Document:

exv4w1

 

		
	

This document is important and requires
your immediate attention. If you are in doubt as to how to deal
with it, you should consult your investment dealer, broker, bank
manager, lawyer or other professional advisor. No securities
regulatory authority has expressed an opinion about these
securities and it is an offence to claim
otherwise.

This Offer has not been approved or
disapproved by any securities regulatory authority nor has any
securities regulatory authority passed upon the fairness or
merits of the Offer or upon the adequacy of the information
contained in this document. Any representation to the contrary
is unlawful.

December 29, 2004

and its wholly-owned subsidiary Goldcorp
Acquisition ULC

OFFER TO PURCHASE

all of the outstanding common shares of

WHEATON RIVER MINERALS LTD.

on the basis of 0.25 of a common share of
Goldcorp Inc. for each common share of Wheaton River Minerals
Ltd.

The Offer by Goldcorp Inc. (“Goldcorp”)
and its wholly owned subsidiary Goldcorp Acquisition ULC
(“Subco” and , together with Goldcorp, the
“Offerors”) to purchase all of the issued and
outstanding common shares (the “Common Shares”) in the
capital of Wheaton River Minerals Ltd. (“Wheaton”)
will be open for acceptance until 5:00 p.m. (Vancouver
time) on February 3, 2005, unless the Offer is extended or
withdrawn by the Offerors (the “Expiry Time”).

The Common Shares are listed for trading on the
Toronto Stock Exchange (the “TSX”) and the American
Stock Exchange (“AMEX”). On December 3, 2004
(being the last day on which the Common Shares traded publicly
prior to the announcement of Goldcorp’s intention to make
the Offer), the closing prices of the Common Shares on the TSX
and AMEX were C$3.76 and $3.19, respectively. The common shares
of Goldcorp (the “Goldcorp Shares”) are listed for
trading on the TSX and the New York Stock Exchange
(“NYSE”). On December 3, 2004 (being the last day
on which the Goldcorp Shares traded publicly prior to the
announcement of Goldcorp’s intention to make the Offer),
the closing prices of the Goldcorp Shares on the TSX and NYSE
were C$17.15 and $14.34, respectively.

On December 23, 2004, the exchange rate
for one U.S. dollar expressed in Canadian dollars based
upon the noon buying rate in New York City for cable transfers
in foreign currencies as certified for customs purposes by the
Federal Reserve Bank of New York was $1.2358.

The Offer is subject to certain conditions,
including, without limitation, there being properly deposited
under the Offer and not withdrawn at the Expiry Time, not fewer
than 66 2/3% of the Common Shares outstanding at the time
Common Shares are taken up under the Offer and the approval of
the issuance of the Goldcorp Shares pursuant to the Offer by the
holders of at least a majority of the Goldcorp Shares. Each of
the conditions of the Offer is set forth in the Offer in the
section entitled “Conditions of the Offer”.

The board of directors of Wheaton, after
consultation with its financial and legal advisors and upon
receipt of a fairness opinion from Merrill Lynch, Pierce,
Fenner & Smith Incorporated, has unanimously determined
that the Offer is fair to the holders of Common Shares (the
“Shareholders”). The board of directors of Wheaton has
unanimously recommended that Shareholders accept the Offer.
Pursuant to an acquisition agreement dated December 23,
2004 between Goldcorp and Wheaton, Wheaton has agreed to support
the Offer. Please see the section entitled “Background to
the Offer — Acquisition Agreement” in the
Circular.

Shareholders who wish to accept the Offer must
properly complete and duly execute the accompanying Letter of
Acceptance and Transmittal (printed on blue paper) or a manually
signed facsimile thereof and deposit it, together with
certificates representing their Common Shares, in accordance
with the instructions in the Letter of Acceptance and
Transmittal. Alternatively, Shareholders may follow the
procedures for guaranteed delivery set forth in the section
entitled “Manner of Acceptance — Procedure for
Guaranteed Delivery” in the Offer, using the accompanying
Notice of Guaranteed Delivery (printed on green paper) or a
facsimile thereof. Shareholders whose 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 Common Shares to the Offer.

The Offer is made only for Common Shares and is
not made for any options, warrants or any other rights to
acquire Common Shares. Any holder of such options, warrants or
other rights to acquire Common Shares who wishes to accept the
Offer should exercise the options, warrants or other rights in
order to obtain certificates representing Common Shares and
deposit such share certificates in accordance with the Offer.
Please see the section entitled “The Offer” in the
Offer and the section entitled “Strategic Rationale for the
Offer; Purpose of the Offer, Plans for Wheaton, Plans for
Wheaton Warrants and Wheaton Options and Plans for the Combined
Company — Plans for Wheaton Warrants and Wheaton
Options” in the Circular.

SHAREHOLDERS WHO ARE ELIGIBLE HOLDERS ARE
ELIGIBLE TO TENDER COMMON SHARES TO GOLDCORP FOR THE PURPOSE OF
ACHIEVING A TAX-DEFERRED ROLLOVER INTO GOLDCORP SHARES FOR
CANADIAN FEDERAL INCOME TAX PURPOSES. SEE “CERTAIN CANADIAN
FEDERAL INCOME TAX CONSIDERATIONS” IN THIS DOCUMENT. OTHER
SHAREHOLDERS THAT ACCEPT THE OFFER WILL BE REQUIRED TO TENDER TO
SUBCO. SHAREHOLDERS WHO DO NOT EXPRESSLY DESIGNATE GOLDCORP FOR
THE PURPOSE OF THE PURCHASE OF THEIR COMMON SHARES IN THE SPACE
PROVIDED IN THE LETTER OF ACCEPTANCE AND TRANSMITTAL AND WHO DO
NOT PROPERLY COMPLETE ANY CERTIFICATE THAT MAY BE REQUIRED
THEREBY WILL BE DEEMED TO HAVE TENDERED THEIR COMMON SHARES TO
SUBCO AND WILL NOT OBTAIN A TAX-DEFERRED ROLLOVER INTO GOLDCORP
SHARES FOR CANADIAN FEDERAL INCOME TAX PURPOSES.

Questions and requests for assistance may be
directed to the Depositary, the Dealer Manager or the
Information Agent. Additional copies of this document, the
Letter of Acceptance and Transmittal and the Notice of
Guaranteed Delivery may also be obtained without charge from the
Information Agent at its address shown on the last page of this
document.

The Goldcorp Shares offered in the Offer
involve certain risks. Please see the section entitled
“Goldcorp and Subco — Risk Factors” in the
Circular.

(continued on next page)

The Dealer Manager for the Offer is:

GMP SECURITIES LTD.

	 	 	 
	
    
    In Canada:

    	 	
    In the United States:
	
    
    GMP SECURITIES LTD.

    	 	
    GRIFFITHS McBURNEY CORP.

 

This document does not constitute an offer or
a solicitation to any person in any jurisdiction in which such
offer or solicitation is unlawful. The Offer is not being made
to, nor will deposits of Common 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, the Offerors may, in their
sole discretion, take such action as they may deem necessary to
extend the Offer to Shareholders in any such
jurisdiction.

NOTICE TO SHAREHOLDERS IN THE UNITED
STATES

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

The Offer is made for shares of a Canadian
issuer by a Canadian issuer that is permitted, under a
multijurisdictional disclosure system adopted by the United
States, to prepare this document in accordance with the
disclosure requirements of Canada. Shareholders should be aware
that such requirements are different from those of the United
States. Financial statements included 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. This document
will form a part of a registration statement on Form F-10.
A reconciliation between Canadian generally accepted accounting
principles and U.S. generally accepted accounting
principles as they relate to the Goldcorp financial statements
and the pro forma financial statements are included or
incorporated by reference in this document and in the
registration statement.

Shareholders in the United States should be
aware that the disposition of Common Shares and acquisition of
Goldcorp Shares as described herein may have tax consequences
both in Canada and the United States. The material tax
consequences for such Shareholders are described in
“Certain Canadian Federal Income Tax Considerations”
and “Certain United States Federal Income Tax
Considerations”, respectively. Shareholders should consult
their own tax advisors regarding the specific tax consequences
to them of the disposition of Common Shares and acquisition of
Goldcorp Shares as described herein.

The enforcement by Shareholders of civil
liabilities under United States federal securities laws may be
affected adversely by the fact that Goldcorp and Wheaton are
incorporated under laws outside the United States, that some or
all of their officers and directors reside outside the United
States, that some or all of the experts named in the Circular
reside outside the United States and that all or a substantial
portion of the assets of Goldcorp and Wheaton and of the
above-mentioned persons may be located outside the United
States. Shareholders may not be able to sue Goldcorp or Wheaton,
or any of their respective officers, directors or experts, in a
Canadian court for violations of United States securities laws.
It may be difficult to compel Goldcorp or Wheaton or any of
their respective officers, directors or experts to subject
themselves to a judgment of a United States court.

CURRENCY AND FINANCIAL INFORMATION

All dollar references in the Offer and in the
Circular are in United States dollars, unless otherwise
indicated. References to “C$” are to Canadian dollars.
The following table sets forth, for each of the periods
indicated, the exchange rate of one United States dollar into
Canadian dollars at the end of each such year, the average
exchange rate during each such year and the range of high and
low rates for each such year.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
													
			Nine Months										
			Ended		
			September 30,		Year Ended December 31,
			
		

			2004		2003		2003		2002		2001		2000		1999
			
		
		
		
		
		
		

	
    
    Rate at end of period (1)
    

    	 	 	1.3507	 	 	 	1.2648	 	 	 	1.2924	 	 	 	1.5800	 	 	 	1.5925	 	 	 	1.4995	 	 	 	1.4440	 
	
    
    Average rate (2)
    

    	 	 	1.3282	 	 	 	1.4296	 	 	 	1.4010	 	 	 	1.5702	 	 	 	1.5519	 	 	 	1.4855	 	 	 	1.4828	 
	
    
    High rate (1)
    

    	 	 	1.5750	 	 	 	1.3970	 	 	 	1.5747	 	 	 	1.6128	 	 	 	1.6023	 	 	 	1.5592	 	 	 	1.5302	 
	
    
    Low rate (1)
    

    	 	 	1.3348	 	 	 	1.2648	 	 	 	1.2924	 	 	 	1.5108	 	 	 	1.4933	 	 	 	1.4350	 	 	 	1.4440	 

			
	 	
    
	 

				
	 	(1)	
    The rate of exchange means the noon buying rate
    in New York City for cable transfers in foreign currencies as
    certified for customs purposes by the Federal Reserve Bank of
    New York.
    	 

		
	(2)	
    The average rate means the average of the
    exchange rates on the last day of each month during the period.
    

On December 23, 2004, the noon buying rate
in New York City for cable transfers in foreign currencies as
certified for customs purposes by the Federal Reserve Bank of
New York was $1.00 = C$1.2358.

Goldcorp’s consolidated financial statements
are prepared in accordance with Canadian generally accepted
accounting principles and filed with appropriate regulatory
authorities in Canada and the United States. Application of
accounting principles generally accepted in the United States
does not have a significant impact on Goldcorp’s results of
operations and financial position. Note 15 of the Notes to
the 2003 Consolidated Financial Statements of Goldcorp outlines,
in all material respects, differences resulting from the
application of accounting principles generally accepted in the
United States.

(ii)

 

FORWARD-LOOKING STATEMENTS

Certain statements included in the Circular
constitute “forward-looking statements” within the
meaning of the United States Private Securities Litigation
Reform Act of 1995. Such forward-looking statements,
including, but not limited to, those with respect to the prices
of gold, copper and silver, the timing and amount of estimated
future production, costs of production, capital expenditures,
reserves determination, costs and timing of the development of
new deposits and permitting time lines, involve known and
unknown risks, uncertainties and other factors which may cause
the actual results, performance or achievements of Goldcorp to
be materially different from any future results, performance or
achievements expressed or implied by such 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 and the future prices of gold, copper and silver.
Although Goldcorp has attempted to identify important factors
that could cause actual results to differ materially from those
contained in forward-looking statements, there may be other
factors that cause results not anticipated, estimated or
intended. There can be no assurance that such statements will
prove to be accurate as actual results and future events could
differ materially from those anticipated in such statements.

Many of these factors are beyond the control of
the Offerors and their subsidiaries. Consequently, all of the
forward-looking statements made in the Circular are qualified by
these cautionary statements and there can be no assurance that
the expected results or developments anticipated by Goldcorp
will be realized.

INFORMATION CONCERNING WHEATON

The information concerning Wheaton contained in
the Circular has been taken from or is based upon publicly
available documents and records on file with the Canadian
securities regulatory authorities, and other public sources.
Although Goldcorp has no knowledge that would indicate that any
statements contained herein relating to Wheaton taken from or
based upon such documents, records and sources are untrue or
incomplete, neither of the Offerors, nor any of their officers
or directors, assumes any responsibility for the accuracy or
completeness of the information relating to Wheaton taken from
or based upon such documents, records and sources, or for any
failure by Wheaton to disclose events which may have occurred or
which may affect the significance or accuracy of any such
information but which are unknown to the Offerors.

(iii)

 

TABLE OF CONTENTS

	 	 	 	 	 
			Page
			

	
    
    SUMMARY TERM SHEET
    

    	 	 	1	 
	
    
    DEFINITIONS
    

    	 	 	5	 
	
    
    SUMMARY
    

    	 	 	9	 
	
    
    OFFER
    

    	 	 	13	 
	
    
    1.   The Offer
    

    	 	 	13	 
	
    
    2.   Time for Acceptance
    

    	 	 	13	 
	
    
    3.   Manner of Acceptance
    

    	 	 	13	 
	
    
    4.   Conditions of the Offer
    

    	 	 	16	 
	
    
    5.   Extension and Variation of
    the Offer
    

    	 	 	18	 
	
    
    6.   Withdrawal of Deposited
    Common Shares
    

    	 	 	21	 
	
    
    7.   Payment for Deposited Common
    Shares
    

    	 	 	22	 
	
    
    8.   Return of Deposited Common
    Shares
    

    	 	 	23	 
	
    
    9.   Mail Service Interruption
    

    	 	 	23	 
	
    
    10. Dividends and Distributions; Liens
    

    	 	 	23	 
	
    
    11. Notices and Delivery
    

    	 	 	24	 
	
    
    12. Purchases of Common Shares Outside the
    Offer
    

    	 	 	24	 
	
    
    13. Other Terms of the Offer
    

    	 	 	25	 
	
    
    CIRCULAR
    

    	 	 	27	 
	
    
    1.   Goldcorp and Subco
    

    	 	 	27	 
	
    
    2.   Wheaton
    

    	 	 	32	 
	
    
    3.   Background to the Offer
    

    	 	 	33	 
	
    
    4.   Agreements Relating to the
    Offer
    

    	 	 	35	 
	
    
    5.   Strategic Rationale for the
    Offer; Purpose of the Offer, Plans for Wheaton, Plans for
    Wheaton Warrants and Wheaton Options and Plans for the Combined
    Company
    

    	 	 	40	 
	
    
    6.   Acquisition of Common Shares
    Not Deposited
    

    	 	 	41	 
	
    
    7.   Source of Funds
    

    	 	 	43	 
	
    
    8.   Beneficial Ownership of
    Common Shares
    

    	 	 	43	 
	
    
    9.   Trading in Common Shares
    

    	 	 	43	 
	
    
    10. Information Concerning Wheaton and the
    Common Shares
    

    	 	 	43	 
	
    
    11. Effect of the Offer on the Market for
    Common Shares; Stock Exchange Listing; Public Disclosure by
    Wheaton and U.S. Exchange Act Registration
    

    	 	 	44	 
	
    
    12. Commitments to Acquire Common Shares
    

    	 	 	44	 
	
    
    13. Arrangements, Agreements or
    Understandings
    

    	 	 	44	 
	
    
    14. Acceptance of the Offer
    

    	 	 	45	 
	
    
    15. Material Changes and Other Information
    

    	 	 	45	 
	
    
    16. Regulatory Matters
    

    	 	 	45	 
	
    
    17. Certain Canadian Federal Income Tax
    Considerations
    

    	 	 	47	 
	
    
    18. Certain United States Federal Income Tax
    Considerations
    

    	 	 	51	 
	
    
    19. Depositary
    

    	 	 	57	 
	
    
    20. Dealer Manager and Soliciting Dealer
    Group
    

    	 	 	57	 
	
    
    21. Information Agent
    

    	 	 	57	 
	
    
    22. Legal Matters
    

    	 	 	58	 
	
    
    23. Offerees’ Statutory Rights
    

    	 	 	58	 
	
    
    24. Directors’ Approval
    

    	 	 	58	 
	
    
    AUDITORS’ CONSENT
    

    	 	 	59	 
	
    
    APPROVAL AND CERTIFICATE OF GOLDCORP INC.
    

    	 	 	60	 
	
    
    APPROVAL AND CERTIFICATE OF GOLDCORP ACQUISITION
    ULC
    

    	 	 	61	 
	
    
    APPENDIX A — PRO FORMA FINANCIAL
    STATEMENTS
    

    	 	 	A-1	 

(iv)

 

SUMMARY TERM SHEET

     
This summary provides important and material
information about the Offer that is described in more detail
elsewhere in this document, but this summary may not include all
of the information about the Offer that is important to you.
Additional important information about the Offer is contained in
the remainder of this document and the Letter of Acceptance and
Transmittal. Therefore, you are urged to carefully read the
remainder of this document and the Letter of Acceptance and
Transmittal for the Offer because the information in this
summary is not complete. We have included cross-references in
this summary to other sections of this document to direct you to
the sections of this document in which a more complete
description of the topics covered in this summary appear. Unless
otherwise defined herein, capitalized terms have the meanings
assigned to them in the Definitions.

WHAT IS THE OFFER?

     
Goldcorp Inc. and Goldcorp Acquisition ULC are
offering to purchase all of the outstanding Common Shares of
Wheaton River Minerals Ltd. For the purpose of this summary,
“we” and similar words refer to both Goldcorp Inc. and
Goldcorp Acquisition ULC and “Wheaton” refers to
Wheaton River Minerals Ltd. We are offering to exchange 0.25 of
a Goldcorp Share for each Common Share of Wheaton. The following
are some of the questions that you, as a shareholder of Wheaton,
may have and answers to those questions. We urge you to
carefully read the Offer and the Circular and the accompanying
Letter of Acceptance and Transmittal because the information in
this summary may not answer all of your questions and additional
important information is contained in the Offer and the Circular
and the accompanying Letter of Acceptance and Transmittal.

WHO IS OFFERING TO BUY MY
SECURITIES?

     
Our names are Goldcorp Inc. and Goldcorp
Acquisition ULC. We are a corporation organized under the laws
of the Province of Ontario, and an unlimited liability company
formed under the laws of the Province of Nova Scotia,
respectively. We are making an offer to purchase all of the
outstanding Common Shares.

     
Goldcorp is a North American based gold producer.
Goldcorp owns and acquires properties, explores for precious
metals, develops mines and produces primarily gold. It is in the
top ten gold producers globally, calculated on the basis of
market capitalization. Goldcorp owns one of the highest-grade
gold deposits in the world, the Red Lake Mine, which is located
in Ontario, Canada and has produced more than 500,000 ounces of
gold annually since 2001. The Red Lake Mine is the largest
producing gold mine in Canada. Goldcorp also produces gold at
the Wharf Mine in the historic Lead mining area in the Black
Hills of South Dakota in the United States. Goldcorp also owns
an industrial minerals operation, Saskatchewan Minerals, in
Saskatchewan, Canada. It produces sodium sulphate used primarily
in the detergent industry. Goldcorp Acquisition ULC was formed
for the sole purpose of making the Offer and is a wholly-owned
subsidiary of Goldcorp. Please see the section entitled
“Goldcorp and Subco” in the Circular.

WHAT ARE THE CLASSES AND NUMBERS OF SECURITIES
SOUGHT IN THE OFFER?

     
We are offering to purchase all of the
outstanding Common Shares.

HOW MUCH ARE YOU OFFERING TO PAY AND WHAT IS
THE FORM OF PAYMENT?

     
We are offering 0.25 of a Goldcorp Share in
exchange for each Common Share held by you. The consideration
offered of 0.25 of a Goldcorp Share was equivalent to a price of
approximately $3.58 for each Common Share based upon the closing
price of Goldcorp Shares on the New York Stock Exchange on
December 3, 2004, which is the last trading day prior to
the date on which we announced our intention to make the Offer.
The Offer represents a premium of 9.12% to the volume weighted
average of the closing price of the Common Shares on the
American Stock Exchange for the five trading days immediately
prior to December 3, 2004 of $3.28 per share. For more
information regarding the trading range of Wheaton’s Common
Shares, please see the section entitled
“Wheaton — Price Range and Trading Volume of
Common Shares” in the Circular.

WILL I HAVE TO PAY ANY FEES OR
COMMISSIONS?

     
If you are the owner of record of your shares and
you tender your shares to the Depositary or by utilizing the
services of the Dealer Manager, you will not have to pay
brokerage fees or similar expenses. If you own your shares
through a broker or other nominee, and your broker or nominee
tenders your shares on your behalf, they may charge you a fee
for doing so. You should consult your broker or nominee to
determine whether any charges will apply. Please see
“Dealer Manager and Soliciting Dealer Group” in the
Circular.

1

 

WHY ARE THERE TWO OFFERORS?

     
We are offering to purchase your shares both
through Goldcorp Inc. and through Goldcorp Acquisition ULC. We
are offering to purchase your shares on this joint basis in
order to obtain favourable Canadian and United States tax
treatment, both for us and you. If you tender your shares to
Goldcorp Acquisition ULC, our cost to acquire your shares, from
a Canadian tax perspective, will be equal to the fair market
value of the Goldcorp Shares you receive in connection with the
exchange. On the other hand, our cost to acquire the shares,
from a Canadian tax perspective, that you tender to Goldcorp
Inc. generally will be equal to tax paid-up capital, which we
expect will be significantly less than the fair market value of
the Goldcorp Shares you receive in connection with the exchange.
As a result, we would prefer that all of the shares tendered in
the Offer be tendered to Goldcorp Acquisition ULC.

     
Some of the holders of the Common Shares, whom we
refer to as Eligible Holders, will be subject to Canadian tax in
respect of any capital gain realized on the disposition of
Common Shares under the Offer. An Eligible Holder may achieve a
tax-deferred rollover for Canadian tax purposes, however, if the
Eligible Holder tenders Common Shares directly to Goldcorp Inc.
Accordingly, we will permit Eligible Holders who wish to obtain
a tax-deferred rollover for Canadian tax purposes to tender
Common Shares to Goldcorp Inc. An Eligible Holder choosing to
tender Common Shares to Goldcorp Inc. will be required to
certify, in the Letter of Acceptance and Transmittal, that the
holder is an Eligible Holder. Holders of Common Shares who are
not Eligible Holders and who elect to participate in the Offer
will be required to tender Common Shares to Goldcorp Acquisition
ULC, because these holders will not obtain any additional
benefit by tendering directly to Goldcorp Inc. Please see the
definition of “Eligible Holder” in the Offer and
Circular and also please see the sections entitled “Certain
Canadian Federal Income Tax Considerations” and
“Certain United States Federal Income Tax
Considerations” in the Circular for additional information.

     
We urge you to contact your tax and legal
advisors if you have any questions regarding your tax status or
if you have any questions concerning the effect of the Offer on
your tax situation.

HOW WILL CANADIAN RESIDENTS BE TAXED FOR
CANADIAN FEDERAL INCOME TAX PURPOSES?

     
Shareholders who are Eligible Holders are
eligible to tender their Common Shares to Goldcorp Inc. for the
purpose of achieving a tax-deferred rollover for Canadian
federal income tax purposes. Other Shareholders who elect to
participate in the Offer will be required to tender to Goldcorp
Acquisition ULC. The sale of Common Shares to Goldcorp
Acquisition ULC will be a taxable disposition for Canadian
federal income tax purposes. You are urged to consult your own
tax advisor as to the particular tax consequences to you of the
Offer. Please see the section entitled “Certain Canadian
Federal Income Tax Considerations” in the Circular.

HOW WILL U.S. TAXPAYERS BE TAXED FOR
U.S. FEDERAL INCOME TAX PURPOSES?

     
The exchange of Common Shares for Goldcorp Shares
in the Offer, considered together with the second-step
transaction, described below, to acquire all remaining Common
Shares not acquired pursuant to the Offer, should be treated as
a tax-deferred reorganization for U.S. federal income tax
purposes, provided certain requirements for this treatment are
satisfied. If these requirements are met, U.S. taxpayers
who tender their Common Shares to the Offerors in the Offer
should not recognize gain or loss on the exchange of Common
Shares for Goldcorp Shares. We will not know until completion of
the second-step transaction whether all of the requirements for
a tax-deferred reorganization have been met. If such conditions
are not met, the exchange of Common Shares for Goldcorp Shares
in the Offer would be a taxable disposition for Shareholders
that are U.S. taxpayers. We urge you to read carefully the
section entitled “Certain United States Federal Income Tax
Considerations” in the Circular and to consult your own tax
advisor as to the particular tax consequences to you of the
Offer.

WHAT ARE THE MOST IMPORTANT CONDITIONS TO THE
OFFER?

     
The Offer is subject to several conditions,
including:

			
	 	1.	
    the deposit under the Offer of at least
    66 2/3% of the Common Shares outstanding;
    
	 
	 	2.	
    the approval of the issuance of the Goldcorp
    Shares pursuant to the Offer and the Subsequent Acquisition
    Transaction by the holders of at least a majority of the
    Goldcorp Shares;
    
	 
	 	3.	
    the unanimous recommendation by Wheaton’s
    board of directors that holders of Common Shares tender their
    Common Shares to the Offer, and that such recommendation shall
    not have been withdrawn;
    

2

 

			
	 	4.	
    the lack of any material adverse change in the
    business or affairs of Wheaton; and
    
	 
	 	5.	
    the receipt of all necessary approvals from
    government bodies or regulatory agencies.
    

     
Please see the section entitled “Conditions
of the Offer” in the Offer.

HOW LONG DO I HAVE TO DECIDE WHETHER TO TENDER
TO THE OFFER?

     
You will have until 5:00 p.m., Vancouver
time, on February 3, 2005 to decide whether to tender your
Common Shares to the Offer unless the Offer is extended or
withdrawn. Further, if you cannot deliver everything that is
required in order to make a valid tender by that time, you may
be able to use a guaranteed delivery procedure, which is
described in the Offer. Please see the section entitled
“Manner of Acceptance” in the Offer.

CAN THE OFFER BE EXTENDED?

     
We can elect at any time to extend the Offer. If
we extend the Offer, we will inform Kingsdale Shareholder
Services Inc., the Depositary for the Offer, of that fact
and will make a public announcement of the extension, not later
than 9:00 a.m., Toronto time, on the next business day
after the day on which the Offer was scheduled to expire. Please
see the section entitled “Extension and Variation of the
Offer” in the Offer.

HOW DO I TENDER MY SHARES?

     
To tender your Common Shares, you must deliver
the certificates evidencing your shares, together with a
completed Letter of Acceptance and Transmittal, to Kingsdale
Shareholder Services Inc., the Depositary for the Offer,
not later than the time the Offer expires. If your shares are
held in street name (that is, through a broker, dealer or other
nominee), please contact your broker, dealer or other nominee.
If you cannot provide all required documents to the Depositary
by the expiry of the Offer, you may obtain some extra time to do
so by having a broker, bank or other fiduciary who is a member
of the Securities Transfer Agent Medallion Program or other
eligible institution guarantee that the necessary documents will
be received by the Depositary within three Toronto Stock
Exchange trading days. However, the Depositary must receive the
necessary documents within that three trading day period. Please
see the section entitled “Manner of Acceptance” in the
Offer.

UNTIL WHAT TIME CAN I WITHDRAW PREVIOUSLY
TENDERED SHARES?

     
You can withdraw previously tendered Common
Shares:

			
	 	1.	
    at any time until we take up your shares;
    
	 
	 	2.	
    up until the tenth business day following the day
    we file a notice announcing that we have changed or varied our
    Offer unless, among other things, prior to filing the notice we
    had taken up your shares or the change in our Offer consists
    solely of an increase in the consideration we are offering; and
    
	 
	 	3.	
    if, after taking up your shares, we do not pay
    for them within three business days.
    

     
Please see the section entitled “Withdrawal
of Deposited Common Shares” in the Offer.

HOW DO I WITHDRAW PREVIOUSLY TENDERED
SHARES?

     
To withdraw shares that have been tendered you
must deliver a written notice of withdrawal, or a manually
signed facsimile of one, with the required information to the
Depositary while you still have the right to withdraw the
shares. Please see the section entitled “Withdrawal of
Deposited Common Shares” in the Offer.

WILL THERE BE A SUBSEQUENT OFFERING
PERIOD?

     
Although we do not currently intend to do so, we
may extend the Offer for a period of between 10 calendar
days and 20 U.S. business days following the Initial Expiry
Time, provided we have immediately taken up and promptly paid
for all Common Shares deposited prior to the Initial Expiry
Time. Please see the section entitled “Extension and
Variation of the Offer” in the Offer.

WHAT DOES WHEATON’S BOARD OF DIRECTORS
THINK OF THE OFFER?

     
The board of directors of Wheaton has unanimously
concluded that the transaction is fair to shareholders and
recommends that they tender their shares to the Offer. The board
of directors of Wheaton has received a fairness opinion from its
financial advisor. The opinion states that the Offer is fair to
Wheaton shareholders from a financial point of view.

3

 

IS GOLDCORP ATTEMPTING TO ACQUIRE ALL OF
WHEATON?

     
We are making the Offer in order to acquire all
of the outstanding Common Shares. If we complete the Offer but
do not then own 100% of Wheaton, the Acquisition Agreement
requires us to take all necessary steps to acquire all remaining
Common Shares not then owned by us through a second-step
transaction. Please see the section entitled “Acquisition
of Common Shares Not Deposited” in the Circular.

FOLLOWING THE OFFER, WILL WHEATON CONTINUE AS
A PUBLIC COMPANY?

     
If the second-step transaction described above
takes place, Wheaton will no longer be publicly owned. Even if a
second-step transaction does not take place, if we purchase all
the tendered shares, there may be so few remaining shareholders
and publicly held Common Shares that the Common Shares will no
longer be eligible to be traded on the Toronto Stock Exchange or
the American Stock Exchange or other securities markets. As a
result, there may not be a public trading market for such shares
and Wheaton may cease being required to comply with Canadian and
SEC rules governing publicly held companies. Please see the
section entitled “Effect of the Offer on the Market for
Common Shares; Stock Exchange Listing; Public Disclosure by
Wheaton and U.S. Exchange Act Registration” in the
Circular.

IF I DECIDE NOT TO TENDER, HOW WILL THE OFFER
AFFECT MY SHARES?

     
If the second-step transaction described above is
completed, shareholders not tendering to the Offer will receive
the same consideration as under the Offer or the fair value of
the Common Shares as determined by a court. If for some reason
no second-step transaction takes place, the number of
Wheaton’s shareholders and of Common Shares that are still
in the hands of the public may be so small that there will no
longer be an active public trading market for the Common Shares.
Also, as described above, Wheaton may cease being required to
comply with Canadian and SEC rules relating to publicly held
companies. Please see the section entitled “Effect of the
Offer on the Market for Common Shares; Stock Exchange Listing;
Public Disclosure by Wheaton and U.S. Exchange Act
Registration” in the Circular.

WILL I HAVE THE RIGHT TO HAVE MY SHARES
APPRAISED?

     
If the second-step transaction is completed,
shareholders will have the right to dissent and to demand
payment of the fair value of their Common 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 Common Shares. The
fair value of the Common Shares so determined could be more or
less than the consideration paid per Common Share pursuant to
the second-step transaction or the Offer.

WHAT IS THE MARKET VALUE OF MY SHARES AS OF A
RECENT DATE?

     
On December 3, 2004, which is the last
trading day prior to the date on which we announced our
intention to make the Offer, the last sale price of a Common
Share of Wheaton reported on the Toronto Stock Exchange and the
American Stock Exchange was C$3.76 and US$3.19, respectively. We
urge you to obtain a recent quotation for Common Shares of
Wheaton before deciding whether to tender your shares. Please
see the section entitled “Wheaton — Price Range
and Trading Volume of Common Shares” in the Circular.

WHO CAN I TALK TO IF I HAVE QUESTIONS ABOUT
THE OFFER?

     
You can call Kingsdale Shareholder
Services Inc. at its telephone number and location set out
on the back page of this document. Kingsdale Shareholder
Services Inc. is acting as the Depositary and the
Information Agent for our Offer in both Canada and the United
States. GMP Securities Ltd. is acting as the Dealer
Manager for our Offer in Canada. Griffiths McBurney Corp. is
acting as the Dealer Manager for our Offer in the United States.

