shareholders having the right to dissent and demand
payment of the fair value of their Goldcorp Shares. If the
statutory procedures are complied with, this right could lead to
a judicial determination of the fair value required to be paid
to such dissenting shareholders for their Goldcorp Shares. The
fair value of Goldcorp Shares so determined could be more or
less than the amount paid per Goldcorp Shares pursuant to the
Subsequent Acquisition Transaction or the Offer.

     
The tax consequences to a Shareholder of a
Subsequent Acquisition Transaction may differ significantly from
the tax consequences to such Shareholder of accepting the Offer.
See Section 15 and Section 16 of the Circular,
“Certain Canadian Federal Income Tax Considerations”
and “Certain U.S. Income Tax Considerations”,
respectively. Shareholders should consult their legal advisors
for a determination of their legal rights with respect to a
Subsequent Acquisition Transaction if and when proposed.

Judicial Developments

     
Prior to the adoption of Rule 61-501 (or its
predecessor, OSC Policy 9.1) and Policy Q-27, Canadian
courts had in a few instances granted preliminary injunctions to
prohibit transactions involving going private transactions. The
trend in both legislation and in Canadian jurisprudence has been
towards permitting going private transactions to proceed subject
to compliance with procedures designed to ensure substantive
fairness to the minority shareholders. Shareholders should
consult their legal advisors for a determination of their legal
rights.

45

 

 

		
	6.	
    Source of Offered Consideration

     
Glamis will issue Glamis Shares to Shareholders
who tender their Goldcorp Shares under the Offer. Fractional
Glamis Shares will not be issued. Cash will be paid to
Shareholders only in lieu of any fractional Glamis Share payable
to a Shareholder under the Offer. Glamis has the necessary funds
to make all cash payments to be made to Shareholders under the
Offer.

 

		
	7.	
    Beneficial Ownership of and Trading in
    Securities of Goldcorp

     
Except for 2,011 Goldcorp Shares held by
Steven L. Baumann, the Vice-President, Latin American
Operations of Glamis, no securities of Goldcorp, including
Goldcorp Shares, are owned beneficially, directly or indirectly,
nor is control or direction exercised over any securities of
Goldcorp, by Glamis or its directors or senior officers or, to
the knowledge of such directors and senior officers after
reasonable enquiry, by (a) any associate of a director or
senior officer of Glamis, (b) any person holding more than
10% of any class of Glamis’ equity securities or
(c) any person acting jointly or in concert with Glamis.

     
Except for the Goldcorp Shares owned by
Mr. Baumann (purchased on June 30, 2004), no
securities of Goldcorp have been traded during the six-month
period preceding the date of the Offer by Glamis or its
directors or senior officers or, to the knowledge of such
directors and senior officers after reasonable enquiry, by
(a) any associate of a director or senior officer of
Glamis, (b) any person holding more than 10% of any class
of Glamis’ equity securities or (c) any person acting
jointly or in concert with Glamis.

     
As of January 5, 2005, the partners and
associates of Lang Michener LLP and Neal, Gerber &
Eisenberg LLP, Canadian and U.S. counsel to Glamis,
beneficially owned, directly or indirectly, less than 1% of the
outstanding Glamis Shares.

 

		
	8.	
    Prior Distributions of Goldcorp Shares and
    Dividend Policy

     
Glamis is not aware, based on publicly available
information, of any distributions of Goldcorp Shares since
September 30, 2004, other than distributions of Goldcorp
Shares pursuant to the exercise of Goldcorp Options. On
April 30, 2002 Goldcorp completed an offering of 8,000,000
Goldcorp Shares and 4,000,000 Goldcorp Warrants (“2002
Warrants”). Subsequent to a two-for-one share split, each
2002 Warrant entitles the holder to purchase two Goldcorp Shares
at a price of $12.50 per share.

     
In the fourth quarter of 2003, Goldcorp
established its annual regular dividend at $0.18 per Goldcorp
Share and increased the payment frequency to monthly. In January
of 2004, Goldcorp paid a special dividend of $0.10 per Goldcorp
Share.

 

		
	9.	
    Commitments to Acquire Securities of
    Goldcorp

     
Except pursuant to the Offer, neither Glamis nor
any director or senior officer of Glamis, nor to the knowledge
of the directors and senior officers of Glamis after reasonable
enquiry, (a) any associate of a director or senior officer
of Glamis, (b) any person holding more than 10% of any
class of Glamis’ equity securities nor (c) any person
acting jointly or in concert with Glamis, has entered into any
arrangement, agreement, commitment or understanding to acquire
any equity securities of Goldcorp.

 

		
	10.	
    Arrangements, Agreements, Commitments or
    Understandings

     
There are no arrangements, agreements,
commitments or understandings made or proposed to be made
between Glamis and any of the directors or senior officers of
Goldcorp and no payments or other benefits are proposed to be
made or given by Glamis to such directors or senior officers as
compensation for loss of office or as compensation for remaining
in or retiring from office if the Offer is successful.

 

		
	11.	
    Acceptance of the Offer

     
Glamis has not entered into any lock-up
agreements with any Shareholders with respect to the Offer and
accordingly has no assurance that any Goldcorp Shares will be
tendered to the Offer.

46

 

 

		
	12.	
    Material Changes and Other
    Information

     
Glamis is not aware of any information which
indicates that any material change has occurred in the affairs
of Goldcorp since September 30, 2004, the date of the last
published interim financial statements of Goldcorp, other than
as disclosed herein or otherwise publicly disclosed by Goldcorp,
and Glamis does not have any knowledge of any other matter that
has not previously been generally disclosed and which would
reasonably be expected to affect the decision of Shareholders to
accept or reject the Offer.

 

		
	13.	
    Effect of the Offer on the Market for and
    Listing of Goldcorp Shares

     
The purchase of Goldcorp Shares by Glamis
pursuant to the Offer will reduce the number of Goldcorp Shares
that might otherwise trade publicly and will reduce the number
of holders of Goldcorp Shares and, depending on the number of
Goldcorp Shares acquired by Glamis, could adversely affect the
liquidity and market value of the remaining Goldcorp Shares held
by the public. If the number of holders of Goldcorp Shares is
reduced to less than 300, the Goldcorp Shares may become
eligible for termination of registration under United States
securities laws. In such event, to the extent permitted by
applicable law, Glamis intends to terminate the registration of
the Goldcorp Shares and to cause Goldcorp to cease to be a
reporting issuer in the United States.

     
The rules and regulations of the NYSE and the TSX
establish certain criteria which, if not met, could, upon
successful completion of the Offer, lead to the delisting of the
Goldcorp Shares from the NYSE and the TSX. Among such criteria
is the number of Shareholders, the number of Goldcorp Shares
publicly held and the aggregate market value of the Goldcorp
Shares publicly held. Depending on the number of Goldcorp Shares
purchased under the Offer, it is possible that the Goldcorp
Shares would fail to meet the criteria for continued listing on
the NYSE and the TSX. If this were to happen, the Goldcorp
Shares could be delisted and this could, in turn, adversely
affect the market or result in a lack of an established market
for such Goldcorp Shares. If permitted by applicable Law,
subsequent to completion of the Offer or any Subsequent
Acquisition Transaction, if necessary, Glamis intends to apply
to delist the Goldcorp Shares from the NYSE and the TSX. If the
Goldcorp Shares are delisted from the NYSE and the TSX, the
extent of the public market for the Goldcorp Shares and the
availability of price or other quotations would depend upon the
number of Shareholders, the number of Goldcorp Shares publicly
held and the aggregate market value of the Goldcorp Shares
remaining at such time, the interest in maintaining a market in
Goldcorp Shares on the part of securities firms, whether
Goldcorp remains subject to public reporting requirements in
Canada and the United States and other factors.

     
After the purchase of the Goldcorp Shares under
the Offer, Goldcorp may cease to be subject to the public
reporting and proxy solicitation requirements of the OBCA and
the securities laws of Canada and the United States or may
request to cease to be a reporting issuer under the securities
laws of such jurisdictions.

 

		
	14.	
    Regulatory Matters

     
Glamis’ obligation to take up and pay for
Goldcorp Shares tendered under the Offer is conditional upon all
Appropriate Approvals having been obtained on terms satisfactory
to Glamis, acting reasonably.

     
Glamis has received an Advance Ruling Certificate
dated January 4, 2005 under the Competition Act
(Canada) which states that the Commissioner is satisfied
that she would not have sufficient grounds on which to apply to
the Competition Tribunal under the Competition Act with respect
to the Offer.

     
Based upon an examination of the information
publicly available relating to Goldcorp’s business, Glamis
believes that the Offer will not be required to be reviewed by
the Antitrust Division of the U.S. Department of Justice
and the U.S. Federal Trade Commission under the HSR Act.

Securities Regulatory Matters

     
The distribution of the Glamis Shares under the
Offer is being made pursuant to statutory exemptions from the
prospectus qualification and dealer registration requirements
under applicable Canadian securities laws and, in certain
provinces where such statutory exemptions are not available,
Glamis will apply for

47

 

exemptive relief from such requirements. While
the resale of Glamis Shares issued under the Offer is subject to
restrictions under the securities laws of certain Canadian
provinces and territories, Shareholders in such provinces and
territories generally will be able to rely on statutory
exemptions from such restrictions and, where such statutory
exemptions are not available, Glamis will apply for exemptive
relief from the applicable securities regulatory authorities to
the effect that the Glamis Shares to be issued under the Offer
may be resold without a prospectus.

     
A Registration Statement on Form F-10 has
been filed with the SEC registering the issuance of the Glamis
Shares as required by the U.S. Securities Act. The Glamis
Shares may not be issued until the Registration Statement is
declared effective by the SEC. The resale of the Glamis Shares
by non-affiliates (as defined in Rule 144 under the
U.S. Securities Act) of Glamis is not required to be
registered in the United States. However, Glamis Shares acquired
by affiliates of Glamis may be resold only pursuant to a
subsequent U.S. registration statement or in accordance
with the requirements of Rule 144. In general, an affiliate
is an officer or director of Glamis or a shareholder who
beneficially owns more than 10% of the outstanding Glamis
Shares. Affiliates of Glamis are subject to certain restrictions
on the amount of Glamis Shares that may be resold in any single
transaction.

     
The Offer is being made in compliance with
applicable Canadian and U.S. rules governing take-over bids
and tender offers, respectively.

 

		
	15.	
    Certain Canadian Federal Income Tax
    Considerations

General

     
In the opinion of Lang Michener LLP, Canadian
counsel to Glamis, the following is a general summary, as of the
date hereof, of the principal Canadian federal income tax
considerations generally applicable to a Shareholder who
disposes of Goldcorp Shares by accepting the Offer (or pursuant
to a Subsequent Acquisition Transaction) and who, for purposes
of the Tax Act and at all relevant times (i) holds the
Goldcorp Shares as capital property, (ii) deals at
arm’s length and is not affiliated with each of Glamis and
Goldcorp, and provided further that (iii) neither the
Shareholder nor any Persons with whom the Shareholder did not
deal at arm’s length, alone or together control Glamis or
beneficially own shares of Glamis having a fair market value in
excess of 50% of the fair market value of all outstanding Glamis
Shares immediately following the completion of the Offer.
Shareholders meeting all such requirements are referred to as
“Holder” or “Holders” herein, and this
summary only addresses such Holders. Persons holding options,
warrants or other rights to acquire Goldcorp shares are not
addressed, and all such Persons should consult their own tax
advisors in this regard. In addition, this summary is not
applicable to a Holder that is a “financial
institution” (as defined in the Tax Act for purposes of the
mark-to-market rules), a “specified financial
institution” as defined in the Tax Act or a Holder an
interest in which is a “tax shelter investment” for
purposes of the Tax Act, and does not address other special
situations, including those of traders or dealers.

     
This summary is based on the facts as set out in
the Offer and this Circular, the provisions of the Tax Act and
regulations thereunder (in this Section 15 of the Circular,
the “Regulations”) in force as at the date hereof, all
proposed amendments to the Tax Act or the Regulations publicly
announced by the Minister of Finance before the date hereof and
counsel’s understanding of the current administrative and
assessing practice of the Canada Revenue Agency
(“CRA”). No assurance can be given that any proposed
amendments to the Tax Act or Regulations will be enacted or
promulgated in the form proposed, or at all. This summary does
not otherwise take into account or anticipate changes in law,
whether by judicial, governmental or legislative decision or
action, nor does it take into account provincial, territorial or
foreign tax legislation or considerations, which may differ
significantly from those discussed herein. The summary assumes
that Goldcorp is a “taxable Canadian corporation” for
purposes of the Tax Act.

     
This summary is of a general nature only and
is not exhaustive of all possible Canadian federal income tax
considerations applicable to Holders in all circumstances. This
summary is not intended to be, nor should it be construed to be,
legal or tax advice to any particular Holder. Accordingly, all
Holders should consult their own independent tax advisors for
advice with respect to the income tax consequences applicable to
them having regard to their own particular circumstances. The
discussion below is qualified accordingly.

48

 

Holders Resident in Canada

     
In addition to the comments set out under the
heading “General”, this portion of the summary
is applicable only to Holders who are resident or deemed to be
resident solely in Canada for purposes of the Tax Act (a
“Resident Holder” or “Resident Holders”).

     
Certain Resident Holders whose Goldcorp Shares
might not otherwise qualify as capital property may, in certain
circumstances, make an irrevocable election in accordance with
subsection 39(4) of the Tax Act to have their Goldcorp
Shares and every “Canadian security” (as defined in
the Tax Act) owned by such Resident Holders in the taxation year
of the election and in all subsequent taxation years deemed to
be a capital property.

Resident Holders Accepting the Offer

     
A Resident Holder who exchanges Goldcorp Shares
pursuant to the Offer for Glamis Shares will (unless the
Resident Holder chooses otherwise, as described below) be deemed
to have disposed of such Goldcorp Shares for proceeds of
disposition equal to the Resident Holder’s adjusted cost
base thereof, and will also be deemed to acquire the Glamis
Shares received in exchange for such Goldcorp Shares at a cost
equal to that amount. Such Resident Holder will recognize no
capital gain or loss in respect of the exchange, and no election
form under the Tax Act is required to be filed for this purpose.
The cost of the Glamis Shares so acquired must be averaged with
the adjusted cost base of all other Glamis Shares then owned by
such Resident Holder.

     
Under the current administrative and assessing
practice of the CRA, a Resident Holder who receives cash in an
amount that does not exceed Cdn.$200 in lieu of a fraction of a
Glamis Share pursuant to the exchange of shares under the Offer
may ignore the computation of any gain or loss on the
disposition of the fractional share and reduce the adjusted cost
base of the Glamis Shares received on the exchange by the amount
of such cash. A Resident Holder may alternatively include the
capital gain or loss arising on the disposition of the
fractional share in the computation of that Resident
Holder’s income.

     
Notwithstanding the foregoing, a Resident Holder
who exchanges Goldcorp Shares pursuant to the Offer for Glamis
Shares may, if the Resident Holder so chooses, recognize all
(but not less than all) of a capital gain or a capital loss in
respect of such disposition of Goldcorp Shares by reporting
capital gain or loss in the Resident Holder’s income tax
return for the taxation year during which the disposition
occurs. In general terms, such capital gain or loss will be
subject to the normal rules under the Tax Act. Such capital gain
(or capital loss) will be equal to the amount by which the fair
market value of the Glamis Shares received exceeds (or is
exceeded by) the aggregate of the adjusted cost base of the
Resident Holder’s Goldcorp Shares so exchanged and any
reasonable costs of making the disposition. In such
circumstances, the cost of the Glamis Shares so acquired will be
the fair market value thereof as at the time of acquisition, and
is again subject to the averaging rules under the Tax Act.
One-half of any capital gain so realized must be included as a
taxable capital gain in computing the Resident Holder’s
income in such year, and one-half of any such capital loss is
deducted as an allowable capital loss by the Resident Holder
against taxable capital gains realized by the Resident Holder in
the year. An allowable capital loss in excess of taxable capital
gains for the year of disposition generally may be carried back
and deducted against net taxable capital gains for any of the
three preceding years or carried forward and deducted against
net taxable capital gains in any subsequent year (in accordance
with and subject to the rules contained in the Tax Act). Capital
gains realized by an individual (including a trust, other than
certain specified trusts) will be relevant in computing possible
liability for the alternative minimum tax. A
“Canadian-controlled private corporation” (as defined
in the Tax Act) may be liable to pay an additional 6 2/3%
refundable tax on certain investment income, including taxable
capital gains. The amount of any capital loss realized by a
Resident Holder that is a corporation or certain partnerships or
trusts may be reduced in certain circumstances in respect of
dividends, if any, previously received or deemed to have been
received on Goldcorp Shares to the extent and in the
circumstances as set out in the Tax Act, and a Resident Holder
to which these rules may be relevant should consult the Resident
Holder’s own tax advisors.

49

 

Shares Not Deposited by Resident
Holders

 

		
	     (a) 	
    Subsequent Acquisition Transaction

     
As described in Section 5 of the Circular,
“Acquisition of Shares Not Deposited”, if Glamis does
not acquire all of the Goldcorp Shares pursuant to the Offer,
Glamis may propose other means of acquiring the remaining issued
and outstanding Goldcorp Shares. As described in Section 5
of the Circular, “Acquisition of Shares Not Deposited”
it is Glamis’ current intention that the consideration
offered under any Subsequent Acquisition Transaction would be
the same as the consideration offered under the Offer. The tax
treatment of a Subsequent Acquisition Transaction to a Resident
Holder will depend upon the exact manner in which the Subsequent
Acquisition Transaction is carried out and the consideration
offered, and accordingly it is not possible to comment except in
very general terms. Glamis may propose to carry out a Subsequent
Acquisition Transaction by means of an amalgamation, statutory
arrangement, consolidation, capital reorganization or other
transaction, the tax consequences of which to a Resident Holder
would depend upon the nature of the particular transaction
undertaken and may be substantially the same as, or materially
different from, those described above. Depending upon the exact
manner in which the transaction is carried out, such tax
consequences may also include a capital gain or capital loss, a
deemed dividend or both a deemed dividend and a capital gain or
capital loss. Any such capital loss may, in certain
circumstances, be reduced by the amount of certain dividends
previously received or deemed to have been received on the
Goldcorp Shares (or on shares of an amalgamated corporation for
which the Goldcorp Shares are exchanged) to the extent and under
the circumstances described in the Tax Act.

     
A Resident Holder that is a corporation should
consult its tax advisors for specific advice with respect to the
potential application of subsection 55(2) of the Tax Act
with respect to any dividends received, or deemed to be
received, by such corporation in connection with a Subsequent
Acquisition Transaction. Subsection 55(2) provides in part
that, where a Resident Holder that is a corporation receives or
is deemed to receive a dividend, in certain circumstances the
dividend or deemed dividend may be treated as proceeds of
disposition of the Goldcorp Shares for the purpose of computing
the Resident Holder’s capital gain. Subject to the
potential application of this provision, dividends received or
deemed to be received by a corporation in connection with a
Subsequent Acquisition Transaction will be included in computing
income, and normally will also be deductible in computing its
taxable income, but affected Resident Holders are advised to
consult their own tax advisors in this regard.

     
A Resident Holder that is a “private
corporation” or a “subject corporation” (as such
terms are defined in the Tax Act) may be liable under
Part IV of the Tax Act to pay a refundable tax of
33 1/3% on dividends received, or deemed to be received, in
connection with a Subsequent Acquisition Transaction to the
extent that such dividends are deductible in computing such
corporation’s taxable income.

     
In the case of a Resident Holder who is an
individual (including a trust), dividends received or deemed to
be received in connection with a Subsequent Acquisition
Transaction will be included in computing the Resident
Holder’s income, and will be subject to the gross-up and
dividend tax credit rules normally applicable to taxable
dividends paid by a taxable Canadian corporation.

     
If the Subsequent Acquisition Transaction is
carried out by means of an amalgamation, under the current
administrative practice of the CRA, Resident Holders who
exercise a right of dissent in respect of such an amalgamation
should be considered to have disposed of their Goldcorp Shares
for proceeds of disposition equal to the amount paid by the
amalgamated corporation to the dissenting Resident Holder for
such Goldcorp Shares, other than interest awarded by the court.
Because of uncertainties under the relevant legislation as to
whether such amounts paid to a dissenting Resident Holder would
be treated entirely as proceeds of disposition, or in part as
the payment of a deemed dividend, dissenting Resident Holders
should consult with their tax advisors in this regard. Interest
awarded by a court would be included in computing the Resident
Holder’s income.

     
Resident Holders should consult their own tax
advisors for advice with respect to all income tax consequences
to them of having their Goldcorp Shares acquired pursuant to a
Subsequent Acquisition Transaction.

50

 

 

		
	     (b) 	
    Potential Delisting

     
As described under Section 13 of the
Circular, “Effect of the Offer on the Market for and
Listing of Goldcorp Shares”, Goldcorp Shares may be
delisted from the TSX and the NYSE. In certain circumstances, a
delisting could adversely affect a holder of Goldcorp Shares
that is a trust governed by a registered retirement savings plan
(or other deferred income plan) by subjecting such holder to
certain taxes and penalizing provisions under the Tax Act, and
Holders who may be so affected should consult with their own tax
advisors in this regard.

Holding and Disposing of Glamis
Shares

     
In the case of a Resident Holder who is an
individual, dividends received or deemed to be received on
Glamis Shares will be included in computing the Resident
Holder’s income, and will be subject to the normal gross-up
and dividend tax credit rules under the Tax Act. A Resident
Holder that is a “private corporation” or a
“subject corporation” (as defined in the Tax Act) may
be liable under Part IV of the Tax Act to pay a refundable
tax of 33 1/3% on dividends received or deemed to be
received on Glamis Shares to the extent such dividends are
deductible in computing such corporation’s taxable income.

     
A disposition or deemed disposition of Glamis
Shares by a Resident Holder will be subject to the normal rules
under the Tax Act.

 

		
		
    Holders Not Resident in
    Canada

     
In addition to the comments set out under the
heading “General”, this portion of the summary is
applicable to Holders who, at all relevant times for purposes of
the Tax Act, have not been and are not resident in Canada or
deemed to be resident in Canada and do not use or hold and are
not deemed to use or hold their Goldcorp Shares in carrying on a
business in Canada. Holders meeting all such requirements are
hereinafter referred to as “Non-Resident Holder” or
“Non-Resident Holders”, and this part of the summary
only addresses such Non-Resident Holders.

Non-Resident Holders Accepting the
Offer

     
A Non-Resident Holder will not be subject to tax
under the Tax Act in respect of any capital gain realized on a
disposition of Goldcorp Shares pursuant to the Offer unless such
shares are or are deemed to be “taxable Canadian
property” and the Non-Resident Holder is not afforded any
relief under an applicable tax treaty.

     
Generally, Goldcorp Shares will not be taxable
Canadian property at a particular time provided that such shares
are listed on a prescribed stock exchange (which includes the
TSX and the NYSE), unless:

			
	 	(a) 	
    at any time during the 60 month period
    ending at the time of disposition of the Goldcorp Shares by such
    Non-Resident Holder, the Non-Resident Holder, Persons not
    dealing at arm’s length with such Non-Resident Holder, or
    any combination thereof owned 25% or more of the issued shares
    of any class or series of the capital stock of Goldcorp; or
    
	 
	 	(b) 	
    the Non-Resident Holder’s Goldcorp Shares
    were acquired in certain types of tax deferred exchanges in
    consideration for property that was itself taxable Canadian
    property.
    

     
If the Goldcorp Shares are taxable Canadian
property to a Non-Resident Holder, the recognition of a capital
gain on the disposition of Goldcorp Shares pursuant to accepting
the Offer would in general be determined in the manner and
subject to the tax treatment described above under
“Holders Resident in Canada”, subject to any
potential exemption from tax under the terms of any applicable
income tax treaty between Canada and the country of residence of
the Non-Resident Holder. Non-Resident Holders who hold Goldcorp
Shares as taxable Canadian property should consult with their
own tax advisors. Where Goldcorp Shares are held as taxable
Canadian property, Glamis Shares acquired by a Non-Resident
Holder in exchange will be deemed to be taxable Canadian
property to such Non-Resident Holder, which will be relevant in
determining the tax consequences of dispositions or deemed
dispositions of Glamis Shares.

51

 

Shares Not Deposited by Non-Resident
Holders

 

		
	     (a) 	
    Subsequent Acquisition Transactions

     
As described in Section 5 of the Circular,
“Acquisition of Securities Not Deposited,” if Glamis
acquires less than all of the Goldcorp Shares under the Offer,
Glamis may propose other means of acquiring the remaining issued
and outstanding Goldcorp Shares. It is Glamis’ current
intention that the consideration offered under any Subsequent
Acquisition Transaction would be the same as the consideration
offered under the Offer. The tax consequences of a Subsequent
Acquisition Transaction to a Non-Resident Holder will depend
upon the exact manner in which the Subsequent Acquisition
Transaction is carried out and may be substantially the same as,
or materially different from, those referred to above. A
Non-Resident Holder may realize a capital gain or a capital loss
and/or a deemed dividend (see also discussion above). In
general, the Non-Resident Holder would not be subject to
taxation under the Tax Act in respect of any capital gain that
is realized unless the Non-Resident Holder’s Goldcorp
Shares are taxable Canadian property, as described above, and
the Non-Resident Holder is not afforded any relief under an
applicable tax treaty. Non-Resident Holders should consult their
own tax advisors for advice with respect to the potential income
tax consequences to them of having their Goldcorp Shares
acquired pursuant to a Subsequent Acquisition Transaction,
including the special considerations applicable if the Goldcorp
Shares are not then listed on a prescribed exchange. Dividends
paid or deemed to be paid to a Non-Resident Holder would be
subject to Canadian withholding tax at a rate of 25%, as would
any interest awarded to a Non-Resident Holder by a court in the
event a dissent is available and is exercised. This rate may be
reduced under the provisions of an applicable income tax treaty.