4

 

 DEFINITIONS

     
In the Offer and the accompanying Circular,
unless the subject matter or context is inconsistent therewith,
the following terms have the meanings set forth below:

“Acquisition
Agreement” means the acquisition
agreement dated December 23, 2004 between Goldcorp and
Wheaton, as described in the section entitled “Background
to the Offer — Acquisition Agreement” in the
Circular;

“Affected
Securities” has the meaning
ascribed thereto in the section entitled “Acquisition of
Common Shares Not Deposited — Subsequent Acquisition
Transaction” in the Circular;

“Affiliate”
has the meaning ascribed thereto in the Securities Act
(Ontario);

“Alternative
Transaction” means, in respect of
Wheaton or Goldcorp, any proposal or offer made by any person,
other than the other party and its Affiliates, with respect to
any proposed transaction (by purchase, merger, amalgamation,
arrangement, business combination, liquidation, dissolution,
recapitalization, take-over bid or otherwise, including, for
greater certainty, the proposed offer for Goldcorp Shares
announced by Glamis Gold Ltd. on December 16, 2004) that
could result in any person (or group of persons acting jointly
or in concert), other than the other party and its Affiliates,
acquiring or beneficially owning or exercising control or
direction over: (x) a material portion of the assets of it
and its subsidiaries, on a consolidated basis; or
(y) together with any of its common shares or any equity
shares or voting shares of any of its subsidiaries beneficially
owned by such person (or group of persons acting jointly or in
concert) or over which such person (or group of persons acting
jointly or in concert) exercised direction or control prior to
such proposal or offer, 10% or more of its common shares or the
equity shares or voting shares of any of its subsidiaries;

“AMEX”
means the American Stock Exchange;

“AMF”
means l’Agence nationale d’encadrement du secteur
financier, also known as l’Autorité des marchés
financiers;

“Appointee”
has the meaning ascribed thereto in the section entitled
“Manner of Acceptance — Power of Attorney”
in the Offer;

“Associate”
has the meaning ascribed thereto in the Securities Act
(Ontario);

“Business
Day” means any day, other than a
Saturday, Sunday, a public holiday or a day on which commercial
banks are not open for business in Toronto, Ontario or
Vancouver, British Columbia or a federal holiday in the United
States;

“Canadian
Dollars” or “C$”
means lawful currency of Canada;

“Canadian
GAAP” means Canadian generally
accepted accounting principles;

“Circular”
means the take-over bid circular accompanying the Offer and
forming a part thereof;

“Code”
means the United States Internal Revenue Code of 1986, as
amended;

“Commissioner”
has the meaning ascribed thereto in the section entitled
“Regulatory Matters — Competition Act” in
the Circular;

“Common
Shares” means the common shares
of Wheaton;

“CRA”
means the Canada Revenue Agency;

“Dealer
Manager” means
GMP Securities Ltd. in Canada and Griffiths McBurney
Corp. in the United States;

“Deposit
Period” means the period
commencing on the date hereof and ending at the Expiry Time;

“Deposited
Securities” has the meaning
ascribed thereto in the section entitled “Manner of
Acceptance — Dividends and Distributions” in the
Offer;

“Depositary”
means Kingsdale Shareholder Services Inc.;

“Distributions”
has the meaning ascribed thereto in the section entitled
“Manner of Acceptance — Dividends and
Distributions” in the Offer;

“Eligible
Holder” means a Shareholder who
is (a) a resident of Canada for the purposes of the Tax
Act, holds Common Shares as capital property and is not exempt
from tax on income under the Tax Act, or (b) a non-resident
of Canada for the purposes of the Tax Act, whose Common Shares
constitute “taxable Canadian property” (as defined in
the Tax Act) and who is not exempt from Canadian tax in respect
of any capital gain realized on the disposition of Common Shares
by reason of an exemption contained in an applicable income tax
treaty, or (c) a partnership if one or more members of the
partnership are described in (a) or (b);

5

 

“Eligible
Institution” means a Canadian
Schedule I chartered bank, a major trust company in Canada,
a member of the Securities Transfer Agents Medallion Program
(STAMP), a member of the Stock Exchanges Medallion Program
(SEMP) or a member of the New York Stock Exchange, Inc.
Medallion Signature Program (MSP);

“Expiry
Time” means the Initial Expiry
Time, or such later time and date as may be fixed by the
Offerors from time to time pursuant to the provisions of the
section entitled “Extension and Variation of the
Offer” in the Offer;

“Goldcorp”
means Goldcorp Inc., a corporation existing under and governed
by the OBCA;

“Goldcorp
Shares” means common shares of
Goldcorp;

“Information Agent”
means Kingsdale Shareholder Services
Inc.;

“Initial Expiry
Time” means 5:00 p.m.
(Vancouver time) on February 3, 2005;

“IRS”
means the United States Internal Revenue Service;

“Law” or
“Laws” means all applicable laws (including
common law), by-laws, rules, regulations, orders, codes,
policies, notices and directions and judicial, arbitral,
administrative, ministerial or departmental judgments, awards,
or other requirements of any governmental, regulatory, court or
other authority having jurisdiction over the applicable party;

“Letter of Acceptance and
Transmittal” means the letter of
acceptance and transmittal in the form printed on blue paper
accompanying the Offer;

“Material Adverse
Change” means, in respect of
Goldcorp or Wheaton, any one or more changes, events or
occurrences, and “Material Adverse Effect”
means, in respect of Goldcorp or Wheaton, any state of facts,
which, in either case, either individually or in the aggregate,
is, or would reasonably be expected to be, material and adverse
to the business, operations, results of operations, prospects,
assets, liabilities or financial condition of Goldcorp and
Goldcorp’s subsidiaries, or Wheaton and Wheaton’s
subsidiaries, respectively, on a consolidated basis, other than
any change, effect, event or occurrence: (i) relating to
the global economy or securities markets in general;
(ii) affecting the worldwide gold, copper or silver mining
industries in general and which does not have a materially
disproportionate effect on Goldcorp and Goldcorp’s
Subsidiaries on a consolidated basis, or Wheaton and
Wheaton’s subsidiaries on a consolidated basis,
respectively; (iii) resulting from changes in the price of
gold, copper or silver; or (iv) relating to changes in
currency exchange rates;

“Minimum Tender
Condition” has the meaning
ascribed thereto in the section entitled “Conditions of the
Offer” in the Offer;

“Notice of Guaranteed
Delivery” means the notice of
guaranteed delivery in the form printed on green paper
accompanying the Offer;

“NYSE”
means the New York Stock Exchange;

“OBCA”
means the Business Corporations Act (Ontario);

“Offerors”
means, collectively, Goldcorp and Subco, and each individual
Offeror shall be referred to as an “Offeror”;

“Offer”
means the offer by the Offerors to purchase all of the
outstanding Common Shares, the terms and conditions of which are
set forth in the Offer, the Circular, the Letter of Acceptance
and Transmittal and the Notice of Guaranteed Delivery;

“OSC”
means the Ontario Securities Commission;

“Policy Q-27”
means the Regulation entitled Policy Statement
No. Q-27 — “Protection of Minority
Securityholders in the Course of Certain Transactions” of
the AMF, as the same may be amended;

“Purchased
Securities” has the meaning
ascribed thereto in the section entitled “Manner of
Acceptance — Power of Attorney” in the Offer;

“Regulations”
has the meaning ascribed thereto in the section entitled
“Acquisition of Common Shares Not Deposited —
Subsequent Acquisition Transaction” in the Circular;

“Restricted
Securities” has the meaning
ascribed thereto in Rule 144(a)(3) of the
U.S. Securities Act;

“Rule 61-501”
means OSC Rule 61-501 — “Insider Bids,
Issuer Bids, Business Combinations and Related Party
Transactions” as the same may be amended;

“SEC”
means the United States Securities and Exchange Commission;

6

 

“Securities
Laws” means, collectively, any
securities laws applicable to the Offer, including, without
limitation, the Securities Act (Ontario) and the rules
and regulations made thereunder, the similar legislation, rules
and regulations of the other Canadian provinces, the applicable
securities laws of the United States and other similar laws of
other jurisdictions in which the Offer is made;

“Shareholder”
means a holder of Common Shares;

“Soliciting Dealer
Group” has the meaning ascribed
thereto in the section entitled “Dealer Manager and
Soliciting Dealer Group” in the Circular;

“Stock Option
Plan” means, collectively,
Wheaton’s stock option plans adopted in 1995 and 2001;

“Subco”
means Goldcorp Acquisition ULC, a newly-formed company under the
laws of the Province of Nova Scotia and a wholly-owned
subsidiary of Goldcorp;

“Subsequent Acquisition
Transaction” has the meaning
ascribed thereto in the section entitled “Acquisition of
Common Shares Not Deposited — Subsequent Acquisition
Transaction” in the Circular;

“Subsequent Offering
Period” has the meaning ascribed
thereto in Section 5 of the Offer entitled “Extension
and Variation of the Offer”;

“Superior
Proposal” means a written
unsolicited bona fide Alternative Transaction, in respect
of which the board of directors of Wheaton or Goldcorp, as
applicable, has determined by formal resolution, passed in good
faith and acting reasonably after consultation with its
financial advisers and outside legal counsel, that is or could
reasonably be expected to, if consummated in accordance with its
terms, result in a transaction more favourable, from a financial
point of view, to the Shareholders or Goldcorp, as applicable,
than the Offer, but only if and to the extent that the board of
directors of Wheaton or Goldcorp, as applicable, also has
determined by formal resolution, in good faith and acting
reasonably, after considering the opinion of its outside legal
counsel, that the failure to take such action would be
inconsistent with the fiduciary duties of the board of directors
of Wheaton or Goldcorp, as applicable;

“take up”
in reference to Common Shares means to accept such Common Shares
for payment by giving written notice of such acceptance to the
Depositary and “taking up” and “taken
up” have correlative meanings;

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

“TSX”
means the Toronto Stock Exchange;

“United
States” means the United States
of America, its territories and possessions, any state of the
United States and the District of Columbia;

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

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

“Wheaton”
means Wheaton River Minerals Ltd., a corporation existing under
and governed by the OBCA;

“Wheaton
Options” means the options of
Wheaton to purchase an aggregate of 20,231,497 Common Shares
issued pursuant to the Stock Option Plan and the options to
purchase an aggregate of 700,000 Common Shares issued pursuant
to the acquisition of the Luismin mine; and

“Wheaton
Warrants” means: (i) the
54,716,772 warrants expiring May 30, 2007 entitling the
holders to purchase an aggregate of 54,716,772 Common Shares at
a price of C$1.65 per Common Share issued and outstanding
pursuant to the warrant indenture dated May 30, 2002
between Wheaton and CIBC Mellon Trust Company; (ii) the
57,341,837 Series A Warrants, expiring May 30, 2007,
entitling the holders to purchase an aggregate of 57,341,837
Common Shares at a price of C$1.65 per Common Share issued and
outstanding pursuant to the warrant indenture dated
February 27, 2003 between Wheaton and CIBC Mellon Trust
Company; and (iii) the 64,296,174 Series B Warrants,
expiring August 25, 2008, entitling the holders to purchase
an aggregate of 64,296,174 Common Shares at a price of C$3.10
per Common Share issued and outstanding pursuant to the warrant
indenture dated August 25, 2003 between Wheaton and CIBC
Mellon Trust Company, and two supplemental warrant indentures
dated October 14, 2003 and January 8, 2004,
respectively, each of which is between Wheaton and CIBC Mellon
Trust Company.

7

 

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8

 

SUMMARY

     
The following is a summary only and is
qualified by the detailed information contained elsewhere in the
Offer and Circular. Certain capitalized words and terms used in
this summary are defined in the section entitled
“Definitions”. Shareholders are urged to read the
Offer and Circular in their entirety. All currency amounts
herein, unless otherwise indicated, are expressed in United
States dollars.

The Offer

     
The Offerors are offering to purchase, upon the
terms and subject to the conditions described in the Offer, all
of the issued and outstanding Common Shares (including Common
Shares which may become outstanding after the date of the Offer
and prior to the Expiry Time upon the exercise of stock options,
warrants or other rights) on the basis of 0.25 of a Goldcorp
Share for each Common Share.

     
The Common Shares are listed for trading on the
TSX and the AMEX. On December 3, 2004 (being the last day
on which the Common Shares traded publicly prior to the
announcement of Goldcorp’s intention to make the Offer),
the closing prices of the Common Shares on the TSX and AMEX were
C$3.76 and $3.19, respectively. The Goldcorp Shares are listed
for trading on the TSX and NYSE. On December 3, 2004 (being
the last day on which the Goldcorp Shares traded publicly prior
to the announcement of Goldcorp’s intention to make the
Offer), the closing prices of the Goldcorp Shares on the TSX and
NYSE were C$17.15 and $14.34, respectively.

     
The Offer is made only for Common Shares and is
not made for any options, warrants or any other rights to
purchase Common Shares. Any holder of such options, warrants or
other rights to purchase Common Shares who wishes to accept the
Offer must exercise the options, warrants or other rights in
order to obtain certificates representing Common Shares and then
deposit those Common Shares under the Offer. Please see the
section entitled “The Offer” in the Offer and the
section entitled “Strategic Rationale for the Offer;
Purpose of the Offer, Plans for Wheaton, Plans for Wheaton
Warrants and Wheaton Options and Plans for the Combined
Company — Wheaton Warrants and Wheaton Options”
in the Circular.

     
Goldcorp will not issue fractional Goldcorp
Shares. Any fractional number of Goldcorp Shares that would
otherwise be issued will be rounded up or down to the nearest
whole number of Goldcorp Shares.

     
Goldcorp has applied to the TSX and will apply to
the NYSE to list the Goldcorp Shares to be issued to
Shareholders in connection with the Offer. Listing will be
subject to Goldcorp fulfilling all the listing requirements of
the TSX and the NYSE.

Goldcorp and Subco

     
Goldcorp is a North American based gold producer.
Goldcorp owns and acquires properties, explores for precious
metals, develops mines and produces primarily gold. It is in the
top ten gold producers globally, calculated on the basis of
market capitalization. Goldcorp owns one of the highest-grade
gold deposits in the world, the Red Lake Mine, which is located
in Ontario, Canada and has produced more than 500,000 ounces of
gold annually since 2001. The Red Lake Mine is the largest
producing gold mine in Canada. The Company also produces gold at
the Wharf Mine in the historic Lead mining area in the Black
Hills of South Dakota in the United States. Goldcorp also owns
an industrial minerals operation, Saskatchewan Minerals, in
Saskatchewan, Canada. It produces sodium sulphate used primarily
in the detergent industry.

     
Subco was formed for the sole purpose of making
the Offer and is a wholly-owned subsidiary of Goldcorp.

     
Please see the section entitled “Goldcorp
and Subco” in the Circular.

Wheaton

     
Wheaton is engaged in the acquisition,
exploration and operation of precious metal properties. The
principal products and sources of cash flow for Wheaton are
gold, silver and copper. Wheaton’s primary operating
properties consist of an indirect 37.5% interest in the Bajo de
la Alumbrera gold-copper mine in Argentina, a 100% interest in
the San Dimas, San Martin and Nukay gold-silver mines in Mexico
and a 100% interest in the Peak gold mine in Australia. Wheaton
also has 100% interests in the Los Filos gold development
project in Mexico and the Amapari gold project in Brazil, which
is under construction. In addition, Wheaton owns approximately
64% of Chap Mercantile Inc.

9

 

Time for Acceptance

     
The Offer is open for acceptance until
5:00 p.m. (Vancouver time) on February 3, 2005, unless
the Offer is withdrawn or extended by the Offerors. Please see
the section entitled “Time for Acceptance” in the
Offer.

Conditions of the Offer

     
Subject to the provisions of the Acquisition
Agreement, the Offerors have the right to withdraw the Offer and
not take up and pay for any Common Shares deposited under the
Offer, and have the right to extend the period of time during
which the Offer is open and postpone taking up and paying for
Common Shares deposited under the Offer unless all of the
conditions described in the section entitled “Conditions of
the Offer” in the Offer are satisfied or waived by the
Offerors at or prior to the Expiry Time of the Offer. Those
conditions include (i) there having been properly deposited
under the Offer and not withdrawn at the Expiry Time at least
66 2/3% of the Common Shares outstanding at the time Common
Shares are taken up under the Offer, which condition may be
waived by the Offerors only with the prior written consent of
Wheaton and (ii) the approval of the issuance of the
Goldcorp Shares pursuant to the Offer and the Subsequent
Acquisition Transaction by the holders of a majority of the
Goldcorp Shares.

Recommendation of the Board of Directors of
Wheaton

     
The board of directors of Wheaton, after
consultation with its financial and legal advisors and upon
receipt of a fairness opinion from Merrill Lynch, Pierce,
Fenner & Smith Incorporated, has unanimously determined
that the Offer is fair to the Shareholders and is in the best
interests of Wheaton. The board of directors of Wheaton has
unanimously recommended that Shareholders accept the Offer and
tender their Common Shares to the Offer.

Acquisition Agreement

     
On December 23, 2004, Goldcorp and Wheaton
entered into the Acquisition Agreement. The Acquisition
Agreement sets forth the terms and conditions upon and subject
to which the Offer is to be made by the Offerors. Pursuant to
the Acquisition Agreement, Wheaton agreed to support the Offer
by, among other things, recommending acceptance of the Offer to
the Shareholders. Please see the section entitled
“Agreements Relating to the Offer — Acquisition
Agreement” in the Circular.

Strategic Rationale for the Offer

     
The strategic rationale for the Offer is the
creation of a combined company having the following attributes:

			
	 	•	
    Production –
    2005 gold production expected to be in excess of
    1.1 million ounces at a total cash cost of less than $60
    per ounce (taking into account credits from the production of
    other minerals);
    
	 
	 	•	
    Growth – annual
    production expected to grow to 1.5 million ounces of gold
    by 2007;
    
	 
	 	•	
    Balance Sheet –
    strong balance sheet with over $500 million in cash and
    gold bullion, with no debt;
    
	 
	 	•	
    Reserves –
    proven and probable reserves of 10.5 million ounces of gold
    plus additional measured and indicated resources of 9.5 million
    ounces of gold as of December 31, 2003, all of which are
    unhedged;
    
	 
	 	•	
    Liquidity –
    combined daily average trading liquidity of over
    $60 million; and
    
	 
	 	•	
    Market Capitalization
    – expected to be approximately
    $5 billion.
    

     
Please see the section entitled “Strategic
Rationale for the Offer; Purpose of the Offer, Plans for
Wheaton, Plans for Wheaton Warrants and Wheaton Options and
Plans for the Combined Company” in the Circular.

Purpose of the Offer and Plans for
Wheaton

     
The purpose of the Offer is to enable the
Offerors to acquire all of the Common Shares.

     
If the Offer is successful, the Offerors intend
to amalgamate Wheaton with Subco so that Wheaton would become a
wholly-owned subsidiary of Goldcorp.

     
If permitted by applicable Law, subsequent to the
completion of the Offer and the Subsequent Acquisition
Transaction, the Offerors intend to delist the Common Shares
from the TSX and AMEX and to cause Wheaton to cease to be a
reporting issuer under the Securities Laws of each province and
to cease to have a class of securities registered under the
U.S. Exchange Act. Please see the section entitled
“Strategic Rationale for the Offer; Purpose of the Offer,

10

 

Plans for Wheaton, Plans for Wheaton Warrants and
Wheaton Options and Plans for the Combined Company” in the
Circular.

Manner of Acceptance

     
A Shareholder wishing to accept the Offer must
deposit the certificate(s) representing such Shareholder’s
Common Shares, together with the Letter of Acceptance and
Transmittal (printed on blue paper) or a manually signed
facsimile thereof, properly completed and duly executed, at or
prior to the Expiry Time, at the offices of the Depositary
specified in the Letter of Acceptance and Transmittal.
Instructions are contained in the Letter of Acceptance and
Transmittal that accompanies the Offer and Circular. A
Shareholder wishing to accept the Offer whose Common Shares are
held in the name of a nominee should request the broker,
investment dealer, bank, trust company or other nominee to
deposit such Shareholder’s Common Shares with the
Depositary. A Shareholder wishing to accept the Offer and whose
certificates are not immediately available or who cannot deliver
the certificates and all other required documents to the
Depositary at or prior to the Expiry Time may accept the Offer
by following the procedures for guaranteed delivery set forth in
the section entitled “Manner of Acceptance —
Procedure for Guaranteed Delivery” in the Offer.

     
Shareholders will not be required to pay any fee
or commission if they accept the Offer by delivering their
Common Shares directly to the Depositary.

Withdrawal of Deposited Common
Shares

     
Common Shares deposited to the Offer may be
withdrawn at any time if the Common Shares have not been taken
up by the Offerors and in the other circumstances discussed in
the section entitled “Withdrawal of Deposited Common
Shares” in the Offer. Except as so indicated or as
otherwise required by Law, deposits of Common Shares are
irrevocable.

Payment for Deposited Common Shares

     
Upon the terms and subject to the conditions of
the Offer, the Offerors will take up Common Shares validly
deposited under the Offer and not withdrawn promptly following
the Expiry Time, and in any event not later than 10 days
after the Expiry Time. The Offerors are obligated to pay for
Common Shares that they have taken up promptly after taking up
such Common Shares, and in any event not later than the earlier
of three Business Days after the taking up of the Common Shares
and 10 days after the Expiry Time. Any Common Shares
deposited under the Offer after the first date on which Common
Shares are taken up under the Offer will be taken up and paid
for within 10 days after such deposit. Please see the
section entitled “Payment for Deposited Common Shares”
in the Offer.

Acquisition of Common Shares Not
Deposited

     
If the conditions of the Offer are satisfied or
waived and the Offerors take up and pay for the Common Shares
validly deposited under the Offer, the Acquisition Agreement
requires the Offerors to take all necessary steps to acquire any
Common Shares not deposited under the Offer through the
Subsequent Acquisition Transaction. Please see the section
entitled “Acquisition of Common Shares Not Deposited”
in the Circular.

Certain Canadian Federal Income Tax
Considerations

     
Shareholders who are Eligible Holders are
eligible to tender their Common Shares to Goldcorp for the
purpose of achieving a tax-deferred rollover for Canadian
federal income tax purposes. Other Shareholders who elect to
participate in the Offer will be required to tender to Subco.
The sale of Common Shares to Subco will be a taxable disposition
for Canadian federal income tax purposes. You are urged to
consult your own tax advisor as to the particular tax
consequences to you of the Offer. Please see the section
entitled “Certain Canadian Federal Income Tax
Considerations” in the Circular.

Certain United States Federal Income Tax
Considerations

     
Although the matter is not free from doubt, the
Offer, considered together with the Subsequent Acquisition
Transaction as a single integrated transaction (the
“Acquisition”), should qualify as a
tax-deferred reorganization for United States federal income tax
purposes pursuant to Section 368(a) of the Code, provided
that the Substantially All Assets Test (as described in the
section entitled “Certain United States Federal Income Tax
Considerations” in the Circular) is satisfied in connection
with the Acquisition. Assuming that the Acquisition qualifies as
a reorganization,

11

 

U.S. Holders (as defined in the section
entitled “Certain United States Federal Income Tax
Considerations” in the Circular) generally would not
recognize gain or loss on the exchange of Common Shares for
Goldcorp Shares pursuant to the Offer.

     
If, however, the Offer is completed but the
Subsequent Acquisition Transaction does not take place, the
Offer may not qualify as a reorganization under
Section 368(a) of the Code. In that event, the transfer of
the Common Shares pursuant to the Offer would be a taxable
disposition for U.S. Holders. Furthermore, if the
Subsequent Acquisition Transaction is completed but the
Substantially All Assets Test is not met with respect to the
Acquisition, or if the IRS takes the position that the Offer and
the Subsequent Acquisition Transaction do not constitute a
single integrated transaction, the transfer of Common Shares
pursuant to the Offer would be a taxable disposition for
U.S. Holders. If the exchange of Common Shares pursuant to
the Offer is treated as a taxable disposition, the
U.S. Holder would recognize gain or loss on the disposition
equal to the difference between the U.S. dollar equivalent
of the fair market value of the Goldcorp Shares received and the
U.S. Holder’s adjusted tax basis in the Common Shares
surrendered in exchange therefor.

     
Whether or not the Offer and the Acquisition
qualify for tax-deferred treatment pursuant to
Section 368(a) of the Code will depend on a number of
facts, some of which will not be known until the time of
consummation of the Subsequent Acquisition Transaction.
Shareholders should consult their own tax advisors regarding the
possibility that the Offer and the Acquisition may not qualify
as a tax-deferred transaction for United States federal income
tax purposes and regarding the particular tax consequences to
them of the Acquisition in light of their own circumstances.
Please see the section entitled “Certain United States
Federal Income Tax Considerations” in the Circular.

Depositary

     
The Offerors have engaged Kingsdale Shareholder
Services Inc. to act as Depositary for the receipt of
certificates in respect of Common Shares and related Letters of
Acceptance and Transmittal at the offices specified in the
Letter of Acceptance and Transmittal. The Depositary will also
receive Notices of Guaranteed Delivery at its office specified
in the Notice of Guaranteed Delivery. Please see the section
entitled “Depositary” in the Circular.

Dealer Manager and Soliciting Dealer
Group

     
GMP Securities Ltd. has been retained as Dealer
Manager in Canada and Griffiths McBurney Corp. has been retained
as Dealer Manager in the United States to solicit acceptances of
the Offer. GMP Securities Ltd. has the right to form 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.
Griffiths McBurney Corp. has the right to appoint sub-agents who
are registered under applicable United States securities laws to
solicit acceptances of the Offer in the United States. Please
see the section entitled “Dealer Manager and Soliciting
Dealer Group” in the Circular.

Information Agent

     
The Offerors have retained Kingsdale Shareholder
Services Inc. to act as Information Agent in connection with the
Offer in both Canada and the United States. The Information
Agent will receive reasonable and customary compensation from
the Offerors 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.

Risk Factors

     
An investment in Goldcorp Shares is subject to
certain risks. Please see the section entitled “Goldcorp
and Subco — Risk Factors” in the Circular.

Pro Forma Financial Information

     
For pro forma financial information
regarding Goldcorp (prepared on the assumption that Goldcorp
acquires all of the Common Shares) for the year ended
December 31, 2003 and the nine months ended
September 30, 2004, please see
“Appendix A — Pro Forma Financial
Statements” in the Circular.

12

 

OFFER

December 29, 2004

TO: THE SHAREHOLDERS OF WHEATON RIVER MINERALS
LTD.

1.   The Offer

     
The Offerors hereby offer to purchase, upon the
terms and subject to the conditions of the Offer, all of the
issued and outstanding Common Shares (including Common Shares
which may become outstanding after the date of the Offer and
prior to the Expiry Time upon the exercise of stock options,
warrants or other rights) on the basis of 0.25 of a Goldcorp
Share for each Common Share.

     
The Offer is made only for the Common Shares and
is not made for any options, warrants or any other rights to
purchase Common Shares. Any holder of such options, warrants or
other rights to purchase Common Shares who wishes to accept the
Offer must exercise the options, warrants or other rights in
order to obtain certificates representing Common Shares and then
deposit those Common Shares under the Offer. Any such exercise
must be completed sufficiently in advance of the Expiry Time to
ensure that Common Shares will be available for deposit at or
prior to the Expiry Time or in sufficient time to comply with
the procedures referred to in the section entitled “Manner
of Acceptance — Procedure for Guaranteed
Delivery” in this Offer. Please also see the section
entitled “Strategic Rationale for the Offer; Purpose of the
Offer, Plans for Wheaton, Plans for Wheaton Warrants and Wheaton
Options and Plans for the Combined Company — Wheaton
Warrants and Wheaton Options” in the Circular. Holders of
options, warrants or other rights to purchase Common Shares
should also consult their own tax advisors for advice with
respect to the potential income tax consequences to them of
exercising such options, warrants or other rights.

     
Goldcorp will not issue fractional Goldcorp
Shares. Any fractional number of Goldcorp Shares equal to or
greater than 0.5 will be rounded up to the nearest whole number
of Goldcorp Shares and less than 0.5 will be rounded down to the
nearest whole number of Goldcorp Shares.

     
Goldcorp has applied to the TSX and will apply to
the NYSE to list the Goldcorp Shares to be issued to
Shareholders in connection with the Offer. Listing will be
subject to Goldcorp fulfilling all the listing requirements of
the TSX and the NYSE.

     
All currency amounts expressed herein, unless
otherwise indicated, are expressed in United States dollars.

     
The accompanying Circular, Letter of
Acceptance and Transmittal and Notice of Guaranteed Delivery,
which are incorporated into and form part of the Offer, contain
important information which should be read carefully before
making a decision with respect to the Offer.

2.   Time for
Acceptance

     
The Offer is open for acceptance, unless
withdrawn or extended by the Offerors in accordance with the
Acquisition Agreement, until the Initial Expiry Time, being
5:00 p.m. (Vancouver time) on February 3, 2005. The
Expiry Time may be extended at the Offerors’ discretion as
described in the section entitled “Extension and Variation
of the Offer” in this Offer.

3.   Manner of
Acceptance

Letter of Acceptance and
Transmittal

     
The Offer may be accepted by delivering to the
Depositary, at any of the offices listed in the Letter of
Acceptance and Transmittal accompanying the Offer so as to
arrive there not later than the Expiry Time:

			
	 	(a)	
    the certificate(s) representing the Common Shares
    in respect of which the Offer is being accepted;
    
	 
	 	(b)	
    a Letter of Acceptance and Transmittal (printed
    on blue paper) in the form accompanying the Offer or a manually
    signed facsimile thereof, properly completed and duly executed
    as required by the instructions set out in the Letter of
    Acceptance and Transmittal; and
    
	 
	 	(c)	
    any other document required by the instructions
    set out in the Letter of Acceptance and Transmittal.
    

     
Except as otherwise provided in the instructions
set out in the Letter of Acceptance and Transmittal or as may be
permitted by the Offerors, the signature on the Letter of
Acceptance and Transmittal must be guaranteed by an Eligible
Institution. If a Letter of Acceptance and Transmittal is
executed by a person other than the registered holder of the
Common Shares represented by the certificate(s) deposited
therewith, then the certificate(s) must be endorsed or be

13

 

accompanied by an appropriate share transfer
power of attorney duly and properly completed by the registered
holder, with the signature on the endorsement panel or share
transfer power of attorney guaranteed by an Eligible Institution.

     
In addition, Common Shares may be deposited in
compliance with the procedures set forth below for guaranteed
delivery not later than the Expiry Time.

     
SHAREHOLDERS WHO ARE ELIGIBLE HOLDERS ARE
ELIGIBLE TO TENDER COMMON SHARES TO GOLDCORP FOR THE PURPOSE OF
ACHIEVING A TAX-DEFERRED ROLLOVER INTO GOLDCORP SHARES FOR
CANADIAN FEDERAL INCOME TAX PURPOSES. SEE “CERTAIN CANADIAN
FEDERAL INCOME TAX CONSIDERATIONS” IN THE CIRCULAR. OTHER
SHAREHOLDERS THAT ACCEPT THE OFFER WILL BE REQUIRED TO TENDER TO
SUBCO. SHAREHOLDERS WHO DO NOT EXPRESSLY DESIGNATE GOLDCORP FOR
THE PURPOSE OF THE PURCHASE OF THEIR COMMON SHARES IN THE SPACE
PROVIDED IN THE LETTER OF ACCEPTANCE AND TRANSMITTAL AND WHO DO
NOT PROPERLY COMPLETE ANY CERTIFICATE THAT MAY BE REQUIRED
THEREBY WILL BE DEEMED TO HAVE TENDERED THEIR COMMON SHARES TO
SUBCO AND WILL NOT OBTAIN A TAX-DEFERRED ROLLOVER INTO GOLDCORP
SHARES FOR CANADIAN FEDERAL INCOME TAX PURPOSES.

     
The Offer is being made on a joint basis by
Goldcorp and Subco in order that, in those circumstances where
Shareholders are not subject to Canadian tax in respect of any
capital gain realized on the disposition of Common Shares under
the Offer, Subco is able to acquire the Common Shares at a cost
for Canadian tax purposes equal to the fair market value of the
Goldcorp Shares issued in exchange for the Common Shares by
requiring that Shareholders other than Eligible Holders tender
to Subco. Eligible Holders are able to tender Common Shares to
Goldcorp in order to achieve a tax-deferred rollover into
Goldcorp Shares. The tax cost of Common Shares tendered to
Goldcorp will be an amount significantly less than the fair
market value of the Common Shares issued in exchange.

     
Eligible Shareholders who validly elect to tender
Common Shares to Goldcorp will agree, at the request of
Goldcorp, to co-operate in good faith with Goldcorp in
connection with the preparation, filing and execution of any
documents required pursuant to an election under
subsection 85(1) of the Tax Act, provided, however,
that such election will be prepared on a basis that results in
the same Canadian federal income tax consequences to such
Shareholder as are described in the section entitled
“Certain Canadian Federal Income Tax
Considerations — Shareholders Resident in
Canada — Sale to Goldcorp” in the Circular.

Procedure for Guaranteed
Delivery

     
If a Shareholder wishes to deposit Common Shares
pursuant to the Offer and the certificates representing the
Common Shares are not immediately available or the Shareholder
is not able to deliver the certificates and all other required
documents to the Depositary at or prior to the Expiry Time,
those Common Shares may nevertheless be deposited under the
Offer provided that all of the following conditions are met:

			
	 	(a)	
    the deposit is made by or through an Eligible
    Institution;
    
	 
	 	(b)	
    a Notice of Guaranteed Delivery (printed on green
    paper) in the form accompanying the Offer or a facsimile
    thereof, properly completed and duly executed, including a
    guarantee by an Eligible Institution in the form specified in
    the Notice of Guaranteed Delivery, is received by the Depositary
    at its office in Toronto as set out in the Notice of Guaranteed
    Delivery, at or prior to the Expiry Time; and
    
	 
	 	(c)	
    the certificate(s) representing deposited Common
    Shares in proper form for transfer together with a Letter of
    Acceptance and Transmittal in the form accompanying the Offer or
    a manually signed facsimile thereof, properly completed and duly
    executed, with any required signature guarantees and all other
    documents required by the Letter of Acceptance and Transmittal,
    are received by the Depositary at its office in Toronto as set
    out in the Notice of Guaranteed Delivery at or prior to
    5:00 p.m. (Vancouver time) on the third trading day on the
    TSX after the Expiry Time.
    

     
The Notice of Guaranteed Delivery may be
delivered by hand or mail or transmitted by facsimile to the
Depositary at its office in Toronto as 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
the Letter of Acceptance and Transmittal and accompanying Common
Share certificates to any office other than the Toronto office
of the Depositary does not constitute delivery for purposes of
satisfying a guaranteed delivery.

14

 

General

     
In all cases, payment for Common Shares deposited
and taken up by the Offerors under the Offer will be made only
after timely receipt by the Depositary of the certificate(s)
representing the Common Shares, a Letter of Acceptance and
Transmittal or a manually signed facsimile thereof, properly
completed and duly executed, covering those Common Shares with
the signatures guaranteed, if required, in accordance with the
instructions set out in the Letter of Acceptance and
Transmittal, and any other required documents.

     
The method of delivery of certificates
representing Common Shares, the Letter of Acceptance and
Transmittal and all other required documents is at the option
and risk of the person depositing the same. The Offerors
recommend that all such documents be delivered by hand to the
Depositary and a receipt obtained or, if mailed, that registered
mail, with return receipt requested, be used and that proper
insurance be obtained.

     
Shareholders wishing to accept the Offer whose
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 Common Shares.

     
All questions as to the validity, form,
eligibility (including timely receipt) and acceptance of any
Common Shares deposited under the Offer will be determined by
the Offerors or the Depositary (on behalf of the Offerors) in
their sole discretion. Depositing Shareholders agree that such
determination shall be final and binding. The Offerors and the
Depositary (on behalf of the Offerors) reserve the absolute
right to reject any and all deposits that they determine not to
be in proper form or that may be unlawful to accept under the
laws of any jurisdiction. The Offerors reserve the absolute
right to waive any defects or irregularities in the deposit of
any Common Shares. There shall be no duty or obligation on the
Offerors or the Depositary or any other person to give notice of
any defects or irregularities in any deposit and no liability
shall be incurred by any of them for failure to give any such
notice. The Offerors’ and the Depositary’s (on behalf
of the Offerors) interpretation of the terms and conditions of
the Offer, the Circular, the Letter of Acceptance and
Transmittal and the Notice of Guaranteed Delivery will be final
and binding.

     
The Offerors reserve the right to permit the
Offer to be accepted in a manner other than that set out above.

Dividends and Distributions

     
Subject to the terms and conditions of the Offer,
by accepting the Offer pursuant to the procedures set forth
above, a Shareholder deposits, sells, assigns and transfers to
the Offerors all right, title and interest: (a) in and to
the Common Shares covered by the Letter of Acceptance and
Transmittal delivered to the Depositary (the “Deposited
Securities”); and (b) in and to all rights and
benefits arising from such Deposited Securities including any
and all dividends, distributions, payments, securities, property
or other interests which may be declared, paid, accrued, issued,
distributed, made or transferred on or in respect of the
Deposited Securities or any of them on and after the date of the
Offer (other than any cash dividend, distribution or payment in
respect of which a reduction in the price of the Offer is made
pursuant to the provisions of the section entitled
“Dividends and Distributions; Liens” in this Offer),
and any dividends, distributions or payments on such dividends,
distributions, payments, securities, property or other interests
(each a “Distribution” and collectively,
“Distributions”).

Power of Attorney

     
An executed Letter of Acceptance and Transmittal
irrevocably appoints, effective on and after the date that the
Offerors take up and pay for the Deposited Securities covered by
the Letter of Acceptance and Transmittal (which securities upon
being taken up and paid for are, together with any Distributions
thereon, hereinafter referred to as the “Purchased
Securities”), certain officers of the Offerors and any
other person designated by the Offerors in writing (each an
“Appointee”) as the true and lawful agents,
attorneys and attorneys-in-fact and proxies, with full power of
substitution, of the depositing Shareholder. The Letter of
Acceptance and Transmittal irrevocably authorizes an Appointee,
effective on and after the date the Offerors take up and pay for
such Deposited Securities, in the name and on behalf of such
Shareholder: (a) to register or record the transfer and/or
cancellation of such Purchased Securities on the appropriate
register maintained by or on behalf of Wheaton; (b) for so
long as any Purchased Securities are registered or recorded in
the name of such Shareholder, to exercise any and all rights of
such Shareholder including, without limitation, to vote any or
all Purchased Securities, to execute and deliver any and all
instruments of proxy, authorizations or consents in form and on
terms satisfactory to the Offerors in respect of any or all
Purchased Securities, to revoke any such instrument,
authorization or consent, to designate in such instrument,
authorization or consent and/or to designate in any such
instruments of proxy any person or persons as the proxy of such
Shareholder in

15

 

respect of the Purchased Securities for all
purposes including, without limitation, in connection with any
meeting or meetings (whether annual, special or otherwise or any
adjournment thereof, including without limitation, any meeting
to consider a Subsequent Acquisition Transaction) of holders of
relevant securities of Wheaton; and (c) to execute, endorse
and negotiate, for and in the name of and on behalf of such
Shareholder, any and all cheques or other instruments
representing any Distribution payable to or to the order of, or
endorsed in favour of, such Shareholder.

     
A Shareholder accepting the Offer under the terms
of the Letter of Acceptance and Transmittal revokes any and all
other authority, whether as agent, attorney-in-fact, attorney,
proxy or otherwise, previously conferred or agreed to be
conferred by the Shareholder at any time with respect to the
Deposited Securities or any Distributions. The Shareholder
accepting the Offer agrees that no subsequent authority, whether
as agent, attorney-in-fact, attorney, proxy or otherwise will be
granted with respect to the Deposited Securities or any
Distributions by or on behalf of the depositing Shareholder,
unless the Deposited Securities are not taken up and paid for
under the Offer. A Shareholder accepting the Offer also agrees
not to vote any of the Deposited Securities at any meeting
(whether annual, special or otherwise or any adjournment
thereof, including without limitation, any meeting to consider a
Subsequent Acquisition Transaction) of holders of relevant
securities of Wheaton and not to exercise any of the other
rights or privileges attached to the Deposited Securities, and
agrees to execute and deliver to the Offerors any and all
instruments of proxy, authorizations or consents in respect of
all or any of the Deposited Securities, and to appoint in any
such instruments of proxy, authorizations or consents, the
person or persons specified by the Offerors as the proxy of the
holder of the Deposited Securities. Upon such appointment,
all prior proxies and other authorizations (including, without
limitation, all appointments of any agent, attorney or
attorney-in-fact) or consents given by the holder of such
Deposited Securities with respect thereto will be revoked and no
subsequent proxies or other authorizations or consents may be
given by such person with respect thereto.

Further Assurances

     
A Shareholder accepting the Offer covenants under
the terms of the Letter of Acceptance and Transmittal to
execute, upon request of the Offerors, any additional documents,
transfers and other assurances as may be necessary or desirable
to complete the sale, assignment and transfer of the Purchased
Securities to the Offerors and acknowledges that all authority
therein conferred or agreed to be conferred may be exercised
during any subsequent legal incapacity of such holder and shall,
to the extent permitted by Law, survive the death or incapacity,
bankruptcy or insolvency of the holder and all obligations of
the holder therein shall be binding upon the heirs, executors,
administrators, attorneys, personal representatives, successors
and assigns of such holder.

Depositing Shareholders’
Representations and Warranties

     
The acceptance of the Offer pursuant to the
procedures set forth above constitutes an agreement between a
depositing Shareholder and the Offerors in accordance with the
terms and conditions of the Offer. This agreement includes a
representation and warranty by the depositing Shareholder that:
(a) the person signing the Letter of Acceptance and
Transmittal has full power and authority to deposit, sell,
assign and transfer the Deposited Securities and any
Distributions being deposited to the Offer; (b) the person
signing the Letter of Acceptance and Transmittal or the person
on whose behalf the Deposited Securities are being deposited
owns the Deposited Securities; (c) the Deposited Securities
and any Distributions are not subject to any trust arrangement,
neither any legal nor any beneficial interest in the Deposited
Securities or Distributions has been sold, assigned or
transferred, nor has any agreement been entered into to sell,
assign or transfer any legal or beneficial interest in any of
the Deposited Securities or Distributions, to any other person;
(d) the deposit of the Deposited Securities and
Distributions complies with Laws; and (e) when the
Deposited Securities and Distributions are taken up and paid for
by the Offerors, the Offerors will acquire good title thereto,
free and clear of all liens, restrictions, charges,
encumbrances, claims and rights of others.

4.   Conditions of the
Offer

     
Notwithstanding any other provision of the Offer,
and subject to the provisions of the Acquisition Agreement, the
Offerors will have the right to withdraw the Offer and not take
up and pay for any Common Shares deposited under the Offer, or
extend the period of time during which the Offer is open for
acceptance and postpone taking up and paying for any Common
Shares deposited under the Offer, unless all of the following
conditions are satisfied or waived by the

16

 

Offerors, at their sole discretion (provided,
however, that the Minimum Tender Condition may only be waived by
the Offerors with the prior written consent of Wheaton), at or
prior to the Expiry Time:

			
	 	(a)	
    there shall have been properly deposited under
    the Offer and not withdrawn at the Expiry Time at least
    66 2/3% of the Common Shares outstanding at the time Common
    Shares are taken up under the Offer (the “Minimum Tender
    Condition”);
    
	 
	 	(b)	
    the issuance by Goldcorp of Goldcorp Shares
    pursuant to the Offer and the Subsequent Acquisition Transaction
    shall have been approved by a majority of votes cast by the
    shareholders of Goldcorp, present in person or represented by
    proxy at the special meeting of the Shareholders of Goldcorp
    called to consider an ordinary resolution to approve such
    issuance of Goldcorp Shares;
    
	 
	 	(c)	
    the board of directors of Wheaton shall have
    unanimously recommended that Shareholders tender their Common
    Shares to the Offer, and not withdrawn such recommendation;
    
	 
	 	(d)	
    the Acquisition Agreement shall not have been
    terminated by Wheaton or by Goldcorp in accordance with its
    terms;
    
	 
	 	(e)	
    all necessary orders, authorizations or consents
    shall have been obtained under the Securities Laws in respect of
    the issuance of the Goldcorp Shares pursuant to the Offer and a
    registration statement relating to such Goldcorp Shares to be
    issued pursuant to the Offer shall have become effective under
    the U.S. Securities Act and no stop order relating to such
    registration statement shall be in effect;
    
	 
	 	(f)	
    the Offerors shall have received waivers relating
    to any change of control provisions in any note, bond, mortgage,
    indenture, license, lease, contract, agreement or other
    instrument or obligation to which Wheaton or any of its
    subsidiaries is a party or by which any of them or any of their
    properties or assets may be bound, except such waivers, the
    absence of which, would not, in the aggregate, have a Material
    Adverse Effect on Wheaton and its subsidiaries, on a
    consolidated basis;
    
	 
	 	(g)	
    there shall not be in effect as of the Expiry
    Time, as it may be extended, any temporary restraining order,
    preliminary or permanent injunction, statute, rule, regulation,
    order or decree enacted, entered, promulgated, issued or
    enforced by any court, administrative agency or commission or
    other governmental authority or instrumentality which
    challenges, prohibits, restricts or makes illegal the
    consummation of any or all of the Offer or the Subsequent
    Acquisition Transaction;
    
	 
	 	(h)	
    there shall not be pending or threatened any
    suit, action or proceeding by any court, administrative agency
    or commission or other governmental authority or instrumentality:
    

			
	 	(i)	
    seeking to restrain or prohibit the completion of
    the Offer or seeking to obtain from the Offerors or Wheaton or
    their respective subsidiaries any damages that are material in
    relation to Wheaton and the Offerors and their subsidiaries,
    considered as a whole;
    
	 
	 	(ii)	
    seeking to prohibit or limit the ownership,
    control or operation by the Offerors or any of their
    subsidiaries of any portion of the business or assets of Wheaton
    or the Offerors or any of their respective subsidiaries that is
    material in relation to Wheaton and the Offerors and their
    subsidiaries, considered as a whole, or to compel Wheaton or the
    Offerors or any of their respective subsidiaries to dispose of
    or hold separate any portion of the business or assets of
    Wheaton or the Offerors or any of their respective subsidiaries
    that is material in relation to Wheaton and the Offerors and
    their subsidiaries, considered as a whole; or
    
	 
	 	(iii)	
    which otherwise is reasonably likely to have a
    Material Adverse Effect on the Offerors and Wheaton and their
    subsidiaries, considered as a whole;
    

			
	 	(i)	
    there shall not have occurred after the date of
    the Offer any Material Adverse Change of Wheaton; and
    
	 
	 	(j)	
    the Offerors shall have obtained or received all
    approvals, consents or confirmations sought by the Offerors or
    required to be obtained or received from any administrative
    agency or commission or other governmental authority or
    instrumentality in connection with the Offer under the
    Foreign Acquisitions and Takeovers Act 1975 (Cth)
    (Australia) and in Brazil, Argentina and Mexico; and the
    Commissioner shall have issued an advance ruling certificate
    pursuant to Section 102 of the Competition Act
    (Canada) or, alternatively, any applicable waiting period
    related to merger pre-notification under Part IX of the
    Competition Act (Canada) shall have expired and the
    Commissioner shall have advised (which advice will not have been
    rescinded or
    

17

 

			
	 		
    amended), to the satisfaction of the Offerors, in
    their reasonable judgment, that the Commissioner does not intend
    to oppose the acquisition contemplated by the Offer if such
    advice is considered by the Offerors, in their reasonable
    judgment, to be desirable.
    

     
The conditions listed above are for the exclusive
benefit of the Offerors, and the Offerors may assert them
regardless of the circumstances giving rise to any of the
conditions. Unless precluded from doing so by applicable law,
the Offerors may, in their sole discretion, waive any of these
conditions in whole or in part, other than the Minimum Tender
Condition. The Minimum Tender Condition may be waived by the
Offerors only with the prior written consent of Wheaton. The
determination as to whether any condition has been satisfied
shall be in the Offerors’ reasonable judgment and will be
final and binding on all parties. The failure by the Offerors at
any time to exercise any of the foregoing rights shall not be
deemed a waiver of any right and each right shall be deemed a
continuing right that may be asserted at any time and from time
to time until immediately following the Expiry Time and, as to
conditions involving receipt of necessary government approvals,
thereafter. The conditions listed above shall be conclusively
deemed to have been satisfied or waived upon the taking up by
any Offeror of any Common Shares pursuant to the Offer.

     
The Offerors reserve 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 waiver of a condition in respect of the Offer
or the withdrawal of the Offer shall be effective upon written
notice, or other communication confirmed in writing by the
Offerors to that effect, to the Depositary at its principal
office in Toronto. Forthwith after giving any such notice, the
Offerors will make a public announcement of such waiver or
withdrawal, cause the Depositary, if required by Law, as soon as
practicable thereafter to notify the Shareholders in the manner
set forth in the section entitled “Notices and
Delivery” in this Offer and provide a copy of the
aforementioned public announcement to the TSX, the AMEX and the
NYSE. If the Offer is withdrawn, the Offerors shall not be
obligated to take up or pay for any Common Shares deposited
under the Offer, and the Depositary will promptly return all
certificates representing deposited Common Shares, Letters of
Acceptance and Transmittal, Notices of Guaranteed Delivery and
related documents to the parties by whom they were deposited at
the Offerors’ expense. See the section entitled
“Return of Deposited Common Shares” in this Offer.

5.   Extension and Variation of
the Offer

     
The Offer is open for acceptance until the Expiry
Time, unless the Offer is withdrawn or the Offer is extended by
the Offerors.

     
The Offerors expressly reserve the right, in
their sole discretion, at any time and from time to time during
the Deposit Period or at any other time if permitted by Law, to
extend the Deposit Period or vary the Offer by giving written
notice, or other communication confirmed in writing, of such
extension or variation to the Depositary at its principal office
in Toronto, and by causing the Depositary as soon as practicable
thereafter to communicate such notice to all holders of the
class or classes of Common Shares that are subject to the Offer
whose Common Shares have not been taken up prior to the
extension or variation in the manner set forth in the section
entitled “Notices and Delivery” in this Offer.
Pursuant to the provisions of the Acquisition Agreement,
Goldcorp has agreed not to amend or vary the terms and
conditions of the Offer, except to increase the value of the
consideration payable under the Offer or to extend the Expiry
Time from time to time, to a date not later than: (i) 120
calendar days after the date of the Offer in the event that any
of the conditions in paragraphs (e), (f), (g), (h) or (j)
under the section entitled “Conditions of the Offer”
in the Offer have not been satisfied or waived by the Offerors
or if an Alternative Transaction has been proposed and is
continuing; and (ii) in any other case, 60 calendar days
after the date of the Offer; provided, however, that the
Offerors may waive any one or more of the conditions of the
Offer, in their sole discretion, except the Minimum Tender
Condition. The Minimum Tender Condition may be waived by the
Offerors only with the prior written consent of Wheaton.

     
The Offerors will, as soon as practicable after
giving notice of an extension or variation to the Depositary,
make a public announcement of the extension or variation, such
announcement to be made promptly, in the case of a variation,
and in the case of an extension, to be disseminated no later
than 9:00 a.m. (Toronto time) on the earlier of
(i) the next U.S. business day after the extension and
(ii) the next U.S. business day after the previously
scheduled Expiry Time, and provide a copy of the notice to the
TSX, the AMEX and the NYSE. Any notice of extension of the Offer
will include the approximate number of Common Shares deposited
to the Offer at the time of such notice. Any notice of extension
or variation will be deemed to have been given and be effective
at the time on the day on which it is delivered or otherwise
communicated to the Depositary at its principal office in
Toronto.

18

 

     
Notwithstanding the foregoing, the Offer may not
be extended by the Offerors if all of the terms and conditions
of the Offer, except those waived by the Offerors, have been
fulfilled or complied with, unless the Offerors first take up
all Common Shares validly deposited under the Offer and not
withdrawn.

     
Where the terms of the Offer are varied, the
Deposit Period will not end before 10 Business Days after
the notice of such variation has been given to Shareholders,
unless otherwise permitted by Law and subject to abridgement or
elimination of that period pursuant to such orders as may be
granted by applicable securities regulatory authorities.
Notwithstanding the foregoing, if the Offerors make a material
change in the terms of the Offer or the information concerning
the Offer, or if they waive a material condition of the Offer,
the Offerors will disseminate additional offer materials and
extend the Offer to the extent required by Rules 14d-4(d),
14d-6(c) and 14e-1 under the U.S. Exchange Act. Under the
U.S. Exchange Act, the minimum period during which an offer
must remain open following a change in consideration offered,
percentage of securities sought or inclusion of or changes to a
dealer’s soliciting fee is 10 Business Days. The
period during which an offer must remain open following a
material change in the terms of such offer, other than a change
in consideration offered, percentage of securities sought or
inclusion of or changes to a dealer’s soliciting fee, will
depend upon the facts and circumstances, including the
materiality, of the changes. Accordingly, if prior to the Expiry
Time, the Offerors increase the consideration offered pursuant
to the Offer or increase or decrease a dealer’s soliciting
fee, and if the Offer is scheduled to expire at any time earlier
than the tenth business day from the date that notice of such
increase or decrease is first published, sent or given to
Shareholders, the Offer will be extended at least until the
expiration of such tenth business day. The requirement to extend
the Offer will not apply to the extent that the number of
business days remaining between the occurrence of the change and
the then scheduled Expiry Time equals or exceeds the minimum
extension period that would be required because of such
amendment.

     
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 the Offer or the Circular, each as
amended from time to time, that would reasonably be expected to
affect the decision of a holder of the Common Shares that are
the subject of the Offer to accept or reject the Offer (other
than a change that is not within the control of the Offerors or
of an Affiliate of the Offerors), the Offerors will give written
notice of such change to the Depositary at its principal office
in Toronto, and will cause the Depositary to provide as soon as
practicable thereafter a copy of such notice in the manner set
forth in the section entitled “Notices and Delivery”
in this Offer to all holders of such Common Shares whose Common
Shares have not been taken up pursuant to the Offer at the date
of the occurrence of the change, if required by applicable Law.
The Offerors will as soon as practicable after giving notice of
a change in information to the Depositary make a public
announcement of the change in information and provide a copy of
the public announcement to the TSX, the AMEX and the NYSE. Any
notice of change in information 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 Toronto.

     
During any such extension or in the event of any
such variation or change in information, all Common Shares
deposited and not taken up or withdrawn will remain subject to
the Offer and may be taken up by the Offerors in accordance with
the terms hereof, subject to the section entitled
“Withdrawal of Deposited Common Shares” in this Offer.
An extension of the Deposit Period, a variation of the Offer or
a change in information does not constitute a waiver by the
Offerors of their rights under the section entitled
“Conditions of the Offer” in this Offer.

     
If the consideration being offered for the Common
Shares under the Offer is increased, the increased consideration
will be paid to all depositing holders of the Common Shares
whose Common Shares are taken up under the Offer without regard
to the time at which such Common Shares are taken up by the
Offerors.

Subsequent Offering Period

     
Pursuant to Rule 14d-11 under the
U.S. Exchange Act, the Offerors, subject to the conditions
listed below, may elect to make available a subsequent offering
period by extending the Offer on one occasion for a period of at
least three U.S. business days and not to exceed 20
U.S. business days (the “Subsequent Offering
Period”) following the Expiry Time. Pursuant to such
rule, the Offerors may include a Subsequent Offering Period with
respect to the Offer so long as:

			
	 	•	
    the Offer was open for at least 20
    U.S. business days and has expired;
    
	 
	 	•	
    the Offer was for all outstanding Common Shares
    that are the subject of the Offer;
    

19

 

			
	 	•	
    the Offerors immediately take up and promptly pay
    for all Common Shares deposited during the Offer;
    
	 
	 	•	
    the Offerors announce the results of the Offer,
    including the approximate number and percentage of Common Shares
    deposited, no later than 9:00 a.m. (Toronto time) on the
    next U.S. business day after the Expiry Time and
    immediately begin the Subsequent Offering Period;
    
	 
	 	•	
    the Offerors immediately take up and promptly pay
    for Common Shares as they are deposited during the Subsequent
    Offering Period with respect to the Offer; and
    
	 
	 	•	
    the Offerors pay the same form and amount of
    consideration for all Common 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
the U.S. Exchange Act, although it does constitute an
extension of the Offer under Canadian securities laws. Under
Canadian securities laws, in order for an Offeror to take up and
pay for additional Common Shares deposited after the initial
Expiry Time, the Offerors must either (i) extend the Offer
in accordance with Canadian securities laws (which extension
would be treated as a Subsequent Offering Period in the United
States) or (ii) initiate a new offer in respect of Common
Shares, which new offer could not be consummated for at least
35 days. For purposes of the U.S. Exchange Act, a
Subsequent Offering Period is an additional period of time
beginning on the next U.S. business day after the Expiry
Time during which Shareholders may deposit Common 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 Common Shares then deposited under the Offer, and
during which period Shareholders may deposit Common Shares not
deposited prior to the commencement of the Subsequent Offering
Period with respect to the Offer. The Offerors do not currently
intend to include a Subsequent Offering Period with respect to
the Offer, although the Offerors reserve the right to do so in
their sole discretion. If the Offerors elect to include a
Subsequent Offering Period with respect to the Offer, for
purposes of applicable United States federal securities laws,
the Offerors will include a statement of their intention to do
so in the press release announcing the results of the Offer
disseminated no later than 9:00 a.m. (Toronto time) on the
next U.S. business day after the previously scheduled
Expiry Time. For purposes of applicable Canadian securities
laws, the Offerors 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 in the manner set forth in Section 11
of the Offer, “Notices and Delivery” to all holders of
Common 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 Common
Shares during the Subsequent Offering Period, if one is
included, as would have been paid prior to the commencement of
such period. Notwithstanding the provisions of the
U.S. Exchange Act regarding subsequent offering periods,
the Offerors will permit withdrawal of Common Shares deposited
during any Subsequent Offering Period, if there is one, at any
time prior to the expiry of such Subsequent Offering Period;
provided, however, that this right of withdrawal will not apply
in respect of Deposited Securities taken up by the Offeror prior
to the Subsequent Offering Period. Withdrawing holders of Common
Shares who have deposited such Common Shares during the
Subsequent Offering Period and have received payment for such
Common Shares must return such payment to the applicable Offeror
prior to any withdrawal. Subject to the following sentence, the
Expiry Time with respect to a subsequent Offer shall be
5:00 p.m. (Vancouver time) on the last day of the
Subsequent Offering Period, unless determined otherwise pursuant
to the provisions of this Section 5. The foregoing sentence
will not limit the requirement that the conditions to the Offer
set forth in Section 4 of the Offer, “Conditions of
the Offer”, be satisfied or waived prior to the initial
Expiry Time, which will be before the commencement of the
Subsequent Offering Period.

     
Under applicable Canadian securities laws, a
Subsequent Offering Period must be open for at least ten
calendar days from the date of notice of extension referred to
above. As a result, to comply with the applicable laws of Canada
and the U.S. Exchange Act, if the Offerors elect to make a
Subsequent Offering Period available with respect to the Offer,
the Subsequent Offering Period will be open for at least ten
calendar days from the date of notice of extension and will not
exceed 20 U.S. business days from the Expiry Time. The
Offerors will promptly take up and pay for all Common Shares
validly deposited during the Subsequent Offering Period with
respect to the Offer.

20

 

6.   Withdrawal of Deposited
Common Shares

     
Except as otherwise stated in this
Section 6, all deposits of Common Shares pursuant to the
Offer are irrevocable. Unless otherwise required or permitted by
applicable Law, any Common Shares deposited in acceptance of the
Offer may be withdrawn by or on behalf of the depositing
Shareholder:

			
	 	(a)	
    at any time before the Common Shares have been
    taken up by the Offerors pursuant to the Offer;
    
	 
	 	(b)	
    at any time before the expiration of 10 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 or the
    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 Offerors or of an
    Affiliate of the Offerors) in the event that such change 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 Common
    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 Common Shares have not
    been taken up by the Offerors 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; or
    

			
	 	(c)	
    if the Common Shares have not been paid for by
    the Offerors within 3 Business Days after having been taken up;
    
	 
	 	(d)	
    during a Subsequent Offering Period; provided,
    however, that this right of withdrawal will not apply in respect
    of Common Shares taken up by an Offeror prior to the Subsequent
    Offering Period; and
    
	 
	 	(e)	
    as required by the U.S. Exchange Act, at any
    time after February 26, 2005 provided that the Common
    Shares have not been accepted for payment by the purchasing
    Offeror prior to the receipt by the Depositary of the notice of
    withdrawal in respect of such Common Shares.
    

     
If the Offerors waive any terms or conditions of
the Offer and extend the Offer in circumstances where the rights
of withdrawal set forth in Section 6(b) above are
applicable, the Offer shall be extended without the Offerors
first taking up the Common Shares that are subject to the rights
of withdrawal.

     
Withdrawals of Common Shares deposited to the
Offer must be effected by notice of withdrawal made by or on
behalf of the depositing Shareholder and must be received by the
Depositary at the place of deposit of the applicable Common
Shares within the time limits indicated above. Notice of
withdrawal must: (i) be made by a method, including a
manually signed facsimile transmission, that provides the
Depositary with a written or printed copy; (ii) be signed
by the person who signed the Letter of Acceptance and
Transmittal accompanying, or the Notice of Guaranteed Delivery
in respect of, the Common Shares that are to be withdrawn; and
(iii) specify such person’s name, the number of Common
Shares to be withdrawn, the name of the registered holder and
the certificate number shown on each certificate representing
the Common Shares to be withdrawn. The withdrawal will take
effect upon receipt by the Depositary of the properly completed
notice of withdrawal. Any signature on the notice of withdrawal
must be guaranteed by an Eligible Institution in the same manner
as in a Letter of Acceptance and Transmittal (as described in
the instructions set out in such letter), except in the case of
Common Shares deposited for the account of an Eligible
Institution. None of the Offerors, 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 shall incur any
liability for failure to give such notice.

     
Withdrawals may not be rescinded and any Common
Shares withdrawn will thereafter be deemed not validly deposited
for purposes of the Offer. However, withdrawn Common Shares may
be redeposited at any time at or prior to the Expiry Time by
again following one of the procedures described in the section
entitled “Manner of Acceptance” in this Offer.

     
The ability of a purchasing Offeror to delay the
payment for Common Shares that such Offeror 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

21

 

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, on behalf of the Offerors, is bound by
Rule 14e-1(c) under the U.S. Exchange Act in retaining
Deposited Shares under these circumstances.

     
Notwithstanding the provisions of United States
federal securities laws relating to subsequent offering periods,
the Offerors will permit withdrawal of deposited Common Shares
during any Subsequent Offering Period, if there is one, at any
time prior to the Expiry Time of such Subsequent Offering
Period; provided, however, that this right of withdrawal will
not apply in respect of Deposited Shares taken up by an Offeror
prior to the Subsequent Offering Period. Withdrawing holders of
Common Shares who have deposited such Common Shares during the
Subsequent Offering Period and have received payment for such
Common Shares must return such payment to the applicable Offeror
prior to any withdrawal.

     
If the Offerors are delayed in taking up or
paying for Common Shares or are unable to take up or pay for
Common Shares for any reason, then, without prejudice to the
Offerors’ other rights, Common Shares may not be withdrawn
except to the extent that depositing Shareholders are entitled
to withdrawal rights as set forth in this Section 6 or
pursuant to Laws.

     
In addition to the foregoing rights of
withdrawal, holders of Common Shares in certain provinces of
Canada are entitled to statutory rights of rescission or to
damages, or both, in certain circumstances. Please see the
section entitled “Offerees’ Statutory Rights” in
the Circular.

     
All questions as to the validity (including
timely receipt) and form of notices of withdrawal will be
determined by the Offerors and the Depositary (on behalf of the
Offerors) in their sole discretion, and such determination will
be final and binding.

7.   Payment for Deposited
Common Shares

     
Upon the terms and subject to the conditions of
the Offer (including but not limited to the conditions specified
in the section entitled “Conditions of the Offer” in
this Offer), the Offerors will take up Common Shares validly
deposited under the Offer and not withdrawn pursuant to
Section 6 of the Offer promptly following the Expiry Time,
but in any event not later than 10 days after the Expiry
Time. The Offerors are obligated to pay for Common Shares that
they have taken up promptly after taking up such Common Shares,
and in any event not later than the earlier of 3 Business Days
after the taking up of the Common Shares and 10 days after
the Expiry Time. Any Common Shares deposited under the Offer
after the first date on which Common Shares have been taken up
by the Offerors will be taken up and paid for not later than
10 days after such deposit.

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

     
The Offerors will be deemed to have taken up
Common Shares validly deposited under the Offer and not
withdrawn if, as and when the Offerors give written notice or
other communication confirmed in writing to the Depositary at
its principal office in Toronto to that effect. Promptly
following notification of the Depositary of the Offerors’
take-up of Deposited Securities, the Offerors will forthwith
issue a press release over the Dow Jones News Wire Service,
which press release will disclose the approximate number of
Common Shares deposited in the Offer and the approximate number
that have been taken up.

22

 

     
The Offerors will pay for Common Shares validly
deposited under the Offer and not withdrawn by providing the
Depositary with sufficient certificates representing Goldcorp
Shares for transmittal to depositing Shareholders. Under no
circumstances will interest accrue or be paid by the Offerors or
the Depositary to persons depositing Common Shares on the
purchase price of Common Shares purchased by the Offerors,
regardless of any delay in making such payment. The Depositary
will act as the agent of persons who have deposited Common
Shares in acceptance of the Offer for the purposes of receiving
share certificates from the Offerors and transmitting such share
certificates to such persons, and receipt of certificates
representing Goldcorp Shares by the Depositary shall be deemed
to constitute receipt thereof by persons depositing Common
Shares.

     
Fractions of Goldcorp Shares will not be issued.
Any fractional number of Goldcorp Shares equal to or greater
than 0.5 will be rounded up to the nearest whole number of
Goldcorp Shares and less than 0.5 will be rounded down to the
nearest whole number of Goldcorp Shares.

     
Settlement will be made by the Depositary issuing
or causing to be issued a share certificate representing the
appropriate number of Goldcorp Shares to which the person
depositing Common Shares is entitled. Unless otherwise directed
in the Letter of Acceptance and Transmittal, such share
certificate will be issued in the name of the registered holder
of deposited Common Shares. Unless the person depositing Common
Shares instructs the Depositary to hold the certificate
representing Goldcorp Shares for pick-up by checking the
appropriate box in the Letter of Acceptance and Transmittal,
such share certificate will be forwarded by first class mail,
postage prepaid, to such person at the address specified in the
Letter of Acceptance and Transmittal. If no address is
specified, the share certificate will be forwarded to the
address of the Shareholder as shown on the appropriate share
register maintained by or on behalf of Wheaton. Share
certificates mailed in accordance with this paragraph will be
deemed to have been delivered at the time of mailing.

     
Depositing Shareholders will not be obligated to
pay any brokerage fee or commission if they accept the Offer by
depositing their Common Shares directly with the Depositary.

8.   Return of Deposited Common
Shares

     
If any deposited Common Shares are not taken up
and paid for pursuant to the terms and conditions of the Offer
for any reason or if certificates are submitted for more Common
Shares than are deposited, certificates for Common Shares that
are not purchased will be returned at the Offerors’ expense
by sending certificates representing Common Shares not purchased
by first class mail in the name of and to the address specified
by the Shareholder in the Letter of Acceptance and Transmittal
or, if such name or address is not so specified, in such name
and to such address as shown on the appropriate share register
maintained by or on behalf of Wheaton.

9.   Mail Service
Interruption

     
Notwithstanding the provisions of the Offer, the
Circular, the Letter of Acceptance and Transmittal or the Notice
of Guaranteed Delivery, share certificates, cheques and any
other relevant documents will not be mailed if the Offerors
determine that delivery thereof by mail may be delayed. Persons
entitled to share certificates, cheques and any other relevant
documents which are not mailed for the foregoing reason may take
delivery thereof at the office of the Depositary to which the
deposited certificates for Common Shares were delivered until
such time as the Offerors have determined that delivery by mail
will no longer be delayed. The Offerors will provide notice of
any determination not to mail under this Section 9 as soon
as reasonably practicable after the making of such determination
and in accordance with the provisions of the section entitled
“Notices and Delivery” in this Offer. Notwithstanding
the provisions of the section entitled “Payment for
Deposited Common Shares” in this Offer, certificates,
cheques or other relevant documents not mailed for the foregoing
reason will be conclusively deemed to have been mailed on the
first day upon which they are available for delivery to the
depositing Shareholder at the appropriate office of the
Depositary.