 

		
	     (b) 	
    Potential Delisting

     
As described under Section 13 of the
Circular, “Effect of the Offer on the Market for and
Listing of Goldcorp Shares”, Goldcorp Shares may be
delisted from the TSX and the NYSE. If the Goldcorp Shares are
not listed on a prescribed stock exchange at the time of
disposition by a Non-Resident Holder, then notwithstanding any
other tax considerations described in this Circular, the
notification and withholding provisions of section 116 of
the Tax Act will apply to the Non-Resident Holder. Non-Resident
Holders should consult with their own tax advisors well in
advance of any Subsequent Acquisition Transaction in this regard.

 

		
		
    Holding and Disposing of Glamis
    Shares

     
Dividends paid or deemed to be paid to a
Non-Resident Holder will be subject to non-resident withholding
tax at the rate of 25% unless the rate is reduced under the
provisions of an applicable tax treaty.

     
A Non-Resident Holder will generally not be
liable to Canadian income tax on a disposition or deemed
disposition of Glamis Shares unless the Non-Resident
Holder’s Glamis Shares are or are deemed to be taxable
Canadian property and the Non-Resident Holder is not afforded
any relief under an applicable tax treaty.

16.     Certain
U.S. Income Tax Considerations

     
In the opinion of Neal, Gerber &
Eisenberg LLP, U.S. counsel to Glamis, the following is a
summary of the material anticipated U.S. federal income tax
consequences of exchanging Goldcorp Shares for Glamis Shares
pursuant to the Offer. This summary is based upon the
U.S. Internal Revenue Code of 1986, as amended, referred to
as the “Code,” treasury regulations promulgated under
the Code, administrative rulings of the U.S. Internal
Revenue Service, referred to as the “IRS”, judicial
decisions of the U.S. courts, and the Canada-United States
Income Tax Convention (1980), in each case as in effect on the
date hereof. Changes in the laws may alter the U.S. federal
income tax treatment of Glamis Shares discussed in this summary,
possibly with retroactive effect.

     
This summary is general in nature and does not
address the effects of any state or local taxes, or the tax
consequences in jurisdictions other than the United States. In
addition, this summary does not address all

52

 

U.S. federal income tax consequences that
may be relevant to the particular circumstances of a holder of
Goldcorp Shares, nor to a holder of Goldcorp Shares with a
special status, such as:

			
	 	• 	
    a person that owns, has owned, or will own 5% or
    more (by voting power or value, and taking into account certain
    attribution rules) of the issued and outstanding Glamis Shares
    or Goldcorp Shares;
    
	 
	 	• 	
    a broker, dealer or trader in securities or
    currencies, or any person who owns Goldcorp Shares or Glamis
    Shares other than as capital assets within the meaning of
    Section 1221 of the Code;
    
	 
	 	• 	
    a bank, mutual fund, life insurance company or
    other financial institution;
    
	 
	 	• 	
    a tax-exempt organization;
    
	 
	 	• 	
    a real estate investment trust or regulated
    investment company;
    
	 
	 	• 	
    a qualified retirement plan or individual
    retirement account;
    
	 
	 	• 	
    a person that holds or will hold their Goldcorp
    Shares or Glamis Shares as part of a straddle, hedge,
    constructive sale or other integrated transaction for tax
    purposes;
    
	 
	 	• 	
    a partnership, S corporation or other
    “pass-through” entity, as determined for
    U.S. federal income tax purposes;
    
	 
	 	• 	
    an investor in a partnership, S corporation
    or other “pass-through” entity, as determined for
    U.S. federal income tax purposes;
    
	 
	 	• 	
    a person whose functional currency for tax
    purposes is not the U.S. dollar;
    
	 
	 	• 	
    a person liable for alternative minimum tax.
    

     
It is assumed for purposes of this summary that
Glamis is not, has not at any time been and will not upon
closing of the Offer be (a) a “controlled foreign
corporation,” as defined in Section 957(a) of the Code
or (b) a “passive foreign investment company,” as
defined in Section 1297 of the Code.

     
HOLDERS OF GOLDCORP SHARES ARE URGED TO
CONSULT THEIR OWN TAX ADVISORS REGARDING THE TAX CONSEQUENCES OF
THE ACQUISITION PURSUANT TO THE OFFER, OWNERSHIP AND DISPOSITION
OF GLAMIS SHARES IN LIGHT OF THEIR PARTICULAR CIRCUMSTANCES, AS
WELL AS THE TAX CONSEQUENCES UNDER STATE, LOCAL AND NON-UNITED
STATES TAX LAW AND THE POSSIBLE EFFECTS OF CHANGES IN TAX
LAW.

     
For purposes of this discussion, a
“U.S. Holder” means a beneficial owner of a
Goldcorp Share, or Glamis Share, as the case may be, who is, for
U.S. federal income tax purposes:

			
	 	• 	
    an individual citizen or resident of the United
    States;
    
	 
	 	• 	
    a corporation or other entity created or
    organized in or under the laws of the United States or any
    political subdivision thereof;
    
	 
	 	• 	
    an estate the income of which is subject to
    U.S. federal income taxation regardless of its
    source; or
    
	 
	 	• 	
    a trust if a court within the United States can
    exercise primary supervision over its administration, and one or
    more United States persons have the authority to control all
    substantial decisions of the trust, or certain electing trusts
    that were in existence on August 9, 1996, and were treated
    as domestic trusts as of that date.
    

     
“Non-U.S. Holder” means any person
who is the beneficial owner of a Goldcorp Share, or Glamis
Share, as the case may be, and who is not a U.S. Holder.

     
If a “pass-through” entity holds
Goldcorp Shares, the tax treatment of an owner of such
“pass-through” entity generally will depend upon the
status of such owner and upon the activities of the
“pass-through” entity. An owner of a
“pass-through” entity holding Goldcorp Shares should
consult such owner’s tax advisor regarding the specific tax
consequences of exchanging Goldcorp Shares in the Offer.

53

 

 

		
		
    U.S. Holders of Goldcorp
    Shares

 

		
		
    Consequences of Exchanging Goldcorp Shares
    Pursuant to the Offer

     
If the Offer has been accepted by the holders of
80% or more of the issued and outstanding Goldcorp Shares, then
the Offer should qualify as a reorganization within the meaning
of Section 368(a)(1) of the Code. However, Glamis’
treatment of the transaction will not bind the IRS and there is
a risk that the exchange of Goldcorp Shares pursuant to the
Offer will not be treated as made pursuant to a reorganization
under Section 368(a)(1) of the Code. After the Offer,
Glamis intends to effect a Subsequent Acquisition Transaction to
acquire the remaining Goldcorp Shares. In lieu of a Subsequent
Acquisition Transaction, Glamis has the legal alternative to
purchase additional Goldcorp Shares in the open market, acquire
Goldcorp Shares in privately negotiated transactions, or acquire
Goldcorp Shares in another takeover bid or exchange offer or
otherwise take no further action. While Glamis does not intend
to pursue these legal alternatives, the pursuance of any of
these alternatives may jeopardize the treatment of the Offer as
a tax- free reorganization even if Glamis acquires 80% or more
of Goldcorp’s Shares.

     
If the Offer has not been accepted by 80% or more
of the issued and outstanding Goldcorp Shares, then Glamis
intends to effect a Subsequent Acquisition Transaction whereby
Glamis will acquire the remaining Goldcorp Shares. In the
Subsequent Acquisition Transaction, U.S. Holders of Goldcorp
Shares who do not exchange their shares in the Offer will
receive Glamis Shares. See Section 5 of the Circular
“Acquisition of the Shares Not Deposited”. The Offer
has been structured to cause the exchange of Goldcorp Shares
pursuant to the Offer together with the Subsequent Acquisition
Transaction of Goldcorp to be treated as a reorganization under
Section 368(a)(1) of the Code. Reorganization treatment
will apply only if the Offer and Subsequent Acquisition
Transaction are treated for federal tax purposes as a single
transaction. While Glamis intends to treat the Offer and
Subsequent Acquisition Transaction in this manner, Glamis’
treatment will not bind the IRS. Accordingly, even if Glamis
succeeds in effecting the Subsequent Acquisition Transaction of
Goldcorp, there is a risk that the Goldcorp Shares exchanged
pursuant to the Offer will not be treated as made pursuant to a
reorganization under Section 368(a)(1) of the Code. Glamis
has not sought or received a letter or ruling from the IRS.
Accordingly, Glamis cannot provide any assurance that
reorganization treatment will apply to the exchange. In lieu of
a Subsequent Acquisition Transaction, Glamis has the legal
alternative to purchase additional Goldcorp Shares in the open
market, acquire Goldcorp Shares in privately negotiated
transactions, or acquire Goldcorp Shares in another takeover bid
or exchange offer or otherwise take no further action. While
Glamis does not intend to pursue these legal alternatives, the
pursuance of any of these alternatives will cause the Offer to
be taxable to U.S. Holders if Glamis obtains less than 80%
of the Goldcorp Shares through the Offer. Each U.S. Holder
is urged to take this risk into account.

     
If the exchange of Goldcorp Shares pursuant to
the Offer qualifies as a reorganization under
Section 368(a)(1) of the Code, the exchange should have the
following U.S. federal income tax consequences:

			
	 	• 	
    Glamis and Goldcorp will be treated as
    “parties to the reorganization” under
    Section 368(b) of the Code;
    
	 
	 	• 	
    No gain or loss will be recognized on the
    exchange of Goldcorp Shares solely for Glamis Shares pursuant to
    the Offer (except with respect to cash received for fractional
    shares) unless the U.S. Holder owns, directly or
    indirectly, 5% or more of Glamis Shares measured by either
    voting rights or value;
    
	 
	 	• 	
    Each U.S. holder’s aggregate tax basis
    in the Glamis Shares received will be the same as the aggregate
    tax basis in the Goldcorp Shares surrendered, decreased by the
    amount of any tax basis allocable to any fractional share for
    which cash is received;
    
	 
	 	• 	
    The holding period of Glamis Shares received by a
    U.S. Holder will include the holding period of the Goldcorp
    Shares surrendered;
    
	 
	 	• 	
    If a U.S. Holder has differing tax bases
    and/or holding periods with respect to the
    U.S. Holder’s Goldcorp Shares, the U.S. Holder
    should consult with a tax advisor in order to identify the tax
    bases and/or holding periods of the Glamis Shares that the
    holder receives; and
    

54

 

			
	 	• 	
    The receipt of cash in lieu of a fractional
    Glamis Share by a U.S. Holder will generally result in
    taxable gain or loss to the U.S. Holder equal to the
    difference between the amount of cash received by the
    U.S. Holder and the U.S. Holder’s adjusted tax
    basis in such fractional share. Such gain or loss should be
    capital gain or loss and should be long-term capital gain or
    loss if the U.S. Holder’s holding period exceeds one
    year upon the closing of the exchange. However, in certain
    circumstances in which a U.S. Holder maintains a sufficient
    interest in Glamis (both direct and constructive), the amount of
    a cash payment received in lieu of a fractional Glamis Share by
    the U.S. Holder may be treated as dividend income for
    U.S. federal income tax purposes to the extent paid out of
    earnings and profits.
    

     
If the exchange of Goldcorp Shares for Glamis
Shares fails to qualify as a reorganization under
Section 368(a)(1) of the Code, a U.S. Holder will
recognize taxable gain or loss equal to the difference between
the fair market value of the amount realized in the exchange and
the U.S. Holder’s adjusted basis in the Goldcorp
Shares exchanged. Any such gain or loss generally will be
capital gain or loss, and will be long-term capital gain or loss
if the U.S. Holder’s holding period in the Goldcorp
Shares exceeds one year upon the consummation of the exchange
pursuant to the Offer. A U.S. Holder’s adjusted basis
in Glamis Shares received in the exchange would be equal to
their fair market value as of the date of the exchange, and the
U.S. Holder’s holding period for Glamis Shares would
commence on the day following the exchange. Various provisions
of the Code may apply in some circumstances to limit the
utilization of loss, if any, recognized by certain taxpayers.

     
For non-corporate U.S. Holders, long-term
capital gain recognized in connection with an exchange made
pursuant to the Offer generally will be taxed at a maximum
U.S. Federal income tax rate of 15%. The deductibility of
capital losses is subject to limitations. Any gain recognized in
the exchange will generally have a U.S. source for foreign
tax credit purposes, except any portion of such gain that is
treated as dividend income.

     
The tax consequences described above are based
upon the assumption that Glamis is not, and has not been and
will not be upon the closing of the Offer, a passive foreign
investment company referred to as a “PFIC.” See
“Passive Foreign Investment Company,” below.

 

		
		
    Information Reporting and Backup
    Withholding

     
U.S. Holders of Goldcorp Shares may be
subject to information reporting and may be subject to backup
withholding, currently at up to a 28% rate, on payments received
in exchange for Goldcorp Shares pursuant to the Offer. Payments
of distributions on, or the proceeds from a sale or other
disposition of, Glamis Shares paid within the U.S. may be
subject to information reporting and may be subject to backup
withholding. Payments of distributions on, or the proceeds from
the sale of, Glamis Shares to or through a foreign office of a
broker generally will not be subject to backup withholding,
although information reporting may apply to those payments in
certain circumstances.

     
Backup withholding will generally not apply,
however, to a U.S. Holder who:

			
	 	• 	
    furnishes a correct taxpayer identification
    number and certifies that he, she or it is not subject to backup
    withholding on the IRS Form W-9 (or substitute
    form); or
    
	 
	 	• 	
    is otherwise exempt from backup withholding.
    

     
Non-U.S. Holders generally will not be
subject to U.S. information reporting or backup
withholding. However, such holders may be required to provide
certification of non-U.S. status (generally, on IRS
Form W-8BEN) in connection with payments received in the
United States or through certain U.S.-related financial
intermediaries.

     
Backup withholding is not an additional tax. Any
amounts withheld from a payment to a holder under the backup
withholding rules may be credited against the holder’s
U.S. federal income tax liability, and a holder may obtain
a refund of any excess amounts withheld by filing the
appropriate claim for refund with the IRS in a timely manner and
furnishing any required information.

55

 

 

		
		
    Transfer of Goldcorp Shares Not Exchanged
    Pursuant to the Offer

     
Glamis currently plans to effect a Subsequent
Acquisition Transaction following the closing of the Offer. To
the extent the Goldcorp Shares are acquired by Glamis for Glamis
Shares, the consequences to a U.S. Holder should generally
be similar to the consequences to a U.S. Holder of
exchanging Goldcorp Shares for Glamis Shares pursuant to the
Offer. Such consequences will depend upon whether the exchange
qualifies as a reorganization under Section 368(a)(1) of
the Code. See “U.S. Holders of Goldcorp
Shares — Consequences of Exchanging Goldcorp Shares
Pursuant to the Offer,” above.

     
A U.S. Holder that exercises dissent rights and
receives cash in exchange for its Goldcorp Shares will be
required to recognize taxable gain or loss equal to the fair
market value of the amount realized in the exchange and the U.S.
Holder’s adjusted basis in the Goldcorp Shares.

 

		
		
    Reporting Requirements

     
A U.S. Holder of Goldcorp Shares receiving
Glamis Shares pursuant to the Offer or pursuant to the
Subsequent Acquisition Transaction of Goldcorp may be required
to retain records related to such U.S. Holder’s
Goldcorp Shares, and file with its federal income tax return a
statement setting forth facts relating to the transaction.

Distributions on Glamis Shares

     
Subject to the discussion under “Passive
Foreign Investment Company” below, the gross amount of
distributions, if any, payable on Glamis Shares generally will
be treated as a foreign source dividend to the extent paid out
of current or accumulated earnings and profits, and generally
will be “passive income” for U.S. foreign tax
credit purposes. A distribution on Glamis Shares in excess of
current or accumulated earnings and profits will be treated as a
tax-free return of capital to the extent of the
U.S. Holder’s adjusted tax basis in such shares and,
to the extent in excess of adjusted basis, as capital gain. See
“Sale or Other Disposition of Glamis Shares,” below.

     
Canadian withholding tax on dividend
distributions paid by Glamis to a U.S. Holder is generally
reduced to 15% pursuant to the U.S.-Canada tax treaty in the
case of U.S. Holders who are eligible for benefits under
the U.S.-Canada tax treaty. U.S. Holders generally may
treat the amount of any Canadian income taxes withheld from
distributions with respect to the common shares either as a
deduction from their gross income or as a dollar-for-dollar
credit against their U.S. federal income tax liability,
subject to numerous and complex limitations and restrictions,
which must be determined and applied on an individual basis by
each U.S. Holder. Accordingly, holders of Goldcorp Shares
should consult their own tax advisor concerning the foreign tax
credit rules in such holders’ particular circumstances.

Sale or Other Disposition of Glamis
Shares

     
Subject to the discussion below under
“Passive Foreign Investment Company,” a
U.S. Holder who sells or otherwise disposes of Glamis
Shares in a taxable disposition will recognize gain or loss
equal to the difference, if any, between the U.S. dollar
value of the amount realized on such sale or other taxable
disposition and the U.S. Holder’s adjusted tax basis
in such shares. Any such gain or loss will be capital gain or
loss, and will be long-term capital gain or loss if the holding
period for Glamis Shares is more than one year at the time of
the sale or other disposition. Any such gain or loss will
generally be treated as U.S. source income for
U.S. foreign tax credit purposes, although special rules
apply to U.S. Holders who have a fixed place of business
outside the United States to which the gain is attributable.
Special considerations may apply to a U.S. Holder who
receives foreign currency in connection with a sale or other
taxable disposition of Glamis Shares.

Passive Foreign Investment Company

     
If Glamis were or were to become a PFIC for
U.S. federal income tax purposes, U.S. Holders of
Glamis Shares would be subject to a special, adverse tax regime
(different in significant respects from that described

56

 

above). If Glamis were, or were to become, a PFIC
for any year in which a U.S. Holder owns Glamis Shares,
gain on a disposition or deemed disposition by the
U.S. Holder of Glamis Shares, and the amount of
“excess distributions”, if any, payable on Glamis
Shares, would be subject to tax at the highest marginal rates
applicable to ordinary income, and would be subject to interest
charges to reflect the value of the U.S. income tax
deferral, unless the U.S. Holder has timely made a
“mark-to-market” election or a “qualified
electing fund” election. In general terms, Glamis will be a
PFIC for any tax year in which either (i) 75% or more of
Glamis’ gross income is passive income or (ii) the
average percentage, by fair market value, of Glamis’ assets
that produce or are held for the production of passive income is
50% or more. “Passive income” includes, for example,
dividends, interest, certain rents and royalties, certain gains
from the sale of stock and securities, and certain gains from
commodities transactions.

     
Glamis does not believe that it is, or does it
expect to become, a PFIC. However, there can be no assurance
that Glamis’ determination concerning Glamis’ PFIC
status will not be challenged by the IRS. There is also a
possibility that Glamis could become a PFIC in the future as a
result of future financial results or changes in the way it
conducts its business.

Non-U.S. Holders

Consequences of Exchanging Goldcorp Shares
Pursuant to the Offer

     
If the exchange of Goldcorp Shares for Glamis
Shares pursuant to the Offer qualifies as a
“reorganization” within the meaning of
Section 368(a)(1) of the Code, Non-U.S. Holders
generally will not recognize gain or loss for U.S. federal
income tax purposes upon the receipt of Glamis Shares in the
exchange.

     
If cash is received in lieu of fractional shares
or the exchange of Goldcorp Shares for Glamis Shares fails to
qualify as a reorganization under Section 368(a)(1) of the
Code, a Non-U.S. Holder generally would not recognize gain
on the exchange for U.S. federal income tax purposes unless:

			
	 	• 	
    The gain is effectively connected with the
    conduct by the Non-U.S. Holder of a trade or business or,
    if a treaty applies, such gain is attributable to a permanent
    establishment or a fixed base the Non-U.S. Holder maintains
    in the United States; or
    
	 
	 	• 	
    The Non-U.S. Holder is an individual who is
    present in the United States for 183 days or more during
    the taxable year of disposition or has a tax home in the United
    States, and certain other requirements are met.
    

Acquisition of Goldcorp Shares Not Exchanged
Pursuant to the Offer

     
Glamis plans to effect a Subsequent Acquisition
Transaction of Goldcorp following the closing of the Offer. The
Goldcorp Shares will be acquired for Glamis Shares and the
consequences to a Non-U.S. Holder should generally be
similar to the consequences to a Non-U.S. Holder of
exchanging Goldcorp Shares for Glamis Shares pursuant to the
Offer. Such consequences will depend in part upon whether the
exchange qualifies as a reorganization under
Section 368(a)(1) of the Code. See
“Non-U.S. Holders — Consequences of
Exchanging Goldcorp Shares Pursuant to the Offer.”

     
A Non-U.S. Holder that exercises dissent
rights and receives cash in exchange for its Goldcorp Shares
will be required to recognize taxable gain or loss equal to the
fair market value of the amount realized in the exchange and the
U.S. Holder’s adjusted basis in the Goldcorp Shares if:

			
	 	• 	
    The gain is effectively connected with the
    conduct by the Non-U.S. Holder of a trade or business or, if a
    treaty applies, such gain is attributable to a permanent
    establishment or a fixed base the Non-U.S. Holder maintains
    in the United States; or
    
	 
	 	• 	
    The Non-U.S. Holder is an individual who is
    present in the United States for 183 days or more during
    the taxable year of disposition or has a tax home in the United
    States, and certain other requirements are met.
    

57

 

Sale or Other Disposition of Glamis
Shares

     
In general, a Non-U.S. Holder will not be
subject to U.S. federal income tax on any gain realized
upon the sale or other disposition of Glamis Shares unless:

			
	 	• 	
    The gain is effectively connected with the
    conduct by the Non-U.S. Holder of a trade or business or,
    if a treaty applies, such gain is attributable to a permanent
    establishment or a fixed base the Non-U.S. Holder maintains
    in the United States; or
    
	 
	 	• 	
    The Non-U.S. Holder is an individual who is
    present in the United States for 183 days or more during
    the taxable year of disposition or has a tax home in the United
    States, and certain other requirements are met.
    

 

		
	17.	
    Eligibility for Investment

     
In the opinion of Lang Michener LLP, counsel for
Glamis, as of the date hereof, Glamis Shares are qualified
investments for the purposes of the Tax Act for trusts governed
by registered retirement savings plans, registered retirement
income funds, deferred profit sharing plans and registered
education savings plans within the meaning of the Tax Act. In
the opinion of such counsel, based in part on a certificate of
an officer of Glamis as to certain factual matters, Glamis
Shares are not, as of the date hereof, “foreign
property” for the purposes of the tax imposed under
Part XI of the Tax Act.

 

		
	18.	
    Depositary

     
Glamis has engaged Computershare Investor
Services Inc. to act as Depositary for the receipt of Goldcorp
Shares and related Letters of Transmittal and Notices of
Guaranteed Delivery deposited to the Offer and for the payment
for Goldcorp Shares purchased by Glamis pursuant to the Offer.
The Depositary will receive reasonable and customary
compensation from Glamis for its services relating to the Offer
and will be reimbursed for certain out-of-pocket expenses.
Glamis has also agreed to indemnify the Depositary against
certain liabilities and expenses in connection with the Offer,
including certain liabilities under the provincial securities
laws of Canada.

 

		
	19.	
    Dealer Manager and Soliciting Dealer
    Group

     
Glamis has engaged the services of Orion
Securities Inc. as Dealer Manager in Canada and Orion Securities
(USA) Inc. as Dealer Manager in the United States to
solicit acceptances of the Offer. The Dealer Manager will be
paid a fee for services rendered by it in its capacity as Dealer
Manager, as set forth below, and will be reimbursed by Glamis
for its reasonable out-of-pocket expenses. In addition, the
Dealer Manager will be indemnified against certain liabilities,
including liabilities under securities laws, in connection with
the Offer. Since December 2003, Glamis has been working with
Orion Securities Inc. as its financial adviser in respect of its
combination with Goldcorp and formally retained Orion Securities
Inc. in October 2004.

     
Orion Securities Inc. has the right to form a
soliciting dealer group (the “Soliciting Dealer
Group”) comprised of members of the Investment Dealers
Association of Canada to solicit acceptances of the Offer from
persons who are not resident in the United States and Orion
Securities (USA) Inc. has the right to appoint sub-agents
who are registered under applicable United States securities
laws to solicit acceptances of the Offer from persons who are
resident in the United States. Each member of the Soliciting
Dealer Group, including the Dealer Manager, is referred to
herein as a “Soliciting Dealer”. Glamis has agreed to
pay to each Soliciting Dealer whose name appears in the
appropriate space in the Letter of Transmittal a fee of
$0.06 for each Goldcorp Share deposited and taken up by
Glamis under the Offer. The aggregate amount payable to a
Soliciting Dealer with respect to any single depositing
Shareholder will be not less than $50 and not more than $1,500.
Where Goldcorp Shares deposited and registered in a single name
are beneficially owned by more than one person, the foregoing
minimum and maximum amounts will be applied separately in
respect of each such beneficial owner. Glamis may require the
Soliciting Dealers to furnish evidence of beneficial ownership
satisfactory to Glamis at the time of deposit.