 

		
	10.	
    Dividends and Distributions; Liens

     
Common Shares acquired pursuant to the Offer
shall be transferred by the Shareholder and acquired by the
Offerors free and clear of all liens, restrictions, charges,
encumbrances, claims and rights of others and together with all
rights and benefits arising therefrom, including, without
limitation, and except as provided below, the right to any and
all dividends, distributions, payments, securities, rights,
assets or other interests which may be declared, paid, issued,
distributed, made or transferred on or after the date of the
Offer on or in respect of the Common Shares.

23

 

     
If at any time after December 29, 2004
Wheaton should declare, make or pay any Distribution (in respect
of Common Shares accepted for purchase pursuant to the Offer)
which is payable or distributable to the Shareholders on a
record date which is prior to the date of transfer of such
Common Shares into the name of the Offerors or their nominees or
transferees on the share registers maintained by or on behalf of
Wheaton, then without prejudice to the Offerors’ rights
under the section entitled “Conditions of the Offer”
in this Offer, in the case of any cash dividend, distribution or
payment in respect of the Common Shares, or in the case of any
other Distribution, the whole of any such cash dividend,
distribution, payment or other Distribution will be received and
held by the depositing Shareholder for the account of and for
the benefit of the Offerors and will be promptly remitted and
transferred by the depositing Shareholder to the Depositary for
the account of the Offerors, accompanied by appropriate
documentation of transfer. Pending such remittance, the Offerors
will be entitled to all rights and privileges as owners of any
such Distribution and may withhold the entire purchase price
payable by the Offerors pursuant to the Offer or deduct from the
purchase price payable by the Offerors pursuant to the Offer the
amount or value of the Distribution, as determined by the
Offerors in their sole discretion. The declaration or payment of
any such dividend or distribution may have tax consequences not
discussed under the section entitled “Certain Canadian
Federal Income Tax Considerations” or “Certain United
States Federal Income Tax Considerations” in the Circular.

11. Notices and Delivery

     
Without limiting any other lawful means of giving
notice, any notice to be given by the Offerors or the Depositary
pursuant to the Offer will be deemed to have been properly given
if it is in writing and is mailed by first class mail, postage
prepaid, to registered Shareholders at their respective
addresses as shown on the share registers maintained by or on
behalf of Wheaton in respect of the Common Shares and will be
deemed to have been received on the first business day following
the date of mailing. For this purpose, “business day”
means any day other than a Saturday, Sunday or statutory holiday
in the jurisdiction to which the notice is mailed. These
provisions apply notwithstanding any accidental omission to give
notice to any one or more Shareholders and notwithstanding any
interruption of mail services in Canada following mailing.
Except as otherwise required or permitted by Law, in the event
of any interruption of or delay in mail services following
mailing, the Offerors intend to make reasonable efforts to
disseminate the notice by other means, such as publication.
Except as otherwise required or permitted by Law, if post
offices in Canada or in the United States are not open for the
deposit of mail, any notice which the Offerors 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: (a) it is given to the TSX, the AMEX and
the NYSE for dissemination through their facilities; (b) it
is published once in the national edition of The Globe and Mail
or The National Post and in daily newspapers of general
circulation in each of the French and English languages in the
City of Montreal, Québec; or (c) it is given to the
Canada News Wire Service and the Dow Jones News Wire Service for
dissemination through their facilities.

     
The Offer, the Circular and the Letter of
Acceptance and Transmittal and Notice of Guaranteed Delivery
will be mailed to registered holders of Common Shares or made in
such other manner as is permitted by applicable regulatory
authorities and the Offerors will use their reasonable efforts
to furnish such documents to brokers, banks and similar persons
whose names, or the names of whose nominees, appear on the
securityholder lists or, if applicable, who are listed as
participants in a clearing agency’s security position
listing, for subsequent transmission to beneficial owners of
Common Shares when such list or listing is received.

     
Whenever the Offer calls for documents to be
delivered to the Depositary, such documents will not be
considered delivered unless and until they have been physically
received at one of the addresses listed for the Depositary in
the Letter of Acceptance and Transmittal or at the address
listed in the Notice of Guaranteed Delivery, as applicable.
Whenever the Offer calls for documents to be delivered to a
particular office of the Depositary, such documents will not be
considered delivered unless and until they have been physically
received at that particular office.

12. Purchases of Common Shares Outside
the Offer

     
The Offerors will not acquire beneficial
ownership of Common Shares while the Offer is outstanding, other
than pursuant to the Offer.

24

 

13. 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 Goldcorp or any of their Affiliates in
connection with the Offer other than as contained in the Offer,
and, if any such information, representation or warranty is
given or made, it must not be relied upon as having been
authorized. No broker, dealer or other person shall be deemed to
be the agent of the Offerors or any of their Affiliates or the
Depositary for the purposes of the Offer.

     
The Offer and all contracts resulting from the
acceptance of the Offer shall be governed by and construed in
accordance with the laws of the Province of Ontario 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 Ontario.

     
The Offer is not being made to (nor will deposits
of Common Shares be accepted from or on behalf of) holders of
Common Shares residing in any jurisdiction in which the making
of the Offer or the acceptance thereof would not be in
compliance with the laws of such jurisdiction. The Offerors may,
in their sole discretion, take such action as they may deem
necessary to make the Offer in any such jurisdiction and extend
the Offer to holders of Common Shares in any such jurisdiction.
The foregoing shall not restrict the applicability to the Offer
of the securities laws of the United States or any other
applicable jurisdiction. However, Shareholders should be aware
that the enforcement by holders of civil liabilities under
United States federal securities laws may be affected adversely
by the fact that the Offerors are governed by the laws of
Canada, that the majority of their respective officers and
directors reside outside the United States, that some of the
experts named in the Circular reside outside the United States
and that all or a substantial portion of the assets of the
Offerors and said persons may be located outside the United
States. Shareholders may not be able to sue a foreign company or
its officers or directors in a foreign court for violations of
United States federal securities laws. It may be difficult to
compel a foreign company and its affiliates to subject
themselves to a U.S. court’s judgment.

     
The Offerors, in their sole discretion, shall
be entitled to make a final and binding determination of all
questions relating to the Offer, the Circular, the Letter of
Acceptance and Transmittal and the Notice of Guaranteed
Delivery, the validity of any acceptance of the Offer and the
validity of any withdrawal of Common Shares.

     
The provisions of the Definitions, the Summary,
the accompanying Circular, the Letter of Acceptance and
Transmittal and the Notice of Guaranteed Delivery, including the
instructions contained therein, form part of the terms and
conditions of the Offer.

     
The Offer and the accompanying Circular together
constitute the take-over bid circular required under 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. The Offer and
Circular will also constitute a part of the Offerors’
Registration Statement on Form F-10 to be filed with the
SEC on December 29, 2004 and comprise the prospectus set
forth in the Registration Statement on Form F-10.
Shareholders are urged to refer to the accompanying Circular
and, with respect to U.S. Shareholders, the Offerors’
Registration Statement on Form F-10, for additional
information relating to the Offer, Goldcorp, Subco and Wheaton.

     
Goldcorp and Subco will file with the SEC on
December 29, 2004 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, Wheaton will file with the SEC
a Tender Offer Solicitation/ Recommendation Statement on
Schedule 14D-9, together with exhibits, pursuant to
Rules 14d-9 and 14e-2 under the U.S. Exchange Act,
setting forth the position of Wheaton’s board of directors
with respect to the Offer and the reason for such position, and
may file amendments thereto. A copy of these documents, and any
amendments thereto, may be examined at, and copies obtained
from, the SEC’s internet website at the address:
http://www.sec.gov. These

25

 

documents also can be obtained from the
Information Agent by calling the telephone number set forth on
the back page of this Offer and the Circular.

	 	 	 
	
    
    GOLDCORP INC.

    	 	
    GOLDCORP ACQUISITION ULC
	 
	
    (Signed) ROBERT R. MCEWEN

    Chief Executive Officer
    	 	
    (Signed) ROBERT R. MCEWEN

    Chief Executive Officer
    

DATED: December 29, 2004

26

 

CIRCULAR

     
This Circular is furnished in connection with
the Offer dated December 29, 2004 by the Offerors to
purchase all of the issued and outstanding Common Shares
(including Common Shares which may become outstanding after the
date of the Offer and prior to the Expiry Time upon the exercise
of stock options, warrants or other rights) on the basis of 0.25
of a Goldcorp Share for each Common Share. Shareholders should
refer to the Offer for details of the terms and conditions,
including details as to payment and withdrawal rights. The terms
and conditions of the Offer, the Letter of Acceptance and
Transmittal and the Notice of Guaranteed Delivery are
incorporated into and form part of this Circular.
Appendix A (Pro Forma Financial Statements) also forms a
part of this Circular. Defined terms used in the Offer are used
in this Circular with the same meanings unless the context
otherwise requires.

     
The information concerning Wheaton contained
in the Offer and this Circular has been taken from or is based
upon publicly available documents and records on file with the
Canadian securities regulatory authorities, and other public
sources. Although the Offerors have no knowledge that would
indicate that any statements contained herein relating to
Wheaton taken from or based upon such documents, records and
sources are untrue or incomplete, neither the Offerors nor any
of their officers or directors assumes any responsibility for
the accuracy or completeness of the information relating to
Wheaton taken from or based upon such documents, records and
sources, or for any failure by Wheaton to disclose events which
may have occurred or which may affect the significance or
accuracy of any such information but which are unknown to the
Offerors.

1.   Goldcorp and
Subco

Goldcorp

     
Goldcorp is a North American based gold producer.
Goldcorp owns and acquires properties, explores for precious
metals, develops mines and produces primarily gold. It is in the
top ten gold producers globally, calculated on the basis of
market capitalization. Goldcorp owns one of the highest-grade
gold deposits in the world, the Red Lake Mine, which is located
in Ontario, Canada and has produced more than 500,000 ounces of
gold annually since 2001. The Red Lake Mine is the largest
producing gold mine in Canada. The Company also produces gold at
the Wharf Mine in the historic Lead mining area in the Black
Hills of South Dakota in the United States. Goldcorp also owns
an industrial minerals operation, Saskatchewan Minerals, in
Saskatchewan, Canada. It produces sodium sulphate used primarily
in the detergent industry. Goldcorp’s principal executive
offices are located at Suite 2700, 145 King Street
West, Toronto, Ontario, Canada M5H 1J8 (telephone:
(416) 865-0326).

Documents Incorporated by
Reference

     
The following documents filed with the securities
commissions or similar regulatory authorities in the provinces
of Canada are specifically incorporated by reference in and form
an integral part of this Circular, except to the extent that any
statement made in any of such documents is modified or
superseded by a statement in this Circular:

			
	 	(a)	
    the Annual Information Form of Goldcorp dated
    May 14, 2004 for the year ended December 31, 2003;
    
	 
	 	(b)	
    the audited comparative consolidated financial
    statements of Goldcorp as at, and for the year ended,
    December 31, 2003, together with the auditors’ report
    thereon;
    
	 
	 	(c)	
    Management’s Discussion and Analysis of
    Goldcorp for the year ended December 31, 2003;
    
	 
	 	(d)	
    the unaudited comparative consolidated interim
    financial statements of Goldcorp as at, and for the nine-months
    ended, September 30, 2004;
    
	 
	 	(e)	
    Management’s Discussion and Analysis of
    Goldcorp for the nine-months ended September 30, 2004;
    
	 
	 	(f)	
    the Management Information Circular and Proxy
    Statement of Goldcorp dated March 31, 2004 distributed in
    connection with the annual and general meeting of shareholders
    of Goldcorp held on June 16, 2004 (excluding the sections
    entitled “Report on Executive Compensation”,
    “Performance Graph” and “Corporate
    Governance”);
    
	 
	 	(g)	
    the material change report of Goldcorp dated
    December 7, 2004 concerning Goldcorp’s intention to
    make the Offer; and
    
	 
	 	(h)	
    the material change report of Goldcorp dated
    December 24, 2004 concerning Goldcorp’s approval of
    the Offer and entering into the Acquisition Agreement.
    

27

 

     
All documents of the type referred to above, and
any material change reports (excluding confidential material
change reports) and financial statements filed by Goldcorp with
any securities commissions or similar regulatory authorities in
Canada subsequent to the date of this Circular and prior to the
Expiry Time shall be deemed to be incorporated by reference into
this Circular.

     
Copies of the documents incorporated herein by
reference may be obtained on request without charge from the
Corporate Secretary, Goldcorp Inc., Suite 2700,
145 King Street West, Toronto, Ontario M5H 1J8
(telephone: (416) 865-0326). These documents are also
available through the Internet on the Canadian System for
Electronic Document Analysis and Retrieval (SEDAR) which can be
accessed at www.sedar.com. For the purpose of the Province of
Québec, this Circular contains information to be completed
by consulting the permanent information record. A copy of the
permanent information record may be obtained from the Corporate
Secretary at the above-mentioned address and telephone number or
on SEDAR.

     
Any statement contained in a document
incorporated or deemed to be incorporated by reference herein
shall be deemed to be modified or superseded, for purposes of
this Circular, to the extent that a statement contained herein
or in any other subsequently filed document that also is or is
deemed to be incorporated by reference herein modifies or
supersedes such statement. The modifying or superseding
statement need not state that it modifies or supersedes. The
making of a modifying or superseding statement shall not be
deemed an admission for any purposes 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. Any statement so
modified or superseded shall not be deemed, except as so
modified or superseded, to constitute a part of this Circular.

Subco

     
Subco was formed under the laws of the Province
of Nova Scotia on December 23, 2004 for the sole purpose of
making the Offer. Subco is a wholly-owned subsidiary of
Goldcorp. To date, Subco has engaged in no activities other than
those incidental to its organization and the making of the
Offer. The registered office of Subco is located at
1601 Lower Water Street, Halifax, Nova Scotia B3J 3P6
(telephone: (902) 425-6500). Subco’s principal
executive offices are located at Suite 2700, 145 King
Street West, Toronto, Ontario, Canada M5H 1J8
(telephone: (416) 865-0326).

Share Capital of Goldcorp

     
The authorized capital of Goldcorp consists of an
unlimited number of Goldcorp Shares. As of December 22,
2004, 189,980,188 Goldcorp Shares were outstanding.

     
At a special meeting of shareholders of Goldcorp
held on March 21, 2002, the shareholders of Goldcorp
approved a special resolution authorizing the amendment of
Goldcorp’s articles to subdivide each Goldcorp Share on a
two-for-one basis. The record date for the subdivision was
May 22, 2002 and additional Goldcorp Shares were
distributed to shareholders of record in Canada on May 27,
2002 and in the United States on May 28, 2002. Following
completion of the subdivision, the number of Goldcorp Shares
outstanding increased to 181,942,348 (206,264,308 on a fully
diluted basis).

     
On April 30, 2002, Goldcorp completed an
offering of 8,000,000 Goldcorp Shares and 4,000,000 share
purchase warrants (“2002 Warrants”) for gross proceeds
of $144 million. Subsequent to the two-for-one share split,
each whole 2002 Warrant entitles the holder to purchase two
Goldcorp Shares at a price of $12.50 per share at any time
during the period ending April 30, 2007.

     
In addition to the 2002 Warrants, Goldcorp also
has 3,000,000 share purchase warrants outstanding, each of which
entitles the holder to acquire two Goldcorp Shares, at any time
on or before May 13, 2009, at a total price of C$20.00
(C$10.00 per share).

     
Assuming that all of the Common Shares
outstanding as of December 17, 2004 (assuming full exercise
of all outstanding Wheaton Options and Wheaton Warrants that are
currently exercisable to acquire Common Shares) are deposited to
the Offer and that the Offerors take up and pay for all of such
Common Shares under the Offer, Goldcorp will issue approximately
192,355,455 Goldcorp Shares, subject to adjustment for
fractional interests as described in the Offer.

28

 

Price Range and Trading Volume of Goldcorp
Shares

     
The following table sets forth, for the periods
indicated, the reported high and low sale prices and the
aggregate volume of trading of the Goldcorp Shares on the TSX
and on the NYSE.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
					
			TSX		NYSE
			
		

	Period		High		Low		Volume		High		Low		Volume
	
		
		
		
		
		
		

			(C$)		(C$)		(000’s)		($)		($)		(000’s)
	
    
    2002

    	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
    
    October - December
    

    	 	 	20.50	 	 	 	14.85	 	 	 	70,209	 	 	 	13.41	 	 	 	9.45	 	 	 	113,744	 
	
    
    2003

    	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
    
    January - March
    

    	 	 	20.59	 	 	 	13.95	 	 	 	63,724	 	 	 	13.07	 	 	 	9.55	 	 	 	947,100	 
	
    
    April - June
    

    	 	 	17.10	 	 	 	14.59	 	 	 	41,756	 	 	 	12.72	 	 	 	10.10	 	 	 	705,300	 
	
    
    July - September
    

    	 	 	20.06	 	 	 	15.14	 	 	 	40,048	 	 	 	14.89	 	 	 	10.94	 	 	 	550,500	 
	
    
    October - December
    

    	 	 	23.80	 	 	 	18.46	 	 	 	48,905	 	 	 	18.30	 	 	 	13.73	 	 	 	769,300	 
	
    
    2004

    	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
    
    January - March
    

    	 	 	20.84	 	 	 	17.40	 	 	 	52,250	 	 	 	16.27	 	 	 	13.08	 	 	 	132,071	 
	
    
    April - June
    

    	 	 	19.35	 	 	 	14.56	 	 	 	59,516	 	 	 	14.78	 	 	 	10.50	 	 	 	108,906	 
	
    
    July - September
    

    	 	 	17.50	 	 	 	14.68	 	 	 	33,512	 	 	 	13.86	 	 	 	11.00	 	 	 	75,740	 
	
    
    October - December 23
    

    	 	 	18.91	 	 	 	16.25	 	 	 	72,191	 	 	 	15.62	 	 	 	13.15	 	 	 	115,982	 

     
Goldcorp announced the Offerors’ intention
to make the Offer on December 5, 2004. On December 3,
2004 (being the last full day on which the Goldcorp Shares
traded publicly prior to the announcement of Goldcorp’s
intention to make the Offer), the closing prices of the Goldcorp
Shares on the TSX and NYSE were C$17.15 and $14.34,
respectively. On December 23, 2004, the closing prices of
the Goldcorp Shares on the TSX and NYSE were C$18.91 and $15.34,
respectively.

Risk Factors

     
Goldcorp’s operations and financial
performance are subject to the normal risks of mining and are
subject to various factors which are beyond its control; certain
of these risk factors are described below:

     
Gold Price Volatility.
Goldcorp’s earnings are directly
related to the price of gold as its revenues are derived
primarily from gold mining. Goldcorp’s current policy is
not to engage in gold hedging activities. Gold prices fluctuate
widely and are affected by numerous factors beyond
Goldcorp’s control, including central bank sales, producer
hedging activities, expectations of inflation, the relative
exchange rate of the US dollar with other major currencies,
global and regional demand and political and economic conditions
and production costs in major gold producing regions. The effect
of these factors, individually or in the aggregate, on the price
of gold is impossible to predict with accuracy. Gold prices are
also affected by worldwide production levels. In addition, the
price of gold has on occasion been subject to very rapid
short-term changes because of speculative activities.
Fluctuations in gold prices may adversely affect Goldcorp’s
financial performance or results of operations. Further, if the
market price of gold falls, profitability and cash flow will
suffer and Goldcorp may experience losses and may curtail or
suspend some or all of its exploration, development and mining
activities.

     
Dependence on the 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 development affecting the Red Lake
Mine would have a material adverse effect on Goldcorp’s
financial performance and results of operations and
Goldcorp’s ability to implement its growth strategy or
achieve its goals for cash product costs.

     
Risks of Acquisitions.
Although the successful completion of
the Offer and Subsequent Acquisition Transaction would eliminate
the need for Goldcorp to pursue additional acquisitions in the
near future, Goldcorp will continue to actively evaluate
opportunities to acquire additional gold mining assets and
businesses. These acquisitions may be significant in size, may
change the scale of Goldcorp’s business, and may expose
Goldcorp to new geographic, political, operating, financial and
geological risks. Goldcorp’s success in its acquisition
activities depends on its ability to identify suitable
acquisition candidates, acquire them on acceptable terms and
integrate their operations successfully with those of Goldcorp.
Any acquisitions would be accompanied by risks, such as the
difficulty of assimilating the operations and personnel of any
acquired companies; the potential disruption of Goldcorp’s
ongoing business; the inability of management to maximize the
financial and strategic position of Goldcorp through the
successful

29

 

incorporation of acquired assets and businesses;
additional expenses associated with amortization of acquired
intangible assets; the maintenance of uniform standards,
controls, procedures and policies; the impairment of
relationships with employees, customers and contractors as a
result of any integration of new management personnel; and the
potential unknown liabilities associated with acquired assets
and businesses. In addition, Goldcorp may need additional
capital to finance an acquisition. Debt financing related to any
acquisition will expose Goldcorp to the risk of leverage, while
equity financing may cause existing shareholders to suffer
dilution. There can be no assurance that Goldcorp would be
successful in overcoming these risks or any other problems
encountered in connection with such acquisitions. Due to all of
the foregoing, Goldcorp’s pursuit of any future acquisition
may have a material adverse effect on its business, results of
operations, financial condition, cash flows and liquidity.
Should the Offer and Subsequent Acquisition Transaction be
successfully completed, Goldcorp does not currently intend to
pursue additional acquisitions.

     
Competition for Mineral Lands.
There is a limited supply of desirable
mineral lands available for acquisition, claim staking, or
leasing in the areas where Goldcorp contemplates expanding its
operations and conducting exploration activities. Many
participants are engaged in the mining business, including
large, established mining companies with substantial
capabilities and long earnings records. Goldcorp may be at a
competitive disadvantage in acquiring mining properties, as many
of its competitors have greater financial resources and larger
technical staffs than Goldcorp. Accordingly, there can be no
assurance that Goldcorp will be able to compete successfully for
new mining properties.

     
Uncertainty of Reserve Estimates.
Reserve estimates are imprecise and
depend partly on statistical inferences drawn from drilling,
which may prove to be unreliable. Future production could differ
dramatically from reserve estimates for the following reasons:

			
	 	•	
    mineralization or formations could be different
    from those predicted by drilling, sampling and similar
    examinations;
    
	 
	 	•	
    declines in the market price of gold may render
    the mining of some or all of Goldcorp’s reserves uneconomic;
    
	 
	 	•	
    increases in operating mining costs and
    processing costs could adversely affect reserves; and
    
	 
	 	•	
    the grade of reserves may vary significantly from
    time to time and there is no assurance that any particular level
    of gold may be recovered from the reserves.
    

     
Any of these factors may require Goldcorp to
reduce its reserve estimates or increase its costs. Short-term
factors, such as the need for additional development of a
deposit or the processing of new or different grades, may impair
Goldcorp’s profitability. Should the market price of gold
fall, Goldcorp could be required to materially write down its
investment in mining properties or delay or discontinue
production or the development of new projects.

     
Cash Costs of Gold Production.
Goldcorp’s cash production costs
to produce an ounce of gold are dependent on a number of
factors, including the grade of 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 by Goldcorp may differ
from the estimated grades of the 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.

     
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, Goldcorp may incur significant costs that could have a
material adverse effect upon its financial performance,
liquidity and results of operations. In addition, any
significant delay in the current shaft expansion program at the
Red Lake Mine could have a material adverse effect upon
financial performance and results of operations.

     
Environmental Risks.
Goldcorp’s activities are subject
to extensive federal, provincial, state and local laws and
regulations governing environmental protection and employee
health and safety. Goldcorp is required to obtain governmental
permits and provide associated financial assurance to carry on
certain activities. Goldcorp is also subject to various
reclamation and other bonding requirements under federal, state
or provincial air, water quality and mine

30

 

reclamation rules and permits. Although Goldcorp
makes provisions for reclamation costs, it cannot be assured
that these provisions will be adequate to discharge its
obligations for these costs.

     
Failure to comply with applicable environmental
and health and safety laws can result in injunctions, damages,
suspension or revocation of permits and imposition of penalties.
There can be no assurance that Goldcorp has been or will be at
all times in complete compliance with such laws, regulations and
permits, or that the costs of complying with current and future
environmental and health and safety laws and permits will not
adversely affect Goldcorp’s business, results of operations
or financial condition.

     
Under certain environmental laws, Goldcorp could
also be held responsible for the costs to address contamination
at current or former facilities or third party sites. Goldcorp
could also be held liable for exposure to such hazardous
substances. Goldcorp is involved in various investigative and
remedial actions. There can be no assurance that the costs of
such actions would not be material.

     
Environmental laws are complex, and have tended
to become more stringent over time. Any changes in such laws or
in the environmental conditions at Goldcorp’s mines could
have a material adverse effect on Goldcorp’s financial
condition, liquidity or results of operations.

     
Uncertainty of Exploration and Development
Programs. Goldcorp’s
profitability is significantly affected by the costs and results
of its exploration and development programs. As mines have
limited lives based on proven and probable reserves, Goldcorp
actively seeks to replace and expand its reserves, primarily
through exploration and development and, in the future, may do
so through strategic acquisitions, as well. Exploration for
minerals is highly speculative in nature, involves many risks
and frequently is unsuccessful. Among the many uncertainties
inherent in any gold exploration and development program are the
location of economic ore bodies, the development of appropriate
metallurgical processes, the receipt of necessary governmental
permits and the construction of mining and processing
facilities. Assuming the discovery of an economic deposit,
depending on the type of mining operation involved, several
years may elapse from the initial phases of drilling until
commercial operations are commenced and, during such time, the
economic feasibility of production may change. Accordingly,
Goldcorp’s exploration and development programs may not
result in any new economically viable mining operations or yield
new reserves to replace and expand current reserves. In the
event that new reserves are not discovered, Goldcorp may not be
able to sustain production beyond the current mine life, based
on current production rates.

     
Capital Intensive Industry; Uncertainty of
Funding. Mining operations require a
substantial amount of capital prior to the commencement of, and
in connection with, the actual production of gold. Such capital
requirements relate to the costs of, among other things,
acquiring mining claims and properties, obtaining government
permits, exploration and delineation drilling to determine the
underground configuration of the deposit, designing and
constructing the mine and processing facilities, purchasing and
maintaining mining equipment, and complying with financial
assurance requirements established by various regulatory
agencies regarding the future restoration and reclamation
activities for each property.

     
Laws and Regulations.
Goldcorp’s mining operations and
exploration activities are subject to extensive federal,
provincial, state and local laws and regulations governing
prospecting, development, production, exports, taxes, labour
standards, occupational health and safety, mine safety and other
matters. Compliance with such laws and regulations increases the
costs of planning, designing, drilling, developing,
constructing, operating and closing mines and other facilities.
Such laws and regulations are subject to constant change and
amendments to current laws and regulations governing operations
and activities of mining companies or more stringent
implementation or interpretation thereof could have a material
adverse impact on Goldcorp, causing a reduction in levels of
production and delay or prevent the development of new mining
properties.

     
Dependence on Key Personnel.
Goldcorp is dependent upon the
services of key management personnel. The loss of any of these
key personnel, if not replaced, could have a material adverse
effect on Goldcorp’s business and its operations. Goldcorp
currently does not have key person insurance on these
individuals.

     
Dependence on Dynatec Corporation.
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
(“Dynatec”) 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

31

 

Mine to the surface for processing. Any
interruption in, or problems with, the mining services provided
by Dynatec could lead to disruption of mining operations at the
Red Lake Mine and adversely affect Goldcorp’s gold
production.

     
Currency Fluctuations.
Goldcorp’s operating results and
cash flow are significantly affected by changes in the
US/Canadian dollar exchange rate. Exchange rate movements can
have a significant impact as substantially all of
Goldcorp’s revenues are earned in US dollars but the
majority of its operating and capital expenditures are in
Canadian dollars. Generally, Goldcorp does not engage in
currency hedging activities.

     
Volatility of Share Price.
The price of Goldcorp Shares may be
highly volatile due to factors such as the following, some of
which are beyond Goldcorp’s control:

			
	 	•	
    fluctuations in the price of gold;
    
	 
	 	•	
    variations in grade estimates;
    
	 
	 	•	
    variations in Goldcorp’s operating results;
    
	 
	 	•	
    operating results that vary from the expectations
    of securities analysts and investors;
    
	 
	 	•	
    changes in expectations as to Goldcorp’s
    future financial performance, including financial estimates by
    securities analysts and investors;
    
	 
	 	•	
    changes in market valuations of other gold
    companies;
    
	 
	 	•	
    announcements of significant acquisitions,
    strategic partnerships, joint ventures or capital commitments by
    Goldcorp or its competitors;
    
	 
	 	•	
    additions or departures of key personnel; and
    
	 
	 	•	
    future sales of Goldcorp Shares.
    

     
In addition, the stock market in general has
experienced extreme volatility that often has been unrelated to
the operating performance of particular companies. These broad
market and industry fluctuations may adversely affect the
trading price of Goldcorp Shares, regardless of its actual
operating performance.

     
Potential Conflicts of Interest.
Goldcorp owns approximately 49% of the
outstanding voting securities in Lexam Explorations Inc.
(“Lexam”), an exploration and development
company which is largely inactive due to insufficient financial
resources. Mr. Robert McEwen, the chair and Chief Executive
Officer and a director of Goldcorp, is also a director and
officer of Lexam. Three of the other executive officers of
Goldcorp are also officers of Lexam. As a result, there may be
potential conflicts of interest that arise for these shared
personnel, including, among other things, the allocating of
corporate opportunities and their time and effort between the
two companies. Such conflicts will need to be resolved through
the exercise by these individuals of judgment consistent with
their respective fiduciary duties to Goldcorp and Lexam.

     
Risk that Subsequent Acquisition Transaction
may not Occur, resulting in Taxable Transaction for
U.S. Holders. If the Offerors
take up and pay for Common Shares validly deposited under the
Offer, the Acquisition Agreement requires the Offerors to effect
the Subsequent Acquisition Transaction. It is possible, however,
that the Subsequent Acquisition Transaction may not occur as
provided in the Acquisition Agreement or, even if the Subsequent
Acquisition Transaction is completed as contemplated in the
Acquisition Agreement, certain requirements of United States
federal income tax law may not be met in connection with that
transaction. In either event, the transfer of the Common Shares
pursuant to the Offer or the Subsequent Acquisition Transaction
would be a taxable disposition of such shares for
U.S. Holders, and the U.S. Holders would recognize
gain or loss on the disposition equal to the difference between
the U.S. dollar equivalent of the fair market value of the
Goldcorp Shares received and the U.S. Holder’s
adjusted tax basis in the Common Shares surrendered in exchange
therefor. Please see the section entitled “Certain United
States Federal Income Tax Considerations” below.

2.   Wheaton

     
Wheaton is engaged in the acquisition,
exploration and operation of precious metal properties. The
principal products and sources of cash flow for Wheaton are
gold, silver and copper. Wheaton’s primary operating
properties consist of an indirect 37.5% interest in the Bajo de
la Alumbrera gold-copper mine in Argentina, a 100% interest in
the San Dimas, San Martin and Nukay gold-silver mines in Mexico
and a 100% interest in the Peak gold mine in Australia. Wheaton
also has 100% interests in the Los Filos gold development
project in Mexico and the Amapari gold project in Brazil, which
is under construction. In addition, Wheaton owns approximately
64% of Chap Mercantile Inc.

32

 

     
Wheaton 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 with the SEC. Such documents are
available without charge at www.sedar.com and www.sec.gov.
Wheaton’s principal executive offices are located at
1560-200 Burrard Street, Vancouver, British Columbia,
Canada V6C 3L6 (telephone: (604) 696-3000).

Share Capital of Wheaton

     
Wheaton has represented in the Acquisition
Agreement that, as at December 17, 2004, there were
(i) 572,135,538 Common Shares outstanding,
(ii) 20,931,497 Common Shares in aggregate set aside for
issue under the Wheaton Options and (iii) an aggregate of
176,354,783 Common Shares set aside for issue under the Wheaton
Warrants.

Price Range and Trading Volume of Common
Shares

     
The following table sets forth, for the periods
indicated, the reported high and low sale prices and the
aggregate volume of trading of the Common Shares on the TSX and
on the AMEX.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
					
			TSX		AMEX
			
		

	Period		High		Low		Volume		High		Low		Volume
	
		
		
		
		
		
		

			(C$)		(C$)		(000’s)		($)		($)		(000’s)
	
    
    2002

    	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
    
    October - December
    

    	 	 	1.47	 	 	 	0.94	 	 	 	70,457	 	 	 	1.00	 	 	 	0.60	 	 	 	11,729	 
	
    
    2003

    	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
    
    January - March
    

    	 	 	1.77	 	 	 	1.10	 	 	 	173,260	 	 	 	1.14	 	 	 	0.76	 	 	 	66,389	 
	
    
    April - June
    

    	 	 	1.70	 	 	 	1.18	 	 	 	165,107	 	 	 	1.27	 	 	 	0.81	 	 	 	68,301	 
	
    
    July - September
    

    	 	 	2.89	 	 	 	1.68	 	 	 	316,198	 	 	 	2.13	 	 	 	1.21	 	 	 	183,836	 
	
    
    October - December
    

    	 	 	4.19	 	 	 	2.40	 	 	 	429,117	 	 	 	3.21	 	 	 	1.79	 	 	 	348,107	 
	
    
    2004

    	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
    
    January - March
    

    	 	 	4.48	 	 	 	3.39	 	 	 	450,356	 	 	 	3.42	 	 	 	2.55	 	 	 	368,572	 
	
    
    April - June
    

    	 	 	4.34	 	 	 	3.25	 	 	 	537,888	 	 	 	3.32	 	 	 	2.37	 	 	 	306,404	 
	
    
    July - September
    

    	 	 	3.97	 	 	 	3.10	 	 	 	279,707	 	 	 	3.15	 	 	 	2.33	 	 	 	170,262	 
	
    
    October - December 23
    

    	 	 	4.39	 	 	 	3.70	 	 	 	409,900	 	 	 	3.68	 	 	 	3.03	 	 	 	277,853	 

     
Goldcorp announced the Offerors’ intention
to make the Offer on December 5, 2004. On December 3,
2004 (being the last full day on which the Common Shares traded
publicly prior to the announcement of Goldcorp’s intention
to make the Offer), the closing prices of the Common Shares on
the TSX and AMEX were C$3.76 and $3.19, respectively. On
December 23, 2004, the closing prices of the Common Shares
on the TSX and AMEX were C$3.92 and $3.19, respectively.

3.   Background to the
Offer

     
Over the past three years, Goldcorp’s
management has actively monitored the gold mining industry and
examined many companies to identify the best growth
opportunities for Goldcorp. During this period, management
carried out detailed due diligence on particular companies and
situations to assess the attractiveness of a property purchase,
corporate merger, sale or take-over.

     
As the gold industry continues to consolidate, it
is increasingly commonplace for heads of companies to have
exploratory discussions about possible combinations. Goldcorp
was no different, although its standards were higher than most
particularly relating to future profitability, return on
investment and timing of transaction.

     
The recent public announcement that
Mr. Robert McEwen, Chairman and Chief Executive Officer of
Goldcorp, has decided to step down as Chief Executive Officer
and the need to hire a new Chief Executive Officer adds another
important element to Goldcorp’s corporate growth plan and
strategy. It is regarded as essential that the preferred
candidate for Chief Executive Officer have a strong
entrepreneurial background combined with industry expertise.

Acquisition Agreement with
Wheaton

     
In September 2004, Goldcorp received an analysis
prepared by GMP Securities Ltd. (“GMP”)
(subsequently retained by Goldcorp as its financial advisor and
dealer manager for the Offer) in respect of a possible
combination with Wheaton.

33

 

     
On October 21, 2004, Mr. McEwen
attended a Canadian Institute of Mining luncheon at which
Mr. Ian Telfer, Chairman and Chief Executive Officer of
Wheaton, made a presentation. Mr. McEwen left the luncheon
with a new appreciation for Wheaton’s growing production
profile, cash flow, exploration prospects, entrepreneurial
success and the strong management capabilities and industry
expertise of Mr. Telfer and Wheaton’s senior
management team. These observations led to the idea that a
combination of Goldcorp and Wheaton would create a very strong
and attractive gold company with great growth prospects and
address Goldcorp’s senior management needs.

     
As a result, Goldcorp began exploring the
possibility of a combination with Wheaton and asked GMP to
provide an updated analysis of Wheaton. The updated analysis was
circulated to the Goldcorp board of directors. Shortly
thereafter, Mr. McEwen and Dr. Donald Quick, a member
of the Special Committee of Goldcorp (defined below), met with
senior management of Wheaton to discuss a possible transaction.

     
Mr. Telfer made a presentation to the
Special Committee and also to the Goldcorp board on
November 22, 2004 regarding a possible combination of
Goldcorp and Wheaton. In addition, Rothschild Inc., the
financial advisors to the Special Committee, advised the board
that, among other things, a combination with Wheaton could be
successfully marketed. Discussions between Goldcorp and Wheaton
continued thereafter.

     
On December 4, 2004, the Goldcorp board met
with representatives of GMP following which the board voted to
enter into an agreement in principle with Wheaton subject to,
among other things, a due diligence review.

     
On December 5, 2004, Mr. McEwen and
Mr. Telfer, together with representatives from GMP and the
legal advisors to Goldcorp and Wheaton, met in Toronto to
negotiate the terms of an agreement in principle. As a result,
Goldcorp and Wheaton entered an agreement in principle which
provided for Goldcorp to make a take-over bid for Wheaton on the
basis of one Goldcorp Share for every four Common Shares of
Wheaton.

     
On December 6, 2004, Goldcorp and Wheaton
issued a joint press release announcing the proposed take-over
bid transaction and Mr. McEwen and Mr. Telfer jointly
held a conference call to discuss the proposed take-over bid
transaction.

     
At a meeting of the board of directors of
Goldcorp on December 22, 2004, subject to finalizing terms
of the agreement, the board unanimously approved entering into
the Acquisition Agreement with Wheaton. The board also
determined that, for the purposes of the Acquisition Agreement
and based on, among other things, an opinion letter from GMP,
the proposed take-over bid by Glamis Gold Ltd. (referred to
below) is not a Superior Proposal (as defined in the Acquisition
Agreement) to the Wheaton transaction.

Discussions with Glamis

     
In November 2003, Mr. McEwen commenced
discussions with Mr. C. Kevin McArthur, President and Chief
Executive Officer of Glamis Gold Ltd.
(“Glamis”), regarding a possible transaction
involving Goldcorp and Glamis. In December 2003, Goldcorp and
Glamis entered into a confidentiality agreement and conducted
due diligence investigations of each other.

     
In February 2004, Goldcorp retained Rothschild
Inc. (“Rothschild”) as its lead financial
advisor to assist Goldcorp in reviewing its strategic options
and to provide advice to it in respect of any possible
transactions. Rothschild advised the board of directors of
Goldcorp that Glamis was the least attractive of the
alternatives considered. Accordingly, Mr. McEwen advised
Mr. McArthur that Goldcorp would not be proceeding further.

     
Discussions between Glamis and Goldcorp ceased in
the spring of 2004 without any formal proposal being made by
either party.

     
In July 2004, in a meeting between Glamis and
Rothschild, the possibility of resuming discussions with
Goldcorp was raised. Mr. McEwen instructed Rothschild to
advise Glamis to make a proposal in the event that it was
interested in resuming discussions with Goldcorp. Glamis made a
proposal to Goldcorp in September 2004, which was revised in
October 2004. Following receipt of the proposal from Glamis, the
Goldcorp board of directors established a special committee of
independent directors (the “Special Committee”)
to review the proposal. The Special Committee retained
independent legal advisors and Rothschild as its independent
financial advisors to advise it with respect to the proposal.

     
The Special Committee met with Glamis in early
November 2004 to negotiate the terms of a possible transaction
involving Goldcorp and Glamis. On November 10, 2004, the
Special Committee, together with Rothschild who had determined
that the Glamis proposal, on balance, appeared reasonable,
presented the terms of a proposed transaction

34

 

with Glamis to the board. On November 22,
2004, in a split vote, the Special Committee recommended to the
board that it accept the Glamis proposal. In a split vote, the
Goldcorp board did not approve the Glamis proposal.

     
Glamis was advised that its proposal had not been
accepted. The discussions and negotiations between Goldcorp and
Glamis therefore terminated.

     
On December 16, 2004, Glamis publicly
announced its intention to make a take-over bid for Goldcorp in
a press release dated December 16, 2004. Glamis said that
it intends to make the offer on the following terms and
conditions:

			
	 	•	
    each Goldcorp shareholder will be offered 0.89 of
    a Glamis common share for each Goldcorp Share which values
    Goldcorp at $17.80 per Goldcorp Share and represents a premium
    of 22.6% based on the volume-weighted average trading price for
    both companies for the previous 30 trading days on the NYSE;
    
	 
	 	•	
    a minimum of 66 2/3% of Goldcorp Shares on a
    fully-diluted basis are tendered to the bid;
    
	 
	 	•	
    Goldcorp does not acquire or enter into any
    commitment to acquire shares or enter into any material
    agreement with Wheaton;
    
	 
	 	•	
    any Goldcorp offer or agreement with Wheaton must
    be conditional on the Glamis take-over bid not being successful
    and must be capable of being terminated by Goldcorp without
    payment or penalty if the Glamis take-over bid is successful; and
    
	 
	 	•	
    approval by a simple majority of Glamis common
    shares voted at a shareholders meeting.
    

     
On December 16, 2004, legal counsel to
Glamis also sent a letter to the Goldcorp board of directors
expressing the view that shareholders of Goldcorp be permitted
to tender their Goldcorp Shares to Glamis’s proposed bid.
On December 20, 2004, a press release was issued by Glamis
summarizing the contents of the letter to the board of directors.

     
With the exception of a break fee that was part
of Glamis’s prior proposal, the terms of the proposed bid
are substantially the same as the proposal which was made by
Glamis and not accepted by the Goldcorp board on
November 22, 2004.

     
On December 17, 2004, Goldcorp issued a
press release advising that, in the event a take-over bid
circular is sent by Glamis to Goldcorp’s shareholders,
Goldcorp will review and evaluate the Glamis bid.

4.   Agreements Relating to the
Offer

Acquisition Agreement

     
The Acquisition Agreement dated December 23,
2004 between Goldcorp and Wheaton sets forth, among other
things, the terms and conditions upon and subject to which the
Offer is to be made by the Offerors. The following is a summary
of the principal terms of the Acquisition Agreement.

Conditions of the Offer

     
Please see the section entitled “Conditions
of the Offer” in the Offer for a detailed list of the
conditions of the Offer.

Waivers of Conditions

     
The Acquisition Agreement provides that the
Offerors will not amend or vary the terms and conditions of the
Offer, except to increase the value of the consideration payable
thereunder or to extend the Expiry Time, from time to time, to a
date not later than: (i) 120 calendar days after the date
of the Offer in the event that any of the conditions in
paragraphs (e), (f), (g), (i) or (j) under the section
entitled “Conditions of the Offer” in the Offer have
not been satisfied or waived by the Offerors or if an
Alternative Transaction has been proposed and is continuing; and
(ii) in any other case, 60 calendar days after the date of
the Offer. However, the Offerors may waive any one or more of
the conditions of the Offer, in their sole discretion, except
the Minimum Tender Condition. The Minimum Tender Condition may
be waived by the Offerors only with the prior written consent of
Wheaton.

Management and Directors

     
If the Minimum Tender Condition is satisfied and
the Offerors take up and pay for Common Shares under the Offer,
Goldcorp and Wheaton will use all reasonable efforts to cause
their respective boards of directors to pass such resolutions
and to take such other actions as may be required in order that:
(i) the number of directors of Goldcorp will be increased
to ten, with five directors of Goldcorp to be nominated by Ian
Telfer, on behalf of Wheaton, remaining as

35

 

directors of Goldcorp and five current directors
of Wheaton nominated by Robert McEwen, on behalf of Goldcorp,
becoming directors of Goldcorp; (ii) Ian Telfer will become
a director of Goldcorp and will be appointed as Chief Executive
Officer of Goldcorp; (iii) Robert McEwen will remain as a
director and the Chair of Goldcorp; and (iv) all of the
directors of Wheaton will be replaced by nominees of Goldcorp to
be determined by the board of directors of Goldcorp following
the appointments referred to in (i) above.

Subsequent Acquisition
Transaction

     
If the Minimum Tender Consideration is satisfied
and the Offerors take up and pay for Common Shares under the
Offer, Goldcorp and Wheaton shall take all necessary steps to
proceed with, as soon as practicable and in any event within
120 days following the Expiry Time, the Subsequent
Acquisition Transaction so that Goldcorp may thereby acquire all
of the Common Shares that were not acquired by the Offerors
under the Offer. The consideration offered under the Subsequent
Acquisition Transaction will be at least equal in value to and
in the same form as the consideration offered under the Offer.

Treatment of Wheaton Options and Wheaton
Warrants

     
The Acquisition Agreement contains provisions
relating to the treatment of Wheaton Options and Wheaton
Warrants, as set out below.

			
	 	(a)	
    No offer shall be made by the Offerors for
    Wheaton Options. Subject to obtaining all necessary regulatory
    and shareholder approvals, the board of directors of Wheaton may
    take the necessary actions to provide that (i) each Wheaton
    Option holder, other than the directors of Wheaton or the senior
    officers of Wheaton, may, at his or her option, request that
    Wheaton fund the exercise price payable by such option holder
    against receipt of a written direction to repay the amount of
    such funding from the proceeds of the sale by the Depositary (or
    such other person as Wheaton and Goldcorp may agree) for and on
    behalf of such option holders of such number of Goldcorp Shares
    to be received by such holder for the Common Shares tendered to
    the Offer pursuant to the exercise of his or her options that is
    sufficient to repay the amount of such funding, or
    (ii) each Wheaton Option holder may, at his or her option,
    in the case of Wheaton Option holders other than the directors
    of Wheaton or the senior officers of Wheaton, or shall, in the
    case of Wheaton Option holders who are directors of Wheaton or
    senior officers of Wheaton, receive upon the exercise of such
    options after a Subsequent Acquisition Transaction in accordance
    with the terms of such options, and shall accept in lieu of the
    number of Common Shares otherwise issuable upon such exercise,
    the number of Goldcorp Shares (rounded down to the nearest whole
    number) which such holder would have been entitled to receive as
    a result of the Offer, if such holder had been the registered
    holder of the number of Common Shares to which such holder was
    entitled upon such exercise immediately prior to the effective
    time of a Subsequent Acquisition Transaction. Any such action
    shall be conditional upon the take up of Common Shares under the
    Offer.
    
	 
	 	(b)	
    No offer shall be made by the Offerors for
    Wheaton Warrants. Upon the exercise of any such warrants after a
    Subsequent Acquisition Transaction, the holder of any such
    Wheaton Warrants shall receive, in lieu of the number of Common
    Shares otherwise issuable upon such exercise, that number of
    Goldcorp Shares (rounded down to the nearest whole number) which
    such holder would have been entitled to receive as a result of
    the Offer, if such holder had been the registered holder of the
    number of Common Shares to which such holder was entitled upon
    such exercise immediately prior to the effective time of a
    Subsequent Acquisition Transaction.
    
	 
	 	(c)	
    Goldcorp shall take all necessary steps
    (including seeking all necessary regulatory and shareholder
    approvals and executing assumption agreements) to ensure that
    all Wheaton Options (both vested and unvested) and Wheaton
    Warrants outstanding immediately prior to the effective time of
    a Subsequent Acquisition Transaction will, as a result of the
    amalgamation to take place to effect such Subsequent Acquisition
    Transaction, subject to receipt of such regulatory and
    shareholder approvals, become securities of Goldcorp exercisable
    to purchase Goldcorp Shares on the basis described in
    paragraphs (a) and (b) above and, in the case of
    the Wheaton Warrants, subject to applicable listing
    requirements, be listed and posted for trading on such stock
    exchanges as the Wheaton Warrants are listed and posted for
    trading on immediately prior to the effective time of such
    Subsequent Acquisition Transaction.
    

36

 

Representations, Warranties and Covenants
of Goldcorp

     
The Acquisition Agreement contains customary
representations and warranties on the part of Goldcorp relating
to, among other things: Goldcorp’s corporate status and
reporting issuer status; Goldcorp’s capitalization;
Goldcorp’s authority to enter into the Acquisition
Agreement; and the approval of the board of directors of
Goldcorp of the Offer. The representations and warranties also
address various matters relating to the business, operations and
properties of Goldcorp and its subsidiaries including: material
contracts; the absence of any Material Adverse Changes; pension
and employment matters; the accuracy of Goldcorp’s
financial statements, corporate records and minute books; the
absence of undisclosed litigation that would have a Material
Adverse Effect; assurances relating to title to properties and
the condition of assets; insurance; environmental matters; tax
matters; intellectual property; and compliance with applicable
laws.

     
The Acquisition Agreement also contains customary
negative and positive covenants by Goldcorp. Goldcorp has agreed
to conduct its business in the ordinary course consistent with
past practice unless otherwise permitted under the Acquisition
Agreement.

Representations, Warranties and Covenants
of Wheaton

     
The Acquisition Agreement contains customary
representations and warranties of Wheaton relating to, among
other things: Wheaton’s corporate status and reporting
issuer status; Wheaton’s capitalization; Wheaton’s
authority to enter into the Acquisition Agreement; and the
approval of the board of directors of Wheaton of its
recommendation regarding the Offer. The representations and
warranties also address various matters relating to the
business, operations and properties of Wheaton and its
subsidiaries including: material contracts; the absence of any
Material Adverse Changes; pension and employment matters; the
accuracy of Wheaton’s financial statements, corporate
records and minute books; the absence of undisclosed litigation
that would have a Material Adverse Effect; assurances relating
to title to properties and the condition of assets; insurance;
environmental matters; tax matters; intellectual property; and
compliance with applicable laws.

     
Furthermore, Wheaton has covenanted to carry on
business only in the usual course consistent with past practice
unless Goldcorp otherwise agrees in writing or as otherwise
permitted or contemplated in the Acquisition Agreement.

Goldcorp Shareholder Meeting

     
The Acquisition Agreement requires Goldcorp to
convene a special meeting of its shareholders by
February 4, 2005 for the purpose of considering an ordinary
resolution to approve the issuance by Goldcorp of the Goldcorp
Shares pursuant to the Offer and the Subsequent Acquisition
Transaction. In connection therewith, Goldcorp must prepare a
management information circular in accordance with Securities
Laws, and send it to the shareholders of Goldcorp and file it
with the applicable securities regulatory authorities in
accordance with Securities Laws. The resolution must be passed
by at least a majority of the Goldcorp Shares voted on the
resolution at the meeting.

No Solicitation

     
Each of Wheaton and Goldcorp has agreed that it
will not, directly or indirectly, (i) solicit, initiate,
encourage or facilitate (including by way of furnishing
non-public information) any inquiries or proposals regarding any
Alternative Transaction, (ii) participate in any
discussions or negotiations regarding any Alternative
Transaction, (iii) approve or recommend any Alternative
Transaction, or (iv) accept, support or enter into any
agreement, arrangement or understanding related to any
Alternative Transaction. Each of Wheaton and Goldcorp has also
agreed to (i) immediately cease and cause to be terminated
all existing discussions or negotiations, directly or
indirectly, with any person with respect to any Alternative
Transaction, (ii) refrain from waiving or varying any terms
or conditions of any confidentiality or non-disclosure or
standstill agreement entered into prior to the date of the
Acquisition Agreement between Wheaton and any person considering
any Alternative Transaction and will immediately request the
return (or the deletion from retrieval systems and data bases or
the destruction) of all information provided by it, directly or
indirectly, to any such person, (iii) in the case of
Wheaton, promptly reaffirm its recommendation that Wheaton
Shareholders accept the Offer after a determination by the board
of directors of Wheaton that any Alternative Transaction that
has been publicly disclosed is not a Superior Proposal, and
(iv) in the case of Goldcorp, promptly recommend that
Goldcorp’s shareholders not accept any Alternative
Transaction that is publicly announced after a determination by
the board of directors of Goldcorp that any such Alternative
Transaction is not a Superior Proposal (and shall include such
recommendation in any directors’ circular or other document
sent to Goldcorp’s shareholders in response to any such
Alternative Transaction).

37

 

     
Notwithstanding the foregoing, the board of
directors of Wheaton or Goldcorp may consider or participate in
discussions and enter into confidentiality agreements regarding
a bona fide Alternative Transaction that did not result
from a breach of the terms of the Acquisition Agreement and is
or could reasonably be expected to be a Superior Proposal.

Notice of Alternative
Transaction

     
Each of Wheaton and Goldcorp must immediately
notify the other, at first orally and then promptly in writing,
of any Alternative Transaction that becomes known to it, or any
amendment to any Alternative Transaction, or any request for
information relating to it or any of its subsidiaries in
connection with any Alternative Transaction or for access to the
properties, books or records of it or any of its subsidiaries by
any person that may be proposing, or has made a proposal for,
any Alternative Transaction. Such notice shall include
(i) a description of the material terms and conditions of
such Alternative Transaction, (ii) the identity of the
person making such Alternative Transaction, inquiry or contact,
and (iii) such other details of such Alternative
Transaction, inquiry, contact, discussions or negotiations as
Goldcorp or Wheaton, as applicable, may reasonably request. Each
of Wheaton and Goldcorp shall, upon request from the other,
provide further notices of the status (including any change to
the material terms) of any such Alternative Transaction or
inquiry or contact.

Proceeding with a Superior
Proposal

     
Wheaton may accept, approve or recommend or enter
into an agreement, understanding or arrangement to proceed with
a Superior Proposal in respect of which there has been no breach
of the terms of the Acquisition Agreement and withdraw, modify
or change its recommendation concerning the Offer in connection
with a Superior Proposal, but only if:

			
	 	(a)	
    Wheaton has provided Goldcorp with a copy of all
    documentation (including unexecuted final documentation)
    relating to the Superior Proposal (provided Goldcorp agrees to
    requirements as to the confidentiality to be afforded in respect
    of that Superior Proposal that the person proposing such
    Superior Proposal may reasonably request);
    
	 
	 	(b)	
    a period (the “Response Period”)
    of five business days shall have elapsed from the date on which
    Goldcorp received written notice from the board of directors of
    Wheaton that the board of directors of Wheaton determined to
    accept, approve, recommend or enter into a binding agreement to
    proceed with the Superior Proposal; and
    
	 
	 	(c)	
    the board of directors of Wheaton has considered
    any amendment to the terms of the Offer that increases or
    modifies the consideration (or value of the consideration) to be
    received by the Shareholders proposed by Goldcorp before the end
    of the Response Period and determined by formal resolution, in
    good faith, acting reasonably after consultation: (i) with
    its financial advisers, that the Superior Proposal is more
    favourable to Shareholders from a financial point of view than
    the Offer (with the amendments, if any, proposed by Goldcorp);
    and (ii) with its outside legal counsel, that the failure
    to enter into a binding agreement in respect of the Superior
    Proposal would be inconsistent with its fiduciary duties.
    

     
Goldcorp may accept, approve or recommend or
enter into an agreement, understanding or arrangement to proceed
with a Superior Proposal in respect of which there has been no
breach of the terms of the Acquisition Agreement, but only if:

			
	 	(a)	
    Goldcorp has provided Wheaton with a copy of all
    documentation (including unexecuted final documentation)
    relating to the Superior Proposal (provided Wheaton agrees to
    requirements as to the confidentiality to be afforded in respect
    of that Superior Proposal that the person proposing such
    Superior Proposal may reasonably request); and
    
	 
	 	(b)	
    the board of directors of Goldcorp has determined
    by formal resolution, in good faith, acting reasonably after
    consultation: (i) with its financial advisers, that the Superior
    Proposal is more favourable to Goldcorp from a financial point
    of view than the Offer; and (ii) with its outside legal
    counsel, that the failure to enter into a binding agreement in
    respect of the Superior Proposal would be inconsistent with its
    fiduciary duties.
    

38

 

Right to Match

     
During the Response Period, Goldcorp will have
the right, but not the obligation, to offer to amend the terms
of the Offer. The board of directors of Wheaton will review any
such proposal by Goldcorp to amend the terms of the Offer,
including, without limitation, an increase in, or modification
of, the consideration to be received by the Shareholders (or
value of such consideration), in good faith, acting reasonably
in consultation with its financial advisers and outside legal
counsel, to determine whether the Alternative Transaction to
which Goldcorp is responding would be a Superior Proposal when
assessed against the Offer as it is proposed by Goldcorp to be
amended. If the board of directors of Wheaton does not determine
that the Alternative Transaction is a Superior Proposal, the
board of directors of Wheaton will promptly reaffirm its
recommendation of the Offer (as so amended by Goldcorp).

Termination

     
The Acquisition Agreement may be terminated, by
written notice promptly given to the other party, at any time
prior to the time the Offerors first take up and pay for Common
Shares under the Offer:

			
	 	(a)	
    by either Goldcorp or Wheaton, if the Offerors
    shall not have taken up and paid for Common Shares under the
    Offer on or before the date upon which the Expiry Time occurs,
    or Goldcorp or Wheaton, as applicable, shall have concluded,
    acting reasonably, that a condition to the Offer is not capable
    of satisfaction on or before the Expiry Time (except where the
    Acquisition Agreement may be terminated under paragraph (i)
    below), unless the reason for the Offerors not so taking up and
    paying for the Common Shares or for the relevant condition not
    being capable of satisfaction is due to the failure of the party
    seeking to terminate the Acquisition Agreement to perform any of
    the obligations under the Acquisition Agreement required to be
    performed by such party;
    
	 
	 	(b)	
    by Goldcorp, if the Offer terminates or expires
    at the Expiry Time without the Offerors taking up and paying for
    any Common Shares due to the non-satisfaction of any condition
    set forth in the Offer that has not been waived, other than as a
    result of Goldcorp’s failure to perform any of its
    obligations under the Acquisition Agreement;
    
	 
	 	(c)	
    by either Goldcorp or Wheaton, if the board of
    directors of Wheaton shall withdraw, modify or change its
    recommendation concerning the Offer to proceed with an
    Alternative Transaction in accordance with the Acquisition
    Agreement;
    
	 
	 	(d)	
    by Goldcorp, if the board of directors of Wheaton
    approves, recommends or accepts, or enters into any agreement,
    undertaking or arrangement in respect of, an Alternative
    Transaction;
    
	 
	 	(e)	
    by either Goldcorp or Wheaton, if the board of
    directors of Goldcorp determines to accept, approve, recommend,
    or enter into an agreement, understanding or arrangement to
    proceed with an Alternative Transaction;
    
	 
	 	(f)	
    by Wheaton, if the board of directors of Goldcorp
    approves, recommends or accepts, or enters into any agreement,
    undertaking or arrangement in respect of an Alternative
    Transaction;
    
	 
	 	(g)	
    by either Goldcorp or Wheaton, if the other party
    shall not have complied or cannot comply in all material
    respects with such other party’s covenants and obligations
    under the Acquisition Agreement to be complied with at or prior
    to the Expiry Time, or if any of the representations and
    warranties of such other party under the Acquisition Agreement
    are not true and correct in all respects, in the case of
    representations and warranties qualified by materiality, and in
    all material respects in the case of all other representations
    and warranties;
    
	 
	 	(h)	
    by Wheaton, if there shall have occurred after
    the date of the Acquisition Agreement any Material Adverse
    Change of Goldcorp;
    
	 
	 	(i)	
    by either Goldcorp or Wheaton, if the
    shareholders of Goldcorp do not approve the issuance by Goldcorp
    of Goldcorp Shares pursuant to the Offer and Subsequent
    Acquisition Transaction by at least a majority of the votes cast
    by the shareholders of Goldcorp, present in person or
    represented by proxy, at the special meeting of shareholders of
    Goldcorp called to consider an ordinary resolution to approve
    such issuance; or
    
	 
	 	(j)	
    by either Goldcorp or Wheaton, if an Alternative
    Transaction in respect of the other party is completed.
    

39

 

Termination Fee

     
The Acquisition Agreement provides that Wheaton
is required to pay to Goldcorp a termination fee of
$35 million if the Acquisition Agreement is terminated in
the circumstances described in paragraphs (c) or (d) under
“— Termination” above or if the board of
directors of Wheaton fails to reaffirm its recommendation of the
Offer by press release within a reasonable time after the public
announcement or commencement of any Alternative Transaction or
on or after December 5, 2004 and prior to the Expiry Time,
an Alternative Transaction in respect of Wheaton is publicly
announced or any person has publicly announced an intention to
make an Alternative Transaction and, such Alternative
Transaction either has been accepted or has not expired, been
withdrawn or been publicly abandoned, and (A) the Offer is
not completed as a result of the Minimum Tender Condition not
having been met and (B) such Alternative Transaction is
completed on or prior to September 30, 2005.

     
The Acquisition Agreement provides that Goldcorp
is required to pay to Wheaton a termination fee of
$35 million if the Acquisition Agreement is terminated in
the circumstances described in paragraphs (e), (f) or (i)
under “— Termination” above or on or after
December 5, 2004 and prior to the Expiry Time, an
Alternative Transaction in respect of Goldcorp is publicly
announced or any person has publicly announced an intention to
make an Alternative Transaction, such Alternative Transaction
either has been accepted or has not expired, been withdrawn or
been publicly abandoned, and (A) the Offer is not commenced
or completed and (B) such Alternative Transaction is
completed on or prior to September 30, 2005.

     
In the event that the Acquisition Agreement is
terminated as a result of a party’s failure to comply with
its respective covenants and obligations under the Acquisition
Agreement or as a result of a party’s representations and
warranties under the Acquisition Agreement not being true and
correct in all respects and the terminating party has complied
with its covenants and obligations and its representations and
warranties are true and correct, that party is required to pay
to the terminating party a termination fee of $35 million.

Ancillary Agreements

     
Wheaton and Goldcorp entered into a standstill
and confidentiality agreement dated as of December 3, 2004
(the “Standstill and Confidentiality
Agreement”) pursuant to which both parties agreed,
subject to certain exceptions, to hold confidential all
information of the other party made available to it and its
representatives in connection with the Offer for a period of
18 months from the date of such agreement. In addition, the
Standstill and Confidentiality Agreement provides that for a
period of 18 months commencing on the date of the
Standstill and Confidentiality Agreement, neither party will
acquire securities of the other party without the consent of the
other party, and neither party will solicit the employees of the
other party with whom they have come into contact in connection
with the making of the Offer.

 

		
	5.	
    Strategic Rationale for the Offer; Purpose of
    the Offer, Plans for Wheaton, Plans for Wheaton Warrants and
    Wheaton Options and Plans for the Combined Company

Strategic Rationale for the
Offer

     
The strategic rationale for the Offer is the
creation of a combined company having the following attributes:

			
	 	•	
    Production —
    2005 gold production expected to be in excess of
    1.1 million ounces at a total cash cost of less than $60
    per ounce (taking into account credit from the production of
    other minerals);
    
	 
	 	•	
    Growth —
    annual production expected to grow to 1.5 million ounces of
    gold by 2007;
    
	 
	 	•	
    Balance
    Sheet — strong balance sheet
    with over $500 million in cash and gold bullion, with no
    debt;
    
	 
	 	•	
    Reserves —
    proven and probable reserves of 10.5 million ounces of gold
    plus additional measured and indicated resources of 9.5 million
    ounces of gold as of December 31, 2003, all of which are
    unhedged;
    
	 
	 	•	
    Liquidity —
    combined daily average trading liquidity of over
    $60 million; and
    
	 
	 	•	
    Market
    Capitalization — expected to
    be approximately $5 billion.
    

Purpose of the Offer

     
The purpose of the Offer is to enable the
Offerors to acquire all of the Common Shares. If the conditions
of the Offer are satisfied or waived and the Offerors take up
and pay for the Common Shares validly deposited under the Offer,
the Acquisition Agreement requires the Offerors to effect the
Subsequent Acquisition Transaction in order to

40

 

acquire all of the Common Shares that were not
acquired by the Offerors under the Offer. See “Acquisition
of Common Shares Not Deposited” in this Circular.

Plans for Wheaton

     
If the Offer is successful, the Offerors intend
to amalgamate Wheaton with Subco so that Wheaton would become a
wholly-owned subsidiary of Goldcorp.

     
If permitted by applicable Law, subsequent to the
completion of the Offer and the Subsequent Acquisition
Transaction, if necessary, the Offerors intend to delist the
Common Shares from the TSX and the AMEX and cause Wheaton to
cease to be a reporting issuer under the Securities Laws of each
province and to cease to have a class of shares registered under
the U.S. Exchange Act. See the section entitled
“Effect of the Offer on the Market for Common Shares; Stock
Exchange Listing; Public Disclosure by Wheaton and
U.S. Exchange Act Registration” in this Circular.

Plans for Wheaton Warrants and Wheaton
Options

     
The Wheaton Warrants are unaffected by the Offer
and the Offer is not made for the Wheaton Warrants. If, after
completion of the Offer, the Offerors implement the Subsequent
Acquisition Transaction, the Offerors intend to structure such
transaction so that the holders of the Wheaton Warrants would
thereafter have the right to receive Goldcorp Shares upon the
exercise thereof, with the number of shares and exercise price
adjusted, in accordance with the terms of the Wheaton Warrants,
based on the exchange ratio used in the Offer. In this regard,
the Offerors note that they have not been able to review the
terms of all of the indentures for the Wheaton Warrants and
alternative results may apply depending on the terms and
conditions of such documents. The Offerors currently intend to
list these new warrants to purchase Goldcorp Shares on the TSX
and the NYSE, subject to the approval of each such exchange.

     
The Wheaton Options are unaffected by the Offer
and the Offer is not made for the Wheaton Options. If, after
completion of the Offer, the Offerors implement the Subsequent
Acquisition Transaction, the Offerors intend to structure such
transaction so that the holders of the Wheaton Options would
thereafter have the right to receive Goldcorp Shares upon the
exercise thereof, with the number of shares and exercise price
adjusted, in accordance with the terms of the Wheaton Options,
based on the exchange ratio used in the Offer. In this regard,
the Offerors note that they have not been able to review the
terms of the Stock Option Plan and alternative results may apply
depending on the terms and conditions of the Stock Option Plan.
The Offerors currently intend to reserve for listing on the TSX
and the NYSE, subject to the approval of each such exchange,
such Goldcorp Shares that would be issuable upon exercise of the
Wheaton Options.

Plans for the Combined
Company

     
Following the completion of the Offer and the
Subsequent Acquisition Transaction (if necessary), Wheaton would
become a wholly-owned subsidiary of Goldcorp. The combined
company would enable Goldcorp to meet its goal of becoming a one
million ounce producer of gold, with low cash costs (less than
$100 per ounce of gold), with no debt and no hedging by the year
2005.

     
The combined company would also enable Goldcorp
and Wheaton to possess the attributes described in the section
entitled “Strategic Rationale for the Offer; Purpose of the
Offer, Plans for Wheaton, Plans for Wheaton Warrants and Wheaton
Options and Plans for Combined Company — Strategic
Rationale for the Offer” in the Circular.

6.   Acquisition of Common
Shares Not Deposited

Subsequent Acquisition
Transaction

     
If the Offerors take up and pay for Common Shares
validly deposited under the Offer, the Acquisition Agreement
requires the Offerors to take all necessary steps to continue
Wheaton under the laws of Nova Scotia and amalgamate Wheaton
with Subco pursuant to which Shareholders who have not tendered
their Common Shares under the Offer would receive 0.25 of a
Goldcorp Share and, in Wheaton’s opinion, such amalgamation
must satisfy the requirements for qualifying, together with the
Offer as a single integrated transaction, as a reorganization
within the meaning of section 368(a) of the Internal
Revenue Code of 1986, as amended, for United States federal
income tax purposes (the “Subsequent Acquisition
Transaction”).