58

 

     
Except as set forth above, Glamis will not pay
any fees or commissions to any broker, dealer or other person
for soliciting tenders of Goldcorp Shares pursuant to the Offer.
No fee or commission will be payable by Shareholders who
transmit their Goldcorp Shares directly to the Depositary or who
make use of the facilities of a Soliciting Dealer to the Offer.

 

		
	20.	
    Information Agent

     
Glamis has retained Georgeson Shareholder
Communications Canada, Inc. to act as Information Agent in
connection with the Offer. The Information Agent will receive
reasonable and customary compensation from Glamis for services
in connection with the Offer, will be reimbursed for certain
out-of-pocket expenses and will be indemnified against certain
liabilities, including liabilities under securities laws and
expenses incurred in connection therewith.

 

		
	21.	
    Offerees’ Statutory Rights

     
Securities legislation in certain of the
provinces and territories of Canada provides securityholders of
Goldcorp with, in addition to any other rights they may have at
law, rights of rescission or damages, or both, if there is a
misrepresentation in a circular or a notice that is required to
be delivered to such securityholders. However, such rights must
be exercised within prescribed time limits. Holders of Goldcorp
Shares should refer to the applicable provisions of the
securities legislation of their province or territory for
particulars of those rights or consult with a lawyer.

 

		
	22.	
    Directors’ Approval

     
The contents of the Offer and Circular have been
approved and the sending thereof to the Shareholders has been
authorized by the Board of Directors of Glamis.

 

		
	23.	
    Expenses of the Offer

     
The expenses relating to the Offer, including
depositary, solicitation and printing expenses and expenses for
financial, legal and accounting advice, are estimated, in the
aggregate to be $25 million.

59

 

 

CONSENTS

To the Directors of

     
GLAMIS GOLD LTD.

     
We have read the Circular of Glamis Gold Ltd.
(“Glamis”) dated January 7, 2005 relating to the
Offer by Glamis to purchase all of the outstanding shares of
Goldcorp Inc. We have complied with Canadian generally accepted
standards for an auditor’s involvement with offering
documents.

     
We consent to the incorporation by reference in
the Circular of our report to the shareholders of Glamis on the
consolidated balance sheets of Glamis as at December 31,
2003 and 2002 and the consolidated statements of operations,
deficit and cash flows for each of the years in the three year
period ended December 31, 2003. Our report is dated
February 6, 2004.

		
	 	
    (Signed) KPMG LLP
    
	 	
    Chartered Accountants
    

Vancouver, Canada

January 7, 2005

To the Directors of

     
GLAMIS GOLD LTD. (“Glamis”)

     
We hereby consent to the reference to our
opinions contained under “Certain Canadian Federal Income
Tax Considerations” and “Eligibility for
Investment” in the Circular accompanying the Offer dated
January 7, 2005 made by Glamis to the holders of Goldcorp
Shares.

		
	 	
    (Signed) LANG MICHENER LLP
    

Vancouver, British Columbia

January 7, 2005

To the Directors of

     
GLAMIS GOLD LTD. (“Glamis”)

     
We hereby consent to the reference to our
opinions contained under “Certain U.S. Income Tax
Considerations” in the Circular accompanying the Offer
dated January 7, 2005 made by Glamis to the holders of
Goldcorp Shares.

		
	 	
    (Signed) NEAL, GERBER & EISENBERG LLP
    

Chicago, Illinois

January 7, 2005

60

 

To the Directors of

     
GLAMIS GOLD LTD. (“Glamis”)

     
I consent to the incorporation by reference in
the Circular accompanying the Offer dated January 7, 2005
made by Glamis to the holders of Goldcorp Shares of the report,
which was prepared under my direct supervision, regarding
certain mineable reserves and contained ounces of Glamis which
appears under the heading “Summary of Reserves and Other
Mineralization — Proven and Probable Mineable
Reserves” in Glamis Gold Ltd.’s Annual Information
Form for the year ended December 31, 2003.

		
	 	
    (Signed) JAMES S. VOORHEES
    

Reno, Nevada

January 7, 2005

To the Directors of

     
GLAMIS GOLD LTD. (“Glamis”)

     
We consent to the incorporation by reference in
the Circular accompanying the Offer dated January 7, 2005
made by Glamis to the holders of Goldcorp Shares of our
verification of certain mineral reserves and contained ounces of
Glamis which appears under the heading “Summary of Reserves
and Other Mineralization — Proven and Probable
Mineable Reserves” in Glamis Gold Ltd.’s Annual
Information Form for the year ended December 31, 2003.

		
	 	
    (Signed) MINE DEVELOPMENT ASSOCIATES, INC.
    

Reno, Nevada

January 7, 2005

To the Directors of

     
GLAMIS GOLD LTD. (“Glamis”)

     
We consent to the incorporation by reference in
the Circular accompanying the Offer dated January 7, 2005
made by Glamis to the holders of Goldcorp Shares of our
verification of certain mineral reserves and contained ounces of
Glamis which appears under the heading “Summary of Reserves
and Other Mineralization — Proven and Probable
Mineable Reserves” in Glamis Gold Ltd.’s Annual
Information Form for the year ended December 31, 2003.

		
	 	
    (Signed) MINE RESERVE ASSOCIATES, INC.
    

Reno, Nevada

January 7, 2005

61

 

APPROVAL AND CERTIFICATE OF GLAMIS

     
The contents of the Offer and Circular, together
with the Annexes included therein, have been approved by, and
the sending thereof to the Shareholders has been authorized by,
the Board of Directors of Glamis. The foregoing contains no
untrue statement of a material fact and does not omit to state a
material fact that is required to be stated or that is necessary
to make a statement not misleading in the light of the
circumstances in which it was made. In addition, the foregoing
does not contain any misrepresentation likely to affect the
value or the market price of the securities which are the
subject of the Offer.

Dated: January 7, 2005.

	 	 	 
	
    (Signed) C. Kevin McArthur

    President and Chief Executive Officer
    	 	
    (Signed) Cheryl S. Maher

    Chief Financial Officer
    

On behalf of the Board of Directors

	 	 	 
	
    (Signed) A. Dan Rovig

    Director
    	 	
    (Signed) Kenneth F. Williamson

    Director
    

62

 

ANNEX A

INFORMATION CONCERNING GLAMIS

DOCUMENTS INCORPORATED BY REFERENCE

     
The following documents filed with the securities
commission or similar regulatory authority in each of the
provinces of Canada are specifically incorporated by reference
into, and form an integral part of, this Circular:

		
	 	     
    (a) the Annual Information Form of Glamis
    dated March 8, 2004 for the fiscal year ended
    December 31, 2003;
    
	 
	 	     
    (b) the audited consolidated financial
    statements of Glamis, including notes thereto, as at
    December 31, 2003 and 2002 and for each of the years in the
    three-year period ended December 31, 2003, together with
    the auditor’s report thereon;
    
	 
	 	     
    (c) management’s discussion and
    analysis of financial condition and results of operations of
    Glamis for the fiscal year ended December 31, 2003;
    
	 
	 	     
    (d) the Management Information Circular
    (Proxy Statement) of Glamis dated March 1, 2004 distributed
    in connection with the annual general meeting of shareholders
    held on May 6, 2004 (excluding the sections entitled
    “Performance Graphs,” “Report of the Compensation
    and Nominating Committee on Compensation of Executive Officers
    and Others” and “Corporate Governance and
    Committees”);
    
	 
	 	     
    (e) the unaudited interim consolidated
    financial statements of Glamis for the three months and nine
    months ended September 30, 2004 and notes thereto and
    management’s discussion and analysis of financial condition
    and results of operations for the three months and nine months
    ended September 30, 2004; and
    
	 
	 	     
    (f) the material change report of Glamis
    dated December 20, 2004 relating to the Offer.
    

     
Material change reports (other than confidential
reports) and all other documents of the type referred to above,
filed by Glamis with a securities commission or similar
regulatory authority in Canada subsequent to the date of this
Circular and prior to completion or withdrawal of the Offer,
will be deemed to be incorporated by reference into this
Circular.

     
Any statement contained in a document
incorporated or deemed to be incorporated by reference herein
shall be deemed to be modified or superseded for the purposes of
this Circular to the extent that a statement contained in this
Circular or in any subsequently filed document that also is or
is deemed to be incorporated by reference herein modifies or
supersedes such statement. Any statement so modified or
superseded shall not constitute a part of this Circular, except
as so modified or superseded. The modifying or superseding
statement need not state that it has modified or superseded a
prior statement or include any other information set forth in
the document that it modifies or supersedes. The making of such
a modifying or superseding statement shall not be deemed an
admission for any purpose that the modified or superseded
statement, when made, constituted a misrepresentation, an untrue
statement of a material fact or an omission to state a material
fact that is required to be stated or that is necessary to make
a statement not misleading in light of the circumstances in
which it was made.

     
Copies of documents incorporated by reference in
this Circular may be obtained upon request without charge from
the Senior Vice-President, Administration of Glamis at 5190 Neil
Road, Suite 310, Reno, Nevada 89502 (telephone
(775) 827-4600).

HISTORY AND CURRENT OPERATIONS

     
Glamis was incorporated under the laws of the
Province of British Columbia on September 14, 1972 under
the name Renniks Resources Ltd. (N.P.L.). Since incorporation,
Glamis has undergone several capital reorganizations and on
December 12, 1977 its name was changed to its present name.

A-1

 

     
Glamis’ principal and executive offices are
located at 5190 Neil Road, Suite 310, Reno, Nevada, USA
89502. Glamis’ registered and records offices are located
at 1500 — 1055 West Georgia Street,
P.O. Box 11117, Vancouver, British Columbia, Canada
V6E 4N7.

     
Glamis’ operations are conducted in the
U.S. through its wholly-owned Nevada subsidiary Glamis
Gold, Inc. and Glamis Gold, Inc.’s wholly-owned
subsidiaries: Glamis Rand Mining Company, Glamis Marigold Mining
Company, and Glamis Imperial Corporation, each Nevada
corporations. In addition, Glamis holds all of the issued shares
of Francisco Gold Corp. (“Francisco”), a British
Columbia corporation, which owns all of the issued shares of
Montana Gold Corp., a British Columbia corporation. Glamis’
principal offshore operations are conducted through Glamis de
Mexico S.A. de C.V. and Minas de la Alta Pimeria S.A. de C.V.,
each Mexican corporations, Minerales Entre Mares Honduras S.A.
de C.V., a Honduran corporation, Montana Exploradora de
Guatemala S.A., Entre Mares de Guatemala, S.A. and Peridot,
S.A., each Guatemalan corporations, Glamis Honduras Holdings
Ltd., Glamis Guatemala Holdings Ltd. and Glamis Holdings
(Cayman) Ltd., each Cayman Island corporations and International
Mineral Finance Corporation, a Barbados corporation, all of
which are direct or indirect wholly-owned subsidiaries.

     
Unless the context indicates otherwise, the term
“Glamis” in this Annex refers to Glamis together with
all of its direct and indirect subsidiaries.

     
Glamis commenced gold production at its Picacho
Mine in California in 1979 and has been a continuous gold
producer since that time. During the year ended
December 31, 2004, Glamis produced 234,433 ounces of
gold. Glamis estimates that it will produce approximately
400,000 ounces of gold in 2005 from its existing properties.
This production will come principally from three mines, the
San Martin Mine (100% owned) located in Honduras, the
Marigold Mine (66 2/3% owned) located in Nevada and the El
Sauzal Mine (100% owned) located in Mexico.

STRATEGY FOR GROWTH

     
Growth is an integral part of the overall
strategy for Glamis. Glamis first looks to organic growth
through expansion of existing mining operations. The second
method of growth is through acquisitions, both of corporations
holding mineral properties and of mineral properties directly.
Three corporate acquisitions since 1998 have added significantly
to Glamis’ growth. The San Martin Mine and Cerro
Blanco project came to Glamis through the acquisition of
Mar-West Resources Ltd. in 1998. Successful exploration
activities and reserve growth at San Martin led to a
positive feasibility and project go-ahead in late 1999 and first
gold production by December 2000. A feasibility study for the
Cerro Blanco project is planned to commence in 2005.

     
Glamis’ interest in the Marigold Mine came
from the acquisition of Rayrock Resources Inc. in 1999. Through
simplification of operations, the operating costs of the
Marigold Mine have been reduced and the mineral reserves for
this mine have been expanded from approximately 600,000 ounces
in 1999 to over 2.2 million ounces at December 31,
2003. Most of this increase has been from the Marigold
Millennium Expansion Project.

     
The El Sauzal Mine and the Marlin Project came to
Glamis through the acquisition of Francisco in 2002. The El
Sauzal Mine commenced production in November 2004, and the
Marlin Project is scheduled to begin production in December 2005.

RECENT DEVELOPMENTS

     
The following discussion of recent developments
supplements the discussion of these properties which is
contained in Glamis’ Annual Information Form dated
March 8, 2004 and other documents incorporated herein by
reference.

A-2

 

El Sauzal Mine, Mexico

General

     
Glamis acquired the El Sauzal property through
the acquisition of Francisco in July of 2002. The property is
owned by Minas de la Alta Pimeria, S.A. de C.V. The mine is
located in the southwest part of Chihuahua State, approximately
250 kilometres southwest of the city of Chihuahua and 15
kilometers east of the Sinoloa State line. The mine is comprised
of seven exploration concessions of approximately 40 square
miles which are 100%-owned by Glamis. Access to the mine is by
way of a new road through Sinaloa to the mine site and by air
using an airstrip constructed by Glamis. The property ranges in
elevation from 325 meters to over 900 meters above
mean sea level. The climate in the El Sauzal area is
classified as temperate sub-humid, with distinct wet and dry
seasons. Rainfall averages 0.8 metres per year.

     
The first production of gold from the
El Sauzal Mine occurred on November 30, 2004 and
commercial production commenced during December 2004.

Operations

     
The El Sauzal Mine is a conventional open pit
operation utilizing shovels and trucks for moving the ore. The
current mine plan is based on delivering 5,500 tonnes per
day of ore to the process plant (the “Mill”) at a
cut-off grade of 0.8 grams per tonne of gold. The blasted
waste rock is used to construct haul roads, with excess material
being placed in designated waste dumps around the ultimate pit.
All permits required for the mining operations have been
obtained.

     
The major mining fleet for the operation consists
of five 100 tonne trucks, three 10 cubic metre
front-end loaders and three blasthole drills working two shifts
of 12 hours each per day, seven days per week. Support
equipment includes track dozers, motor graders and water trucks
to maintain the road surfaces, dumps and operating benches.

     
The Mill is designed to treat a nominal
1.82 million tonnes per year of ore. Ore is fed through a
primary jaw crusher prior to being introduced into the grinding
circuit. Milling is conducted in a semi-autogenous grinding
mill/ball mill circuit. The pulp produced by the milling is
subjected to tank leaching with cyanide. Precious metal values
generated in the leaching process are recovered onto activated
carbon. Gold and silver are removed from the carbon by
pressurized stripping and further concentrated by electrowinning
and smelting to generate dore bars. Tailings from the leaching
process are thickened, detoxified, and filtered and the
resulting “dry” tailings are transported and placed in
an engineered disposal area.

     
El Sauzal began production in the fourth
quarter of 2004, producing approximately 25,000 ounces of
gold for the year. This result was substantially ahead of the
original feasibility schedule, but less than the
35,000 ounces projected in the accelerated 2004
construction budget. Efforts are currently underway to improve
performance of the filtration circuit, which will benefit
production going forward. Glamis’ production target for the
El Sauzal Mine in 2005 is 170,000 ounces of gold.

Marlin Project, Guatemala

General

     
Glamis acquired the Marlin Project through the
acquisition of Francisco in 2002. The project consists of one
exploitation concession of approximately 39 square miles in
western Guatemala near Huehuetenango. Huehuetenango is
approximately a six hour drive from Guatemala City. The project
is accessed by a combination of paved and gravel roads. The
project area varies in elevation, climate and landscape between
tropical lowlands and highland peaks and valleys.

Development Activities

     
Late in the first quarter of 2003, a positive
feasibility study on a combination open-pit and underground mine
was prepared and presented to the Glamis board of directors. The
Board approved development of the property at that time, and in
November 2003, after reviewing the Marlin Project Feasibility
update of

A-3

 

November 11, 2003, the Board formally
approved a $120.0 million budget. In late 2003, the Marlin
Project obtained its environmental license and exploitation
permit which allowed construction and mining to proceed. In the
second quarter of 2004, the development budget was changed to
$140.0 million to incorporate additional capacity and
reflect increased costs of construction materials. Project
expenditures in 2004 were approximately $71.0 million, and
$69.0 million is planned for 2005. By the end of 2004,
major earthwork and concrete pours were complete, tanks were
being erected, and the new camp, bridge and access road to the
project had been completed. Major equipment deliveries for the
surface and underground mines had arrived, including major
components for the processing plant. The access to the
underground ore had advanced to over 750 meters. The mine is
scheduled to begin production in the fourth quarter of 2005,
approximately three months ahead of the original schedule. The
Marlin Mine is expected to produce approximately 240,000 ounces
of gold in 2006.

Financing Activities

     
On June 30, 2004 Glamis concluded a
financing arrangement for the Marlin Project with International
Finance Corp., a subsidiary of the World Bank. The
$45.0 million term loan facility is available for drawdown
until December 31, 2005. Interest rates are set at
semi-annual dates at 2.625% over the six-month LIBOR rate.
Repayments are set to begin in January 2007. On November 5,
2004 Glamis drew $30.0 million of the facility. The current
interest rate is 4.775%.

Marigold Mine, Nevada

General

     
Glamis holds a 66 2/3% interest in the
Marigold Mine, with the remaining 33 1/3% interest being
held by Barrick Gold Corporation. Glamis is the operator of the
property pursuant to a general partnership agreement.

     
The mine is located in Humboldt County,
40 miles southeast of Winnemucca, Nevada at the north end
of the Battle Mountain-Eureka Trend that extends through central
Nevada. Located five miles south of Valmy, Nevada, the property
consists of 32.4 square miles. Royalty rates on leased land
range from 3% to 5% of net smelter returns, with rates rising to
7% or 8% on certain parcels depending on the price of gold. The
rate for the remaining life of mine is anticipated to average
approximately 5.5%.

Operations

     
Since 2000, all of the production for
Glamis’ account has come from the operation of the property
as a heap leach mine. The mining fleet at Marigold consists of
two 40 cubic yard shovels, three 13 cubic yard front-end
loaders, four 320 ton haul trucks, eleven 190 ton haul trucks
and miscellaneous ancillary equipment.

     
Ore is stacked in 40 foot high lifts on lined
leach pads and treated with a dilute sodium cyanide solution.
The solution dissolves the gold and flows by gravity to the
process facility where the gold is loaded on to activated
carbon. The carbon is then stripped of the gold in a batch
process using heated caustic solutions and then electrowinning
and smelting is used to produce dore’ bars.

     
Regulatory permitting for the Marigold Millennium
Expansion project was initiated in December 2001. A minor
modification to the current plan of operations to allow
deepening of the Terry Zone pit and expansion of leach pad
facilities was approved on March 25, 2002. An amended plan
of operations was submitted in April 2002. Final approval and
publication of a Record of Decision was issued on
February 4, 2004.

     
On August 9, 2004, approval to construct the
next phase of leach pad was obtained, over three months behind
the original schedule. The late approval occurred due to
increased permitting requirements imposed by the state agency to
satisfy private party concerns. This delay, in addition to late
receipt of major mining equipment for the expanded mining rate,
were the primary reasons for production of approximately
94,000 ounces of gold (Glamis’ two-thirds share) in
2004 versus the original projected amount of 110,000 ounces.
Production in 2005 is estimated at 135,000 gold ounces
(Glamis’ two-thirds share).

A-4

 

San Martin Mine, Honduras

General

     
The San Martin Mine is located 70 kilometres
north of the capital city of Tegucigalpa near the village of
San Ignacio. The mine is located on a 14,100 hectare
concession of which 2,800 hectares is used by the project. Site
elevation ranges between 700 and 1100 metres with average
precipitation of less than 1 meter per year. Project approval
for construction of the San Martin mine was given in
November 1999, with the first gold pour occurring in December
2000. Annual production over the past four years has averaged
between 100,000 and 130,000 ounces.

Operations

     
Mining is by conventional truck and loader
operations. The fleet is primarily composed of used equipment
from prior Glamis operations, and consists of nine 77 tonne haul
trucks, four 11 cubic meter front-end-loaders, two blasthole
drills, and assorted support equipment for the maintenance of
roads and dumps. Mining occurs seven days per week with two
12 hours shifts per day. Initial mining took place in the
Rosa deposit which exhibited low stripping ratios, higher grade
ore and higher gold recovery rates. Over the past year, mining
has moved to the Palo Alto deposit with lower grades, lower
recovery rates and higher stripping ratios.

     
Ore is crushed, agglomerated and conveyed to
leach pads, or shipped directly to the leach pad as run-of-mine
material depending on the ore’s physical characteristics.
Once on the plastic lined leach pads the ore is treated with a
dilute sodium cyanide solution. The solution dissolves the gold
and flows by gravity to the process facility where the gold is
loaded on to activated carbon. The carbon is then stripped of
the gold in a batch process using heated caustic solutions and
then electrowinning and smelting is used to produce dore’
bars.

     
San Martin produced approximately 102,000
ounces of gold in 2004, slightly exceeding projections.
Production is expected to slowly decline over the remaining six
years of mine life with production of approximately
85,000 ounces of gold forecast in 2005.

Cerro Blanco Project, Guatemala

General

     
The Cerro Blanco project is located 125
kilometres west of Guatemala City near the town of Asuncion
Mita. Elevations at the project range between 450 and
600 metres with average rain fall of about 1.25 metres
per year. The exploration concession covers an area of
15.25 square kilometres.

Development Activities

     
A total of 145 exploration drill holes have been
completed on the project totalling 27,461 meters. The most
recent program in 2004 furthered the geologic understanding of
the property and heightened the potential to develop a
high-grade underground mine. Earlier work had investigated the
potential to extract the gold via surface mining methods.

     
A series of parallel high-grade veins have been
identified through the 2004 drilling program and interpretive
studies. A feasibility study for the project is scheduled to
begin in 2005. Environmental and permitting activities have
already commenced, and the driving of a decline to allow further
definition of the mineralized zones is planned in support of the
feasibility. The goal of the program is to move the project to
approval and construction in 2006.

DESCRIPTION OF SHARE CAPITAL

     
The authorized share capital of Glamis currently
consists of 205,000,000 shares divided into 200,000,000
common shares without par value, of which 130,863,953 common
shares were issued and outstanding as at January 5, 2005,
and 5,000,000 preferred shares having a par value of Cdn.$10,
issuable in series, of which none are issued.

A-5

 

     
The holders of common shares are entitled to
receive notice of any meeting of shareholders of Glamis and to
attend and vote on matters brought before the meeting, except
those meetings at which only the holders of shares of another
class or of a particular series are entitled to vote. Each
common share entitles its holder to one vote at meetings at
which they are entitled to attend and vote. The holders of
common shares are entitled to receive on a pro rata basis such
dividends as the Board of Directors of Glamis may declare out of
funds legally available for the payment of dividends. In the
event of the dissolution, liquidation, winding-up or other
distribution of the assets of Glamis, holders of common shares
are entitled to receive on a pro rata basis all of the assets of
Glamis remaining after payment of all of Glamis’
liabilities and subject to the prior rights attached to the
preferred shares of Glamis to receive a return of capital and
unpaid dividends. The common shares carry no pre-emptive or
conversion rights.

     
The directors of Glamis may issue preferred
shares from time to time in one or more series with each series
to consist of such number of preferred shares as may be
determined by the directors. Prior to the issuance of a series
of preferred shares, the directors may at their sole discretion
determine the designation, rights, privileges, restrictions and
conditions attaching to the series of preferred shares.

     
Glamis has given shareholders notice of an
extraordinary meeting to be held on February 9, 2005, the
purpose of which is to consider an ordinary resolution to remove
the restriction on the number of common shares that Glamis is
authorized to issue. An ordinary resolution is one passed by a
majority of shares voted at a meeting.

     
Rights to purchase common shares have been issued
to holders of Glamis common shares under a rights agreement
between Glamis and Computershare Trust Company of Canada
dated February 25, 2000, as amended. One right is attached
to each common share. If the rights become exercisable following
the occurrence of certain specified events, each right will
entitle the holder, within certain limitations, to purchase one
common share at an exercise price equal to Cdn.$100 (the
“Exercise Price”), subject to adjustment and certain
anti-dilution provisions. In certain events (including when a
person or group becomes the beneficial owner of 20% or more of
any class of voting shares of Glamis without complying with the
“permitted bid” provisions of the rights agreement or
without the approval of the board of directors of Glamis),
exercise of the rights would entitle the holders of the rights
(other than the acquiring person or group) to acquire that
number of common shares of Glamis having an aggregate market
price on the date of the event equal to twice the Exercise Price
for an amount in cash equal to the Exercise Price. Accordingly,
exercise of the rights may cause substantial dilution to a
person who attempts to acquire control of Glamis. The rights,
which expire in 2006 (unless extended as provided in the rights
agreement), may be redeemed at a price of Cdn.$0.00001 per
right at any time until a person or group has acquired 20% of
the Glamis common shares, except as otherwise provided in the
rights agreement. The rights agreement may have certain
anti-takeover effects.

     
All outstanding common shares are, and the common
shares of Glamis to be issued in connection with the Offer, if
issued in the manner described in this Circular, will be, fully
paid and non-assessable.

     
This section is a summary and may not describe
every aspect of the common shares of Glamis that may be
important to a shareholder of Goldcorp. A copy of the Notice of
Articles and of the Articles of Glamis will be provided upon
request, by contacting Glamis at 5190 Neil Road, Suite 310,
Reno, Nevada 89502, Attention: Corporate Secretary.

COMPARISON OF SHAREHOLDER RIGHTS

     
Upon completion of the Offer and any Subsequent
Acquisition Transaction, Shareholders will become shareholders
of Glamis. Since Glamis is a British Columbia corporation, the
rights of the shareholders of Glamis are governed by the
applicable laws of British Columbia, including the Business
Corporations Act (the “BCBCA”), and by
Glamis’ constating documents. Since Goldcorp was
incorporated in the Province of Ontario, the rights of
Shareholders are governed by the OBCA and by Goldcorp’s
articles of incorporation and bylaws.

     
Glamis has transitioned under the BCBCA, and its
constating documents currently consist of a notice of articles
and articles. However, as a company that existed when the BCBCA
came into effect, Glamis is subject

A-6

 

to a set of provisions which it was required to
incorporate in its articles, designated as the Pre-existing
Company Provisions (the “PCPs”). Those PCPs that have
specific application to Glamis are as follows:

		
	 	     
    (a) a special resolution requires a majority
    of three-quarters of the votes cast in order to pass;
    
	 
	 	     
    (b) a special separate resolution of a class
    or series requires a majority of three-quarters of the votes
    cast in a class or series vote in order to pass; and
    
	 
	 	     
    (c) subject to a number of exceptions,
    before purchasing any of its shares, Glamis must make an offer,
    to every shareholder holding shares of the class or series to be
    purchased, to purchase the shares pro rata.
    

     
There are additional PCPs that do not apply to
Glamis because of specific exemptions applicable to Glamis in
its current circumstances. In order to remove the application of
any of the PCPs, the BCBCA requires that a special resolution be
passed to remove all of the PCPs (although any one of the PCPs
can thereafter be added to a company’s articles). Glamis
intends to seek shareholder approval at its 2005 annual general
meeting to remove all of the PCPs.

     
The following is a summary comparison of certain
of:

			
	 	• 	
    the current rights of Goldcorp shareholders under
    the OBCA and the Goldcorp articles and bylaws; and
    
	 
	 	• 	
    the rights Goldcorp shareholders will have as
    Glamis shareholders under the BCBCA and the Glamis notice of
    articles and articles upon completion of the Offer.
    

     
The information in this summary regarding
Goldcorp’s articles of incorporation and bylaws is based in
its entirety upon review of publicly available information
regarding Goldcorp’s articles of incorporation and bylaws.
The statements in this section are qualified in their entirety
by reference to, and are subject to, the detailed provisions of
the BCBCA, the OBCA, Glamis’ notice of articles,
Glamis’ articles, Goldcorp’s articles of incorporation
and Goldcorp’s bylaws.

Corporate Governance

     
Glamis. The rights
of Glamis shareholders are and will be governed by British
Columbia corporate law and the notice of articles and articles
of Glamis.

     
Goldcorp. The rights
of Shareholders are governed by Ontario corporate law and the
articles of incorporation and bylaws of Goldcorp.

Authorized Share Capital

     
Glamis. The BCBCA
permits shares with or without par value.

     
At the closing of the Offer, the authorized share
capital of Glamis will consist of an unlimited number of common
shares without par value, of which 130,863,953 common shares
were issued and outstanding as at December 31, 2004 and
5,000,000 preferred shares having a par value of Cdn.$10,
issuable in series, of which none are issued.

     
Goldcorp. The OBCA
does not permit shares with par value.

     
The authorized share capital of Goldcorp
currently consists of an unlimited number of common shares.
Goldcorp has reported in its public filings as of
December 22, 2004, that there were issued and outstanding
189,980,188 Goldcorp Shares, and options and warrants to acquire
20,144,479 Goldcorp Shares.

Number, Classification and Election of the
Board of Directors

     
Glamis. Glamis’
articles provide that the shareholders will determine the size
of the board of directors with each director elected for a term
expiring at the next succeeding annual meeting of shareholders
after his or her election. The Glamis board currently consists
of six directors.

A-7

 

     
The Glamis board of directors is not divided into
separate classes of directors. The Glamis articles do not permit
cumulative voting for the election of directors.

     
Goldcorp.
Goldcorp’s articles of incorporation provide that the
number of directors of the corporation shall consist of a
minimum of three and a maximum of 10 members until changed by
amendment of Goldcorp’s articles of incorporation, and the
number may be fixed by the board of directors. As of the date of
this Offer, the Goldcorp board consists of eight directors
according to Goldcorp’s public filings. It is Glamis’
understanding that the Goldcorp board is not divided into
separate classes of directors and that the Goldcorp bylaws do
not permit cumulative voting for the election of directors.

Director Qualifications

     
Glamis. Neither the
articles of Glamis nor the BCBCA place any residency
restrictions on the directors of Glamis.

     
Goldcorp. A majority
of the directors of a corporation governed by the OBCA generally
must be resident Canadians. The OBCA also requires that at least
one-third of the directors of a corporation whose securities are
publicly traded not be officers or employees of the company or
any of its affiliates.

Removal of Directors

     
Glamis. The BCBCA
provides that the shareholders of a corporation may remove one
or more directors by a special resolution or by any other method
specified in the articles. If holders of a class or series of
shares have the exclusive right to elect or appoint one or more
directors, a director so elected or appointed may only be
removed by a separate special resolution of the shareholders of
that class or series or by any other method specified in the
articles. Glamis’ articles do not provide for any other
method for the removal of directors.

     
Goldcorp. Under the
OBCA, provided that articles of the corporation do not provide
for cumulative voting, shareholders of a corporation may by
ordinary resolution at an annual or special meeting, remove any
director or directors from office. If holders of a class or
series of shares have the exclusive right to elect one or more
directors, a director so elected may only be removed by an
ordinary resolution at a meeting of the shareholders of that
class or series. Where the articles of incorporation provide for
cumulative voting, a director may not be removed from office if
the votes cast against the director’s removal would be
sufficient to elect him or her and such votes could be voted
cumulatively at an election at which the same total number of
votes were cast and the number of directors required by the
articles were then being elected.

Newly Created Directorships and
Vacancies

     
Glamis. The BCBCA
provides that, unless the articles provide otherwise, vacancies
on the board of directors resulting from the removal of a
director (other than a director elected or appointed by holders
of a class or series of shares having the exclusive right to
elect or appoint a director) may be filled by the shareholders
at the meeting at which the director is removed or by the
remaining directors. A casual vacancy may be filled by the
remaining directors. A director elected to fill a vacancy is
elected for the unexpired term of his or her predecessor in
office. Vacancies on the board resulting from the removal of a
director elected or appointed by holders of a class or series of
shares having the exclusive right to elect or appoint one or
more directors will be filled by such shareholders at the
meeting at which the director is removed or by those
shareholders or by the remaining directors elected or appointed
by those shareholders. A casual vacancy that occurs among
directors elected or appointed by holders of a class or series
of shares having the exclusive right to elect or appoint one or
more directors may be filled by the remaining directors elected
or appointed by those shareholders, or where there are no
directors elected or appointed by those shareholders, by a
unanimous resolution or meeting of those shareholders.

     
Glamis’ articles provide the board of
directors with the authority to appoint one or more directors to
fill a casual vacancy or as an addition to the board.

     
Goldcorp. Under the
OBCA, subject to the articles of the corporation, a vacancy
among the directors may be filled at a meeting of shareholders
or by a quorum of directors except when the vacancy results from
an

A-8

 

increase in the number or minimum number of
directors, or from a failure to elect the appropriate number of
directors required by the articles. Each director appointed or
elected to fill a vacancy holds office for the unexpired term of
the director’s predecessor.

Meetings of the Board of Directors

     
Glamis. Glamis’
articles provide that a director may call a meeting of the board
of directors at any time.

     
Glamis’ articles provide for a quorum of a
majority of the board of directors for purposes of the
transaction of business.

     
Goldcorp.
Goldcorp’s by-laws provide that the board, the chairman of
the board, the president or any two directors may call a meeting
of the board of directors. Under the OBCA, subject to the
articles or bylaws of the corporation, a majority of the number
of directors or minimum number of directors required by the
articles constitutes a quorum at any meeting of directors but in
no case shall a quorum be less than two-fifths of the number of
directors or minimum number of directors, as the case may be.
Where a corporation has fewer than three directors, all
directors must be present at any meeting of directors to
constitute a quorum.

     
Goldcorp’s by-laws provide that quorum for
meetings of directors consists of two-fifths of the number of
directors.

Meetings of Shareholders

     
Glamis. Under the
BCBCA a general meeting must be held in British Columbia, but
may be held outside if British Columbia if the location is
provided for in the articles or in certain other circumstances,
including with the consent of the British Columbia Registrar of
Companies.

     
Goldcorp. Subject to
the articles, under the OBCA a meeting of shareholders may be
held in or outside Ontario, as the directors determine.

Quorum for Meetings of the
Shareholders

     
Glamis. Glamis’
articles provide that a quorum for the transaction of business
at a general meeting of shareholders is the presence of two
shareholders entitled to vote at the meeting and representing,
in person or by proxy, not less than 5% of the issued shares
entitled to be voted at the meeting. A quorum need not be
present throughout the meeting. If a quorum is not present
within half an hour from the time appointed for a general
meeting, the meeting stands adjourned to the same day during the
next week, except that if the meeting was requisitioned by
shareholders, the meeting will be dissolved. If a quorum is not
present at the adjourned meeting, the persons present in person
or by proxy and who are entitled to vote at the meeting will
constitute quorum.

     
Goldcorp.
Goldcorp’s bylaws provide that the presence of at least two
voting persons representing in person or by proxy, not less than
33 1/3% of the outstanding shares entitled to vote thereat
will constitute a quorum for a meeting. Under the OBCA, if a
quorum is present at the opening of a meeting of shareholders,
the shareholders present may, unless the by-laws otherwise
provide, proceed with the business of the meeting even if a
quorum is not present throughout the meeting. If a quorum is not
present at the time appointed for a meeting of shareholders or
within a reasonable time thereafter, the shareholders present
may adjourn the meeting to a fixed time and place, but may not
transact any other business.

Certain Voting Requirements

     
Under the BCBCA and the OBCA, certain
extraordinary corporate actions, such as certain amalgamations
(other than with a direct or indirect wholly-owned subsidiary),
continuances, and sales, leases or exchanges of all or
substantially all the property of a corporation other than in
the ordinary course of business, and other extraordinary
corporate actions such as liquidations, dissolutions (under the
OBCA only) and arrangements, are required to be approved by
special resolution. Note, the BCBCA permits amalgamations with
foreign corporations, but the OBCA does not.

A-9

 

     
In certain cases, a special resolution to approve
an extraordinary corporate action is also required to be
approved separately by the holders of a class or series of
shares, including in certain cases a class or series of shares
not otherwise carrying voting rights.

     
Glamis. Under the
BCBCA a special resolution is a resolution passed at a general
meeting by a special majority. A special majority is a majority
of votes, as specified by the articles, that is not less than
66 2/3% and not more than 75% of the votes cast on the
resolution. Where the articles do not specify the percentage
required for a special majority, a special majority is
66 2/3% of the votes cast on the resolution. A resolution
consented to in writing by all of the shareholders holding
shares that carry the right to vote at general meetings also
constitutes a special resolution. The BCBCA permits a company to
alter its articles to require certain actions to be passed by an
exceptional resolution, which would require a majority of votes
greater than a special majority.

     
As mentioned above, Glamis is subject to certain
pre-existing company provisions, and as such a special
resolution at a general meeting of Glamis is passed by 75% of
the votes cast on the resolution.

     
Each common share in the capital of Glamis
entitles the holder to one vote on each matter upon which
shareholders have the right to vote.

     
Goldcorp. Under the
OBCA, a special resolution is a resolution passed at a meeting
by not less than 66 2/3% of the votes cast by the
shareholders who voted in respect of the resolution.

     
Each common share in the capital of Goldcorp
entitles the holder to one vote on each matter upon which
shareholders have the right to vote.

Amendments of Articles of
Incorporation

     
Glamis. Under the
BCBCA, amendments to the notice of articles generally require
approval by special resolution, being a resolution passed by a
special majority. As mentioned earlier, Glamis is subject to
certain pre-existing company provisions, and as such a special
resolution at a general meeting of Glamis is passed by 75% of
the votes cast on the resolution.

     
Goldcorp. Under the
OBCA, any amendment to the articles generally requires approval
by special resolution, being a resolution passed at a special
meeting of the shareholders by at least 66 2/3% of the
votes cast.

Amendments of Articles/ Bylaws

     
Glamis. Under the
BCBCA, except where otherwise specified in the BCBCA, a company
may resolve to alter its articles by the type of resolution
(special resolution or otherwise) specified by its articles.
Where neither the BCBCA nor the company’s articles specify
the type of resolution, the articles may be altered by special
resolution.

     
Goldcorp. The OBCA
provides that, unless the articles or bylaws otherwise provide,
the directors may, by resolution, make, amend or repeal any
bylaws that regulate the business or affairs of a corporation.
Where the directors make, amend or repeal a bylaw, they are
required under the OBCA to submit the bylaw, amendment or repeal
to the shareholders at the next meeting of shareholders, and the
shareholders may confirm, reject or amend the bylaw, amendment
or repeal by an ordinary resolution, which is a resolution
passed by a majority of the votes cast by shareholders who voted
in respect of the resolution. If the directors of a corporation
do not submit a bylaw, an amendment or a repeal to the
shareholders at the next meeting of shareholders, the bylaw,
amendment or repeal will cease to be effective, and no
subsequent resolution of the directors to adopt, amend or repeal
a bylaw having substantially the same purpose and effect is
effective until it is confirmed as amended by the shareholders.

Oppression Remedy

     
Glamis. Under the
BCBCA, a shareholder has the right to apply to court on the
ground (a) that the affairs of the company are being or
have been conducted, or that the powers of the directors are
being or have

A-10

 

been exercised, in a manner oppressive to one or
more shareholders, or (b) that some act of the company has
been done or is threatened, or that some resolution of
shareholders has been passed or is proposed, that is unfairly
prejudicial to one or more shareholders. The court may make such
order as it sees fit.

     
Goldcorp. Under the
OBCA, the right to bring an oppression action extends to
shareholders, directors, officers or former shareholders,
directors or officers of a corporation or any of its affiliates,
and any person who, in the discretion of the court, is a proper
person to make an application to court to bring such an action.

     
Such parties may apply to court for an order to
rectify the matters complained of where, in respect of a
corporation or any of its affiliates, (a) any act or
omission of the corporation or its affiliates effects or
threatens to effect a result, (b) the business or affairs
of the corporation or its affiliates are or have been or are
threatened to be carried on or conducted in a manner, or
(c) the powers of the directors of the corporation or any
of its affiliates are, have been or are threatened to be
exercised in a manner that is oppressive or unfairly prejudicial
to, or that unfairly disregards the interests of, any security
holder, creditor, director or officer.

     
The court may make such order as it sees fit.

Shareholder Derivative Actions

     
Glamis. Under the
BCBCA, a shareholder or director of a company may, with leave of
the court, prosecute or defend an action in the name and on
behalf of the company.

     
Goldcorp. Under the
OBCA, the right to bring a derivative action extends to
shareholders, directors, officers or former shareholders,
directors or officers of a corporation or any of its affiliates,
and any person who, in the discretion of the court, is a proper
person to make an application to court to bring such an action.
In addition, derivative actions are permitted to be commenced in
the name and on behalf of not only a corporation but also any of
its subsidiaries.

Indemnification of Officers and
Directors

     
Glamis. Under the
BCBCA, current or former directors or officers of a company or
an associated corporation, or any of their heirs and personal or
other legal representatives, are eligible to be indemnified by
the company (“eligible party”).

     
A company may indemnify an eligible party against
a judgment, penalty or fine awarded or imposed in, or an amount
paid in settlement of certain proceedings incurred in connection
with eligible proceedings and certain associated reasonable
expenses. In certain circumstances, a company may advance
expenses.

     
A company must not indemnify an eligible party in
certain circumstances, including where the eligible party did
not act honestly and in good faith with a view to the best
interests of the company or the associated corporation, or
where, in proceedings other than civil proceedings, the eligible
party did not have reasonable grounds for believing that the
eligible party’s conduct was lawful. In addition, a company
must not indemnify an eligible party in proceedings brought
against the eligible party by or on behalf of the company or an
associated corporation.

     
Goldcorp. Under the
OBCA, a corporation may indemnify a director or officer, a
former director or officer or a person who acts or acted at the
corporation’s request as a director or officer of a body
corporate of which the corporation is or was a shareholder or
creditor, and his or her heirs and legal representatives
(“indemnifiable person”), against all costs, charges
and expenses, including an amount paid to settle an action or
satisfy a judgment, reasonably incurred by him or her in respect
of any civil, criminal or administrative action or proceeding to
which he or she is made a party by reason of being or having
been a director or officer of such corporation or such body
corporate, if: (i) he or she acted honestly and in good
faith with a view to the best interests of such corporation; and
(ii) in the case of a criminal or administrative action or
proceeding that is enforced by a monetary penalty, he or she had
reasonable grounds for believing that his or her conduct was
lawful.

     
An indemnifiable person is entitled to
indemnification from the corporation under the OBCA if he or she
was substantially successful on the merits in his or her defense
of the action or proceeding and fulfilled the

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conditions set out in (i) and
(ii) above. With court approval a corporation may also
indemnify an indemnifiable person in respect of an action by or
on behalf of the corporation or body corporate to procure a
judgment in its favor, to which such person is made a party by
reason of being or having been a director or an officer of the
corporation or body corporate, if he or she fulfills the
conditions set forth in (i) and (ii), above.

CHANGES IN SHARE CAPITAL

     
From December 31, 2003 to December 31,
2004, Glamis issued a total of 734,700 Glamis Shares upon the
exercise of director and employee share purchase options. As at
December 31, 2004, Glamis had outstanding share purchase
options to purchase up to 3,381,000 Glamis Shares at prices
ranging from Cdn.$2.18 to Cdn.$22.61 per Glamis Share.

ELIGIBILITY FOR INVESTMENT

     
In the opinion of Lang Michener LLP, the common
shares of Glamis if issued on the date hereof, would be
qualified investments under the Income Tax Act (Canada)
(the “Tax Act”) and the regulations thereunder for
trusts governed by registered retirement savings plans,
registered retirement income funds, registered education savings
plans and deferred profit sharing plans. In the further opinion
of such counsel, based in part on a certificate of Glamis as to
certain factual matters, the common shares, if issued on the
date hereof would not constitute foreign property for the
purposes of the Tax Act.

TRANSFER AGENT AND REGISTRAR

     
The registrar and transfer agent for the common
shares of Glamis is Computershare Trust Company of Canada
at its principal office in Vancouver, British Columbia.

RISK FACTORS

     
Glamis’ mining operations are subject to the
normal risks of mining, and its profits are subject to numerous
factors beyond Glamis’ control. Certain of these risk
factors are discussed below.

Gold Price Volatility

     
Gold prices historically have fluctuated widely
and are affected by numerous factors outside of Glamis’
control including industrial and retail demand, central bank
lending, sales and purchases of gold, forward sales of gold by
producers and speculators, levels of gold production, short-term
changes in supply and demand because of speculative hedging
activities, confidence in the global monetary system,
expectations of the future rate of inflation, the strength of
the U.S. dollar (the currency in which the price of gold is
generally quoted), interest rates and global or regional
political or economic events.

     
The profitability of Glamis’ operations is
directly related to the market price of gold. If gold prices
decline for a substantial period below the cost of production of
any or all of Glamis’ operations, it may not be
economically feasible to continue production at such sites. This
would materially and adversely affect production, earnings and
Glamis’ financial position. A decline in the market price
of gold may also require Glamis to write-down its mineral
reserves which would have a material and adverse effect on its
earnings and financial position. Should any significant
writedown in reserves be required, material writedowns of
Glamis’ investment in the affected mining properties and
increased amortization, reclamation and closure charges may be
required.

     
Glamis’ current hedging policy, approved by
the Board of Directors, gives management the discretion to
commit up to 60% of planned gold production and up to 90% of
planned silver production for up to five years. Management is
authorized to use any combination of spot, forward, spot
deferred forwards and put or call options. Although this is the
approved policy, management’s current intention and
practice is to not hedge any part of Glamis’ gold
production and Glamis currently has no hedging contracts in
place. In the future, the

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Company will consider hedging a portion of the
by-product silver production at Marlin. Since Glamis does not
currently engage in gold hedging activities, Glamis’
exposure to the impact of gold price volatility is higher.

     
Further, if revenue from gold sales declines,
Glamis may experience liquidity difficulties. This may reduce
its ability to invest in exploration and development which would
materially and adversely affect future production, earnings and
Glamis’ financial position.

Production Estimates

     
Glamis prepares estimates of future gold
production for its various operations. Glamis cannot give any
assurance that it will achieve its production estimates. The
failure by Glamis to achieve its production estimates could have
a material and adverse effect on any or all of its future cash
flows, results of operations and financial condition. These
production estimates are dependent on, among other things, the
accuracy of mineral reserve estimates, the accuracy of
assumptions regarding ore grades and recovery rates, ground
conditions and physical characteristics of ores, such as
hardness and the presence or absence of particular metallurgical
characteristics and the accuracy of estimated rates and costs of
mining and processing.

     
Glamis’ actual production may vary from its
estimates for a variety of reasons, including, actual ore mined
varying from estimates of grade, tonnage, dilution and
metallurgical and other characteristics; short-term operating
factors such as the need for sequential development of ore
bodies and the processing of new or different ore grades from
those planned; mine failures, slope failures or equipment
failures; industrial accidents; natural phenomena such as
inclement weather conditions, floods, blizzards, droughts, rock
slides and earthquakes; encountering unusual or unexpected
geological conditions; changes in power costs and potential
power shortages; shortages of principal supplies needed for
operation, including explosives, fuels, chemical reagents,
water, equipment parts and lubricants; labour shortages or
strikes; civil disobedience and protests; and restrictions or
regulations imposed by government agencies or other changes in
the regulatory environments. Such occurrences could result in
damage to mineral properties, interruptions in production,
injury or death to persons, damage to property of Glamis or
others, monetary losses and legal liabilities. These factors may
cause a mineral deposit that has been mined profitably in the
past to become unprofitable, forcing Glamis to cease production.
Each of these factors also applies to Glamis’ sites not yet
in production and to operations that are to be expanded. In
these cases, Glamis does not have the benefit of actual
experience in verifying its estimates, and there is a greater
likelihood that actual production results will vary from the
estimates.

     
It is not unusual in new mining operations to
experience unexpected problems during the start-up phase.
Depending on the price of gold or other minerals, Glamis may
determine that it is impractical to commence or, if commenced,
to continue commercial production at a particular site.

Mine Development

     
Glamis’ ability to sustain or increase its
present levels of gold production is dependent upon the
successful development of new producing mines and/or
identification of additional reserves at existing mining
operations. If Glamis is unable to develop new ore bodies, it
will not be able to sustain present production levels. Reduced
production could have a material and adverse impact on future
cash flows, results of operations and financial condition.

     
Feasibility studies are used to determine the
economic viability of a deposit. Many factors are involved in
the determination of the economic viability of a deposit,
including the achievement of satisfactory mineral reserve
estimates, the level of estimated metallurgical recoveries,
capital and operating cost estimates and the estimate of future
gold prices. Capital and operating cost estimates are based upon
many factors, including anticipated tonnage and grades of ore to
be mined and processed, the configuration of the ore body,
ground and mining conditions, expected recovery rates of the
gold from the ore and anticipated environmental and regulatory
compliance costs. Each of these factors involves uncertainties
and as a result, Glamis cannot give any assurance that its
development or exploration projects will become operating mines.
If a mine is developed, actual operating results may differ from
those anticipated in a feasibility study.

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Mineral Reserves and Resources
Estimates

     
The figures presented for both mineral reserves
and mineral resources herein and in the documents incorporated
herein by reference are only estimates. The estimating of
mineral reserves and mineral resources is a subjective process
and the accuracy of reserve and resource estimates is a function
of the quantity and quality of available data and the
assumptions used and judgments made in interpreting engineering
and geological information. There is significant uncertainty in
any reserve or resource estimate, and the actual deposits
encountered and the economic viability of mining a deposit may
differ materially from Glamis’ estimates.

     
Estimated mineral reserves or mineral resources
may have to be recalculated based on changes in gold prices,
further exploration or development activity or actual production
experience. This could materially and adversely affect estimates
of the volume or grade of mineralization, estimated recovery
rates or other important factors that influence reserve. Market
price fluctuations for gold, increased production costs or
reduced recovery rates, or other factors may render the present
proven and probable mineral reserves of Glamis uneconomical or
unprofitable to develop at a particular site or sites. A
reduction in estimated reserves could require material
writedowns in Glamis’ investment in the affected mining
properties and increased amortization, reclamation and closure
charges.

Competition for Mining Claims and Mining
Assets

     
Glamis competes with other mining companies and
individuals for mining claims and leases on exploration
properties and the acquisition of gold mining assets. Some of
the companies with which Glamis competes have significantly
greater financial, management and technical resources than
Glamis, and may use these resources to their advantage when
competing with Glamis for such opportunities. Glamis cannot give
any assurance that it will continue to be able to compete
successfully with its competitors in acquiring attractive
mineral properties and assets.