     
Rule 61-501, Policy Q-27 and the
regulations to securities legislation in certain provinces of
Canada (collectively, the “Regulations”) may
deem the Subsequent Acquisition Transaction to be a
“business combination” or a “going

41

 

private transaction” if the Subsequent
Acquisition Transaction would result in the interest of a holder
of Common Shares (the “Affected Securities”)
being terminated without the consent of the holder and, in the
case of OSC Rule 61-501, regardless of whether the security
is replaced with another security, or, in the case of
Policy Q-27, without the substitution therefor of an
interest of equivalent value in a participating security of
Wheaton, a successor to the business of Wheaton or a person who
controls Wheaton or a successor to the business of Wheaton. In
certain circumstances, the provisions of Rule 61-501 and
Policy Q-27 may also deem the Subsequent Acquisition
Transaction to be a “related party transaction”.

     
Rule 61-501, Policy Q-27 and the
Regulations provide that, unless exempted, a corporation
proposing to carry out a business combination or going private
transaction is required to prepare a valuation of the Affected
Securities (and any non-cash consideration being offered
therefor) and provide to the holders of the Affected Securities
a summary of such valuation. The Regulations impose a
requirement to include a summary of a similar valuation in a
take-over bid circular where it is anticipated by the offeror
that a going private transaction will follow the take-over bid.
Rule 61-501 and Policy Q-27 have similar requirements
for related party transactions. However, if the Subsequent
Acquisition Transaction is a “business combination” or
“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 then apply to such transaction.

     
In connection therewith, the Offerors intend 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
exempting the Offerors or Wheaton or their Affiliates, as
appropriate, from the requirement to prepare a valuation in
connection with the Subsequent Acquisition Transaction.

     
Rule 61-501 and Policy Q-27 also
require that, in addition to any other required shareholder
approval, in order to complete such a transaction, the approval
of a simple majority of the votes cast by “minority”
shareholders of the Affected Securities must be obtained. Absent
exemptions or discretionary relief from the OSC and AMF, the
necessary level of shareholder approval required to complete
such a transaction is a simple majority of the votes cast by
“minority” holders of each class of the Affected
Securities (being the Common Shares), voting separately as a
class, other than the Offerors, their directors and senior
officers, any Associate or Affiliate or insider of the Offerors
as well as their directors and senior officers and any person or
company acting jointly or in concert with any of the foregoing
in connection with the Offer or the Subsequent Acquisition
Transaction. However, Rule 61-501 and Policy Q-27
provide that, subject to certain terms and conditions regarding
the timing of a subsequent acquisition transaction and certain
other requirements, the Offerors may treat Common Shares
acquired pursuant to the Offer as “minority”
securities and to vote them, or to consider them voted, in
favour of such a transaction if the consideration per security
in such a transaction is at least equal in value to, and in the
same form as, the consideration paid under the Offer and if the
intent to effect such a transaction was disclosed at the time of
the Offer. The Offerors are required under the terms of the
Acquisition Agreement to offer consideration under the
Subsequent Acquisition Transaction proposed by it within
120 days after the expiry and successful completion of the
Offer that is equal in value to, and in the same form as, the
consideration offered under the Offer. The Offerors also intend
that the Common Shares acquired by them pursuant to the Offer
will be counted as part of any minority approval required in
connection with any such transaction.

     
In addition, under Rule 61-501 and
Policy Q-27, if, following the Offer, the Offerors and
their Affiliates are the registered holders of 90% or more of
the Common Shares at the time the Subsequent Acquisition
Transaction is initiated, the requirement for minority approval
from the holders of Common Shares under Rule 61-501 and
Policy Q-27 would not apply to the transaction if a
statutory appraisal remedy is available or if a substantially
equivalent enforceable right is made available to the minority
Shareholders.

     
The Subsequent Acquisition Transaction will
result in Shareholders having the right to dissent and demand
payment of the fair value of their Common 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 Common Shares.
Pursuant to applicable law, the amalgamated company resulting
from the Subsequent Acquisition Transaction shall be responsible
for paying any such amounts due to dissenting Shareholders.

     
The tax consequences to a Shareholder who
exercises its right to dissent respecting the Subsequent
Acquisition Transaction may differ from the tax consequences to
such Shareholder of accepting the Offer. See the sections
entitled “Certain Canadian Federal Income Tax
Considerations” and “Certain United States Federal
Income Tax Considerations” in this Circular. Such
Shareholders should consult their legal advisors for a
determination of their legal rights with respect to the
Subsequent Acquisition Transaction if and when it is proposed.

42

 

Other Alternatives

     
If the Offerors cannot complete the Subsequent
Acquisition Transaction, the Offerors will evaluate their other
alternatives. Such alternatives could include, to the extent
permitted by applicable Law, purchasing additional Common Shares
in the open market, in privately negotiated transactions, in
another take-over bid or exchange offer or otherwise, or from
Wheaton or taking no further action to acquire additional Common
Shares. Any additional purchase of Common Shares could be for
cash and/or securities or other consideration. Alternatively,
the Offerors may sell or otherwise dispose of any or all Common
Shares acquired pursuant to the Offer or otherwise. Such
transactions may be effected on terms and at prices then
determined by the Offerors, which may vary from the value of the
consideration paid for Common Shares under the Offer.

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 several instances granted preliminary injunctions
to prohibit transactions involving going private transactions.
The trend in both legislation and Canadian jurisprudence has
been towards permitting going private transactions to proceed
subject to compliance with procedures designed to ensure
substantive fairness to minority shareholders. Shareholders
should consult their legal advisors for a determination of their
legal rights.

7.   Source of Funds

     
The Offerors estimate that the total maximum
amount of funds required to pay all fees and expenses related to
the Offer will be approximately $10 million. The Offerors
have sufficient funds to make all such cash payments.

8.   Beneficial Ownership of
Common Shares

     
Neither the Offerors nor any director or senior
officer of the Offerors beneficially owns or exercises control
or direction over or has the right to acquire directly or
indirectly any securities of Wheaton. To the knowledge of the
directors and senior officers of the Offerors after reasonable
enquiry, neither any Associate of any director or senior officer
of the Offerors, nor any person or company holding more than 10%
of any class of equity securities of the Offerors, beneficially
owns or exercises control or direction over or has the right to
acquire, directly or indirectly, any securities of Wheaton.

     
There is no person acting jointly or in concert
with the Offerors in connection with the transactions described
in the Offer and the Circular.

9.   Trading in Common
Shares

     
Neither the Offerors nor any director or senior
officer of the Offerors has traded in any securities of Wheaton
during the six months preceding the date hereof. In
addition, to the knowledge of the directors and senior officers
of the Offerors after reasonable enquiry, neither any Associate
of any director or senior officer of the Offerors nor any person
or company holding more than 10% of any class of equity
securities of the Offerors has traded in any securities of
Wheaton during the six months preceding the date hereof.

10. Information Concerning Wheaton and
the Common Shares

Dividends and Dividend Policy

     
According to publicly available information,
Wheaton has not paid any dividends on its Common Shares to date
and does not intend to pay regular dividends on its Common
Shares in the near future. Pursuant to the provisions of the
Acquisition Agreement, Wheaton has agreed to not declare, set
aside or pay any dividend or other distribution or payment
(whether in cash, shares or property) in respect of its Common
Shares.

Previous Distribution of Common
Shares

     
Goldcorp is not aware, based on publicly
available information, of any distributions of Common Shares
since September 30, 2004, the date of the last published
interim financial statements of Wheaton, other than
distributions of Common Shares pursuant to the exercise of
outstanding options or warrants.

43

 

 

		
	11.	
    Effect of the Offer on the Market for Common
    Shares; Stock Exchange Listing; Public Disclosure by Wheaton and
    U.S. Exchange Act Registration

     
Market for the Common Shares.
The purchase of the Common Shares by
the Offerors pursuant to the Offer will reduce the number of
Common Shares that might otherwise trade publicly and will
reduce the number of holders of Common Shares and, depending on
the number of Common Shares acquired by the Offerors, could
adversely affect the liquidity and market value of any remaining
Common Shares held by the public.

     
Listings and Quotations.
The rules and regulations of the TSX
and the AMEX establish certain criteria which, if not met, could
lead to the delisting of the Common Shares from each such
exchange. Among such criteria are the number of shareholders,
the number of shares publicly held and the aggregate market
value of shares publicly held. Depending upon the number of
Common Shares purchased pursuant to the Offer, it is possible
that the Common Shares would fail to meet these criteria for
continued listing on each such exchange.

     
If permitted by Law, subsequent to completion of
the Offer or the Subsequent Acquisition Transaction, if
necessary, the Offerors intend to apply to delist the Common
Shares from the TSX and the AMEX. If the Common Shares are
delisted from the TSX and the AMEX, the extent of the public
market for the Common Shares and the availability of price or
other quotations would depend upon the number of Shareholders,
the number of Common Shares publicly held and the aggregate
market value of the Common Shares remaining at such time, the
interest in maintaining a market in Common Shares on the part of
securities firms, whether Wheaton remains subject to public
reporting requirements in Canada and the United States and other
factors.

     
Public Disclosure by Wheaton.
After the purchase of the Common
Shares under the Offer, Wheaton may cease to be subject to the
public reporting and proxy solicitation requirements of the OBCA
and the Securities Laws of certain provinces of Canada and the
United States. Furthermore, it may be possible for Wheaton to
request the elimination of the public reporting requirements of
any province where a small number of Shareholders reside. If
permitted by Law, subsequent to the completion of the Offer or
the Subsequent Acquisition Transaction, the Offerors intend to
cause Wheaton to cease to be a reporting issuer under the
Securities Laws of each such province.

     
U.S. Exchange Act
Registration. The Common Shares are
currently registered under the U.S. Exchange Act. A
registration in respect of the Common Shares may be terminated
upon application of Wheaton to the SEC if the Common Shares are
not listed on a U.S. national securities exchange or quoted
on the Nasdaq Stock Market and there are fewer than
300 holders of record of the Common Shares resident in the
United States. The termination of registration of the Common
Shares under the U.S. Exchange Act would substantially
reduce the information required to be furnished by Wheaton to
holders of its Common Shares under United States federal
securities laws and to the SEC and would make certain provisions
of the U.S. Exchange Act no longer applicable to Wheaton.
Furthermore, the ability of “affiliates” (as defined
under Rule 144 of the U.S. Securities Act) of Wheaton
and persons holding “restricted securities” of Wheaton
to dispose of such securities pursuant to Rule 144 of the
U.S. Securities Act may be impaired or eliminated. Goldcorp
intends to seek to cause Wheaton to apply for termination of
registration of the Common Shares under the U.S. Exchange
Act as soon after the completion of the Offer as the
requirements for such termination are met. If registration of
the Common Shares under the U.S. Exchange Act is
terminated, the Common Shares will no longer be “margin
securities” or be eligible for listing on a
U.S. national securities exchange or eligible for trading
on the Nasdaq Stock Market. The Common Shares are currently
listed in the U.S. on the AMEX.

12. Commitments to Acquire Common
Shares

     
Except for agreements described in the section
entitled “Agreements Relating to the Offer” in this
Circular, none of the Offerors, any of the directors or senior
officers of the Offerors, or, to the knowledge of the directors
and senior officers of the Offerors after reasonable enquiry,
any Associate of any director or senior officer of the Offerors
or any person or company holding more than 10% of any class of
equity securities of the Offerors, has entered into any
commitments to acquire any securities of Wheaton.

13. Arrangements, Agreements or
Understandings

     
Except for agreements described in the section
entitled “Agreements Relating to the Offer” in this
Circular, there are no arrangements or agreements made or
proposed to be made between the Offerors and any of the
directors or senior officers of Wheaton and no payments or other
benefits are proposed to be made or given by the Offerors by way
of compensation for loss of office or as to their remaining in
or retiring from office if the Offer is successful. Also, except
for agreements described in the sections entitled
“Agreements Relating to the Offer” and “Dealer
Manager and

44

 

Soliciting Dealer Group”, there are no
contracts, arrangements or understandings, formal or informal,
between the Offerors and any securityholder of Wheaton with
respect to the Offer or between the Offerors and any person or
company with respect to any securities of Wheaton in relation to
the Offer.

14. Acceptance of the Offer

     
The Offerors have no knowledge regarding whether
any Shareholder will accept the Offer, except for Wheaton’s
representation in the Acquisition Agreement that each of the
directors of Wheaton has indicated his intention to accept the
Offer and tender his Common Shares to the Offer.

15. Material Changes and Other
Information

     
The Offerors have no information which indicates
any material change in the affairs of Wheaton since the date of
the last published interim financial statements of Wheaton,
other than the making of the Offer and such other material
changes as have been publicly disclosed by Wheaton. The Offerors
have no knowledge of any other matter that has not previously
been generally disclosed but which would reasonably be expected
to affect the decision of the Shareholders to accept or reject
the Offer.

16. Regulatory Matters

     
The Offerors’ obligation to take up and pay
for Common Shares tendered under the Offer is conditional upon
the Offerors having obtained or received all approvals, consents
or confirmations sought by the Offerors, or required to be
obtained or received by the Offerors, from any administrative
agency or commission or other governmental authority or
instrumentality in connection with the Offer, as described in
greater detail below.

Competition Act (Canada)

     
Under Part IX of the Competition Act
(Canada), certain transactions involving the acquisition of
voting shares of a corporation that carries on an operating
business in Canada require the parties to notify the
Commissioner of Competition (the
“Commissioner”) prior to completing their
proposed transaction. The acquisition of the Common Shares by
Goldcorp pursuant to the Offer is such a notifiable transaction.
As such, notification to the Commissioner must be made either on
the basis of a short form filing (in respect of which there is a
14-day statutory waiting period) or a long form filing (in
respect of which there is a 42-day statutory waiting period).
The decision as to whether to make a short form or long form
filing is at the discretion of the parties; however, if a short
form filing is made, the Commissioner may, within the 14-day
statutory waiting period, require that the parties submit a long
form filing, thereby extending the waiting period for a further
42 days following receipt of the long form filing.

     
Alternatively, a party to a notifiable
transaction may apply to the Commissioner for an advance ruling
certificate (an “ARC”) under section 102
of the Competition Act (Canada) stating that there are
not sufficient grounds in respect of the notifiable transaction
to apply to the Competition Tribunal under section 92 of
the Competition Act (Canada).

     
A transaction subject to premerger notification
may not be completed until the applicable statutory waiting
period has expired, or an ARC or “no-action” letter
has been issued. The Commissioner’s review of a notifiable
transaction may take longer than the statutory waiting period,
in which case, the parties may be asked to delay completion of
the transaction until the review is completed and the
Commissioner has determined her position. Upon completion of the
review, the Commissioner may decide to: (i) challenge the
notifiable transaction, if the Commissioner concludes that it is
likely to substantially lessen or prevent competition, and
ultimately seek an order of the Competition Tribunal
(A) prohibiting the completion of the notifiable
transaction on an interim or permanent basis if the parties
insist on proceeding with it without addressing the concerns of
the Commissioner, (B) requiring the divestiture of shares
or assets or the dissolution of the notifiable transaction, if
it has been completed, or (C) with the consent of the
person against whom the order is directed, requiring that person
to take any other action; (ii) issue a
“no-action” letter stating that the Commissioner does
not intend, at such time, to make an application to the
Competition Tribunal for an order as described in
paragraph (i); or (iii) issue an ARC. Where an ARC is
issued and the notifiable transaction to which the ARC relates
is substantially completed within one year after the ARC is
issued, the Commissioner cannot seek an order of the Competition
Tribunal in respect of the notifiable transaction solely on the
basis of information that is the same or substantially the same
as the information on the basis of which the ARC was issued.

     
As the Offer constitutes a notifiable
transaction, Goldcorp and Wheaton intend to file a short form
notification filing with the Commissioner.

45

 

     
The Offerors’ obligation to take up and pay
for Common Shares tendered under the Offer is conditional upon
the issuance by the Commissioner of an ARC pursuant to
section 102 of the Competition Act (Canada) or,
alternatively, any applicable waiting period relating to merger
pre-notification under Part IX of the Competition
Act (Canada) having expired and advice received to the
satisfaction of the Offerors that the Commissioner does not
intend to oppose the acquisition contemplated by the Offer.

Brazilian Anti-Trust Law

     
Under Brazilian Law No. 8,884, enacted on
June 11, 1994, certain merger and acquisition transactions
are subject to the review of the Brazilian Antitrust System
which is composed of (i) the Secretariat of Economic
Monitoring — SEAE, which is the body that is
responsible to the Ministry of Finance, (ii) the
Secretariat of Economic Law — SDE, which is the body
that is responsible to the Ministry of Justice, and
(iii) the Administrative Council for Economic
Defense — CADE, which is the body that will render the
final approval.

     
A filing was submitted to the Brazilian antitrust
authorities on December 23, 2004 in respect of the Offer.

Argentine Anti-Trust Law

     
Under Argentine Competition Defense Law
No. 25,156, certain merger and acquisition transactions are
subject to notification to, and approval by, the Competition
Defense Commission (the “Commission”). A
consultative opinion will be filed with the Commission
requesting a ruling as to whether the Offer qualifies as a
transaction that requires a notification to, and approval by,
the Commission. A formal notification regarding the Offer may be
submitted to the Commission based on the ruling provided by the
Commission.

     
A consultative opinion request will be filed with
the Commission in respect of the Offer.

Mexican Anti-Trust Law

     
Under the Mexican Antitrust Law, certain merger
and acquisition transactions are subject to notification to the
Federal Antitrust Commission (the “Antitrust
Commission”). The Antitrust Commission, within 45
calendar days following the notification, may object to the
Offer. This period may be extended if any additional information
is requested by the Antitrust Commission about the parties
involved in the Offer or about the process of the Offer. In the
event that no objection is raised within this period, the
Antitrust Commission will be deemed to have not objected. In
certain cases, the Chairman of the Antitrust Commission may
extend the applicable review period up to an additional
60 days.

     
A filing will be submitted to the Antitrust
Commission in respect of the Offer.

Foreign Acquisitions and Takeovers Act
(Australia)

     
Under the Foreign Acquisitions and Takeovers
Act 1975 (Cth), certain proposed acquisitions of interests
in Australian companies by foreign persons or corporations must
be notified to, and approval obtained from, the Australian
Government, acting through the Foreign Investment Review Board
(the “FIRB”). This includes acquisitions of
Australian entities where the value of those entities is in
excess of $50 million (Australian). The proposed
acquisition of the Australian subsidiaries of Wheaton requires
notification to and approval from the FIRB.

     
A filing was submitted to the FIRB on
December 23, 2004 in respect of the Offer.

Hart-Scott-Rodino Antitrust Improvements
Act of 1976 (United States)

     
The Offerors have determined that the Offerors do
not have to make any filings or notifications under the
Hart-Scott-Rodino Antitrust Improvements Act of 1976 (United
States).

Securities Regulatory Matters

     
The distribution of the Goldcorp Shares under the
Offer is being made pursuant to statutory exemptions from the
prospectus qualification and dealer registration requirements
under applicable Canadian securities Laws. While the resale of
Goldcorp Shares issued under the Offer is subject to
restrictions under the securities Laws of certain Canadian
jurisdictions, Shareholders in such jurisdictions generally will
be able to rely on statutory exemptions from such restrictions.

46

 

     
The issuance of the Goldcorp Shares under the
Offer is being made pursuant to a registration statement filed
by Goldcorp under the U.S. Securities Act utilizing the
Multijurisdictional Disclosure System. The Goldcorp Shares will
not, as a result, be Restricted Securities.

17. Certain Canadian Federal Income Tax
Considerations

     
The following summary describes the principal
Canadian federal income tax considerations generally applicable
to a Shareholder who deposits Common Shares pursuant to the
Offer or otherwise disposes of Common Shares pursuant to certain
transactions described under Section 6 of the Circular,
entitled “Acquisition of Common Shares Not Deposited”.
This summary also describes the principal Canadian federal
income tax considerations of the implementation of the
Subsequent Acquisition Transaction generally applicable to a
holder of Wheaton Warrants.

     
This summary is based upon the current provisions
of the Tax Act, the regulations thereunder (the “Tax
Regulations”), and counsel’s understanding of the
current published administrative and assessing practices and
policies of the Canada Revenue Agency (the
“CRA”). This summary takes into account all
specific proposals to amend the Tax Act and the Tax Regulations
publicly announced by or on behalf of the Minister of Finance
(Canada) prior to the date hereof (the “Proposed
Amendments”) and assumes that all Proposed Amendments
will be enacted in the form proposed. However, no assurances can
be given that the Proposed Amendments will be enacted as
proposed, or at all. This summary does not otherwise take into
account or anticipate any changes in law or administrative or
assessing practice whether by legislative, regulatory,
administrative or judicial action nor does it take into account
tax legislation or considerations of any province, territory or
foreign jurisdiction, which may be different from those
discussed herein. Special rules not discussed in this summary
may apply to “financial institutions” (as defined for
purposes of the “mark-to-market” rules of the Tax Act)
and to non-resident insurers that carry on an insurance business
in Canada and elsewhere. Shareholders that are financial
institutions or non-resident insurers should consult their own
tax advisors.

     
This summary is of a general nature only and
is not, and is not intended to be, legal or tax advice to any
particular Shareholder. This summary is not exhaustive of all
Canadian federal income tax considerations. Accordingly,
Shareholders should consult their own tax advisors having regard
to their own particular circumstances.

Shareholders Resident in Canada

     
The following portion of the summary is generally
applicable to a Shareholder who, at all relevant times for
purposes of the Tax Act, is or is deemed to be resident in
Canada, holds the Common Shares, and will hold Goldcorp Shares,
as capital property, deals with Wheaton and the Offerors at
arm’s length, and is not affiliated with Wheaton or the
Offerors (a “Resident Shareholder”). Generally,
the Common Shares will be capital property to a Shareholder
provided the Shareholder does not hold the Common Shares in the
course of carrying on a business and did not acquire the Common
Shares as part of an adventure or concern in the nature of
trade. Certain Shareholders whose Common Shares might not
otherwise be capital property may, in certain circumstances, be
entitled to have the Common Shares and all other “Canadian
securities”, as defined in the Tax Act, treated as capital
property by making the irrevocable election permitted by
subsection 39(4) of the Tax Act.

Sale of Common Shares under the
Offer

          Sale
to Subco

     
A Resident Shareholder whose Common Shares are
taken up and paid for by Subco will be considered to have
disposed of such Common Shares for proceeds of disposition equal
to the fair market value as at the time of acquisition of the
Goldcorp Shares received by such Resident Shareholder on the
exchange. As a result, the Resident Shareholder will realize a
capital gain (or capital loss) to the extent that such proceeds
of disposition, net of any reasonable costs of disposition,
exceed (or are less than) the adjusted cost base to the Resident
Shareholder of such Common Shares. The cost to a Shareholder of
any Goldcorp Shares acquired in exchange for Common Shares will
be equal to the fair market value of such Common Shares
immediately before the exchange. Such cost of the Goldcorp
Shares will generally be averaged with the adjusted cost base to
that holder of any other Goldcorp Shares held by the holder at
that time as capital property. The tax treatment of capital
gains and capital losses is discussed below under the heading
“Taxation of Capital Gains and Capital Losses”.

47

 

          Sale
to Goldcorp

     
Eligible Holders are eligible to tender Common
Shares to Goldcorp for the purpose of achieving a tax-deferred
exchange for Canadian federal income tax purposes.

     
An Eligible Holder who transfers Common Shares to
Goldcorp for Goldcorp Shares under the Offer will be deemed to
have disposed of such Common Shares for proceeds of disposition
equal to the adjusted cost base to the Eligible Holder of such
Common Shares immediately before the exchange, and to have
acquired the Goldcorp Shares received in exchange for such
Common Shares at a cost equal to that amount, unless the
Eligible Holder elects to treat the exchange as a taxable
transaction as described below. The cost of the Goldcorp Shares
so acquired will generally be averaged with the adjusted cost
base to the Eligible Holder of any other Goldcorp Shares held by
the Eligible Holder at that time as capital property.

     
A Resident Shareholder may elect to treat the
transfer of Common Shares to Goldcorp for Goldcorp Shares as a
taxable transaction by including in computing the Resident
Shareholder’s income for the taxation year in which the
exchange occurs any portion of the capital gain or capital loss,
otherwise determined, from the disposition of the Common Shares
so exchanged, and by reporting such inclusion in the Resident
Shareholder’s income tax return for such year. The capital
gain (or capital loss) realized on such exchange will be equal
to the amount, if any, by which the proceeds of disposition, net
of any reasonable costs of disposition, exceed (or are less
than) the adjusted cost base to the Resident Shareholder of the
Common Shares immediately before such exchange. The cost to the
Resident Shareholder of the Goldcorp Shares received in exchange
for such Common Shares will be equal to the fair market value of
such Common Shares immediately before the exchange. Such cost
will generally be averaged with the adjusted cost base to such
holder of any other Goldcorp Shares held by such holder at that
time as capital property. The taxation of capital gains and
capital losses is described below.

Taxation of Capital Gains and Capital
Losses

     
One-half of any capital gain (“taxable
capital gain”) must be included in a shareholder’s
income for the year of disposition. One-half of any capital loss
(“allowable capital loss”) generally must be
deducted by the holder from taxable capital gains for the year
of disposition. Any allowable capital losses in excess of
taxable capital gains for the year of disposition generally may
be carried back up to three years or forward indefinitely and
deducted against net taxable capital gains in such other years
to the extent and under the circumstances described in the Tax
Act.

     
Capital gains realized by an individual or trust,
other than certain specified trusts, may give rise to
alternative minimum tax under the Tax Act.

     
A Resident Shareholder that is throughout the
relevant taxation year a “Canadian-controlled private
corporation” (as defined in the Tax Act) may be liable to
pay an additional refundable tax of 6 2/3% on its
“aggregate investment income” for the year which will
include an amount in respect of taxable capital gains.

     
If the Resident Shareholder of a Common Share is
a corporation, the amount of any capital loss arising from a
disposition or deemed disposition of such share may be reduced
by the amount of dividends received or deemed to have been
received by it on such share to the extent and under
circumstances prescribed by the Tax Act. Similar rules may apply
where a corporation is a member of a partnership or a
beneficiary of a trust that owns Common Shares or where a trust
or partnership of which a corporation is a beneficiary or a
member is a member of a partnership or a beneficiary of a trust
that owns Common Shares. Shareholders to whom these rules may be
relevant should consult their own tax advisors.

Subsequent Acquisition
Transaction

     
As described in Section 6 of the Circular,
“Acquisition of Common Shares Not Deposited —
Subsequent Acquisition Transaction”, if the Offerors do not
acquire all of the Common Shares pursuant to the Offer, the
Offerors intend to continue Wheaton under the laws of Nova
Scotia and amalgamate Wheaton with Subco pursuant to which
Shareholders who have not tendered their Common Shares under the
Offer would receive 0.25 of a Goldcorp Share directly from
Goldcorp in exchange for each Common Share.

     
Resident Shareholders would not realize a capital
gain or capital loss as a result of the exchange, and the cost
of the Goldcorp Shares received would be the aggregate of the
adjusted cost base of the Common Shares to the holder
immediately before the amalgamation.

48

 

     
Under the current administrative practice of the
CRA, Resident Shareholders who exercise their right of dissent
in respect of an amalgamation should be considered to have
disposed of their Common Shares for proceeds of disposition
equal to the amount paid by the amalgamated corporation to the
dissenting Resident Shareholder therefor, other than interest
awarded by the court. Because of uncertainties under the
relevant legislation as to whether such amounts paid to a
dissenting Resident Shareholder would be treated entirely as
proceeds of disposition or in part as the payment of a deemed
dividend, dissenting Resident Shareholders should consult with
their own tax advisors in this regard. Any interest awarded to a
Resident Shareholder by a court will generally be included in
the Resident Shareholder’s income for purposes of the Tax
Act.

Holding and Disposing of Goldcorp
Shares

     Dividends on
Goldcorp Shares

     
In the case of a Resident Shareholder who is an
individual, dividends received or deemed to be received on the
Goldcorp Shares will be included in computing the Resident
Shareholder’s income, and will be subject to the gross-up
and dividend tax credit rules normally applicable to taxable
dividends received from taxable Canadian corporations.

     
A shareholder that is a “private
corporation” (as defined in the Tax Act) or any other
corporation resident in Canada and controlled or deemed to be
controlled by or for the benefit of an individual or a related
group of individuals may be liable under Part IV of the Tax
Act to pay a refundable tax of 33 1/3% of dividends
received or deemed to have been received on the Goldcorp Shares
to the extent that such dividends are deductible in computing
the Resident Shareholder’s taxable income.

          Disposition
of Goldcorp Shares

     
A disposition or deemed disposition of a Goldcorp
Share by a Resident Shareholder will generally result in a
capital gain (or a capital loss) equal to the amount by which
the proceeds of disposition, net of any reasonable costs of
disposition, exceed (or are less than) the adjusted cost base to
the holder of such share immediately before the disposition. The
taxation of capital gains and capital losses is described above.

Shareholders Not Resident in Canada

     
The following portion of the summary describes
the principal Canadian federal income tax considerations
generally applicable to a Shareholder who, at all relevant
times, for the purposes of the Tax Act and any applicable income
tax treaty or convention, is not and is not deemed to be
resident in Canada, holds the Common Shares, and will hold
Goldcorp Shares, as capital property, deals with Wheaton and the
Offerors at arm’s length, is not affiliated with Wheaton or
the Offerors and does not use or hold Common Shares in a
business carried on in Canada (a “Non-Resident
Shareholder”).

Exchange Pursuant to the
Offer

     
A Non-Resident Shareholder will not be subject to
tax under the Tax Act on any capital gain realized on a
disposition of such shares under the Offer unless the Common
Shares are “taxable Canadian property” to the
Non-Resident Shareholder. Generally, the Common Shares will not
be taxable Canadian property to a Non-Resident Shareholder at a
particular time provided that (i) the Common Shares are
listed on a prescribed stock exchange (which currently includes
the TSX and AMEX) at that time, and (ii) the Non-Resident
Shareholder, persons with whom the Non-Resident Shareholder does
not deal at arm’s length, or the Non-Resident Shareholder
together with such persons, have not owned 25% or more of the
issued shares of any class or series of the capital stock of
Wheaton at any time during the 60-month period that ends at that
time.

     
Notwithstanding the foregoing, in certain
circumstances set out in the Tax Act, Common Shares could be
deemed to be taxable Canadian property.

     
Even if the Common Shares are taxable Canadian
property to a Non-Resident Shareholder, a taxable capital gain
or an allowable capital loss resulting from the disposition of
the Common Shares will not be included in computing the
Non-Resident Shareholder’s income for the purposes of the
Tax Act if the Common Shares constitute “treaty-protected
property”. Common Shares owned by a Non-Resident
Shareholder will generally be treaty-protected property if the
gain from the disposition of such property would, because of an
applicable income tax treaty to which Canada is a signatory, be
exempt from tax under the Tax Act.

49

 

     
In the event that Common Shares constitute
taxable Canadian property but not treaty-protected property to a
particular Non-Resident Shareholder, then the Non-Resident
Shareholder will be an Eligible Holder and may seek to tender
his Common Shares to Goldcorp in order that the exchange occur
on a tax-deferred basis as described above under
“Shareholders Resident in Canada — Sale of Common
Shares under the Offer — Sale to Goldcorp”.
However, if such tender is made, the Goldcorp Shares received as
consideration for the Common Shares will be deemed to be taxable
Canadian property to such Non-Resident Shareholder. Non-Resident
Shareholders who are Eligible Holders should consult their own
tax advisors. If a Non-Resident Shareholder who is an Eligible
Holder does not take steps necessary to tender his Common Shares
to Goldcorp, the Non-Resident Holder will realize a capital gain
or capital loss on the disposition of Common Shares to Subco
pursuant to the Offer. Such capital gain or capital loss
generally will be calculated, and be subject to tax, in the same
manner as for Resident Shareholders. See “Shareholders
Resident in Canada — Sale of Common Shares under the
Offer — Sale to Subco” and
“— Taxation of Capital Gains and Capital
Losses”.

Subsequent Acquisition
Transaction

     
As described in Section 6 of the Circular,
“Acquisition of Common Shares Not Deposited —
Subsequent Acquisition Transaction”, if the Offerors do not
acquire all of the Common Shares pursuant to the Offer, the
Offerors intend to continue Wheaton under the laws of the
Province of Nova Scotia and amalgamate Wheaton with Subco
pursuant to which Shareholders who have not tendered their
Common Shares under the Offer would receive 0.25 of a Goldcorp
Share directly from Goldcorp in exchange for each Common Share.
Non-Resident Shareholders would not realize a capital gain or
capital loss as a result of the exchange. Goldcorp Shares
received in exchange for Common Shares that were taxable
Canadian property to a Non-Resident Shareholder will be deemed
to be taxable Canadian property to such Non-Resident
Shareholder. The tax treatment of Non-Resident Shareholders who
exercise their right of dissent in respect of an amalgamation
should be the same as described above for Resident Shareholders.
Any dividends deemed to be paid to a dissenting Non-Resident
Shareholder (see discussion above) will be subject to Canadian
withholding tax at a rate of 25%. Such rate may be reduced under
the provisions of an applicable income tax treaty. Any interest
awarded to a dissenting Non-Resident Shareholder by a court will
be subject to withholding tax under the Tax Act at the rate of
25%. Such rate may be reduced under the provisions of an
applicable income tax treaty. In addition, if the Common Shares
are not listed on a prescribed stock exchange at the time of
disposition, the notification and withholding provisions of
section 116 of the Tax Act will apply to the Non-Resident
Shareholder. Non-Resident Shareholders should consult their
own tax advisors for advice with respect to the potential income
tax consequences to them of having their Common Shares acquired
pursuant to such a transaction.

Holding and Disposing of Goldcorp
Shares

     
A Non-Resident Shareholder will not be liable to
Canadian tax on a disposition of a Goldcorp Share unless such
share constitutes taxable Canadian property that is not
treaty-protected property to the Non-Resident Shareholder. A
Goldcorp Share acquired pursuant to the Offer or the Subsequent
Acquisition Transaction may be deemed to be taxable Canadian
property to a Non-Resident Shareholder. Otherwise, a Goldcorp
Share acquired pursuant to the Offer or the Subsequent
Acquisition Transaction will not generally constitute taxable
Canadian property to a Non-Resident Shareholder at a particular
time provided they are listed on a prescribed stock exchange
(which includes the TSX and the NYSE) at that time and the
Non-Resident Shareholder, persons with whom the Non-Resident
Shareholder does not deal at arm’s length, or the
Non-Resident Shareholder together with such persons, have not
owned 25% or more of the issued shares of any class or series of
Goldcorp at any time during the 60-month period that ends at
that time. See “Shareholders Not Resident in
Canada — Exchange Pursuant to the Offer” and
“— Subsequent Acquisition Transaction” for a
description of circumstances in which the Goldcorp Shares may be
deemed taxable Canadian property and treaty-protected property.

     
Dividends paid or deemed paid to a Non-Resident
Shareholder on the Goldcorp Shares will be subject to Canadian
withholding tax at a rate of 25%. Such rate may be reduced under
the provisions of an applicable income tax treaty.

Holders of Wheaton Warrants

     
The following portion of the summary is generally
applicable to holders of Wheaton Warrants to whom such Wheaton
Warrants are capital property.

50

 

Subsequent Acquisition
Transaction — Amalgamation

     
Holders of Wheaton Warrants will not realize a
capital gain or a capital loss as a result of such holders
becoming entitled, by virtue of the amalgamation occurring as
part of the Subsequent Acquisition Transaction and the existing
terms of the Wheaton Warrant indentures, to acquire Goldcorp
Shares upon the exercise of the warrants after the effective
date of the amalgamation of Subco and Wheaton.

Exercise of Warrants

     
No gain or loss will be realized on the exercise
of a warrant to acquire Goldcorp Shares. When a warrant is
exercised, the holder’s cost of the Goldcorp Shares
acquired thereby will be equal to the holder’s adjusted
cost base of the warrant plus the exercise price paid for the
Goldcorp Shares. The holder’s cost of such Goldcorp Shares
must be averaged with the adjusted cost base of any other
Goldcorp Shares held by the holder at that time as capital
property to determine the holder’s adjusted cost base of
each such Goldcorp Share.

Disposition and Expiry of
Warrants

     
A disposition or deemed disposition of warrants
by a holder will generally give rise to a capital gain (or
capital loss) equal to the amount by which the proceeds of
disposition, net of any reasonable costs of disposition, are
greater (or less) than such holder’s adjusted cost base of
the warrants. The expiry of unexercised warrants will constitute
a disposition thereof for nil proceeds of disposition, resulting
in the holder realizing a capital loss equal to such
holder’s adjusted cost base of the expired warrants. The
tax treatment of capital gains and capital losses for a holder
who is resident in Canada is discussed in greater detail above
under the subheading “Taxation of Capital Gains and Capital
Losses”. A holder who is a non-resident of Canada will only
be liable to Canadian tax on any capital gain if the warrants
are taxable Canadian property and not treaty-protected property.

18. Certain United States Federal Income
Tax Considerations

     
The following is a summary of the material United
States federal income tax consequences to a U.S. Holder (as
defined below) arising from and relating to the exchange of
Common Shares for Goldcorp Shares pursuant to the Acquisition.

     
This summary is for general information purposes
only and does not purport to be a complete description of all
potential United States federal income tax consequences that may
apply to a U.S. Holder as a result of the Acquisition and
the ownership and disposition of Goldcorp Shares. In addition,
this summary does not take into account the individual facts and
circumstances of any particular U.S. Holder that may affect
the United States federal income tax consequences of the
Acquisition and the ownership and disposition of Goldcorp
Shares. Accordingly, this summary is not intended to be, and
should not be construed as, legal or United States federal
income tax advice with respect to any U.S. Holder. Each
U.S. Holder should consult its own tax advisor regarding
the United States federal, United States state and local, and
foreign tax consequences of the Offer, the Acquisition and the
ownership and disposition of Goldcorp Shares.

Scope of this Disclosure

Authorities

     
This summary is based on the Code, final,
temporary and proposed Treasury Regulations, United States court
decisions, published rulings and administrative positions of the
IRS interpreting the Code, and the Convention Between Canada and
the United States of America with Respect to Taxes on Income and
on Capital, signed September 26, 1980, as amended (the
“Canada-U.S. Tax Convention”), that are
applicable and, in each case, as in effect and available, as of
the date of this Offer. Any of the authorities on which this
summary is based could be changed in a material and adverse
manner at any time, and any such change could be applied on a
retroactive basis and could affect the United States federal
income tax consequences described in this summary. This summary
does not discuss the potential effects, whether adverse or
beneficial, of any proposed legislation that, if enacted, could
be applied on a retroactive basis.

U.S. Holders

     
For purposes of this summary, a
“U.S. Holder” is a beneficial owner of
Common Shares that, for United States federal income tax
purposes, is (a) an individual who is a citizen or resident
of the United States, (b) a corporation, or other entity
classified as a corporation for United States federal income tax
purposes, that is created or organized in or

51

 

under the laws of the United States or any state
in the United States, including the District of Columbia,
(c) an estate if the income of such estate is subject to
United States federal income tax regardless of the source of
such income, or (d) a trust if (i) such trust has
validly elected to be treated as a United States person for
United States federal income tax purposes or (ii) a United
States court is able to exercise primary supervision over the
administration of such trust and one or more United States
persons have the authority to control all substantial decisions
of such trust.

Non-U.S. Holders

     
For purposes of this summary, a
“Non-U.S. Holder” is a beneficial owner of
Common Shares other than a U.S. Holder. This summary does
not address the United States federal income tax consequences to
Non-U.S. Holders of the Acquisition and the ownership and
disposition of Goldcorp Shares. Accordingly, a
Non-U.S. Holder should consult its own tax advisor
regarding the United States federal, United States state and
local, and foreign tax consequences (including the potential
application of and operation of any tax treaties) of the Offer,
the Acquisition and the ownership and disposition of Goldcorp
Shares.

U.S. Holders Subject to Special United
States Federal Income Tax Rules Not Addressed

     
This summary does not address the United States
federal income tax consequences of the Offer or the Acquisition
or the ownership and disposition of Goldcorp Shares to
U.S. Holders that are subject to special provisions under
the Code, including the following U.S. Holders:
(a) U.S. Holders that are tax-exempt organizations,
qualified retirement plans, individual retirement accounts, or
other tax-deferred accounts; (b) U.S. Holders that are
financial institutions, insurance companies, real estate
investment trusts, or regulated investment companies or that are
broker-dealers, dealers, or traders in securities or currencies
that elect to apply a mark-to-market accounting method;
(c) U.S. Holders that have a “functional
currency” other than the United States dollar;
(d) U.S. Holders that are liable for the alternative
minimum tax under the Code; (e) U.S. Holders that own
Common Shares or Goldcorp Shares as part of a straddle, hedging
transaction, conversion transaction, constructive sale, or other
arrangement involving more than one position;
(f) U.S. Holders that acquired Common Shares or
Goldcorp Shares in connection with the exercise of employee
stock options or otherwise as compensation for services;
(g) U.S. Holders that hold Common Shares or Goldcorp
Shares other than as a capital asset within the meaning of
Section 1221 of the Code; (h) U.S. Holders that
acquired Common Shares through the exercise of the Wheaton
Warrants; and (i) U.S. Holders that own, directly or
indirectly, 5% or more, by voting power or value, of the
outstanding shares of Wheaton. U.S. Holders that are
subject to special provisions under the Code, including
U.S. Holders described immediately above, should consult
their own tax advisor regarding the United States federal,
United States state and local, and foreign tax consequences of
the Acquisition and the ownership, and disposition of Goldcorp
Shares.

     
If an entity that is classified as partnership
(or “pass-through” entity) for United States federal
income tax purposes holds Common Shares or Goldcorp Shares, the
United States federal income tax consequences to such
partnership (or “pass-through” entity) and the
partners of such partnership (or owners of such
“pass-through” entity) generally will depend on the
activities of the partnership (or “pass-through”
entity) and the status of such partners (or owners). Partners of
entities that are classified as partnerships (and owners of
“pass-through” entities) for United States federal
income tax purposes should consult their own tax advisor
regarding the United States federal income tax consequences of
the Acquisition and the ownership and disposition of Goldcorp
Shares.

Tax Consequences Other than United States
Federal Income Tax Consequences Not Addressed

     
This summary addresses solely the United States
federal income tax consequences of the Acquisition and does not
address the United States state and local, United States estate
and gift, or foreign tax consequences to U.S. Holders of
the Acquisition and the ownership and disposition of Goldcorp
Shares. Each U.S. Holder should consult its own financial
advisor, legal counsel, or accountant regarding the United
States state and local and foreign tax consequences of the
Acquisition and the ownership and disposition of Goldcorp
Shares. (See “Taxation — Certain Canadian Federal
Income Tax Considerations” above).

Certain United States Federal Income Tax
Consequences of the Acquisition

     
This summary assumes that the Offer will be
consummated by Goldcorp and that Wheaton, after continuing to
Nova Scotia, will amalgamate with Subco in the Subsequent
Acquisition Transaction, with the resulting amalgamation
corporation constituting a Nova Scotia unlimited liability
company (“NS Amalco”) which is a wholly-owned
subsidiary of Goldcorp. Although the matter is not free from
doubt, provided the Subsequent Acquisition Transaction

52

 

takes place as contemplated by the Acquisition
Agreement, the Offer and the Amalgamation should be treated by
the IRS and the United States courts as a single integrated
transaction for United States federal income tax purposes.
However, it is possible that the Subsequent Acquisition
Transaction may not occur or that the IRS or the United States
courts could take the position that the Offer and the Subsequent
Acquisition Transaction do not constitute a single integrated
transaction and accordingly the tax consequences of the
Acquisition could materially differ from those described herein.

     
The Offer and Subsequent Acquisition Transaction
will be effected under the applicable provisions of Canadian
law, which differ from analogous provisions of United States
law. Whether the Acquisition will qualify as a tax-deferred
reorganization under Section 368(a) of the Code (a
“Reorganization”) will depend on the resolution
of numerous factual issues, some of which will not be known
until the effective time of the Subsequent Acquisition
Transaction. There is no United States legal authority dealing
with the tax consequences of a transaction identical to the
Acquisition, and Goldcorp has not requested, nor does it intend
to request, an opinion from United States legal counsel or a
ruling from the IRS regarding the tax consequences of the Offer
or the Acquisition. Based on current relevant authority,
although the matter is not free from doubt, the Offer,
considered together with the Subsequent Acquisition Transaction
as a single integrated transaction (the
“Acquisition”), should qualify as a
tax-deferred reorganization for United States federal income tax
purposes pursuant to Section 368(a) of the Code, provided
that the Substantially All Assets Test (as described below) is
satisfied in connection with the Acquisition. Goldcorp and
Wheaton intend to treat the Offer and the Acquisition as a
Reorganization for all United States federal income tax purposes
as contemplated in the Acquisition Agreement. However, there can
be no assurance that the IRS will agree with this
characterization or that the United States courts will uphold
the status of the Acquisition as a Reorganization in the event
of a challenge by the IRS.

     
Among other requirements for the Acquisition to
qualify as a Reorganization under Section 368(a)(1)(C) of
the Code (a “Type C Reorganization”), NS Amalco
must acquire “substantially all” of the assets of
Wheaton (the “Substantially All Assets Test”).
For ruling purposes, the IRS defines “substantially
all” as 70% of the gross assets and 90% of the net assets
of Wheaton. In determining whether NS Amalco will acquire the
requisite amount of assets from Wheaton, payments of cash by
Wheaton to any holders of Common Shares that exercise the right
to dissent from the Acquisition will not be considered as assets
acquired by NS Amalco. Accordingly, if holders of a significant
number of the outstanding Common Shares exercise the right to
dissent from the Acquisition and receive payments of cash from
Wheaton, the Acquisition may fail to qualify as a Type C
Reorganization. Whether or not the Substantially All Assets Test
will be met will not be known until the time of consummation of
the Subsequent Acquisition Transaction. Each United States
Holder should consult its own tax advisor regarding the
likelihood that the requirements for a Type C Reorganization,
including the Substantially All Assets Test, will be met.

     
Assuming that the Acquisition qualifies as a
Reorganization, the following United States federal income tax
consequences will result to U.S. Holders:

			
	 	(a)	
    no gain or loss will be recognized by a
    U.S. Holder that exchanges Common Shares for Goldcorp
    Shares pursuant to the Acquisition;
    
	 
	 	(b)	
    the tax basis of a U.S. Holder in the
    Goldcorp Shares acquired in exchange for Common Shares pursuant
    to the Acquisition will be equal to such U.S. Holder’s
    adjusted tax basis in the Common Shares exchanged; and
    
	 
	 	(c)	
    the holding period of a U.S. Holder for the
    Goldcorp Shares acquired in exchange for Common Shares pursuant
    to the Acquisition will include such U.S. Holder’s
    holding period for the Common Shares exchanged.
    

Information Reporting

     
U.S. Holders that exchange Common Shares for
Goldcorp Shares pursuant to the Acquisition generally will be
required to report certain information to the IRS on their
United States federal income tax returns for the taxable year in
which the Acquisition occurs and to retain certain records
related to the Acquisition. Each U.S. Holder should consult
its own tax advisor regarding its information reporting and
record retention responsibilities in connection with the
Acquisition.

53

 

Failure of the Acquisition to Qualify as a
Tax-Deferred Reorganization

     
In the event that the Acquisition fails to
qualify as a Reorganization, the following United States federal
income tax consequences will result to U.S. Holders:

			
	 	(a)	
    a U.S. Holder will recognize gain or loss in
    an amount equal to the difference, if any, between (i) the
    fair market value of the Goldcorp Shares received by such
    U.S. Holder pursuant to the Acquisition and (ii) the
    adjusted tax basis of such U.S. Holder in the Common Shares
    exchanged;
    
	 
	 	(b)	
    the tax basis of a U.S. Holder in the
    Goldcorp Shares acquired in exchange for Common Shares pursuant
    to the Acquisition will equal the fair market value of the
    Goldcorp Shares on the date of receipt; and
    
	 
	 	(c)	
    the holding period of a U.S. Holder for the
    Goldcorp Shares acquired in exchange for Common Shares pursuant
    to the Acquisition will begin on the day after the date of
    receipt.
    

     
The gain or loss described in paragraph (a)
above generally will be capital gain or loss, which will be
long-term capital gain or loss if the Common Shares have been
held for more than one year. Preferential tax rates apply to
long-term capital gains of a U.S. Holder that is an
individual, estate, or trust. There are currently no
preferential tax rates for long-term capital gains of a
U.S. Holder that is a corporation. Deductions for capital
losses and net capital losses are subject to complex limitations.

Dissenting U.S. Holders

     
A U.S. Holder that exercises the right to
dissent from the Amalgamation will recognize gain or loss in an
amount equal to the difference, if any, between (i) the
amount of cash received by such U.S. Holder in exchange for
the Common Shares (other than amounts, if any, that are or are
deemed to be interest for United States federal income tax
purposes, which amounts will be taxed as ordinary income) and
(ii) the adjusted tax basis of such U.S. Holder in the
Common Shares.

     
Such gain or loss will be capital gain or loss,
which will be long-term capital gain or loss if the Common
Shares are held for more than one year. Preferential tax rates
apply to long-term capital gains of a U.S. Holder that is
an individual, estate, or trust. There are currently no
preferential tax rates for long-term capital gains of a
U.S. Holder that is a corporation. Deductions for capital
losses and net capital losses are subject to complex limitations.

     
With respect to any amounts paid to dissenters
that are taxable as interest for United States federal income
tax purposes, a U.S. Holder who pays Canadian income tax
with respect to such interest income may be eligible to receive
a deduction or a credit for such Canadian income tax paid. (See
immediately below under “— Foreign Tax
Credit”.)

Foreign Tax Credits for Canadian Taxes Paid
or Withheld

     
A U.S. Holder that pays (whether directly or
through withholding) Canadian income tax in connection with the
Acquisition may be entitled, at the election of such
U.S. Holder, to receive either a deduction or a credit for
U.S. federal income tax purposes. There are significant and
complex limitations that apply to the foreign tax credit, among
which is the general limitation that the credit cannot exceed
the proportionate share of the U.S. Holder’s
U.S. federal income tax liability that such
U.S. Holder’s “foreign source” taxable
income bears to such U.S. Holder’s worldwide taxable
income. In applying this limitation, a U.S. Holder’s
various items of income and deduction must be classified, under
complex rules, as either “foreign source” or
“U.S. source.” Gain on the disposition of Common
Shares generally will be U.S. source gain for purposes of
applying the foreign tax credit rules, unless such gain is
subject to tax in Canada and is resourced as foreign source gain
under the provisions of the Canada-U.S. Tax Convention. The
foreign tax credit rules are very complicated, and
U.S. Holders should consult their own financial advisor,
legal counsel or accountant regarding the foreign tax credit
rules and the application of the foreign tax credit rules to the
Acquisition.

54

 

United States Federal Income Tax Consequences
of the Acquisition, Ownership, and Disposition of Goldcorp
Shares Received Upon the Acquisition

Distributions on Goldcorp
Shares

General Taxation of Distributions

     
A U.S. Holder that receives a distribution
(including a constructive distribution) with respect to the
Goldcorp Shares will be required to include the amount of such
distribution in gross income as a dividend (without reduction
for any Canadian income tax withheld from such distribution) to
the extent of the current or accumulated “earnings and
profits” of Goldcorp, as determined under United States
federal income tax rules. To the extent that a distribution
exceeds the current and accumulated “earnings and
profits” of Goldcorp, such distribution will be treated
(a) first, as a tax-free return of capital to the extent of
a U.S. Holder’s adjusted tax basis in the Goldcorp
Shares and, (b) thereafter, as gain from the sale or
exchange of such Goldcorp Shares. (See more detailed discussion
at “Disposition of Goldcorp Shares” below).

Reduced Tax Rates for Certain
Dividends

     
For taxable years beginning before
January 1, 2009, a dividend paid by Goldcorp generally will
be taxed at the preferential tax rates applicable to long-term
capital gains if (a) Goldcorp is a “qualified foreign
corporation” (as defined below), (b) the
U.S. Holder receiving such dividend is an individual,
estate, or trust, and (c) such dividend is paid on Goldcorp
Shares that have been held by such U.S. Holder for at least
61 days during the 121-day period beginning 60 days
before the “ex-dividend date” (i.e., the first date
that a purchaser of such Goldcorp Shares will not be entitled to
receive such dividend).

     
Goldcorp generally will be a “qualified
foreign corporation” under Section 1(h)(11) of the
Code (a “QFC”) if (a) Goldcorp is
incorporated in a possession of the United States,
(b) Goldcorp is eligible for the benefits of the
Canada-U.S. Tax Convention, or (c) Goldcorp Shares are
readily tradable on an established securities market in the
United States. However, even if Goldcorp satisfies one or more
of such requirements, Goldcorp will not be treated as a QFC if
Goldcorp is a “foreign personal holding company,” a
“foreign investment company,” or a “passive
foreign investment company” for the taxable year during
which Goldcorp pays a dividend or for the preceding taxable
year. Goldcorp believes that it will qualify as a QFC for the
tax year ending December 31, 2004. However, there can be no
assurance that Goldcorp will qualify as a QFC in future tax
years. If Goldcorp is not a QFC, a dividend paid by Goldcorp to
a U.S. Holder, including a U.S. Holder that is an
individual, estate, or trust, generally will be taxed at
ordinary income tax rates (and not at the preferential tax rates
applicable to long-term capital gains). The dividend rules are
complex and each U.S. Holder should consult its own tax
advisor regarding the dividend rules.

Distributions Paid in Foreign
Currency

     
The amount of a distribution paid to a
U.S. Holder in foreign currency generally will be equal to
the United States dollar value of such distribution based on the
exchange rate applicable on the date of receipt. A subsequent
disposition of any foreign currency received will generally give
rise to ordinary income or loss. A U.S. Holder should
consult its own tax advisor regarding the United States federal
income tax consequences of acquiring, holding and disposing of
foreign currency.

Dividends Received Deduction

     
Dividends paid on the Goldcorp Shares generally
will not be eligible for the “dividends received
deduction” generally available to United States corporate
shareholders receiving dividends from United States
corporations. The availability of the dividends received
deduction is subject to complex limitations that are beyond the
scope of this discussion, and a U.S. Holder that is a
corporation should consult its own tax advisor regarding the
dividends received deduction.

Disposition of Goldcorp
Shares

     
A U.S. Holder will recognize gain or loss on
the sale or other taxable disposition of Goldcorp Shares in an
amount equal to the difference, if any, between (a) the
amount of cash plus the fair market value of any property
received and (b) such U.S. Holder’s adjusted tax
basis in the Goldcorp Shares sold or otherwise disposed of. Any
such gain or loss generally will be capital gain or loss, which
will be long-term capital gain or loss if the Goldcorp Shares
have been held for more than one year.

55

 

     
Preferential tax rates apply to long-term capital
gains of a U.S. Holder that is an individual, estate, or
trust. There are currently no preferential tax rates for
long-term capital gains of a U.S. Holder that is a
corporation. Deductions for capital losses and net capital
losses are subject to complex limitations.

Foreign Tax Credit

     
A U.S. Holder who pays (whether directly or
through withholding) Canadian income tax with respect to
dividends paid on the Goldcorp Shares generally will be
entitled, at the election of such U.S. Holder, to receive
either a deduction or a credit for such Canadian income tax
paid. Generally, a credit will reduce a U.S. Holder’s
United States federal income tax liability on a
dollar-for-dollar basis, whereas a deduction will reduce a
U.S. Holder’s income subject to United States federal
income tax. This election is made on a year-by-year basis and
applies to all foreign taxes paid (whether directly or through
withholding) by a U.S. Holder during a year.

     
Complex limitations apply to the foreign tax
credit, including the general limitation that the credit cannot
exceed the proportionate share of a U.S. Holder’s
United States federal income tax liability that such
U.S. Holder’s “foreign source” taxable
income bears to such U.S. Holder’s worldwide taxable
income. The foreign tax credit rules are complex, and each
U.S. Holder should consult its own tax advisor regarding
the foreign tax credit rules.

Passive Foreign Investment
Company

     
Certain United States income tax legislation
contains rules governing “Passive Foreign Investment
Companies” (“PFIC”) which can have
significant adverse tax effects on U.S. Holders of foreign
corporations. Section 1297 of the Code defines a PFIC as a
corporation that is not formed in the United States and, for any
taxable year, either (a) 75% or more of its gross income is
“passive income” or (b) the average percentage,
by fair market value (or, if the corporation is not publicly
traded and either is a controlled foreign corporation or makes
an election, by adjusted tax basis), of its 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.

     
U.S. Holders owning common shares of a PFIC
are subject to the highest rate of tax on ordinary income in
effect for the applicable taxable year and to an interest charge
based on the value of deferral of tax for the period during
which the common shares of the PFIC are owned with respect to
certain “excess distributions” on and dispositions of
PFIC stock under Section 1291 of the Code. However, if the
U.S. Holder makes a timely election to treat a PFIC as a
qualified electing fund (“QEF”) with respect to such
shareholder’s interest therein, the above-described rules
generally will not apply. Instead, the electing U.S. Holder
would include annually in his gross income his pro rata share of
the PFIC’s ordinary earnings and net capital gain
regardless of whether such income or gain was actually
distributed. A U.S. Holder of a QEF can, however, elect to
defer the payment of United States federal income tax on such
income inclusions. In addition, subject to certain limitations,
U.S. Holders owning, actually or constructively, marketable
(as specifically defined) stock in a PFIC will be permitted to
elect to mark that stock to market annually, rather than be
subject to the tax regime of Section 1291 of Code as
described above. Amounts included in or deducted from income
under this alternative (and actual gains and losses realized
upon disposition, subject to certain limitations) will be
treated as ordinary gains or losses.

     
Goldcorp believes that it will not qualify as a
PFIC for its fiscal year ending December 31, 2004. However,
there can be no assurance that Goldcorp will not be considered a
PFIC for any future taxable year. There can be no assurance that
Goldcorp’s determination concerning its PFIC status will
not be challenged by the IRS, or that it will be able to satisfy
record keeping requirements that will be imposed on QEFs in the
event that it qualifies as a PFIC.

     
The PFIC rules are very complicated, and
U.S. Holders should consult their own tax advisor regarding
the PFIC rules and how these rules may impact their United
States federal income tax situation.

Information Reporting: Backup Withholding
Tax

     
Taxable payments made pursuant to the Acquisition
and payments made within the United States, or by a United
States payor or United States middleman, of dividends on, and
proceeds arising from certain sales or other taxable
dispositions of, Goldcorp Shares generally will be subject to
information reporting and backup withholding tax, at the rate of
28%, if a U.S. Holder (a) fails to furnish such
U.S. Holder’s correct United States taxpayer
identification number (generally on Form W-9),
(b) furnishes an incorrect United States taxpayer
identification number, (c) is notified by the IRS that such
U.S. Holder has previously failed to properly report items
subject to backup withholding tax, or (d) fails

56

 

to certify, under penalty of perjury, that such
U.S. Holder has furnished its correct U.S. taxpayer
identification number and that the IRS has not notified such
U.S. Holder that it is subject to backup withholding tax.
However, U.S. Holders that are corporations generally are
excluded from these information reporting and backup withholding
tax rules. Any amounts withheld under the United States backup
withholding tax rules will be allowed as a credit against a
U.S. Holder’s United States federal income tax
liability, if any, or will be refunded, if such U.S. Holder
furnishes required information to the IRS. Each U.S. Holder
should consult its own tax advisor regarding the information
reporting and backup withholding tax rules.

Subsequent Acquisition
Transaction — Wheaton Warrants

     
U.S. Holders of Wheaton Warrants, which hold
such warrants as capital assets, should not recognize a capital
gain or capital loss as a result of such holders becoming
entitled, by virtue of the amalgamation occurring as part of the
Subsequent Acquisition Transaction and under the existing terms
of the Wheaton Warrant indentures, to acquire Goldcorp Shares
upon the exercise of the warrants after the effective date of
the amalgamation of Subco and Wheaton.

19. Depositary

     
The Offerors have engaged Kingsdale Shareholders
Services Inc. to act as Depositary for the receipt of
certificates in respect of Common Shares and related Letters of
Acceptance and Transmittal and Notices of Guaranteed Delivery
deposited to the Offer and for the payment for Common Shares
purchased by the Offerors pursuant to the Offer. The Depositary
will receive reasonable and customary compensation from the
Offerors for its services relating to the Offer and will be
reimbursed for certain out-of-pocket expenses. The Offerors have
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.

     
Questions and requests for assistance concerning
the Offer should be made directly to the Depositary.

20. Dealer Manager and Soliciting Dealer
Group

     
The Offerors have engaged the services of GMP
Securities Ltd. as Dealer Manager in Canada and Griffiths
McBurney Corp. as Dealer Manager in the United States to solicit
acceptances of the Offer. The Dealer Manager will be paid a fee
of $150,000 for services rendered by it in its capacity as
Dealer Manager and will be reimbursed by the Offerors 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.

     
GMP Securities Ltd. 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 Griffiths
McBurney Corp. 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”. The Offerors have agreed to pay
to each Soliciting Dealer whose name appears in the appropriate
space in the Letter of Acceptance and Transmittal a fee of $0.06
for each Common Share deposited and taken up by the Offerors
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 Common 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. The Offerors may require the Soliciting
Dealers to furnish evidence of beneficial ownership satisfactory
to the Offerors at the time of deposit.

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

21. Information Agent

     
The Offerors have retained Kingsdale Shareholder
Services Inc. to act as Information Agent in connection with the
Offer. The Information Agent will receive reasonable and
customary compensation from the Offerors 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.

57

 

22. Legal Matters

     
Matters of Canadian law will be passed upon on
behalf of the Offerors by Fraser Milner Casgrain LLP.

     
Matters of U.S. law will be passed upon on
behalf of the Offerors by Dorsey & Whitney LLP.

23. Offerees’ Statutory
Rights

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

24. Directors’ Approval

     
The contents of the Offer and this Circular have
been approved, and the publication and the sending thereof to
the Shareholders has been authorized, by the boards of directors
of the Offerors.

58

 

AUDITORS’ CONSENT

TO: The Directors of Goldcorp Inc. and
Goldcorp Acquisition ULC

     
We have read the take-over bid circular of
Goldcorp Inc. (the “Company”) dated December 29,
2004 relating to Goldcorp Inc.’s offer to purchase all of
the outstanding common shares of Wheaton River Minerals Inc. We
have complied with Canadian generally accepted standards for an
auditors’ involvement with offering documents.

     
We consent to the incorporation by reference in
the abovementioned take-over bid circular of our report to the
shareholders of the Company on the balance sheets of the Company
as at December 31, 2003 and 2002 and the statements of
earnings, retained earnings (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

Toronto, Canada

December 29, 2004

59

 

APPROVAL AND CERTIFICATE OF GOLDCORP
INC.

DATED: December 29, 2004

     
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 subject to the Offer within the meaning of the
Securities Act (Québec).

GOLDCORP INC.

	 	 	 
	
    (signed) ROBERT R. MCEWEN

    Chief Executive Officer
    	 	
    (signed) BRAD J. BOLAND

    Vice President, Finance
    

On behalf of the Board of Directors

	 	 	 
	
    (signed) RONALD M. GOLDSACK

    Director
    	 	
    (signed) DR. DONALD R.M. QUICK

    Director
    

60

 

APPROVAL AND CERTIFICATE OF GOLDCORP
ACQUISITION ULC

DATED: December 29, 2004

     
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 subject to the Offer within the meaning of the
Securities Act (Québec).

GOLDCORP ACQUISITION ULC

	 	 	 
	
    (signed) ROBERT R. MCEWEN

    Chief Executive Officer
    	 	
    (signed) BRAD J. BOLAND

    Vice President, Finance
    

On behalf of the Board of Directors

	 	 	 
	
    (signed) R. GREGORY LAING

    Director
    	 	
    (signed) GILLES FILION

    Director
    

61

 

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62

 

APPENDIX A

PRO FORMA FINANCIAL STATEMENTS

A-1

 

COMPILATION REPORT

To the Directors of 

   GOLDCORP INC.

     
We have read the accompanying unaudited pro forma
consolidated balance sheet of Goldcorp Inc. (the
“Company”) as at September 30, 2004 and unaudited
pro forma consolidated statement of earnings for the nine months
ended September 30, 2004 and the year ended
December 31, 2003, and have performed the following
procedures.

			
	 	1.	
    Compared the figures in the columns captioned
    “Goldcorp Inc.” to the audited consolidated financial
    statements of Goldcorp Inc. for the year ended December 31,
    2003, and found them to be in agreement.
    
	 
	 	2.	
    Compared the figures in the columns captioned
    “Goldcorp Inc.” to the unaudited consolidated
    financial statements of Goldcorp Inc. as at September 30,
    2004 and for the nine months then ended, and found them to be in
    agreement, or recalculated those figures based on information in
    such unaudited consolidated financial statements, and found the
    amounts to be arithmetically correct.
    
	 
	 	3.	
    Compared the figures in the columns captioned
    “Wheaton River Minerals Ltd.” to the audited
    consolidated financial statements of Wheaton River Minerals Ltd.
    for the year ended December 31, 2003, and found them to be
    in agreement, or recalculated those figures based on information
    in such audited consolidated financial statements, and found the
    amounts to be arithmetically correct.
    
	 
	 	4.	
    Compared the figures in the columns captioned
    “Wheaton River Minerals Ltd.” to the unaudited
    consolidated financial statements of Wheaton River Minerals Ltd.
    as at September 30, 2004 and for the nine months then
    ended, and found them to be in agreement, or recalculated those
    figures based on information in such unaudited consolidated
    financial statements, and found the amounts to be arithmetically
    correct.
    
	 
	 	5.	
    Made enquiries of certain officials of Goldcorp
    Inc. 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 consolidated financial
    statements comply as to form in all material respects with the
    securities acts of the provinces and territories of Canada (the
    “Acts”) and the related regulations.
    

		
	 	
    The officials:
    

			
	 	(a)	
    described to us the basis for determination of
    the pro forma adjustments; and
    
	 
	 	(b)	
    stated that the pro forma consolidated financial
    statements comply as to form in all material respects with the
    securities acts of the provinces and territories of the Acts and
    the related regulations.
    

			
	 	6.	
    Read the notes to the pro forma consolidated
    financial statements, and found them to be consistent with the
    basis described to us for determination of the pro forma
    adjustments.
    
	 
	 	7.	
    Recalculated the application of the pro forma
    adjustments to the aggregate of the amounts in the columns
    captioned “Goldcorp Inc.” and “Wheaton River
    Minerals Ltd.” 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-2

 

     
These pro forma consolidated financial statements
are based on management’s 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 condensed consolidated 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

Toronto, Canada

December 29, 2004

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

Toronto, Canada

December 29, 2004

A-3

 

GOLDCORP INC.