Exploration Projects

     
Gold exploration is highly speculative in nature.
Glamis’ exploration projects involve many risks and success
in exploration is dependent upon a number of factors including,
but not limited to, quality of management, quality and
availability of geological expertise and availability of
exploration capital. Glamis cannot give any assurance that its
future exploration efforts will result in the discovery of a
mineral reserve or resource, or that its current and future
exploration programs will result in the expansion or replacement
of current production with new proven and probable mineral
reserves. Glamis cannot give assurance that its exploration
programs will be able to extend the life of its existing
properties or result in the discovery of new producing mines.

Future Capital Requirements

     
As of September 30, 2004, Glamis had cash
and cash equivalents of approximately $22.4 million and
working capital of approximately $27.4 million. Glamis
intends to use its working capital together with its future cash
flows to finance the construction costs of the Marlin Project,
the Marigold Millennium Expansion Project, to fund exploration
and development work and for general corporate purposes. Glamis
estimates that capital expenditures and funds for exploration in
2005 will be approximately $100 million. The primary
capital expenditures are expected to be for equipment purchases
and development at the Marlin Project, equipment purchases and
development at the Marigold Mine expansion, and leach pad
expansion and development at the San Martin Mine.
Exploration is planned primarily at the Marlin Project and
Marigold, with additional work in Guatemala, Mexico and
Honduras. Glamis may have further capital requirements to the
extent it decides to develop other properties or to take
advantage of opportunities for acquisitions, joint ventures or
other business opportunities that may be presented to it. In
addition, Glamis may incur major unanticipated liabilities or
expenses.

     
Glamis’ ability to continue its planned
exploration and development activities also depends in part on
its ability to generate free cash flow from its El Sauzal,
Marigold and San Martin mines. Glamis may be required

A-14

 

to obtain additional financing in the future to
fund future exploration and development activities or
acquisitions of additional properties or other interests that
may be appropriate to enhance Glamis’ financial or
operating interests. Glamis has historically raised capital
through equity and debt financing and in the future may raise
capital through equity or debt financing, joint ventures,
production sharing arrangements or other means. There can be no
assurance that Glamis will be able to obtain necessary financing
in a timely manner on acceptable terms, if at all.

Government Regulations

     
Glamis’ mining operations and exploration
and development activities are subject to extensive laws and
regulations governing health and worker safety, employment
standards, waste disposal, protection of the environment,
protection of historic and archeological sites, mine development
and protection of endangered and protected species and other
matters. Each jurisdiction in which Glamis has properties,
including the United States, Mexico, Honduras and Guatemala,
regulates mining activities. Glamis generally requires permits
from authorities in these jurisdictions to authorize
Glamis’ operations. These permits relate to virtually every
aspect of Glamis’ exploration, development, production and
reclamation activities. It is possible that future changes in
applicable laws, regulations or changes in their enforcement or
regulatory interpretation could result in changes in legal
requirements or in the terms of existing permits applicable to
Glamis or its properties which could have a significant adverse
impact on Glamis’ current operations or planned development
projects, including the Marigold Millennium Expansion Project,
and the development of the Marlin Project.

     
Obtaining necessary permits can be a complex,
time consuming process and Glamis cannot predict whether
necessary permits will be obtainable on acceptable terms, in a
timely manner or at all. The costs and delays associated with
obtaining necessary permits and complying with these permits and
applicable laws and regulations could stop or materially delay
or restrict Glamis from proceeding with the development of a
project or the operation or further development of a mine. Any
failure to comply with applicable laws and regulations or
permits, even if inadvertent, could result in interruption or
closure of exploration, development or mining operations or
material fines, penalties or other liabilities.

Title Matters

     
Acquisition of title to mineral properties in all
jurisdictions where Glamis operates is a very detailed and
time-consuming process. Glamis has acquired substantially all of
its mineral properties through acquisitions. Although Glamis has
investigated title to all of its mineral properties, Glamis
cannot give any assurance that title to such properties will not
be challenged or impugned. The properties may have been acquired
in error from parties who did not possess transferable title,
may be subject to prior unregistered agreements or transfers,
and title may be affected by undetected defects or aboriginal,
indigenous peoples or native land claims.

     
Portions of Glamis’ mineral reserves come
from unpatented mining claims in the United States. There is a
risk that any of Glamis’ unpatented mining claims could be
determined to be invalid, in which case Glamis could lose the
right to mine mineral reserves contained within those mining
claims. Unpatented mining claims are created and maintained in
accordance with the General Mining Law of 1872. Unpatented
mining claims are unique U.S. property interests, and are
generally considered to be subject to greater title risk than
other real property interests due to the validity of unpatented
mining claims often being uncertain. This uncertainty arises, in
part, out of the complex federal and state laws and regulations
under the General Mining Law of 1872. Unpatented mining claims
are always subject to possible challenges of third parties or
contests by the federal government. The validity of an
unpatented mining claim, in terms of both its location and its
maintenance, is dependent on strict compliance with a complex
body of federal and state statutory and decisional law.

     
In recent years, the U.S. Congress has
considered a number of proposed amendments to the General Mining
Law of 1872. If adopted, such legislation, among other things,
could impose royalties on gold production from unpatented mining
claims located on U.S. federal lands, result in the denial
of permits to

A-15

 

mine after the expenditure of significant funds
for exploration and development, reduce estimates of mineral
reserves and reduce the amount of future exploration and
development activity on U.S. federal lands, all of which
could have a material and adverse affect on Glamis’ cash
flows, results of operations and financial condition.

     
In Honduras, site of the San Martin Mine,
all mineral resources are owned by the state. Title to minerals
can be held separately from title to the surface. Rights to
explore for and to extract minerals are granted by the state
through issuance of mining concessions. Glamis has received its
mining concessions for the San Martin Mine. The term of
these concessions is indefinite, remaining in force as long as
Glamis meets its legal obligations. Glamis has also acquired
surface rights from private owners in the mining and processing
areas at the San Martin site. However, there are few
surveys and many of the tracts of land have no written title
documents. Accordingly, there is a risk that Glamis may not own
good and marketable title to the surface rights necessary to
conduct operations at the San Martin site.

     
In Mexico, site of the El Sauzal mine, all
mineral resources are owned by the state. Title to minerals can
be held separately from title to the surface. Mining rights take
precedence over surface rights. Rights to explore for and to
extract minerals are granted by the state through issuance of
mining concessions. Exploration concessions are granted for six
years. Exploitation concessions are granted for a period of
50 years.

     
In Guatemala, site of the Marlin and Cerro Blanco
properties, mineral rights are held by the state, and surface
rights can be privately held. The government grants exploration
concessions of up to 100 square kilometres for a term of
three years, with 2 two-year extensions available. Exploitation
concessions are granted for 25 years, with one additional
extension of 25 years available. Glamis has also acquired
surface rights from private owners in the mining and processing
areas at the Marlin site. However, there are few surveys and
most of the tracts of land have no written title documents.
Accordingly, there is a risk that Glamis may not own good and
marketable title to the surface rights necessary to conduct
operations at the Marlin site.

Environmental Risks

     
Mining operations have inherent risks and
liabilities associated with pollution of the environment and the
disposal of waste products occurring as a result of mineral
exploration and production. Laws and regulations involving the
protection and remediation of the environment and the
governmental policies for implementation of such laws and
regulations are constantly changing and are generally becoming
more restrictive. Glamis has made, and expects to make in the
future, significant expenditures to comply with such laws and
regulations. Glamis cannot give any assurance that
notwithstanding its precautions and history of activities,
environmental pollution will not materially and adversely affect
its financial condition and its results from operations.

     
Glamis’ current production is from open-pit
mining, heap leach processing and conventional milling.
Glamis’ standard open-pit mining techniques have been
designed to comply with reclamation requirements imposed by
regulatory authorities. Such authorities generally require a
mining company to return sites to safely-contoured slopes, but
usually do not require backfilling of excavated areas. Glamis
generally is required to mitigate long-term environmental
impacts by stabilizing, contouring, reshaping and re-vegetating
various portions of a site once mining and processing are
completed. Reclamation efforts generally must be conducted in
accordance with detailed plans, which have been reviewed and
approved by the appropriate regulatory agencies. Heap leaching
is done with a dilute cyanide solution held within a closed
circuit, which includes the leach pads and surface holding
ponds. Leakage of heap leaching solutions could cause
environmental damage. The old milling operations at Glamis’
Dee and Marigold mines have tailing impoundments that have known
leakage as detected by monitoring wells. Glamis does not believe
that local groundwater resources have been affected and Glamis
has undertaken remediation efforts as approved by the Nevada
Department of Environmental Protection (“NDEP”).

Reclamation Costs

     
Glamis is required to submit, for government
approval, a reclamation plan that establishes Glamis’
obligation to reclaim property after the minerals have been
mined from the site. Reclamation by Glamis of its mining sites
takes place during and after the active life of the mine. In
accordance with applicable laws, bonds

A-16

 

or other forms of financial assurances have been
provided by Glamis for the reclamation of its mine sites. Glamis
may incur costs in connection with these reclamation activities
in excess of such bonds or other financial assurances, which
costs may have a material adverse effect on Glamis’
earnings and financial condition.

     
Glamis expended $1.6 million during the nine
months ended September 30, 2004, $3.3 million in
fiscal 2003 and $2.5 million in fiscal 2002 on site closure
and reclamation primarily at the Dee, Daisy and Rand mines.
During the years ended December 31, 2004, 2003 and 2002,
Glamis made no material capital expenditures with respect to
environmental compliance except as required by permits for
construction at its mining operations and for reclamation being
carried out concurrently with mining operations.

     
In accordance with existing accounting standards,
Glamis has recognized a liability for future site closure and
mine reclamation costs based on Glamis’ estimate of the
costs necessary to comply with existing reclamation standards.
Site closure and mine reclamation costs for operating properties
are reviewed annually. There can be no assurance that
Glamis’ reclamation and closure liabilities will be
sufficient to cover all reclamation and closure costs.

Litigation Risks

     
All industries, including the mining industry,
are subject to legal claims, with and without merit. Glamis is
involved in various routine legal proceedings, which include
labour matters such as unfair termination claims, supplier
matters and property issues incidental to Glamis’ business.
Glamis believes it is unlikely that the final outcome of these
legal proceedings will have a material adverse effect on
Glamis’ financial position or results of operation.
However, defense and settlement costs can be substantial, even
with respect to claims that have no merit. Due to the inherent
uncertainty of the litigation process, there can be no assurance
that the resolution of any particular legal proceeding will not
have a material effect on Glamis’ financial position or
results of operations.

Estimates and Assumptions Employed in the
Preparation of Financial Statements

     
The preparation of its consolidated financial
statements requires Glamis to use estimates and assumptions that
affect the reported amounts of assets and liabilities as well as
revenues and expenses. Glamis’ accounting policies are
described in note 2 to its consolidated financial
statements. Glamis’ accounting policies relating to
work-in-progress inventory valuation, depreciation and
amortization of mineral property, plant and equipment, and site
closure and reclamation accruals are critical accounting
policies that are subject to estimates and assumptions regarding
reserves, recovery rates, future gold prices and future mining
activities.

     
Glamis records the cost of mining ore stacked on
its leach pads as work-in-progress inventory, and values
work-in-progress inventory at the lower of cost or estimated net
realizable value. These costs are charged to earnings and
included in cost of sales on the basis of ounces of gold
recovered. The assumptions used in the valuation of
work-in-progress inventories include estimates of gold contained
in the ore stacked on leach pads, assumptions of the amount of
gold stacked that is expected to be recovered from the leach
pads and an assumption of the gold price expected to be realized
when the gold is recovered. If these estimates or assumptions
prove to be inaccurate, Glamis could be required to write-down
the recorded value of its work-in-progress inventories, which
would reduce Glamis’ earnings and working capital.

     
Glamis records mineral property acquisition costs
and mine development costs at cost. In accordance with Canadian
generally accepted accounting principles, Glamis capitalizes
pre-production expenditures net of revenues received, until the
commencement of commercial production. A significant portion of
Glamis’ mineral property, plant and equipment are
depreciated and amortized on a unit-of-production basis. Under
the unit-of-production method, the calculation of depreciation,
depletion and amortization of mineral property, plant and
equipment is based on the amount of reserves expected to be
recovered from each location. If these estimates of reserves
prove to be inaccurate, or if Glamis revises its mining plan for
a location, due to reductions in the price of gold or otherwise,
to reduce the amount of reserves expected to be recovered,
Glamis could be required to write-down the recorded value of its
mineral property, plant and equipment, or to increase the amount
of future depreciation, depletion and amortization expense, both
of which would reduce Glamis’

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earnings and net assets. In addition, generally
accepted accounting principles require Glamis to consider at the
end of each accounting period whether or not there has been an
impairment of the capitalized mineral property, plant and
equipment. For producing properties, this assessment is based on
expected future cash flows to be generated from the location.
For non-producing properties, this assessment is based on
whether factors that may indicate the need for a write-down are
present. If Glamis determines there has been an impairment
because its prior estimates of future cash flows have proven to
be inaccurate, due to reductions in the price of gold, increases
in the costs of production, reductions in the amount of reserves
expected to be recovered or otherwise, or because Glamis has
determined that the deferred costs of non-producing properties
may not be recovered based on current economics or permitting
considerations, Glamis would be required to write-down the
recorded value of its mineral property, plant and equipment,
which would reduce Glamis’ earnings and net assets.

     
Glamis has an obligation to reclaim its
properties after the minerals have been mined from the site, and
has estimated the costs necessary to comply with existing
reclamation standards. Glamis has recognized a liability for the
fair value of these asset retirement obligations based on the
present value of estimated future cash flows associated with
site closure and reclamation, and has increased the carrying
value of the related assets for this amount. These assets are
being amortized as depreciation and depletion expense over the
life of the related assets on a unit-of-production basis as gold
is recovered and sold, based on the estimated amount of mineral
reserves expected to be recovered from each location. At the end
of each reporting period, the asset retirement obligation is
being increased to reflect the passage of time, as accretion
expense, and changes in the estimated future cash flows
underlying the initial fair value measurements, as additional
asset retirement costs. If these estimates of future cash flows
or of recoverable mineral resources prove to be inaccurate,
Glamis could be required to increase the reserve for site
closure and reclamation costs, which would increase the amount
of future depreciation and depletion expense per ounce or
increase reclamation expense in a period, or both, and would
increase future accretion expense, all of which would reduce
Glamis’ earnings and net assets.

Currency Fluctuations

     
Currency fluctuations may affect the costs that
Glamis incurs at its operations. Gold is sold throughout the
world based principally on a U.S. dollar price, but a
portion of Glamis’ operating expenses are incurred in
non-U.S. dollar currencies. The appreciation of
non-U.S. dollar currencies in those countries where Glamis
has mining operations against the U.S. dollar would
increase the costs of gold production at such mining operations
while receiving proportionately lower revenues, which could
materially and adversely affect Glamis’ earnings and
financial condition.

Risks Related to Glamis’ Foreign
Investments and Operations

     
Glamis conducts mining, development or
exploration activities in countries other than Canada and the
United States, including Mexico, Honduras and Guatemala.
Glamis’ foreign mining investments are subject to the risks
normally associated with the conduct of business in foreign
countries. The occurrence of one or more of these risks could
have a material and adverse effect on Glamis’ earnings or
the viability of its affected foreign operations, which could
have a material and adverse effect on Glamis’ future cash
flows, results of operations and financial condition.

     
Risks may include, among others, labour disputes,
invalidation of governmental orders and permits, corruption,
uncertain political and economic environments, war, civil
disturbances and terrorist actions, arbitrary changes in laws or
policies of particular countries, foreign taxation, delays in
obtaining or the inability to obtain necessary governmental
permits, opposition to mining from environmental or other
non-governmental organizations, limitations on foreign
ownership, limitations on the repatriation of earnings,
limitations on gold exports and increased financing costs. These
risks may limit or disrupt Glamis’ projects, restrict the
movement of funds or result in the deprivation of contract
rights or the taking of property by nationalization or
expropriation without fair compensation.

A-18

 

Insurance Coverage

     
The mining industry is subject to significant
risks that could result in damage to, or destruction of, mineral
properties or producing facilities, personal injury or death,
environmental damage, delays in mining and monetary losses and
possible legal liability.

     
Glamis’ policies of insurance may not
provide sufficient coverage for losses related to these or other
risks. Glamis’ insurance does not cover all risks that may
result in loss or damage and may not be adequate to reimburse
Glamis for all losses sustained. In addition, Glamis does not
have coverage for many environmental losses. The occurrence of
losses or damage not covered by insurance could have a material
and adverse effect on Glamis’ cash flows, results of
operation and financial condition.

Reliance on Current Management
Team

     
The success of the operations and activities of
Glamis is dependent to a significant extent on the efforts and
abilities of its management including C. Kevin McArthur,
President and Chief Executive Officer, James S. Voorhees,
Vice-President Operations and Chief Operating Officer, Charles
A. Jeannes, Senior Vice-President Administration, General
Counsel and Secretary and Cheryl S. Maher, Vice-President
Finance and Chief Financial Officer. Glamis shareholders must be
willing to rely to a significant extent on management’s
discretion and judgment. Glamis does not maintain key employee
insurance on any of its employees. The loss of one or more of
these key employees, if not replaced, could adversely affect
Glamis’ operations.

Mining Risks

     
The business of gold mining involves many risks
and hazards, including environmental hazards, industrial
accidents, labour force disruptions, the unavailability of
materials and equipment, unusual or unexpected rock formations,
pit slope failures, changes in the regulatory environment,
weather conditions, cave-ins, rock bursts, water conditions and
gold bullion losses. Such occurrences could result in damage to,
or destruction of, mineral properties or production facilities,
personal injury or death, environmental damage, delays in
mining, monetary losses and possible legal liability. As a
result, Glamis may incur significant costs that could have a
material adverse effect upon its financial performance,
liquidity and results of operations.

Additional risk factors that will apply upon
consummation of the Offer

     
If the Offer is successful Glamis will become
subject to additional risks associated with the business of
Goldcorp. These risks include:

Dependence on Red Lake Mine

     
Goldcorp’s operations at the Red Lake Mine
currently account for almost all of Goldcorp’s gold
production and revenue. In addition, Goldcorp’s principal
exploration and development program is based at the Red Lake
Mine. Any adverse developments affecting the Red Lake Mine would
have a material adverse effect on Goldcorp’s and the
combined company’s financial performance and results of
operations and the combined company’s ability to achieve
its growth strategy and goals for cash production costs.

Cash Cost of Gold Production

     
Goldcorp’s cash production costs to produce
an ounce of gold are dependent upon a number of factors,
including the grade of mineral reserves. This is especially
important at the Red Lake Mine where the high grade has allowed
Goldcorp to achieve very low cash production costs. In the
future, the grades actually recovered from the Red Lake Mine may
differ from the estimated grades of the mineral reserves. As
these factors are beyond Goldcorp’s control there can be no
assurance that Goldcorp will continue to maintain its status as
a low cash cost gold producer or achieve the current goals for
its cash production costs as reported by Goldcorp.

A-19

 

Dependence on Dynatec

     
Goldcorp does not employ its own underground
mining personnel at the Red Lake Mine. Goldcorp has outsourced
its needs for underground mining personnel at the Red Lake Mine
under a contract with Dynatec Corporation which expires on
December 31, 2006. During development of the mine in 1999
and 2000, Dynatec was the underground development and
construction contractor and, since completion, has continued as
the underground mining services contractor. Under the contract,
Dynatec will receive incentive payments for achieving specified
levels of tonnage production. Goldcorp relies exclusively on
Dynatec to bring ore at the Red Lake Mine to the surface for
processing. Any interruption in, or problems with, the mining
services provided by Dynatec could lead to disruptions of mining
operations at the Red Lake Mine and adversely affect
Goldcorp’s gold production.

AVAILABLE INFORMATION

     
Glamis files reports and other information with
Canadian Provincial securities commissions. These reports and
information are available to the public free of charge on the
System for Electronic Document Analysis and Retrieval
(SEDAR) at www.sedar.com.

     
Glamis is subject to the informational
requirements of the Exchange Act, and in accordance therewith
files reports and other information with the SEC. Under a
multi-jurisdictional disclosure system adopted by United States
and Canadian securities regulators, such reports and other
information may be prepared in accordance with the disclosure
requirements of Canada, which requirements are different from
those of the United States. Glamis is exempt from the rules
under the Exchange Act prescribing the furnishing and content of
proxy statements, and its officers, directors and principal
shareholders are exempt from the reporting and short-swing
profit recovery provisions contained in Section 16 of the
Exchange Act. Reports and other information filed by Glamis may
be inspected and copied at the public reference facilities
maintained by the SEC at Room 1024, 450 Fifth Street,
N.W., Judiciary Plaza, Washington, D.C. 20549. Copies of
such material can also be obtained at prescribed rates from the
Public Reference Section of the SEC at 450 Fifth Street,
N.W., Judiciary Plaza, Washington, D.C. 20549. Prospective
investors may call the SEC at 1-800-SEC-0330 for further
information regarding the public reference facilities or visit
the SEC’s website at www.sec.gov. Such reports and other
information concerning Glamis may also be inspected at the
offices of The New York Stock Exchange, 20 Broad Street,
New York, N.Y. 10005.

     
The registration statement filed with the SEC
concerning the Offer including exhibits, and Glamis’
reports and other information filed under the Exchange Act are
available to the public free of charge at the SEC’s website
at www.sec.gov.

EXPERTS

     
The audited consolidated financial statements of
Glamis as at December 31, 2003 and 2002 and for each of the
years in the three-year period ended December 31, 2003,
incorporated by reference in this Circular, have been so
incorporated in reliance upon the report of KPMG LLP,
independent chartered accountants, and upon the authority of
such said firm as experts in accounting and auditing.

     
With respect to the pro forma financial
statements of Glamis included herein, the independent chartered
accountants have reported that they applied limited procedures
in accordance with Canadian professional standards for
preparation of a compilation report. However, their separate
compilation report included herein states that they are unable
to express any opinion in accordance with standards of reporting
generally accepted in the United States with respect to the
compilation of the accompanying unaudited pro forma financial
information. Accordingly, the degree of reliance on their report
on such information should be restricted in light of the limited
nature of the review procedures applied. The accountants may not
be subject to the liability provisions of Section 11 of the
U.S. Securities Act for their report on the pro forma
financial information and the related comments for the United
States readers on differences between Canadian and United States
reporting standards because that report is not a
“report” or a “part” of the registration
statement prepared or certified by the accountants within the
meaning of Sections 7 and 11 of the
U.S. Securities Act.

A-20

 

     
The audited comparative financial statements of
Goldcorp for the year ended December 31, 2003 incorporated
into this Circular by reference contain the report of
Goldcorp’s independent auditors. Glamis has not obtained
the consent necessary for Glamis to incorporate the audit report
by reference into this Circular. Because Glamis has not obtained
Goldcorp’s auditor’s consent, shareholders may not be
able to recover against Goldcorp’s auditors under
Section 11 of the U.S. Securities Act for untrue
statements of a material fact contained in the financial
statements audited by Goldcorp’s auditors or any omissions
to state a material fact required to be stated therein.

     
The proven and probable mineral reserves and the
mineral resources of Glamis as at December 31, 2003, 2002,
and 2001 included in Glamis’ Annual Information Form for
the year ended December 31, 2003, which is incorporated
herein by reference, were determined by employees of Glamis
under the supervision of James S. Voorhees, P. Eng., Chief
Operating Officer of Glamis, given on his authority as an expert
in mining, engineering and geology. Mr. Voorhees is a
“qualified person” within the meaning of National
Instrument 43-101 of the Canadian Securities Administrators. The
proven and probable mineral reserves were audited by either Mine
Development Associates, Inc. (2003 and 2002) or Mine Reserves
Associates, Inc. (2001), entities that are not affiliated with
Glamis.

LEGAL MATTERS

     
Certain legal matters relating to the Offer and
to the common shares to be distributed pursuant to the Offer
will be reviewed by Lang Michener LLP, Vancouver, British
Columbia and certain U.S. legal matters relating to the
Offer will be reviewed by Neal, Gerber & Eisenberg LLP,
Chicago, Illinois. As of the date hereof, the partners and
associates of Lang Michener LLP and Neal Gerber &
Eisenberg LLP, as a group, beneficially owned directly or
indirectly less than 1% of Glamis’ issued and outstanding
common shares.

A-21

 

ANNEX B

PRO FORMA CONSOLIDATED FINANCIAL
STATEMENTS

(Expressed in millions of United States
dollars)

GLAMIS GOLD LTD.

As at and for the

nine-month period ended September 30,
2004

Year ended December 31, 2003

(Unaudited)

B-1

 

COMPILATION REPORT ON PRO FORMA FINANCIAL
STATEMENTS

The Board of Directors

Glamis Gold Ltd.

     
We have read the accompanying unaudited pro forma
consolidated balance sheet of Glamis Gold Ltd. (the
“Company”) as at September 30, 2004 and the
unaudited pro forma consolidated statements of operations for
the nine months then ended and for the year ended
December 31, 2003, and have performed the following
procedures:

		
	 	     
    1. Compared the figures in the columns
    captioned “Glamis Gold Ltd.” to the unaudited
    financial statements of the Company as at September 30,
    2004 and for the nine months then ended, and the audited
    financial statements of the Company for the year ended
    December 31, 2003, respectively, and found them to be in
    agreement.
    
	 
	 	     
    2. Compared the figures in the columns
    captioned “Goldcorp Inc.” to the unaudited financial
    statements of Goldcorp Inc. as at September 30, 2004 and
    for the nine months then ended, and the audited financial
    statements of Goldcorp Inc. for the year ended December 31,
    2003, respectively, and found them to be in agreement.
    
	 
	 	     
    3. Made enquiries of certain officials of
    the Company who have responsibility for financial and accounting
    matters about:
    

		
	 	     
    (a) The basis for determination of the pro
    forma adjustments; and
    
	 
	 	     
    (b) Whether the pro forma financial
    statements comply as to form in all material respects with the
    published requirements of Canadian securities legislation.
    

		
	 	     
    The officials:
    

		
	 	     
    (a) described to us the basis for
    determination of the pro forma adjustments, and
    
	 
	 	     
    (b) stated that the pro forma financial
    statements comply as to form in all material respects with the
    published requirements of Canadian securities legislation.
    

		
	 	     
    4. Read the notes to the pro forma financial
    statements, and found them to be consistent with the basis
    described to us for determination of the pro forma adjustments.
    
	 
	 	     
    5. Recalculated the application of the pro
    forma adjustments to the aggregate of the amounts in the columns
    captioned “Glamis Gold Ltd.” and “Goldcorp
    Inc.” as at September 30, 2004 and for the nine months
    then ended, and for the year ended December 31, 2003, and
    found the amounts in the column captioned “Pro forma
    consolidated” to be arithmetically correct.
    

     
A pro forma financial statement is based on
management assumptions and adjustments which are inherently
subjective. The foregoing procedures are substantially less than
either an audit or a review, the objective of which is the
expression of assurance with respect to management’s
assumptions, the pro forma adjustments, and the application of
the adjustments to the historical financial information.
Accordingly, we express no such assurance. The foregoing
procedures would not necessarily reveal matters of significance
to the pro forma financial statements, and we therefore make no
representation about the sufficiency of the procedures for the
purposes of a reader of such statements.

		
	 	
    (Signed) KPMG LLP
    
	 	
    Chartered Accountants
    

Vancouver, Canada

January 7, 2005

     
COMMENTS FOR UNITED STATES READERS ON
DIFFERENCES BETWEEN

CANADIAN AND UNITED STATES REPORTING
STANDARDS

     
The above report, provided solely pursuant to
Canadian requirements, is expressed in accordance with standards
of reporting generally accepted in Canada. To report in
conformity with United States standards on the reasonableness of
the pro forma adjustments and their application to the pro forma
financial statements requires an examination or review
substantially greater in scope than the review we have
conducted. Consequently, we are unable to express any opinion in
accordance with standards of reporting generally accepted in the
United States with respect to the compilation of the
accompanying unaudited pro forma financial information.

		
	 	
    (Signed) KPMG LLP
    
	 	
    Chartered Accountants
    

Vancouver, Canada

January 7, 2005

B-2

 

GLAMIS GOLD LTD.

PRO FORMA CONSOLIDATED BALANCE SHEET

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
									Pro Forma
									Consolidated
			Glamis Gold Ltd.		Goldcorp Inc.				Glamis Gold Ltd.
			September 30,		September 30,		Pro Forma		September 30,
			2004		2004		Adjustments		2004
			
		
		
		

							(Note 3)		
			
			(Unaudited)
			
			(Expressed in millions of United States dollars)
	
    ASSETS
	 
	
    
    Cash and cash equivalents
    

    	 	$	22.4	 	 	$	315.6	 	 	$	70.1	(a)	 	$	348.1	 
	 	 	 	 	 	 	 	 	 	 	 	(60.0	) (c)	 	 	 	 
	
    
    Gold bullion
    

    	 	 	—	 	 	 	26.2	 	 	 	43.9	(b)	 	 	70.1	 
	
    
    Marketable securities
    

    	 	 	—	 	 	 	23.7	 	 	 	10.6	(b)	 	 	—	 
	 	 	 	 	 	 	 	 	 	 	 	(34.3	) (e)	 	 	 	 
	
    
    Inventory
    

    	 	 	22.6	 	 	 	15.2	 	 	 	—	 	 	 	37.8	 
	
    
    Other current assets
    

    	 	 	9.2	 	 	 	19.9	 	 	 	—	 	 	 	29.1	 
	 	 	 	
	 	 	 	
	 	 	 	
	 	 	 	
	 
	 	 	 	54.2	 	 	 	400.6	 	 	 	30.3	 	 	 	485.1	 
	
    
    Mineral property, plant and equipment
    

    	 	 	498.2	 	 	 	240.7	 	 	 	1,146.0	(b)	 	 	1,884.9	 
	
    
    Goodwill
    

    	 	 	—	 	 	 	—	 	 	 	1,983.6	(b)	 	 	1,983.6	 
	
    
    Other assets
    

    	 	 	19.4	 	 	 	7.6	 	 	 	34.3	(e)	 	 	61.3	 
	 	 	 	
	 	 	 	
	 	 	 	
	 	 	 	
	 
	 	 	$	571.8	 	 	$	648.9	 	 	$	3,194.2	 	 	$	4,414.9	 
	 	 	 	
	 	 	 	
	 	 	 	
	 	 	 	
	 
	 
	
    LIABILITIES AND SHAREHOLDERS’
    EQUITY
	
    
    Liabilities:
    

    	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	
    
    Current liabilities
    

    	 	$	26.8	 	 	$	22.2	 	 	$	—	 	 	$	49.0	 
	 	
    
    Site closure and reclamation costs
    

    	 	 	6.9	 	 	 	22.3	 	 	 	—	 	 	 	29.2	 
	 	
    
    Future income taxes
    

    	 	 	85.2	 	 	 	64.3	 	 	 	424.0	(b)	 	 	573.5	 
	 	 	 	
	 	 	 	
	 	 	 	
	 	 	 	
	 
	 	 	 	118.9	 	 	 	108.8	 	 	 	424.0	 	 	 	651.7	 
	
    
    Shareholders’ equity:
    

    	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	
    
    Share capital (note 4)
    

    	 	 	471.1	 	 	 	379.2	 	 	 	70.1	(a)	 	 	3,699.9	 
	 	 	 	 	 	 	 	 	 	 	 	(449.3	) (b)	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	3,228.8	(b)	 	 	 	 
	 	
    
    Contributed surplus
    

    	 	 	16.8	 	 	 	5.6	 	 	 	(5.6	)(b)	 	 	98.3	 
	 	 	 	 	 	 	 	 	 	 	 	81.5	(d)	 	 	 	 
	 	
    
    Cumulative translation adjustment
    

    	 	 	—	 	 	 	81.2	 	 	 	(81.2	) (b)	 	 	—	 
	 	
    
    Retained earnings (deficit)
    

    	 	 	(35.0	)	 	 	74.1	 	 	 	(74.1	) (b)	 	 	(35.0	)
	 	 	 	
	 	 	 	
	 	 	 	
	 	 	 	
	 
	 	 	 	452.9	 	 	 	540.1	 	 	 	2,770.2	 	 	 	3,763.2	 
	 	 	 	
	 	 	 	
	 	 	 	
	 	 	 	
	 
	 	 	$	571.8	 	 	$	648.9	 	 	$	3,194.2	 	 	$	4,414.9	 
	 	 	 	
	 	 	 	
	 	 	 	
	 	 	 	
	 

See accompanying notes to pro forma consolidated
financial statements.

B-3

 

GLAMIS GOLD LTD.

PRO FORMA CONSOLIDATED STATEMENT OF
OPERATIONS

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
									Pro Forma
									Consolidated
			Glamis Gold Ltd.		Goldcorp Inc.				Glamis Gold Ltd.
			Nine-Month		Nine-Month				Nine-Month
			Period Ended		Period Ended		Pro Forma		Period Ended
			September 30, 2004		September 30, 2004		Adjustments		September 30, 2004
			
		
		
		

							(Note 3)		
			
			(Unaudited)
			
			(Expressed in millions of United States dollars, except per share amounts)
	
    
    Revenue
    

    	 	$	61.3	 	 	$	139.1	 	 	$	—	 	 	$	200.4	 
	
    
    Costs and expenses:
    

    	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	
    
    Cost of sales
    

    	 	 	29.8	 	 	 	50.1	 	 	 	—	 	 	 	79.9	 
	 	
    
    Depreciation and depletion
    

    	 	 	12.9	 	 	 	12.8	 	 	 	55.9	(f)	 	 	81.6	 
	 	
    
    Exploration
    

    	 	 	2.6	 	 	 	4.0	 	 	 	—	 	 	 	6.6	 
	 	
    
    General and administrative
    

    	 	 	5.5	 	 	 	8.9	 	 	 	—	 	 	 	14.4	 
	 	
    
    Other operating expenses
    

    	 	 	0.7	 	 	 	—	 	 	 	—	 	 	 	0.7	 
	 	 	 	
	 	 	 	
	 	 	 	
	 	 	 	
	 
	 	 	 	51.5	 	 	 	75.8	 	 	 	55.9	 	 	 	183.2	 
	 	 	 	
	 	 	 	
	 	 	 	
	 	 	 	
	 
	
    
    Earnings from operations
    

    	 	 	9.8	 	 	 	63.3	 	 	 	(55.9	)	 	 	17.2	 
	
    
    Interest and other income (expense)
    

    	 	 	8.5	 	 	 	(0.5	)	 	 	—	 	 	 	8.0	 
	 	 	 	
	 	 	 	
	 	 	 	
	 	 	 	
	 
	
    
    Earnings before income taxes
    

    	 	 	18.3	 	 	 	62.8	 	 	 	(55.9	)	 	 	25.2	 
	
    
    Provision for income taxes:
    

    	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	
    
    Current
    

    	 	 	1.2	 	 	 	26.4	 	 	 	—	 	 	 	27.6	 
	 	
    
    Future
    

    	 	 	2.3	 	 	 	—	 	 	 	(20.7	) (f)	 	 	(18.4	)
	 	 	 	
	 	 	 	
	 	 	 	
	 	 	 	
	 
	 	 	 	3.5	 	 	 	26.4	 	 	 	(20.7	)	 	 	9.2	 
	 	 	 	
	 	 	 	
	 	 	 	
	 	 	 	
	 
	
    
    Net earnings
    

    	 	$	14.8	 	 	$	36.4	 	 	$	(35.2	)	 	$	16.0	 
	 	 	 	
	 	 	 	
	 	 	 	
	 	 	 	
	 
	
    
    Basic earnings per share (note 5)
    

    	 	$	0.11	 	 	$	0.19	 	 	 	—	 	 	$	0.05	 
	 	 	 	
	 	 	 	
	 	 	 	
	 	 	 	
	 
	
    
    Weighted average common shares outstanding
    (millions of shares)
    

    	 	 	129.4	 	 	 	189.6	 	 	 	—	 	 	 	304.0	 
	 	 	 	
	 	 	 	
	 	 	 	
	 	 	 	
	 

See accompanying notes to pro forma consolidated
financial statements.

B-4

 

GLAMIS GOLD LTD.

PRO FORMA CONSOLIDATED STATEMENT OF
OPERATIONS

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
									Pro Forma
			Glamis Gold Ltd.						Consolidated
			Year Ended		Goldcorp Inc.				Glamis Gold Ltd.
			December 31,		Year Ended				Year Ended
			2003		December 31,		Pro Forma		December 31,
			(restated)		2003		Adjustments		2003
			
		
		
		

			(Note 2)				(Note 3)		
			
			(Unaudited)
			(Expressed in millions of United States dollars,
			except per share amounts)
	
    
    Revenue
    

    	 	$	84.0	 	 	$	262.6	 	 	$	—	 	 	$	346.6	 
	
    
    Costs and expenses:
    

    	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	
    
    Cost of sales
    

    	 	 	41.6	 	 	 	88.5	 	 	 	(0.5	)(g)	 	 	129.6	 
	 	
    
    Depreciation and depletion
    

    	 	 	17.7	 	 	 	24.1	 	 	 	120.7	(f)	 	 	162.5	 
	 	
    
    Exploration
    

    	 	 	5.6	 	 	 	3.0	 	 	 	—	 	 	 	8.6	 
	 	
    
    General and administrative
    

    	 	 	5.9	 	 	 	12.2	 	 	 	(1.8	)(g)	 	 	16.3	 
	 	
    
    Other operating expenses
    

    	 	 	0.4	 	 	 	—	 	 	 	—	 	 	 	0.4	 
	 	 	 	
	 	 	 	
	 	 	 	
	 	 	 	
	 
	 	 	 	71.2	 	 	 	127.8	 	 	 	118.4	 	 	 	317.4	 
	 	 	 	
	 	 	 	
	 	 	 	
	 	 	 	
	 
	
    
    Earnings from operations
    

    	 	 	12.8	 	 	 	134.8	 	 	 	(118.4	)	 	 	29.2	 
	
    
    Interest and other income
    

    	 	 	4.4	 	 	 	18.0	 	 	 	—	 	 	 	22.4	 
	 	 	 	
	 	 	 	
	 	 	 	
	 	 	 	
	 
	
    
    Earnings before income taxes
    

    	 	 	17.2	 	 	 	152.8	 	 	 	(118.4	)	 	 	51.6	 
	
    
    Provision for income taxes:
    

    	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	
    
    Current
    

    	 	 	0.2	 	 	 	54.0	 	 	 	—	 	 	 	54.2	 
	 	
    
    Future
    

    	 	 	(1.2	)	 	 	—	 	 	 	(44.6	) (f)	 	 	(45.8	)
	 	 	 	
	 	 	 	
	 	 	 	
	 	 	 	
	 
	 	 	 	(1.0	)	 	 	54.0	 	 	 	(44.6	)	 	 	8.4	 
	 	 	 	
	 	 	 	
	 	 	 	
	 	 	 	
	 
	
    
    Net earnings
    

    	 	$	18.2	 	 	$	98.8	 	 	$	(73.8	)	 	$	43.2	 
	 	 	 	
	 	 	 	
	 	 	 	
	 	 	 	
	 
	
    
    Basic earnings per share (note 5)
    

    	 	$	0.14	 	 	$	0.54	 	 	 	—	 	 	$	0.14	 
	 	 	 	
	 	 	 	
	 	 	 	
	 	 	 	
	 
	
    
    Weighted average common shares outstanding
    (millions of shares)
    

    	 	 	128.1	 	 	 	183.6	 	 	 	—	 	 	 	302.7	 
	 	 	 	
	 	 	 	
	 	 	 	
	 	 	 	
	 

See accompanying notes to pro forma consolidated
financial statements.

B-5

 

GLAMIS GOLD LTD.

NOTES TO PRO FORMA CONSOLIDATED FINANCIAL
STATEMENTS

(Unaudited)

(Expressed in millions of United States
dollars, except per share amounts)

Nine-month period ended September 30,
2004

1.     Description of
Offer to Purchase Goldcorp Inc.:

     
On December 16, 2004, Glamis Gold Ltd.
(“Glamis” or the “Company”) announced a
proposed business combination with Goldcorp Inc.
(“Goldcorp”), whereby Glamis offers to acquire all of
the issued and outstanding common shares of Goldcorp in exchange
for common shares of Glamis, at an exchange ratio of 0.89 of a
Glamis common share for each common share of Goldcorp. The
accompanying pro forma consolidated financial statements have
been compiled for purposes of inclusion in an offering circular
dated January 7, 2005, issued by the Board of Directors of
Glamis in connection with this proposed business combination,
including the proposed offering of Glamis common shares
thereunder.

     
Assuming all in-the-money options to purchase
Goldcorp shares at December 15, 2004 are exercised and
assuming all Goldcorp shares are exchanged in this offer, Glamis
will issue approximately 174.6 million Glamis common shares
in exchange for approximately 196.1 million Goldcorp common
shares issued and outstanding. Immediately following the
exchange, approximately 43% of Glamis’ outstanding common
shares would be held by current Glamis shareholders and
approximately 57% of the shares would be held by current
Goldcorp shareholders. For the purposes of purchase accounting,
Glamis is considered to be the acquirer because Glamis initiated
the take-over bid, the relative share ownership of the two
groups of shareholders is similar, there will be no significant
non-controlling interests in the combined entity by former
Goldcorp shareholders, it is expected that Glamis’ board of
directors and management will retain their positions in the
combined entity and Glamis’ corporate office will continue
to be the headquarters of the combined entity. As a result, the
pro forma financial statements reflect Goldcorp’s assets
and liabilities at their estimated fair values as of the date of
the announcement of the proposed acquisition.

     
The value assigned in these pro forma financial
statements to the Glamis common shares to be issued is based
upon a Glamis common share price of $18.50, representing the
average closing common share price of Glamis on the New York and
Toronto stock exchanges for the three days before and two days
following December 16, 2004, being the date of the public
announcement of Glamis’ proposed business combination with
Goldcorp.

     
As a consequence of the nature of this
transaction, there may be, and likely will be, actions and other
events or changes initiated by Goldcorp that will significantly
change the purchase price allocations. For example, the fair
value of mineral property, plant and equipment in these pro
forma financial statements has been estimated using a
preliminary analysis of the discounted future cash flows based
on proven and probable mineral reserves at December 31,
2003, adjusted for production to September 30, 2004, plus
an estimate of the fair value of other mineral resources. In
addition, the fair value of gold bullion in these pro forma
financial statements is based on ounces held at
September 30, 2004 and the fair value of marketable
securities in these pro forma financial statements is based on
shares held at September 30, 2004. The excess of the
purchase price over the fair value of the net assets is shown as
goodwill. Changes to reserves, resources, gold bullion held and
marketable securities held, in addition to changes to other
assets and liabilities, will result in changes to the fair
values of the assets and liabilities and accordingly, will
impact the amount of goodwill. In addition, the Company has
prepared these pro forma financial statements and the allocation
of the purchase price set out herein solely based upon publicly
available information on Goldcorp. Additional information may
exist that is not publicly available that could have an impact
on these pro forma financial statements and such purchase price
allocation. The final allocation of the purchase price and the
fair values of Goldcorp’s assets and liabilities is subject
to completion of definitive appraisals, which would be carried
out following completion of the acquisition. It is likely that
the fair values of assets and liabilities will vary from those
shown and the differences may be material.

B-6

 

GLAMIS GOLD LTD.

NOTES TO PRO FORMA CONSOLIDATED FINANCIAL
STATEMENTS — (Continued)

     
Completion of the proposed transaction requires
approval by shareholders of Glamis of the removal of a
restriction on the number of common shares that Glamis may issue
and approval of certain regulatory authorities. In addition, a
condition of the offer is that Goldcorp shareholders do not
approve the issuance of common shares of Goldcorp pursuant to a
proposed share exchange take-over bid made by Goldcorp for the
common shares of Wheaton River Minerals Ltd. (“Wheaton
River”).

 

		
	2.	
    Basis of Presentation:

     
These pro forma consolidated financial statements
have been prepared by management of Glamis, in accordance with
Canadian generally accepted accounting principles
(“GAAP”) to give effect to the proposed business
combination between Glamis and Goldcorp. For accounting
purposes, the proposed transaction has been accounted for as an
acquisition of Goldcorp by Glamis. The pro forma consolidated
financial statements have been prepared using the purchase
method whereby the net assets of Goldcorp have been recorded at
their fair values. Refer to note 6 for a discussion of
significant differences between Canadian GAAP and U.S. GAAP, as
it pertains to these pro forma consolidated financial statements.

     
These pro forma consolidated financial statements
include:

		
	 	     
    (a) a pro forma consolidated balance sheet
    prepared from the unaudited consolidated balance sheet of each
    of Glamis and Goldcorp as at September 30, 2004, which
    gives pro forma effect to the acquisition of Goldcorp and the
    assumptions described in note 3, as if these transactions
    occurred on September 30, 2004.
    
	 
	 	     
    (b) a pro forma consolidated statement of
    operations for the nine-month period ended September 30,
    2004, prepared from the unaudited interim consolidated statement
    of operations of each of Glamis and Goldcorp for the nine-month
    period ended September 30, 2004, which gives pro forma
    effect to the acquisition of Goldcorp and the assumptions
    described in note 3, as if these transactions occurred on
    January 1, 2003.
    
	 
	 	     
    (c) a pro forma consolidated statement of
    operations for the year ended December 31, 2003, prepared
    from the consolidated statement of operations of each of Glamis
    and Goldcorp for the year ended December 31, 2003, which
    gives pro forma effect to the acquisition of Goldcorp and the
    assumptions described in note 3, as if these transactions
    occurred on January 1, 2003.
    

     
The Glamis and Goldcorp financial statements
referred to above have been prepared in accordance with Canadian
GAAP. The statement of operations of Glamis for the year ended
December 31, 2003 has been restated to reflect the effect
of the retroactive change in the method of accounting for asset
retirement obligations which Glamis adopted effective
January 1, 2004. Goldcorp’s information has been
compiled from publicly available information.

     
It is management’s opinion that these pro
forma financial statements include all adjustments necessary for
the fair presentation, in all material respects, of the proposed
transaction described above in accordance with Canadian GAAP
applied on a basis consistent with Glamis’ accounting
policies. No adjustments have been made to reflect potential
cost savings that may occur subsequent to completion of the
transaction. The pro forma statements of operations do not
reflect non-recurring charges or credits directly attributable
to the transaction, of which none are currently anticipated.

     
These pro forma consolidated financial statements
are not intended to reflect the results of operations or the
financial position of Glamis which would have actually resulted
had the proposed transaction been effected on the dates
indicated. Further, the pro forma financial information is not
necessarily indicative of the future operating results of Glamis
as a result of the transaction.

     
The pro forma consolidated financial statements
should be read in conjunction with the consolidated financial
statements of each of Glamis and Goldcorp for each of the
nine-month periods ended September 30, 2004 and the year
ended December 31, 2003.

B-7

 

GLAMIS GOLD LTD.

NOTES TO PRO FORMA CONSOLIDATED FINANCIAL
STATEMENTS — (Continued)

3.     Pro Forma
Assumptions:

     
The pro forma consolidated balance sheet gives
effect to the following transactions as if they had occurred on
September 30, 2004:

		
	 	     
    (a) The issuance of 6,171,359 common shares
    of Goldcorp on exercise of in-the-money options to purchase
    shares of Goldcorp for proceeds of $70.1 million;
    
	 
	 	     
    (b) The issuance of 174,558,091 common
    shares of Glamis to the shareholders of Goldcorp at a price of
    $18.50 per common share, in exchange for their common
    shares of Goldcorp;
    
	 
	 	     
    (c) The payment of $25.0 million for
    estimated transaction costs and the $35.0 million
    termination fee to be paid by Goldcorp to Wheaton River under
    the terms of Goldcorp’s take-over bid for Wheaton River;
    
	 
	 	     
    (d) An accrual for the $81.5 million
    value of Glamis common shares expected to be issued to Goldcorp
    warrant holders on exercise of their Goldcorp share purchase
    warrants, at the same exchange ratio as offered to Goldcorp
    shareholders, in excess of the cash proceeds to be received by
    Goldcorp on exercise of those warrants; and
    
	 
	 	     
    (e) The reclassification of marketable
    securities from current assets to other assets, to be consistent
    with the presentation adopted by Glamis for its
    available-for-sale securities.
    
	 
	 	     
    A summary of the proposed allocation of the
    consideration given to the net assets of Goldcorp, including the
    additional future income taxes resulting from differences
    between the fair value and tax value of assets and liabilities,
    is as follows:
    

	 	 	 	 	 	 
	
    
    Fair value of net assets to be acquired:
    

    	 	 	 	 
	 
	 	
    
    Cash and cash equivalents
    

    	 	$	385.7	 
	 	
    
    Gold bullion
    

    	 	 	70.1	 
	 	
    
    Marketable securities
    

    	 	 	34.3	 
	 	
    
    Other current assets
    

    	 	 	35.1	 
	 	
    
    Mineral property, plant and equipment (including
    value assigned to mineral reserves and mineral resources)
    

    	 	 	1,386.7	 
	 	
    
    Other non-current assets (excluding marketable
    securities)
    

    	 	 	7.6	 
	 	
    
    Goodwill
    

    	 	 	1,983.6	 
	 	 	 	
	 
	 	 	 	 	3,903.1	 
	 	
    
    Accounts payable and accrued liabilities
    

    	 	 	(22.2	)
	 	
    
    Reserve for site closure and reclamation
    

    	 	 	(22.3	)
	 	
    
    Future income taxes
    

    	 	 	(488.3	)
	 	 	 	
	 
	 	 	 	$	3,370.3	 
	 	 	 	
	 
	
    
    Consideration given:
    

    	 	 	 	 
	 	
    
    Issuance of 174,558,091 common shares of Glamis
    

    	 	$	3,228.8	 
	 	
    
    Excess of Glamis common shares to be issued over
    exercise price of Goldcorp warrants
    

    	 	 	81.5	 
	 	
    
    Estimated transaction costs
    

    	 	 	60.0	 
	 	 	 	
	 
	 	 	 	$	3,370.3	 
	 	 	 	
	 

B-8

 

GLAMIS GOLD LTD.

NOTES TO PRO FORMA CONSOLIDATED FINANCIAL
STATEMENTS — (Continued)

		
	 	     
    The pro forma consolidated statements of
    operations for the nine-month period ended September 30,
    2004 and for the year ended December 31, 2003, give pro
    forma effect to the following assumptions as if the transactions
    described in (a) through (e) above had occurred on
    January 1, 2003:
    
	 
	 	     
    (f) The increase in depreciation and
    depletion expense to reflect amortization of the excess of the
    fair value of proven and probable mineral reserves allocated to
    mineral property, plant and equipment over Goldcorp’s book
    value of the related mineral property, plant and equipment based
    on actual production for the period, offset by the related
    future income tax recovery; and
    
	 
	 	     
    (g) An adjustment to eliminate
    Goldcorp’s stock-based compensation expense for the year
    ended December 31, 2003, to be consistent with the
    accounting policy of Glamis for stock-based compensation for the
    year ended December 31, 2003.
    

 

		
	4.	
    Share Capital:

     
(a) Common shares:

		
	 	     
    After giving effect to the pro forma assumptions
    in note 3, the issued and fully paid share capital of
    Glamis would be as follows:
    

	 	 	 	 	 	 	 	 	 
			Number of		
			Shares		Amount
			
		

	
    
    Balance, September 30, 2004
    

    	 	 	130,694,678	 	 	$	471.1	 
	
    
    Acquisition of Goldcorp by way of the issuance of
    common shares (note 3(b))
    

    	 	 	174,558,091	 	 	 	3,228.8	 
	 	 	 	
	 	 	 	
	 
	
    
    Pro forma balance, September 30, 2004
    

    	 	 	305,252,769	 	 	$	3,699.9	 
	 	 	 	
	 	 	 	
	 

			
	 	(b) 	
    Share purchase options and warrants:
    

		
	 	     
    Reference should be made to the notes to the
    consolidated financial statements referred to above for each of
    Glamis and Goldcorp for commitments to issue common shares
    pursuant to share purchase options and warrants. The proposed
    transaction provides that on completion, all outstanding share
    purchases options and warrants of Goldcorp will continue under
    their current terms and conditions, although on exercise, the
    option and warrant holders will receive common shares of Glamis
    at the same exchange ratio as offered to Goldcorp shareholders.
    

 

		
	5.	
    Earnings Per Share:

     
The calculation of pro forma basic earnings per
share in the pro forma consolidated statements of operations for
the nine-month period ended September 30, 2004 and for the
year ended December 31, 2003, is based on the weighted
average number of common shares of Glamis actually outstanding
for the nine-month period ended September 30, 2004 and for
the year ended December 31, 2003, plus the
174,558,091 shares of Glamis to be issued to acquire the
outstanding shares of Goldcorp, as if the transactions described
in note 3 occurred on January 1, 2003.

6.                Differences
Between Canadian and U.S. Generally Accepted Accounting
Principles:

     
If these pro forma consolidated financial
statements had been compiled using U.S. GAAP, the only
significant differences from Canadian GAAP relate to the
application of the changes in the method of accounting for asset
retirement obligations and income taxes.

B-9

 

GLAMIS GOLD LTD.

NOTES TO PRO FORMA CONSOLIDATED FINANCIAL
STATEMENTS — (Continued)

     
Under U.S. GAAP, the cumulative effect of
the change in the method of accounting for asset retirement
obligations is recorded in the period of the change (2003), as
opposed to retroactive application with restatement as required
under Canadian GAAP. As a result, pro forma earnings and
earnings per share for the year ended December 31, 2003
would increase by a total of $1.8 million and $0.01 per
share, to $45.0 million or $0.15 per share, if the pro
forma consolidated financial statements were prepared in
accordance with U.S. GAAP. This difference would have no
impact on the pro forma balance sheet as at September 30,
2004 or the pro forma statement of operations for the nine
months ended September 30, 2004.

     
In addition, a difference in the method of
adopting the asset and liability method of accounting for income
taxes in Glamis between Canadian GAAP and U.S. GAAP
results in mineral property, plant and equipment being increased
by $2.1 million from that reported for Canadian GAAP
purposes in the pro forma consolidated balance sheet as at
September 30, 2004, with an offsetting decrease to deficit.
The impact of this difference on the pro forma consolidated
statements of operations for the nine months ended
September 30, 2004 and the year ended December 31,
2003 if presented in accordance with U.S. GAAP, would be to
reduce net earnings by $0.4 million and $0.5 million
respectively, and earnings per share by $0.00 and $0.00
respectively.

B-10

 

ANNEX C

CERTAIN INFORMATION REGARDING THE DIRECTORS
AND

EXECUTIVE OFFICERS OF GLAMIS GOLD
LTD.

     
Set forth in the table below is the name,
business address, country of citizenship, current principal
occupation and material positions held during the past five
years with respect to each of the executive officers and
directors of Glamis.

     
In the past five years, none of the following
persons has been convicted in a criminal proceeding (other than
traffic violations or similar misdemeanors), or been a party to
any judicial or administrative proceeding (except for matters
that were dismissed without sanction or settlement) that
resulted in a judgement, decree or final order enjoining him or
her from future violations of, or prohibiting activities subject
to, U.S. federal or state securities laws, or a finding of
any violation of U.S. federal or state securities laws.

	 	 	 
			Current Principal Occupation and Material Positions Held
	Name, Business Address, Country of Citizenship		During the Past Five Years
	
		

	
    A. Dan Rovig

    5190 Neil Road, Suite 310

    Reno, Nevada 89502-8502

    

    United States
    	 	
    Mr. Rovig is the Chairman of the Board of
    Directors of Glamis, a position he has held since November 1998.
    
	
    C. Kevin McArthur

    5190 Neil Road, Suite 310

    Reno, Nevada 89502-8502

    

    United States
    	 	
    Mr. McArthur is a director of Glamis as well as
    the President and Chief Executive Officer of Glamis, a position
    he has held since January 1998.
    
	
    Charles A. Jeannes

    5190 Neil Road, Suite 310

    Reno, Nevada 89502-8502

    

    United States
    	 	
    Mr. Jeannes is the Senior Vice-President
    Administration, General Counsel and Secretary of Glamis,
    positions he has held since April 1999.
    
	
    James S. Voorhees

    5190 Neil Road, Suite 310

    Reno, Nevada 89502-8502

    

    United States
    	 	
    Mr. Voorhees is the Vice President and Chief
    Operating Officer of Glamis, a position he has held since June
    1999.
    
	
    Cheryl S. Maher

    5190 Neil Road, Suite 310

    Reno, Nevada 89502-8502

    

    United States
    	 	
    Ms. Maher is the Vice President Finance, Chief
    Financial Officer and Treasurer of Glamis, a position she has
    held since March 2000. Prior to that, she was Treasurer of
    Glamis from September 1999 to March 2000 and Assistant
    Treasurer of Glamis from April 1999 to September 1999.
    

C-1

 

	 	 	 
			Current Principal Occupation and Material Positions Held
	Name, Business Address, Country of Citizenship		During the Past Five Years
	
		

	
    David L. Hyatt

    5190 Neil Road, Suite 310

    Reno, Nevada 89502-8502

    

    United States
    	 	
    Mr. Hyatt is the Vice President,
    U.S. Operations of Glamis, a position he has held since
    June 2002. Prior to that, he was Vice President, Investor
    Relations of Glamis from March 2000 to June 2002, Vice
    President, Nevada Operations of Glamis from April 1999 to March
    2000, and Vice President, General Manager of Glamis Rand Mining
    Co. (a subsidiary of Glamis) from August 1997 to April 1999.
    
	
    Michael A. Steeves

    5190 Neil Road, Suite 310

    Reno, Nevada 89502-8502

    

    United States
    	 	
    Mr. Steeves is the Vice President, Investor
    Relations of Glamis, a position he has held since June 2002.
    Prior to joining Glamis, he was Director of Investor Relations
    at Coeur d’Alene Mines Corp. from November 1998 to May
    2002. Coeur d’Alene Mines Corp. is a producer of precious
    metals and is located at 505 Front Ave.,
    P.O. Box “I”, Coeur d’Alene, Idaho
    83816.
    
	
    A. Ian S. Davidson

    3100-666 Burrard Street

    Vancouver, British Columbia

    V6C 3C7

    

    Canada
    	 	
    Mr. Davidson is a Director of Glamis.
    Mr. Davidson is currently a Vice President and Investment
    Advisor at RBC Dominion Securities Inc., a position he has held
    since February 1992. The Vancouver Office of RBC Dominion
    Securities Inc. is located at 3100-666 Burrard Street,
    Vancouver, British Columbia, V6C, 3C7.
    
	
    Jean Depatie

    130 Somnet Trinite

    St. Bruno, Quebec

    J3V 6E4

    

    Canada
    	 	
    Mr. Depatie is a Director of Glamis. He is
    currently President of Decamine Inc., a private consulting firm
    located at 130 Somnet Trinite, St. Bruno, Quebec
    J3V 6E4. Previously, he was President and Chief Executive
    Officer of Gold Hawk Resources Inc. from May 1997 to November
    2003. Gold Hawk Resources Inc. is a gold and precious metal
    producer located at 95 Wellington Street West,
    Suite 950, Toronto, Ontario M5J 2N7.
    
	
    Kenneth F. Williamson

    1490 Port Cunnington Road

    Unit #1

    Dwight, Ontario

    P0A 1H0

    

    Canada
    	 	
    Mr. Williamson is a Director of Glamis. He has
    been retired from Merrill Lynch Canada Inc. as Vice Chairman
    Investment and Banking since 1998.
    

C-2

 

	 	 	 
			Current Principal Occupation and Material Positions Held
	Name, Business Address, Country of Citizenship		During the Past Five Years
	
		

	
    P. Randy Reifel

    201-1512 Yew Street

    Vancouver, British Columbia

    V6K 3E4

    

    Canada
    	 	
    Mr. Reifel is a Director of Glamis. He is
    currently the President of Chesapeake Gold Ltd., a position he
    has held since July 2002. Chesapeake Gold Ltd. is a mining
    company located at #201 — 1512 Yew Street, Vancouver,
    British Columbia V6K 3E4, which was formed as part of a
    merger between Glamis and Francisco Gold Corp. Prior to that, he
    was President of Francisco Gold Corp., a mining company located
    at the same address.
    

C-3

 

The Depositary for the Offer is:

COMPUTERSHARE INVESTOR SERVICES INC.

Toronto

	 	 	 
	
    
    By Mail

    	 	
    By Hand or by Courier
	
    
    P.O. Box 7021
    

    	 	
    100 University Avenue
    
	
    
    31 Adelaide Street East
    

    	 	
    9th Floor
    
	
    
    Toronto, Ontario
    

    	 	
    Toronto, Ontario
    
	
    
    M5C 3H2
    

    	 	
    M5J 2Y1
    
	
    
    Attn: Corporate Actions
    

    	 	 

Toll Free: 1-800-564-6253

E-Mail:

service@computershare.com

Vancouver

By Hand or by Courier

510 Burrard Street, 2nd Floor

Vancouver, British Columbia

V6C 3B9

The Information Agent for the Offer is:

GEORGESON SHAREHOLDER COMMUNICATIONS CANADA,
INC.

66 Wellington Street West

TD Tower, Suite 5210

Toronto Dominion Centre

Toronto, Ontario

M5K 1J3

North American Toll Free Number: 1-877-288-7946

U.S. Banks and Brokers Call Collect: 212-440-9800

      
Any questions and requests for assistance may
be directed by Shareholders to the Depositary or the Information
Agent at their respective telephone numbers and locations set
out above. Shareholders may also contact their broker, dealer,
commercial bank, trust company or other nominee for assistance
concerning the Offer.exv4w2

 

The instructions accompanying this Letter of
Acceptance and Transmittal should be read carefully before this
Letter of Acceptance and Transmittal is completed. The
Depositary or your broker or other financial advisor can assist
you in completing this Letter of Acceptance and Transmittal (see
back page of this document for addresses and telephone
numbers).

LETTER OF ACCEPTANCE AND TRANSMITTAL

for COMMON SHARES

of

GOLDCORP INC.

pursuant to the Offer dated January 7,
2005

of

GLAMIS GOLD LTD.

THE OFFER WILL BE OPEN FOR ACCEPTANCE UNTIL 9:00 P.M.
(Toronto time) ON FEBRUARY 14, 2005 (THE “EXPIRY
TIME”) UNLESS THE OFFER IS EXTENDED OR WITHDRAWN.

      
This Letter of Acceptance and Transmittal (or a
manually executed facsimile thereof), properly completed and
duly executed, together with all other required documents, must
accompany share certificates for common shares (the
“Goldcorp Shares”) of Goldcorp Inc.
(“Goldcorp”) deposited pursuant to the offer (the
“Offer”) dated January 7, 2005, made by Glamis
Gold Ltd. (“Glamis”) to holders of Goldcorp Shares.

     
The terms and conditions of the Offer are
incorporated by reference in this Letter of Acceptance and
Transmittal. Capitalized terms used but not defined in this
Letter of Acceptance and Transmittal which are defined in the
Offer to Purchase (the “Offer to Purchase”) and
accompanying Circular (together, the “Offer to Purchase and
Circular”), dated January 7, 2005, have the meanings
ascribed to them in the Offer to Purchase and Circular.

     
Holders of Goldcorp Shares who wish to deposit
such Goldcorp Shares but whose certificates for such Goldcorp
Shares are not immediately available or who cannot deliver all
the certificates and Letter of Acceptance and Transmittal to the
Depositary at or before the Expiry Time must deposit their
Goldcorp Shares according to the guaranteed delivery procedure
set forth in Section 5 of the Offer to Purchase,
“Procedure for Guaranteed Delivery”. See
Instruction 2, “Procedure for Guaranteed
Delivery”.

     
This Letter of Acceptance and Transmittal is to
be used if certificates are to be forwarded herewith.

     
Delivery of this Letter of Acceptance and Transmittal to an
address other than as set forth below will not constitute a
valid delivery to the Depositary. You must sign this Letter of
Acceptance and Transmittal in the appropriate space provided
below and if you are a U.S. shareholder, you must also
complete the Substitute Form W-9 set forth below (see
Instruction 9, “Backup Withholding”).

 

 TO:      Glamis
Gold Ltd.

AND TO: Computershare Investor Services Inc.
(the “Depositary”), at its offices set out
herein

     
The undersigned delivers to you the enclosed
certificate(s) for Goldcorp Shares and, subject only to the
provisions of the Offer regarding withdrawal, irrevocably
accepts the Offer for such Goldcorp Shares. The following are
the details of the enclosed certificate(s):

SHARES

	 	 	 	 	 	 	 
	
	

			Number of Goldcorp Shares		Number of Goldcorp Shares
	Certificate Number(s)*		Name(s) in which Registered		Represented by Certificate		Deposited*
	
	

	 
	

	 
	

	 
	

	 
	

	 	 	
    TOTAL:	 	 	 	 
	 	 	 	 	

(If space is insufficient please attach a list
to this Letter of Acceptance and Transmittal in the above form.
See Instruction 10(a).)

		
	* 	
    Unless otherwise indicated, all Goldcorp Shares
    evidenced by any certificate(s) submitted to the Depositary will
    be deemed to have been deposited under the Offer. See
    Instruction 6, “Partial Deposits”.
    

    
The undersigned acknowledges receipt of the Offer
to Purchase and Circular and represents and warrants that:
(i) the undersigned has full power and authority to
deposit, sell, assign and transfer the Goldcorp Shares covered
by this Letter of Acceptance and Transmittal (the
“Deposited Shares”) and any Other Securities (as
defined below) being deposited; (ii) the undersigned or the
Person on whose behalf the Deposited Shares (and Other
Securities) are being deposited owns (including, without
limitation, within the meaning of Rule 14e-4 under the
U.S. Exchange Act) the Deposited Shares that are being
deposited (and any Other Securities); (iii) the Deposited
Shares and Other Securities have not been sold, assigned or
transferred, nor has any agreement been entered into to sell,
assign or transfer any of the Deposited Shares and Other
Securities, to any other Person; (iv) the deposit of the
Deposited Shares and Other Securities complies with applicable
laws; and (v) when the Deposited Shares and Other
Securities are taken up and paid for by Glamis, Glamis will
acquire good title thereof, free and clear of all liens,
restrictions, charges, encumbrances, claims and rights of
others. The acceptance of the Offer pursuant to the procedures
set forth herein shall constitute an agreement between the
depositing holder of Deposited Shares and Glamis in accordance
with the terms and conditions of the Offer.

     
IN CONSIDERATION OF THE OFFER AND FOR VALUE
RECEIVED, upon the terms and subject to the conditions set forth
in the Offer to Purchase and in this Letter of Acceptance and
Transmittal, subject only to the provisions of the Offer to
Purchase regarding withdrawal rights, the undersigned
irrevocably accepts the Offer for and in respect of the
Deposited Shares and delivers to you the enclosed Goldcorp Share
certificate(s) representing the Deposited Shares and, on and
subject to the terms and conditions of the Offer to Purchase,
deposits, sells, assigns and transfers to Glamis all right,
title and interest in and to the Deposited Shares, and in and to
all rights and benefits arising from the Deposited Shares.

     
If, on or after the date of the Offer, Goldcorp
should declare or pay any dividend (other than its current
regular monthly dividend) or declare, make or pay any other
distribution or payment on or declare, allot, reserve or issue
any securities, rights or other interests with respect to the
Goldcorp Shares that is payable or distributable to the holders
of the Goldcorp Shares on a record date that precedes the date
of transfer of the Goldcorp Shares into the name of Glamis or
its nominees or transferees on the share register maintained by
or on behalf of Goldcorp, then without prejudice to Glamis’
rights under Section 2 of the Offer to Purchase,
“Conditions to the Offer”, in the case of cash
dividends, distributions or

2

 

payments, the amount of the dividends,
distributions or payments shall be received and held by the
depositing holder of Goldcorp Shares, and to the extent that
such dividends, distributions or payments do not exceed the
value of the consideration per Goldcorp Share payable by Glamis
pursuant to the Offer (as determined by Glamis), the Offered
Consideration will be reduced by that number of Glamis Shares
having a value equal, based upon the Current Market Price, to
the amount of any such dividend, distribution or payment.

     
If the undersigned’s Goldcorp Share
certificates are not immediately available or the undersigned
cannot deliver its Goldcorp Share certificates and all other
required documents to the Depositary no later than the Expiry
Time, the undersigned must deliver its Goldcorp Shares according
to the guaranteed delivery procedures set forth in
Section 5 of the Offer to Purchase, “Procedure for
Guaranteed Delivery”. The undersigned irrevocably appoints
each officer of the Depositary and each officer of Glamis and
any other Person designated by Glamis in writing, as the true
and lawful agents, attorneys and attorneys-in-fact and proxies
of the undersigned with respect to the Deposited Shares
registered in the name of the undersigned on the books of
Goldcorp and deposited pursuant to the Offer and purchased by
Glamis (the “Purchased Securities”), and with respect
to any and all dividends (other than certain cash dividends),
distributions, payments, securities, rights, warrants, assets or
other interests which may be declared, paid, accrued, issued,
distributed, made or transferred on or in respect of the
Purchased Securities on or after the date of the Offer
(collectively, “Other Securities”), except as
otherwise indicated in Section 7 of the Offer to Purchase,
“Changes in Capitalization of Goldcorp.; Dividends and
Distributions; Liens”.

     
The power of attorney will be granted upon
execution of this Letter of Acceptance and Transmittal and shall
be effective on and after the date that Glamis takes up and pays
for Purchased Securities (the “Effective Date”), with
full power of substitution and resubstitution in the name of and
on behalf of the undersigned (such power of attorney, coupled
with an interest, being irrevocable) to: (i) register or
record the transfer of Purchased Securities and Other Securities
on the registers of Goldcorp; (ii) execute and deliver, as
and when requested by Glamis, any instruments of proxy,
authorization or consent in form and on terms satisfactory to
Glamis in respect of such Purchased Securities and Other
Securities, revoke any such instrument, authorization or consent
or designate in such instrument, authorization or consent any
Person or Persons as the proxy of such holder in respect of the
Purchased Securities for all purposes, including in connection
with any meeting (whether annual, special or otherwise or any
adjournment thereof) of holders of relevant securities of
Goldcorp; (iii) execute and negotiate any cheques or other
instruments representing any Other Securities payable to the
undersigned; and (iv) exercise any rights of the
undersigned with respect to such Purchased Securities and Other
Securities, all as set forth in this Letter of Acceptance and
Transmittal.

     
The undersigned also agrees, effective on and
after the Effective Date, not to vote any of the Purchased
Securities or Other Securities at any meeting (whether annual,
special or otherwise or any adjournment thereof) of holders of
Goldcorp Shares or holders of Other Securities and not to
exercise any or all of the other rights or privileges attached
to the Purchased Securities or Other Securities and agrees to
execute and deliver to Glamis any and all instruments of proxy,
authorizations or consents, in form and on terms satisfactory to
Glamis, in respect of all or any of the Purchased Securities or
Other Securities, and to designate in such instruments of proxy
the Person or Persons specified by Glamis as the proxy or the
proxy nominee or nominees of the holder in respect of the
Purchased Securities or Other Securities. Upon such appointment,
all prior proxies given by the holder of such Purchased
Securities or Other Securities with respect thereto shall be
revoked and no subsequent proxies may be given by such Person
with respect thereto.

     
The undersigned covenants and agrees to execute,
upon request of Glamis, any additional documents, transfers and
other assurances as may be necessary or desirable to complete
the sale, assignment and transfer of the Purchased Securities or
Other Securities to Glamis and acknowledges that all authority
therein conferred or agreed to be conferred may be exercised
during any subsequent legal incapacity of the undersigned and
shall, to the extent permitted by law, survive the death or
incapacity, bankruptcy or insolvency of the undersigned and all
obligations of the undersigned therein shall be binding upon the
heirs, personal representatives, successors and assigns of the
undersigned.

     
The undersigned instructs Glamis and the
Depositary, upon Glamis taking up the Deposited Shares, to mail
certificates representing the Glamis Shares to which the
undersigned is entitled together with a cheque, payable in
U.S. funds, representing any cash payment to which the
undersigned may be entitled by first class mail, postage
prepaid, or to hold such certificates and cheque, if any, for
pick-up, in accordance with the instructions given below. Should
any Deposited Shares not be purchased, the deposited
certificates and other relevant documents shall be returned
promptly in accordance with the instructions in the preceding
sentence. The undersigned acknowledges that Glamis has no
obligation

3

 

pursuant to the instructions given below to
transfer any Deposited Shares from the name of the registered
holder thereof if Glamis does not purchase any of the Deposited
Shares.

     
By reason of the use by the undersigned of an
English language form of Letter of Acceptance and Transmittal,
the undersigned shall be deemed to have required that any
contract evidenced by the Offer as accepted through this Letter
of Acceptance and Transmittal, as well as all documents related
thereto, be drawn exclusively in the English language. En raison
de l’usage d’une lettre d’envoi en langue
anglaise par le soussigné, le soussigné et les
destinataires sont présumés avoir requis que tout
contrat attesté par les offres acceptées par cette
lettre d’acceptation et d’envoi, de même que tous
les documents qui s’y rapportent, soient réputés
exclusivement en langue anglaise.

BLOCK A

ISSUE CERTIFICATES IN THE NAME OF:

(please print or type):

(Name)

(Street Address and Number)

(City and Province or State)

(Country and Postal (Zip) Code)

(Telephone — Business
Hours)

(Tax Identification, Social Insurance
or

Social Security Number; See Substitute
Form W-9

included herein)

BLOCK B

SEND CERTIFICATE/ CHEQUE

(Unless Block “C” is checked) TO:

(please print or type):

(Name)

(Street Address and Number)

(City and Province or State)

(Country and Postal (Zip) Code)

BLOCK C

		
	o	
    HOLD SHARE CERTIFICATES AND CHEQUE FOR PICK-UP AT
    THE OFFICES OF THE DEPOSITARY WHERE THIS LETTER OF ACCEPTANCE
    AND TRANSMITTAL IS DEPOSITED.
    

(Check box)

4

 

BLOCK D

		
	o	
    CHECK HERE IF SHARES ARE BEING DEPOSITED PURSUANT
    TO A NOTICE OF GUARANTEED DELIVERY PREVIOUSLY SENT TO THE
    DEPOSITARY AND COMPLETE THE FOLLOWING:
    

(please print or type)

Name of Registered
Holder 

 Date
of Execution of
Notice 

 Window Ticket Number (if any)

Name of Institution which Guaranteed
Delivery 

BLOCK E

DEALER OR BROKER SOLICITING ACCEPTANCE OF THE
OFFER

The owner signing above represents that the
member of the Soliciting Dealer Group who solicited and

obtained this deposit is:

(please print or type)

	 	 	 	 	 
	 	 	
    
	 	
    

	
	 	 	 	 
	
    
    (Firm)
    

    	 	
    (Registered Representative)
    	 	
    (Telephone Number)
    
	
	 	
	 	 
	
    (Address)
    	 	
    (Fax)
    	 	 

o     CHECK
HERE IF LIST OF BENEFICIAL HOLDERS IS ATTACHED

o     CHECK
HERE IF DISKETTE TO FOLLOW

5

 

SIGN HERE

If you are a U.S. shareholder also
complete

accompanying Substitute
Form W-9

Signature guaranteed by (if required under
Instruction 4):

	 	 	 
	
    
    

    	 	
    Dated: --------------------, 2005
    
	
    
    
Authorized Signature of
    Guarantor
    

    	 	
    
Signature of holder of
    Shares or Authorized

    Representative — See Instructions 3 and 5
    
	
    
    
Name of Guarantor (please
    print or type)
    

    	 	
    
Name of holder of Shares
    (please print or type)
    
	
    
    
Address of Guarantor (please
    print or type)
    

    	 	
    
Name of Authorized
    Representative, if applicable
    
	
    
    

    	 	
    
Daytime telephone number of
    holder of Shares or Authorized Representative
    
	 	 	
    
Daytime facsimile number of
    holder of Shares or Authorized Representative
    
	 	 	
    
Tax Identification, Social
    Insurance or

    Social Security Number of holder of Shares

    (See Substitute Form W-9 included herein)
    

6

 

	 	 	 	 	 
	
	

	
    
    SUBSTITUTE

    Form W-9

    	 	
    Part 1 —
    PLEASE PROVIDE YOUR TIN IN THE BOX AT
    THE RIGHT AND CERTIFY BY SIGNING AND DATING BELOW
    	 	
    

    Social Security Number

    

    
 OR 
Employer Identification
    Number (“TIN”)
    
	 	 	

	 
	
    Department of the

    Treasury Internal

    Revenue Service

    

    Request for Taxpayer Identification Number
    (“TIN”)	 	
    Part 2 —

    

    Certification — Under
    penalties of perjury, I certify that: (1) The number shown
    on this form is my correct Taxpayer Identification Number (or I
    am waiting for a number to be issued to me); (2) I am not
    subject to backup withholding because (a) I am exempt from
    backup withholding, or (b) I have not been notified by the
    Internal Revenue Service (the “IRS”) that I am subject
    to backup withholding as a result of a failure to report all
    interest or dividends, or (c) after being so notified, the
    IRS has notified me that I am no longer subject to backup
    withholding; and (3) I am a U.S. person (including a
    U.S. resident alien).

    Signature: 
Name: 
Date: 
Address: 

    (Please Print)
    	 	
    Part 3 —

    

     Awaiting
    TIN o
    
	

		
	NOTE: 	
    FAILURE TO COMPLETE AND RETURN THIS FORM MAY
    RESULT IN BACKUP WITHHOLDING OF 28% OF ANY PAYMENTS MADE TO YOU
    PURSUANT TO THE OFFER. PLEASE REVIEW THE ENCLOSED GUIDELINES FOR
    CERTIFICATION OF TAXPAYER IDENTIFICATION NUMBER ON SUBSTITUTE
    FORM W-9 FOR ADDITIONAL DETAILS. YOU MUST COMPLETE THE FOLLOWING
    CERTIFICATE IF YOU CHECKED THE BOX IN PART 3 OF SUBSTITUTE
    FORM W-9.

CERTIFICATE OF AWAITING TAXPAYER
IDENTIFICATION NUMBER

     
I certify under penalties of perjury that a
taxpayer identification number has not been issued to me, and
either (a) I have mailed or delivered an application to
receive a taxpayer identification number to the appropriate IRS
Center or Social Security Administration Office, or (b) I
intend to mail or deliver an application in the near future. I
understand that if I do not provide a taxpayer identification
number by the time of payment, 28% of all reportable payments
made to me will be withheld.

Signature: 
 Date: 

7

 

GUIDELINES FOR CERTIFICATION OF TAXPAYER
IDENTIFICATION

NUMBER ON SUBSTITUTE FORM W-9

    
GUIDELINES FOR DETERMINING THE PROPER
IDENTIFICATION NUMBER TO GIVE THE
PAYER. — Social Security
numbers have nine digits separated by two hyphens: i.e.,
000-00-0000. Employer identification numbers have nine digits
separated by only one hyphen: i.e., 00-0000000. The table below
will help you determine the number to give the payer.

	 	 	 	 	 
			
	For this type of account:		Give the SOCIAL SECURITY number of —
	
    1.
    	 	
    Individual
    	 	
    The individual
    
	
    2.
    	 	
    Two or more individuals (joint account)
    	 	
    The actual owner of the account or, if combined
    funds, any one of the individuals(1)
    
	
    3.
    	 	
    Custodian account of a minor (Uniform Gift to
    Minors Act)
    	 	
    The minor(2)
    
	
    4.
    	 	
    a. The usual revocable savings trust account
    (grantor is also trustee)
    	 	
    The grantor-trustee(1)
    
	 	 	
    b. So-called trust account that is not a
    legal or valid trust under state law
    	 	
    The actual owner(1)
    
	
    5.
    	 	
    Sole proprietorship or single-owner LLC
    	 	
    The owner(3)
    

	 	 	 	 	 
			
	For this type of account:		Give the EMPLOYER IDENTIFICATION number of —
	
    6.
    	 	
    Sole proprietorship or single-owner LLC
    	 	
    The owner(3)
    
	
    7.
    	 	
    A valid trust, estate, or pension trust
    	 	
    The legal entity(4)
    
	
    8.
    	 	
    Corporate or LLC electing corporate status on
    Form 8832
    	 	
    The corporation
    
	
    9.
    	 	
    Association, club, religious, charitable,
    educational or other tax-exempt organization
    	 	
    The organization
    
	
    10.
    	 	
    Partnership or multi-member LLC
    	 	
    The partnership
    
	
    11.
    	 	
    A broker or registered nominee
    	 	
    The broker or nominee
    
	
    12.
    	 	
    Account with the Department of Agriculture in the
    name of a public entity (such as a state or local government,
    school district, or prison) that receives agricultural program
    payments
    	 	
    The public entity
    

		
	(1)	
    List first and circle the name of the person
    whose number you furnish. If only one person on a joint account
    has a Social Security number, that person’s number must be
    furnished.
    
	 
	(2)	
    Circle the minor’s name and furnish the
    minor’s Social Security number.
    
	 
	(3)	
    You must show your individual name, but you may
    also enter your business or “doing business as” name.
    You may use either your Social Security number or Employer
    Identification number (if you have one).
    
	 
	(4)	
    List first and circle the name of the legal
    trust, estate, or pension trust. Do not furnish the identifying
    number of the personal representative or trustee unless the
    legal entity itself is not designated in the account title.
    

NOTE: If no name is
circled when there is more than one name, the number will be
considered to be that of the first name listed.

Obtaining a Number

If you do not have a Taxpayer Identification
Number, you should apply for one immediately. To apply for a
Social Security number, obtain Form SS-5, Application for a
Social Security Card, from your local Social Security
Administration office or on-line at
www.ssa.gov/online/ss5.html. You may also obtain this
form by calling 1-800-772-1213. Use Form W-7, Application
for an IRS Individual Taxpayer Identification Number, to apply
for an ITIN, or Form SS-4, Application for Employer
Identification Number, to apply for an EIN. You can obtain
Forms W-7 and SS-4 by calling 1-800-TAX-FORM
(1-800-829-3676) or from the IRS Web Site at www.irs.gov.

Payees Exempt from Backup
Withholding

Payees specifically exempted from backup
withholding on ALL payments include the following:

			
	 	•	
    An organization exempt from tax under
    Section 501(a) of the Internal Revenue Code of 1986, as
    amended (the “Code”), or an individual retirement
    plan, or a custodial account under Section 403(b)(7), if
    the account satisfies the requirements of Section 401(f)(2).
    
	 
	 	•	
    The U.S. or any of its agencies or
    instrumentalities.
    
	 
	 	•	
    A state, the District of Columbia, a possession
    of the U.S., or any political subdivision or instrumentality
    thereof.
    
	 
	 	•	
    A foreign government, a political subdivision of
    a foreign government, or any agency or instrumentality thereof.
    
	 
	 	•	
    An international organization or any agency, or
    instrumentality thereof.
    

8

 

Other payees that may be exempt from backup
withholding include:

			
	 	•	
    A corporation.
    
	 
	 	•	
    A financial institution.
    
	 
	 	•	
    A trust exempt from tax under Section 664 of
    the Code or described in Section 4947 of the Code.
    
	 
	 	•	
    A futures commission merchant registered with the
    Commodity Futures Trading Commission.
    
	 
	 	•	
    A middleman known in the investment community as
    a nominee or custodian.
    
	 
	 	•	
    A dealer in securities or commodities required to
    register in the U.S., the District of Columbia or a possession
    of the U.S.
    
	 
	 	•	
    A real estate investment trust.
    
	 
	 	•	
    A common trust fund operated by a bank under
    Section 584(a) of the Code.
    
	 
	 	•	
    An entity registered at all times during the tax
    year under the Investment Company Act of 1940.
    
	 
	 	•	
    A foreign central bank of issue.
    

Payments of dividends not generally subject to
backup withholding include the following:

			
	 	•	
    Payments to nonresident aliens subject to
    withholding under Section 1441 of the Code.
    
	 
	 	•	
    Payments to partnerships not engaged in a trade
    or business in the U.S. and which have at least one
    nonresident partner.
    
	 
	 	•	
    Payments made by certain foreign organizations.
    

Exempt payees described above should file a
Form W-9 to avoid possible erroneous backup withholding.
FILE THIS FORM WITH THE PAYER, FURNISH YOUR TAXPAYER
IDENTIFICATION NUMBER, WRITE “EXEMPT” ON THE FACE OF
THE FORM, SIGN AND DATE THE FORM AND RETURN IT TO THE PAYER.

Certain payments other than interest, dividends,
and patronage dividends that are not subject to information
reporting are also not subject to backup withholding. For
details, see the regulations under Sections 6041, 6041A(2),
6045 and 6050A of the Code and the regulations promulgated
thereunder.

Privacy Act Notice.
 — Section 6109
requires most recipients of dividends, interest, or other
payments to give taxpayer identification numbers to payers who
must report the payments to the IRS. The IRS uses the numbers
for identification purposes. Payers must be given the numbers
whether or not recipients are required to file tax returns.
Payers must generally withhold 28% of taxable interest,
dividends and certain other payments to a payee who does not
furnish a taxpayer identification number to a payer. Certain
penalties may also apply.

Penalties

(1) Penalty for Failure to Furnish
Taxpayer Identification
Number. — If you fail to
furnish your taxpayer identification number to a payer, you are
subject to a penalty of $50 for each such failure unless your
failure is due to reasonable cause and not to wilful neglect.

(2) Civil Penalty for False Information
with Respect to
Withholding. — If you make a
false statement with no reasonable basis that results in no
imposition of backup withholding, you are subject to a penalty
of $500.

(3) Criminal Penalty for Falsifying
Information. — Wilfully
falsifying certifications or affirmations may subject you to
criminal penalties including fines and/or imprisonment.

FOR ADDITIONAL INFORMATION CONTACT YOUR TAX
CONSULTANT OR THE INTERNAL REVENUE SERVICE.

9

 

INSTRUCTIONS

 

		
	1.	
    Use of Letter of Acceptance and
    Transmittal

			
	 	(a) 	
    This Letter of Acceptance and Transmittal (or a
    manually signed facsimile thereof) together with accompanying
    certificates representing the Deposited Shares and all other
    documents required by the terms of the Offer to Purchase and
    this Letter of Acceptance and Transmittal must be received by
    the Depositary at any of the offices specified on the back cover
    page no later than 9:00 p.m. (Toronto time), on
    February 14, 2005, unless the Offer in respect of the
    Goldcorp Shares is extended or unless the procedure for
    guaranteed delivery set out in Instruction 2 below is used.
    
	 
	 	(b) 	
    The method used to deliver this Letter of
    Acceptance and Transmittal and any accompanying certificates
    representing Goldcorp Shares is at the option and risk of the
    holder, and delivery will be deemed effective only when such
    documents are actually received by the Depositary. Glamis
    recommends that the necessary documentation be hand delivered to
    the Depositary at any of its offices specified below, and a
    receipt obtained; otherwise the use of registered mail with
    return receipt requested, properly insured, is recommended.
    Holders of Goldcorp Shares whose Goldcorp Shares are registered
    in the name of a broker, dealer, bank, trust company or other
    nominee should contact that nominee for assistance in depositing
    those Goldcorp Shares.
    

2.                Procedure
for Guaranteed Delivery

     
If a holder of Goldcorp Shares wishes to deposit
such Goldcorp Shares pursuant to the Offer and certificates for
such Goldcorp Shares are not immediately available or the holder
cannot deliver the certificates and Letter of Acceptance and
Transmittal to the Depositary no later than the Expiry Time,
those Goldcorp Shares may nevertheless be deposited under the
Offer provided that all of the following conditions are met:

			
	 	(a) 	
    such deposit is made only at the principal office
    of the Depositary in Toronto, Ontario by or through an Eligible
    Institution;
    
	 
	 	(b) 	
    a properly completed and duly executed Notice of
    Guaranteed Delivery (or a manually signed facsimile) is received
    by the Depositary at its principal office in Toronto, Ontario at
    or before the Expiry Time; and
    
	 
	 	(c) 	
    the certificate or certificates representing the
    deposited Goldcorp Shares, in proper form for transfer, together
    with a properly completed and duly signed Letter of Acceptance
    and Transmittal (or a manually signed facsimile copy) and other
    documents required by this Letter of Acceptance and Transmittal,
    are received at the Toronto office of the Depositary by
    5:00 p.m. (Toronto time) on the third trading day on the
    Toronto Stock Exchange after the Expiry Date.
    

     
The Notice of Guaranteed Delivery may be
delivered by hand or transmitted by facsimile or mail to the
Depositary at the applicable address set out in the Notice of
Guaranteed Delivery and must include a guarantee by an Eligible
Institution in the form set out in the Notice of Guaranteed
Delivery. Delivery of the Notice of Guaranteed Delivery and
this Letter of Acceptance and Transmittal and accompanying Share
certificates to any office other than such office of the
Depositary does not constitute delivery for purposes of
satisfying a guaranteed delivery.

     
An “Eligible Institution” means a
Canadian Schedule I chartered bank, a major trust company
in Canada, a member of the Securities Transfer Agent Medallion
Program (STAMP), a member of the Stock Exchange Medallion
Program (SEMP), or a member of the New York Stock Exchange, Inc.
Medallion Signature Program (MSP). Members of these programs are
usually members of a recognized stock exchange in Canada or the
United States, members of the Investment Dealers Association of
Canada, members of the National Association of Securities
Dealers or banks or trust companies in the United States.

10

 

 

		
	3.	
    Signatures

     
This Letter of Acceptance and Transmittal must be
completed and signed by the registered holder of Deposited
Shares accepting the Offer described above or by such
holder’s duly authorized representative (in accordance with
Instruction 5).

			
	 	(a) 	
    If this Letter of Acceptance and Transmittal is
    signed by the registered owner(s) of the accompanying
    certificate(s), such signature(s) on this Letter of Acceptance
    and Transmittal must correspond with the name(s) as registered
    or as written on the face of such certificate(s) without any
    change whatsoever, and the certificate(s) need not be endorsed.
    If such transmitted certificate(s) are owned of record by two or
    more joint owners, all such owners must sign this Letter of
    Acceptance and Transmittal.
    
	 
	 	(b) 	
    If this Letter of Acceptance and Transmittal is
    signed by a person other than the registered owner(s) of the
    accompanying certificate(s), or if a cheque is to be issued to a
    person other than the registered owner(s):
    

			
	 	          (i)	
    such deposited certificate(s) must be endorsed or
    accompanied by an appropriate transfer power of attorney duly
    and properly completed by the registered owner(s); and
    

			
	 	          (ii) 	
    the signature(s) on such endorsement or power of
    attorney must correspond exactly to the name(s) of the
    registered owner(s) as registered or as appearing on the
    certificate(s) and must be guaranteed as noted in
    Instruction 4 below.
    

 

		
	4.	
    Guarantee of Signatures

     
If this Letter of Acceptance and Transmittal is
signed by a person other than the registered owner(s) of the
Deposited Shares, or if Deposited Shares not purchased are to be
returned to a person other than such registered owner(s) or sent
to an address other than the address of the registered owner(s)
as shown on the registers of Goldcorp or if payment is to be
issued in the name of a person other than the registered
owner(s) of the Deposited Shares, such signature must be
guaranteed by an Eligible Institution (except that no guarantee
is required if the signature is that of an Eligible Institution).

5.                Fiduciaries,
Representatives and Authorizations

     
Where this Letter of Acceptance and Transmittal
is executed by a person acting as an executor, administrator,
trustee or guardian, or on behalf of a corporation, partnership
or association or is executed by any other person acting in a
representative capacity, such person should so indicate when
signing and this Letter of Acceptance and Transmittal must be
accompanied by satisfactory evidence of the authority to act.
Glamis or the Depositary, at their discretion, may require
additional evidence of authority or additional documentation.

 

		
	6.	
    Partial Deposits

     
If less than the total number of Goldcorp Shares
evidenced by any certificate submitted is to be deposited, fill
in the number of Goldcorp Shares to be deposited in the
appropriate space on this Letter of Acceptance and Transmittal.
In such case, the Depositary will use commercially reasonable
efforts to cause new certificate(s) for the number of Goldcorp
Shares not deposited to be sent to the registered holder as soon
as practicable after the Expiry Time. The total number of
Goldcorp Shares evidenced by all certificates delivered will be
deemed to have been deposited unless otherwise indicated.

 

		
	7.	
    Solicitation

     
Identify the dealer or broker, if any, who
solicited acceptance of the Offer by completing the appropriate
box on this Letter of Acceptance and Transmittal and present a
list of beneficial holders, if applicable.

11

 

 

		
	8.	
    Stock Transfer Taxes

     
Except as otherwise provided in this
Instruction 8, Glamis will pay all stock transfer taxes
with respect to the transfer and sale of any Goldcorp Shares to
it or its order pursuant to the Offer. If, however, payment of
the purchase price is to be made to, or if certificates for
Goldcorp Shares not deposited or not accepted for payment are to
be registered in the name of, any person other than the
registered holder(s), or if deposited certificates for Goldcorp
Shares are registered in the name of any person other than the
person(s) signing this Letter of Acceptance and Transmittal, the
amount of any stock transfer taxes (whether imposed on the
registered holder(s) or such other person) payable on account of
the transfer to such other person will be deducted from the
purchase price of such Goldcorp Shares purchased unless evidence
satisfactory to Glamis, in its sole discretion, of the payment
of such taxes, or exemption therefrom, is submitted.

9.     Backup
Withholding

     
Under U.S. federal income tax law, a
shareholder whose Deposited Shares are accepted for payment
pursuant to the Offer may be subject to backup withholding on
the value of the Glamis Shares received by that shareholder at a
rate of 28%.

     
US Residents. To
prevent backup withholding, a shareholder that is a resident of
the United States for United States federal income tax purposes
is required to notify the Depositary of the shareholder’s
current taxpayer identification number (“TIN”) by
completing the enclosed Substitute Form W-9, certifying
that the TIN provided on that form is correct (or that such
shareholder is awaiting receipt of a TIN), and that (i) the
shareholder has not been notified by the Internal Revenue
Service that the shareholder is subject to backup withholding as
a result of failure to report all interest or dividends or
(ii) after being so notified, the Internal Revenue Service
has notified the shareholder that the shareholder is no longer
subject to backup withholding. If the Depositary is not provided
with the correct TIN, such shareholder may be subject to a $50
penalty imposed by the Internal Revenue Service and payments
that are made to such shareholder pursuant to the Offer may be
subject to backup withholding (see below).

     
Each shareholder is required to give the
Depositary the TIN (e.g., Social Security number or
employer identification number) of the record holder of the
Goldcorp Shares. If the Goldcorp Shares are registered in more
than one name or are not registered in the name of the actual
owner, consult the enclosed “Guidelines for
Certification of Taxpayer Identification Number on Substitute
Form W-9” for additional guidance on which number
to report. A shareholder who does not have a TIN may check the
box in Part 3 of the Substitute Form W-9 if such
shareholder has applied for a number or intends to apply for a
TIN in the near future. If the box in Part 3 is checked,
the shareholder must also complete the “Certificate of
Awaiting Taxpayer Identification Number” below in order to
avoid backup withholding. If the box is checked, payments made
will be subject to backup withholding unless the shareholder has
furnished the Depositary with his or her TIN by the time payment
is made. A shareholder who checks the box in Part 3 in lieu
of furnishing a TIN should furnish the Depositary with the
shareholder’s TIN as soon as it is received.

     
Certain shareholders (including, among others,
all corporations) are not subject to these backup withholding
requirements. To avoid possible erroneous backup withholding, a
shareholder who is a resident of the United States for United
States federal income tax purposes and is exempt from backup
withholding should complete the Substitute Form W-9 by
providing his or her correct TIN, signing and dating the form,
and writing “exempt” on the face of the form.

     
All shareholders are encouraged to consult their
own tax advisors to determine whether they are exempt from these
backup withholding and reporting requirements and to determine
which form should be used to avoid backup withholding.

     
If backup withholding applies, the Depositary is
required to withhold 28% of any payments to be made to the
shareholder. Backup withholding is not an additional tax.
Rather, the U.S. tax liability of persons subject to backup
withholding will be reduced by the amount of tax withheld. If
withholding results in an overpayment of taxes, a refund may be
obtained by filing a tax return with the Internal Revenue
Service. The Depositary cannot refund amounts withheld by reason
of backup withholding.

12

 

 

		
	10.	
    Miscellaneous

			
	 	(a) 	
    If the space on this Letter of Acceptance and
    Transmittal is insufficient to list all certificates for
    Deposited Shares, additional certificate numbers and number of
    Deposited Shares may be included on a separate signed list
    affixed to this Letter of Acceptance and Transmittal.
    
	 
	 	(b) 	
    If Deposited Shares are registered in different
    forms (e.g., “John Doe” and “J. Doe”), a
    separate Letter of Acceptance and Transmittal should be signed
    for each different registration.
    
	 
	 	(c) 	
    No alternative, conditional or contingent
    deposits will be acceptable and no fractional Goldcorp Shares
    will be purchased. All depositing holders of Goldcorp Shares by
    execution of this Letter of Acceptance and Transmittal (or a
    facsimile hereof) waive any right to receive any notice of the
    acceptance of Deposited Shares for payment, except as required
    by applicable law.
    
	 
	 	(d) 	
    The Offer and any agreement resulting from the
    acceptance of the Offer will be construed in accordance with and
    governed by the laws of the Province of British Columbia and the
    federal laws of Canada applicable therein. Each party to any
    agreement resulting from the acceptance of the Offer
    unconditionally and irrevocably attorns to the exclusive
    jurisdiction of the courts of the Province of British Columbia.
    
	 
	 	(e) 	
    Glamis will not pay any fees or commissions to
    any broker or dealer or any other Person for soliciting deposits
    of Goldcorp Shares pursuant to the Offer except as otherwise set
    forth in the Offer to Purchase (other than to the Dealer
    Manager, the Soliciting Dealer and the Depositary).
    

			
	 	(f) 	
    Additional copies of the Offer and Circular, this
    Letter of Acceptance and Transmittal and the Notice of
    Guaranteed Delivery may be obtained from the Depositary at the
    addresses listed below.
    

			
	 	(g) 	
    Glamis will determine, in its sole discretion,
    all questions as to the validity, form, eligibility and
    acceptance of any deposit of Shares and its determination shall
    be final and binding. Glamis reserves the right to reject any or
    all deposits determined by it not to be in proper form or the
    acceptance of or payment for which may, in the opinion of
    Glamis’ counsel, be unlawful. None of Glamis, the
    Depositary nor any other person is or will be obligated to give
    notice of defect or irregularities in deposits of Shares, nor
    shall any of them incur any liability for failure to give any
    such notice.
    

11.                 Lost
Certificates

     
If a Goldcorp Share certificate has been lost or
destroyed, this Letter of Acceptance and Transmittal should be
completed as fully as possible and forwarded, together with a
letter describing the loss, to the Depositary. The Depositary
will forward such letter to Goldcorp’s registrar and
transfer agent so that the transfer agent may provide
replacement requirements, which must be completed and returned
to the Depositary prior to the Expiry Time.

     
THIS LETTER OF ACCEPTANCE AND TRANSMITTAL OR A
MANUALLY SIGNED FACSIMILE (TOGETHER WITH CERTIFICATES FOR SHARES
AND ALL OTHER REQUIRED DOCUMENTS) OR THE NOTICE OF GUARANTEED
DELIVERY OR A MANUALLY SIGNED FACSIMILE THEREOF MUST BE RECEIVED
BY THE DEPOSITARY NO LATER THAN THE EXPIRY TIME.

13

 

The Depositary for the Offer is:

COMPUTERSHARE INVESTOR SERVICES INC.

Toronto

	 	 	 	 	 
	
    
    By Mail

    P.O. Box 7021

    31 Adelaide Street East

    Toronto, Ontario

    M5C 3H2

    Attn: Corporate Actions
    

    	 	 	 	
    By Hand or by Courier

    100 University Avenue

    9th Floor

    Toronto, Ontario

    M5J 2Y1
    
	 	 	
    Toll Free: 1-800-564-6253

    E-Mail: service@computershare.com
    	 	 
	 	 	
    Vancouver	 	 
	 	 	
    By Hand or by Courier

    510 Burrard Street, 2nd Floor

    Vancouver, British Columbia

    V6C 3B9
    	 	 
	 	 	
    The Information Agent for the Offer is:
    	 	 
	
    GEORGESON SHAREHOLDER COMMUNICATIONS CANADA,
    INC.
	 	 	
    66 Wellington Street West

    TD Tower, Suite 5210

    Toronto Dominion Centre

    Toronto, Ontario

    M5K 1J3
    	 	 

North American Toll Free Number: 1-877-288-7946

      
Any questions and requests for assistance may
be directed by holders of Shares to the Depositary or the
Information Agent at their respective telephone numbers and
locations set out above. Holders of Shares may also contact
their broker, dealer, commercial bank, trust company or other
nominee for assistance concerning the Offer.

14

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