PRO FORMA CONSOLIDATED BALANCE SHEET

(Expressed in thousands of United States dollars)

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
			
			September 30, 2004
			

					Wheaton River		Pro forma				Pro forma
			Goldcorp Inc.		Minerals Ltd.		adjustments		Notes		total
			
		
		
		
		

			
			(Unaudited)
	
    Assets
	
    
    Current assets:
    

    	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	
    
    Cash and short term investments
    

    	 	$	315,642	 	 	$	90,004	 	 	$	54,400	 	 	 	4(a)	 	 	$	460,046	 
	 	
    
    Gold bullion inventory
    

    	 	 	26,152	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	26,152	 
	 	
    
    Accounts receivable
    

    	 	 	9,459	 	 	 	46,954	 	 	 	—	 	 	 	 	 	 	 	56,413	 
	 	
    
    Marketable securities
    

    	 	 	23,743	 	 	 	1,529	 	 	 	3,400	 	 	 	4(b)	 	 	 	28,672	 
	 	
    
    Inventories
    

    	 	 	15,158	 	 	 	27,299	 	 	 	—	 	 	 	 	 	 	 	42,457	 
	 	
    
    Prepaid expenses and other
    

    	 	 	475	 	 	 	5,350	 	 	 	—	 	 	 	 	 	 	 	5,825	 
	 	
    
    Income and mining taxes receivable
    

    	 	 	10,013	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	10,013	 
	 	 	 	
	 	 	 	
	 	 	 	
	 	 	 	 	 	 	 	
	 
	 	 	 	400,642	 	 	 	171,136	 	 	 	57,800	 	 	 	 	 	 	 	629,578	 
	
    
    Mining interests
    

    	 	 	240,688	 	 	 	728,589	 	 	 	209,000	 	 	 	4(b)	 	 	 	1,178,277	 
	
    
    Deposits for reclamation costs
    

    	 	 	4,841	 	 	 	1,078	 	 	 	—	 	 	 	 	 	 	 	5,919	 
	
    
    Goodwill
    

    	 	 	—	 	 	 	—	 	 	 	1,461,966	 	 	 	4(b)	 	 	 	1,461,966	 
	
    
    Other assets
    

    	 	 	2,743	 	 	 	20,388	 	 	 	(14,000	)	 	 	4(b)	 	 	 	9,131	 
	
    
    Future income taxes
    

    	 	 	—	 	 	 	4,230	 	 	 	—	 	 	 	 	 	 	 	4,230	 
	
    
    Stockpiled ore
    

    	 	 	—	 	 	 	58,707	 	 	 	—	 	 	 	 	 	 	 	58,707	 
	 	 	 	
	 	 	 	
	 	 	 	
	 	 	 	 	 	 	 	
	 
	 	 	$	648,914	 	 	$	984,128	 	 	$	1,714,766	 	 	 	 	 	 	$	3,347,808	 
	 	 	 	
	 	 	 	
	 	 	 	
	 	 	 	 	 	 	 	
	 
	
    Liabilities and Shareholders’
    Equity
	
    
    Current liabilities:
    

    	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	
    
    Accounts payable and accrued liabilities
    

    	 	$	19,295	 	 	$	28,996	 	 	$	10,000	 	 	 	4(b)	 	 	$	58,291	 
	 	
    
    Dividends payable
    

    	 	 	2,905	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	2,905	 
	 	
    
    Income and mining taxes payable
    

    	 	 	—	 	 	 	22,993	 	 	 	—	 	 	 	 	 	 	 	22,993	 
	 	
    
    Other
    

    	 	 	—	 	 	 	3,738	 	 	 	1,500	 	 	 	4(b)	 	 	 	5,238	 
	 	 	 	
	 	 	 	
	 	 	 	
	 	 	 	 	 	 	 	
	 
	 	 	 	22,200	 	 	 	55,727	 	 	 	11,500	 	 	 	 	 	 	 	89,427	 
	
    
    Reclamation and closure cost obligations
    

    	 	 	22,287	 	 	 	18,204	 	 	 	—	 	 	 	 	 	 	 	40,491	 
	
    
    Future income and mining taxes
    

    	 	 	64,360	 	 	 	163,614	 	 	 	62,532	 	 	 	4(e)	 	 	 	290,506	 
	
    
    Future employee benefits and other
    

    	 	 	—	 	 	 	11,067	 	 	 	650	 	 	 	4(b)	 	 	 	11,717	 
	
    
    Non-controlling interests
    

    	 	 	—	 	 	 	—	 	 	 	18,000	 	 	 	4(a)	 	 	 	18,000	 
	
    
    Shareholders’ equity:
    

    	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	
    
    Capital stock
    

    	 	 	379,173	 	 	 	582,527	 	 	 	1,444,073	 	 	 	4(b)	 	 	 	2,405,773	 
	 	
    
    Cumulative translation adjustment
    

    	 	 	81,181	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	81,181	 
	 	
    
    Contributed surplus
    

    	 	 	—	 	 	 	704	 	 	 	(704	)	 	 	4(b)	 	 	 	—	 
	 	
    
    Share purchase warrants and options
    

    	 	 	5,573	 	 	 	33,414	 	 	 	(33,414	)	 	 	4(b)	 	 	 	—	 
	 	 	 	 	 	 	 	 	 	 	 	331,000	 	 	 	4(b)	 	 	 	336,573	 
	 	
    
    Retained earnings
    

    	 	 	74,140	 	 	 	118,871	 	 	 	(118,871	)	 	 	4(b)	 	 	 	74,140	 
	 	 	 	
	 	 	 	
	 	 	 	
	 	 	 	 	 	 	 	
	 
	 	 	 	540,067	 	 	 	735,516	 	 	 	1,622,084	 	 	 	 	 	 	 	2,897,667	 
	 	 	 	
	 	 	 	
	 	 	 	
	 	 	 	 	 	 	 	
	 
	 	 	$	648,914	 	 	$	984,128	 	 	$	1,714,766	 	 	 	 	 	 	$	3,347,808	 
	 	 	 	
	 	 	 	
	 	 	 	
	 	 	 	 	 	 	 	
	 

See accompanying notes to pro forma
consolidated financial statements.

A-4

 

GOLDCORP INC.

PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF
EARNINGS

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

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
			
			Nine months ended September 30, 2004
			

					Wheaton River		Pro forma				Pro forma
			Goldcorp Inc.		Minerals Ltd.		adjustments		Notes		total
			
		
		
		
		

			
			(Unaudited)
	
    
    Revenue
    

    	 	$	139,144	 	 	$	305,723	 	 	$	—	 	 	 	 	 	 	$	444,867	 
	
    
    Expenses:
    

    	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	
    
    Operating
    

    	 	 	50,058	 	 	 	117,965	 	 	 	—	 	 	 	 	 	 	 	168,023	 
	 	
    
    Corporate administration
    

    	 	 	8,944	 	 	 	12,297	 	 	 	—	 	 	 	 	 	 	 	21,241	 
	 	
    
    Depreciation and depletion
    

    	 	 	12,784	 	 	 	36,546	 	 	 	20,380	 	 	 	4(c)	 	 	 	70,730	 
	 	 	 	 	 	 	 	 	 	 	 	 	1,020	 	 	 	4(f)	 	 	 	 	 
	 	
    
    Exploration
    

    	 	 	4,042	 	 	 	2,164	 	 	 	—	 	 	 	 	 	 	 	6,206	 
	 	 	 	
	 	 	 	
	 	 	 	
	 	 	 	 	 	 	 	
	 
	 	 	 	75,828	 	 	 	168,972	 	 	 	21,400	 	 	 	 	 	 	 	266,200	 
	 	 	 	
	 	 	 	
	 	 	 	
	 	 	 	 	 	 	 	
	 
	
    
    Earnings from operations
    

    	 	 	63,316	 	 	 	136,751	 	 	 	(21,400	)	 	 	 	 	 	 	178,667	 
	
    
    Other income (expense):
    

    	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	
    
    Interest and other income
    

    	 	 	6,368	 	 	 	(3,567	)	 	 	—	 	 	 	 	 	 	 	2,801	 
	 	
    
    Gain (loss) on foreign currency
    

    	 	 	243	 	 	 	(2,171	)	 	 	—	 	 	 	 	 	 	 	(1,928	)
	 	
    
    Gain on sale of marketable securities
    

    	 	 	1,356	 	 	 	1,415	 	 	 	—	 	 	 	 	 	 	 	2,771	 
	 	
    
    Provision for decline in value of marketable
    securities
    

    	 	 	(8,519	)	 	 	—	 	 	 	—	 	 	 	 	 	 	 	(8,519	)
	 	
    
    Corporate transaction costs
    

    	 	 	—	 	 	 	(4,238	)	 	 	—	 	 	 	 	 	 	 	(4,238	)
	 	 	 	
	 	 	 	
	 	 	 	
	 	 	 	 	 	 	 	
	 
	 	 	 	(552	)	 	 	(8,561	)	 	 	 	 	 	 	 	 	 	 	(9,113	)
	 	 	 	
	 	 	 	
	 	 	 	
	 	 	 	 	 	 	 	
	 
	
    
    Earnings before taxes
    

    	 	 	62,764	 	 	 	128,190	 	 	 	(21,400	)	 	 	 	 	 	 	169,554	 
	
    
    Income and mining taxes
    

    	 	 	(26,384	)	 	 	(42,022	)	 	 	6,900	 	 	 	4(e)	 	 	 	(61,506	)
	 	 	 	
	 	 	 	
	 	 	 	
	 	 	 	 	 	 	 	
	 
	
    
    Earnings before non-controlling interests
    

    	 	 	36,380	 	 	 	86,168	 	 	 	(14,500	)	 	 	 	 	 	 	108,048	 
	
    
    Non-controlling interests
    

    	 	 	—	 	 	 	—	 	 	 	(2,451	)	 	 	4(a)	 	 	 	(2,451	)
	 	 	 	
	 	 	 	
	 	 	 	
	 	 	 	 	 	 	 	
	 
	
    
    Net earnings
    

    	 	$	36,380	 	 	$	86,168	 	 	$	(16,951	)	 	 	 	 	 	$	105,597	 
	 	 	 	
	 	 	 	
	 	 	 	
	 	 	 	 	 	 	 	
	 
	
    
    Earnings per share:
    

    	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	
    
    Basic
    

    	 	$	0.19	 	 	$	0.15	 	 	 	 	 	 	 	 	 	 	$	0.32	 
	 	
    
    Diluted
    

    	 	$	0.19	 	 	$	0.13	 	 	 	 	 	 	 	 	 	 	$	0.29	 
	
    
    Weighted average number of shares:
    

    	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	
    
    Basic
    

    	 	 	189,640	 	 	 	567,535	 	 	 	 	 	 	 	 	 	 	 	332,660	 
	 	
    
    Diluted
    

    	 	 	193,323	 	 	 	649,062	 	 	 	 	 	 	 	 	 	 	 	360,399	 

See accompanying notes to pro forma
consolidated financial statements.

A-5

 

GOLDCORP INC.

PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF
EARNINGS

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

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
			
			Year ended December 31, 2003
			

					Wheaton River		Pro forma				Pro forma
			Goldcorp Inc.		Minerals Ltd.		adjustments		Notes		total
			
		
		
		
		

			
			(Unaudited)
	
    
    Revenue
    

    	 	$	262,642	 	 	$	212,633	 	 	$	—	 	 	 	 	 	 	$	475,275	 
	
    
    Expenses:
    

    	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	
    
    Operating
    

    	 	 	88,527	 	 	 	96,459	 	 	 	1,739	 	 	 	4(d	)	 	 	186,725	 
	 	
    
    Corporate administration
    

    	 	 	12,138	 	 	 	11,432	 	 	 	14,186	 	 	 	4(d	)	 	 	37,756	 
	 	
    
    Depreciation and depletion
    

    	 	 	24,101	 	 	 	32,393	 	 	 	21,200	 	 	 	4(c	)	 	 	81,242	 
	 	 	 	 	 	 	 	 	 	 	 	 	3,548	 	 	 	4(f	)	 	 	 	 
	 	
    
    Exploration
    

    	 	 	3,006	 	 	 	1,875	 	 	 	—	 	 	 	 	 	 	 	4,881	 
	 	 	 	
	 	 	 	
	 	 	 	
	 	 	 	 	 	 	 	
	 
	 	 	 	127,772	 	 	 	142,159	 	 	 	40,673	 	 	 	 	 	 	 	310,604	 
	 	 	 	
	 	 	 	
	 	 	 	
	 	 	 	 	 	 	 	
	 
	
    
    Earnings from operations
    

    	 	 	134,870	 	 	 	70,474	 	 	 	(40,673	)	 	 	 	 	 	 	164,671	 
	
    
    Other income (expense):
    

    	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	
    
    Interest and other
    

    	 	 	7,241	 	 	 	(3,964	)	 	 	—	 	 	 	 	 	 	 	3,277	 
	 	
    
    Gain on sale of purchased bullion
    

    	 	 	1,664	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	1,664	 
	 	
    
    Gain (loss) on foreign currency
    

    	 	 	(1,164	)	 	 	6,774	 	 	 	—	 	 	 	 	 	 	 	5,610	 
	 	
    
    Gain on marketable securities
    

    	 	 	10,230	 	 	 	2,095	 	 	 	—	 	 	 	 	 	 	 	12,325	 
	 	 	 	
	 	 	 	
	 	 	 	
	 	 	 	 	 	 	 	
	 
	 	 	 	17,971	 	 	 	4,905	 	 	 	 	 	 	 	 	 	 	 	22,876	 
	 	 	 	
	 	 	 	
	 	 	 	
	 	 	 	 	 	 	 	
	 
	
    
    Earnings before the following
    

    	 	 	152,841	 	 	 	75,379	 	 	 	(40,673	)	 	 	 	 	 	 	187,547	 
	
    
    Equity in earnings of Mineral Alumbrera Ltd.
    

    	 	 	—	 	 	 	7,324	 	 	 	—	 	 	 	 	 	 	 	7,324	 
	 	 	 	
	 	 	 	
	 	 	 	
	 	 	 	 	 	 	 	
	 
	
    
    Earnings before taxes
    

    	 	 	152,841	 	 	 	82,703	 	 	 	(40,673	)	 	 	 	 	 	 	194,871	 
	
    
    Income and mining taxes
    

    	 	 	(54,037	)	 	 	(25,044	)	 	 	7,110	 	 	 	4(e	)	 	 	(71,971	)
	 	 	 	
	 	 	 	
	 	 	 	
	 	 	 	 	 	 	 	
	 
	
    
    Earnings before non-controlling interests
    

    	 	 	98,804	 	 	 	57,659	 	 	 	(33,563	)	 	 	 	 	 	 	122,900	 
	
    
    Non-controlling interests
    

    	 	 	—	 	 	 	—	 	 	 	(487	)	 	 	4(a	)	 	 	(487	)
	 	 	 	
	 	 	 	
	 	 	 	
	 	 	 	 	 	 	 	
	 
	
    
    Net earnings
    

    	 	$	98,804	 	 	$	57,659	 	 	$	(34,050	)	 	 	 	 	 	$	122,413	 
	 	 	 	
	 	 	 	
	 	 	 	
	 	 	 	 	 	 	 	
	 
	
    
    Earnings per share:
    

    	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	
    
    Basic
    

    	 	$	0.54	 	 	$	0.14	 	 	 	 	 	 	 	 	 	 	$	0.37	 
	 	
    
    Diluted
    

    	 	$	0.53	 	 	$	0.13	 	 	 	 	 	 	 	 	 	 	$	0.34	 
	
    
    Weighted average number of shares:
    

    	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	
    
    Basic
    

    	 	 	183,574	 	 	 	412,035	 	 	 	 	 	 	 	 	 	 	 	326,594	 
	 	
    
    Diluted
    

    	 	 	188,179	 	 	 	439,214	 	 	 	 	 	 	 	 	 	 	 	355,789	 

See accompanying notes to pro forma
consolidated financial statements.

A-6

 

GOLDCORP INC.

NOTES TO PRO FORMA CONSOLIDATED FINANCIAL
STATEMENTS

(Tabular amounts in thousands of United States
dollars, except earnings per share amounts)

Nine months ended September 30, 2004 and
year ended December 31, 2003

1.  Basis of presentation:

    
 The unaudited pro forma consolidated balance
sheet of Goldcorp Inc. (the “Company” or
“Goldcorp”) as at September 30, 2004 and
unaudited pro forma consolidated statement of earnings for the
nine months ended September 30, 2004 and for the year ended
December 31, 2003 have been prepared by management after
giving effect to the business combination between Goldcorp and
Wheaton River Minerals Ltd. (“Wheaton River”). These
pro forma condensed consolidated financial statements also give
effect to Wheaton River’s restructuring of certain of its
silver assets which resulted in the formation of Silver Wheaton
Corp. (“Silver Wheaton”). These pro forma consolidated
financial statements have been compiled from, and include:

			
	 	(a)	
    A pro forma consolidated balance sheet combining
    the unaudited consolidated balance sheet of Goldcorp as at
    September 30, 2004 and the unaudited consolidated balance
    sheet of Wheaton River as at September 30, 2004.
    
	 
	 	(b)	
    A pro forma consolidated statement of earnings
    combining the unaudited consolidated statement of operations of
    Goldcorp for the nine months ended September 30, 2004 with
    the unaudited consolidated statement of operations of Wheaton
    River for nine month period ended September 30, 2004.
    
	 
	 	(c)	
    A pro forma consolidated statement of earnings
    combining the audited consolidated statement of operations of
    Goldcorp for the year ended December 31, 2003 and the
    audited consolidated statement of operations of Wheaton River
    for the year ended December 31, 2003.
    

    
 The pro forma consolidated balance sheet as at
September 30, 2004 has been prepared as if the combination
with Wheaton River described in Note 3 had occurred on
September 30, 2004. The pro forma consolidated statements
of earnings for the nine months ended September 30, 2004
and for the year ended December 31, 2003 have been prepared
as if the transactions described in Note 3 had occurred on
January 1, 2003.

    
 It is management’s opinion that these pro
forma consolidated financial statements present in all material
respects, the transactions described in Note 3 in
accordance with Canadian generally accepted accounting
principles. In certain respects, GAAP as applied in the United
Sates differs from that applied in Canada (note 6). The
accounting policies used in the preparation of these statements
are consistent with Goldcorp’s accounting policies for the
year ended December 31, 2003 and the nine months ended
September 30, 2004 except as discussed in note 2. The
pro forma consolidated financial statements are not intended to
reflect the results of operations or the financial position of
Goldcorp which would have actually resulted had the proposed
transactions been effected on the dates indicated. Further, the
pro forma financial information is not necessarily indicative of
the results of operations that may be obtained in the future.

    
 Certain elements of the Goldcorp and Wheaton
consolidated financial statements have been reclassified to
provide a consistent classification format.

    
 The unaudited pro forma consolidated financial
statements should be read in conjunction with the historical
financial statements and notes thereto of Goldcorp and Wheaton
River.

2.  Significant accounting
policies:

    
 The unaudited pro forma consolidated financial
statements have been compiled using the significant accounting
policies as set out in the audited financial statements of
Goldcorp for the year ended December 31, 2003 which are
incorporated by reference in this take-over bid circular. The
significant accounting policies of Wheaton River conform in all
material respects to those of Goldcorp, other than:
(i) accounting for stock compensation expense related to
options granted to employees. Wheaton River did not adopt this
policy until January 1, 2004 whereas Goldcorp commenced
recognizing this on January 1, 2003; accordingly, an
adjustment has been included in these pro forma financial
statements to recognize employee based stock compensation
expense for Wheaton River for 2003, and (ii) to conform
Wheaton River’s depletion to that used by Goldcorp which is
based on proven and probable reserves.

3.  Business acquisition:

    
 On December 6, 2004, Goldcorp and Wheaton
River announced that the respective boards of directors had
agreed to combine Goldcorp and Wheaton River. Each four Wheaton
River shares will be exchanged for one Goldcorp share. As a
result of the proposed transaction, the combined company will be
held 57.1% by existing Goldcorp shareholders and 42.9% by
existing Wheaton River shareholders. Each Wheaton River warrant
or stock option which gives the holder the right to acquire
shares in the common stock of Wheaton River when presented for
execution will be exchanged for a warrant or stock option which
will give the holder the right to acquire shares in the common
stock of Goldcorp on the same basis as the exchange of Wheaton
River common shares for Goldcorp common shares. The initial
exchange will not include the Wheaton River warrants. Since
Goldcorp intends to acquire these in a subsequent transaction,
they have been included as part of that purchase price
consideration.

    
 This business combination will be accounted for
as a purchase transaction, with Goldcorp being identified as the
acquirer and Wheaton River as the acquiree.

A-7

 

    
 The preliminary allocation of the purchase price
summarized in the table below is subject to change:

	 	 	 	 	 	 
	
    
    Purchase price:
    

    	 	 	 	 
	 	
    
    143,020,000 common shares
    

    	 	$	2,026,600	 
	 	
    
    Stock options and warrants of Wheaton River
    

    	 	 	331,000	 
	 	
    
    Acquisition costs
    

    	 	 	10,000	 
	 	 	 	
	 
	 	 	$	2,367,600	 
	 	 	 	
	 
	
    
    Net assets acquired:
    

    	 	 	 	 
	 	
    
    Cash and short-term investments
    

    	 	$	144,404	 
	 	
    
    Non-cash working capital
    

    	 	 	27,305	 
	 	
    
    Other long-term assets
    

    	 	 	7,466	 
	 	
    
    Stockpiled ore, non-current
    

    	 	 	58,707	 
	 	
    
    Mining interests
    

    	 	 	937,589	 
	 	
    
    Goodwill
    

    	 	 	1,461,966	 
	 	
    
    Reclamation and closure cost obligations
    

    	 	 	(18,204	)
	 	
    
    Non-controlling interests
    

    	 	 	(18,000	)
	 	
    
    Employee future benefits and other
    

    	 	 	(11,717	)
	 	
    
    Future income taxes, net
    

    	 	 	(221,916	)
	 	 	 	
	 
	 	 	$	2,367,600	 
	 	 	 	
	 

    
 The fair value of the Goldcorp shares issued is
based on the deemed issuance of 143,020,000 Goldcorp common
shares at $14.17 being the average share price of Goldcorp two
days before, the day of, and two days after the date of
announcement.

    
 The actual adjustments that Goldcorp will
ultimately make in finalizing the allocation of the purchase
price of Wheaton River to the fair value of the net assets
acquired will depend on a number of factors including additional
information available at such time, changes in market values and
changes in Wheaton River’s operating results between the
date of these pro forma consolidated financial statements and
the effective date of the Acquisition.

    
 In the preparation of these pro forma
consolidated financial statements, the purchase consideration
has been allocated on a preliminary basis to the fair value of
assets acquired and liabilities assumed based on
management’s best estimates and taking into account all
relevant information available at the time these statements were
prepared. Goldcorp expects that the actual amounts for each of
the fair values of the assets and liabilities acquired will vary
from the pro forma amounts and that the variation may be
material.

4.  Pro forma assumptions and
adjustments:

    
 The pro forma consolidated financial statements
include the following pro forma assumptions and adjustments:

			
	 	(a)	
    To record the effect of the Silver Wheaton
    transaction whereby Silver Wheaton agreed to purchase 100% of
    the silver produced by Wheaton’s Luismin mining operations
    for an upfront payment of $38 million (Cdn.
    $46 million) in cash and 540 million Silver Wheaton
    common shares plus a payment of $3.90 per ounce of delivered
    refined silver, subject to adjustment.
    
	 
	 	(b)	
    The assumption that the completion of the
    agreement for the combination of Goldcorp and Wheaton River will
    occur and to record the combination of Goldcorp and Wheaton
    River and all the purchase accounting adjustments related
    thereto.
    
	 
	 	(c)	
    To record adjustments to depletion expense
    resulting from adjustments to asset carrying values in the
    purchase allocations of $20.4 million for the nine months
    ended September 30, 2004 and $21.2 million for the
    year ended December 31, 2003 relating to Wheaton River
    assets. A change in the fair value of the mining interests
    acquired of $10 million would change depletion expense by
    $0.8 million for both the nine months ended
    September 30, 2004 and for the year ended December 31,
    2003.
    
	 
	 	(d)	
    To record stock-based compensation expense for
    Wheaton River for the year ended December 31, 2003.
    
	 
	 	(e)	
    To record the tax effect of the pro forma
    adjustments.
    
	 
	 	(f)	
    To record additional depletion expense to conform
    to Goldcorp’s accounting policy.
    

5.  Pro forma earnings per
share:

    
(a)  Basic earnings per share:

         
 The average number of shares used in the
computation of pro forma basic earnings per share has been
determined as follows:

	 	 	 	 	 	 	 	 	 
			September 30,		December 31,
			2004		2003
			
		

	
    
    Weighted-average number of Goldcorp shares issued
    

    	 	 	189,640	 	 	 	183,574	 
	
    
    Number of weighted-average equivalent Goldcorp
    shares issued to Wheaton River’s shareholders
    

    	 	 	143,020	 	 	 	143,020	 
	 	 	 	
	 	 	 	
	 
	
    
    Pro forma weighted average number of shares
    outstanding
    

    	 	 	332,660	 	 	 	326,594	 
	 	 	 	
	 	 	 	
	 

A-8

 

    
(b)  Diluted earnings per share:

         
 The average number of shares used in the
computation of pro forma diluted earnings per share has been
determined as follows:

	 	 	 	 	 	 	 	 	 
			September 30,		December 31,
			2004		2003
			
		

	
    
    Pro forma average number of shares outstanding
    

    	 	 	332,660	 	 	 	326,594	 
	
    
    Dilutive effect of Goldcorp stock options and
    warrants issued in exchange for Wheaton River stock options and
    warrants and share purchase warrants
    

    	 	 	24,056	 	 	 	24,590	 
	
    
    Dilutive effect of Goldcorp warrants and stock
    options
    

    	 	 	3,683	 	 	 	4,605	 
	 	 	 	
	 	 	 	
	 
	
    
    Average number of shares outstanding, diluted
    

    	 	 	360,399	 	 	 	355,789	 
	 	 	 	
	 	 	 	
	 

         
 The dilutive effect of Goldcorp stock options
and warrants issued in exchange for Wheaton River stock options
and warrants has been determined by using the average share
price of Goldcorp common shares during the relevant period.

 6.  Reconciliation of pro forma
information to United States GAAP:

    
 If United States GAAP were employed, the pro
forma consolidated balance sheet as at September 30, 2004
and the consolidated net earnings for the nine months ended
September 30, 2004 and the year ended December 31,
2003 would be adjusted as follows:

    
 Consolidated balance sheet as at
September 30, 2004:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
					Minera						
					Alumbrera Ltd.						
			Canadian		equity		US GAAP				
			GAAP		adjustment		adjustments		Notes		US GAAP
			
		
		
		
		

					(note 6(a))						
	
    Assets
	
    
    Current assets:
    

    	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	
    
    Cash and short term investments
    

    	 	$	460,046	 	 	$	(16,776	)	 	$	—	 	 	 	 	 	 	$	443,270	 
	 	
    
    Gold bullion inventory
    

    	 	 	26,152	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	26,152	 
	 	
    
    Accounts receivable
    

    	 	 	56,413	 	 	 	(36,022	)	 	 	—	 	 	 	 	 	 	 	20,391	 
	 	
    
    Marketable securities
    

    	 	 	28,672	 	 	 	—	 	 	 	10,579	 	 	 	6(b)	 	 	 	39,251	 
	 	
    
    Inventories
    

    	 	 	42,457	 	 	 	(18,377	)	 	 	—	 	 	 	 	 	 	 	24,080	 
	 	
    
    Prepaid expenses and other
    

    	 	 	5,825	 	 	 	(2,306	)	 	 	—	 	 	 	 	 	 	 	3,519	 
	 	
    
    Income and mining taxes receivable
    

    	 	 	10,013	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	10,013	 
	 	 	 	
	 	 	 	
	 	 	 	
	 	 	 	 	 	 	 	
	 
	 	 	 	629,578	 	 	 	(73,481	)	 	 	10,579	 	 	 	 	 	 	 	566,676	 
	
    
    Mining interests
    

    	 	 	1,178,277	 	 	 	(232,809	)	 	 	—	 	 	 	 	 	 	 	945,468	 
	
    
    Investment in Minera Alumbrera Ltd.
    

    	 	 	—	 	 	 	252,802	 	 	 	—	 	 	 	 	 	 	 	252,802	 
	
    
    Deposits for reclamation costs
    

    	 	 	5,919	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	5,919	 
	
    
    Goodwill
    

    	 	 	1,461,966	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	1,461,966	 
	
    
    Other assets
    

    	 	 	9,131	 	 	 	(4,664	)	 	 	—	 	 	 	 	 	 	 	4,467	 
	
    
    Future income taxes
    

    	 	 	4,230	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	4,230	 
	
    
    Stockpiled ore
    

    	 	 	58,707	 	 	 	(54,547	)	 	 	—	 	 	 	 	 	 	 	4,160	 
	 	 	 	
	 	 	 	
	 	 	 	
	 	 	 	 	 	 	 	
	 
	 	 	$	3,347,808	 	 	$	(112,699	)	 	$	10,579	 	 	 	 	 	 	$	3,245,688	 
	 	 	 	
	 	 	 	
	 	 	 	
	 	 	 	 	 	 	 	
	 
	
    Liabilities and Shareholders’
    Equity
	
    
    Current liabilities:
    

    	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	
    
    Accounts payable and accrued liabilities
    

    	 	$	58,291	 	 	$	(9,371	)	 	$	—	 	 	 	 	 	 	$	48,920	 
	 	
    
    Dividends payable
    

    	 	 	2,905	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	2,905	 
	 	
    
    Income and mining taxes payable
    

    	 	 	22,993	 	 	 	(22,660	)	 	 	—	 	 	 	 	 	 	 	333	 
	 	
    
    Other
    

    	 	 	5,238	 	 	 	(3,738	)	 	 	—	 	 	 	 	 	 	 	1,500	 
	 	 	 	
	 	 	 	
	 	 	 	
	 	 	 	 	 	 	 	
	 
	 	 	 	89,427	 	 	 	(35,769	)	 	 	—	 	 	 	 	 	 	 	53,658	 
	
    
    Reclamation and closure cost obligations
    

    	 	 	40,491	 	 	 	(5,355	)	 	 	—	 	 	 	 	 	 	 	35,136	 
	
    
    Future income and mining taxes
    

    	 	 	290,506	 	 	 	(71,401	)	 	 	2,797	 	 	 	 	 	 	 	221,902	 
	
    
    Future employee benefits and other
    

    	 	 	11,717	 	 	 	(174	)	 	 	—	 	 	 	 	 	 	 	11,543	 
	
    
    Non-controlling interests
    

    	 	 	18,000	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	18,000	 
	
    
    Shareholders’ equity:
    

    	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	
    
    Capital stock
    

    	 	 	2,405,773	 	 	 	—	 	 	 	1,281	 	 	 	6(f)	 	 	 	2,407,054	 
	 	
    
    Cumulative translation adjustment
    

    	 	 	81,181	 	 	 	—	 	 	 	(81,181	)	 	 	6(e)	 	 	 	—	 
	 	
    
    Accumulated other comprehensive income
    

    	 	 	—	 	 	 	—	 	 	 	81,181	 	 	 	6(e)	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	3,371	 	 	 	6(g)	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	8,463	 	 	 	6(b)	 	 	 	93,015	 
	 	
    
    Share purchase warrants and options
    

    	 	 	336,573	 	 	 	—	 	 	 	14,297	 	 	 	6(d)	 	 	 	350,870	 
	 	
    
    Retained earnings
    

    	 	 	74,140	 	 	 	—	 	 	 	(19,630	)	 	 	 	 	 	 	54,510	 
	 	 	 	
	 	 	 	
	 	 	 	
	 	 	 	 	 	 	 	
	 
	 	 	 	2,897,667	 	 	 	—	 	 	 	7,782	 	 	 	 	 	 	 	2,905,449	 
	 	 	 	
	 	 	 	
	 	 	 	
	 	 	 	 	 	 	 	
	 
	 	 	$	3,347,808	 	 	$	(112,699	)	 	$	10,579	 	 	 	 	 	 	$	3,245,688	 
	 	 	 	
	 	 	 	
	 	 	 	
	 	 	 	 	 	 	 	
	 

A-9

 

    
 Consolidated statement of earnings for the
nine months ended September 30, 2004

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
					Minera						
					Alumbrera Ltd.						
			Canadian		Equity		US GAAP				
			GAAP		adjustment		adjustments		Notes		US GAAP
			
		
		
		
		

					(note 6(a))						
	
    
    Revenue
    

    	 	$	444,867	 	 	$	(193,514	)	 	$	—	 	 	 	 	 	 	$	251,353	 
	
    
    Expenses
    

    	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	
    
    Operating
    

    	 	 	168,023	 	 	 	(64,150	)	 	 	—	 	 	 	 	 	 	 	103,873	 
	 	
    
    Corporate administration
    

    	 	 	21,241	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	21,241	 
	 	
    
    Depreciation and depletion
    

    	 	 	70,730	 	 	 	(23,826	)	 	 	—	 	 	 	 	 	 	 	46,904	 
	 	
    
    Exploration
    

    	 	 	6,206	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	6,206	 
	 	 	 	
	 	 	 	
	 	 	 	
	 	 	 	 	 	 	 	
	 
	 	 	 	266,200	 	 	 	(87,976	)	 	 	—	 	 	 	 	 	 	 	178,224	 
	 	 	 	
	 	 	 	
	 	 	 	
	 	 	 	 	 	 	 	
	 
	
    
    Earnings from operations
    

    	 	 	178,667	 	 	 	(105,538	)	 	 	—	 	 	 	 	 	 	 	73,129	 
	
    
    Other income (expense)
    

    	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	
    
    Interest and other income
    

    	 	 	2,801	 	 	 	3,012	 	 	 	—	 	 	 	 	 	 	 	5,813	 
	 	
    
    Gain (loss) on foreign currency
    

    	 	 	(1,928	)	 	 	—	 	 	 	—	 	 	 	 	 	 	 	(1,928	)
	 	
    
    Gain on sale of marketable securities
    

    	 	 	2,771	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	2,771	 
	 	
    
    Provision for decline in value of marketable
    securities
    

    	 	 	(8,519	)	 	 	—	 	 	 	—	 	 	 	 	 	 	 	(8,519	)
	 	
    
    Corporate transaction costs
    

    	 	 	(4,238	)	 	 	—	 	 	 	—	 	 	 	 	 	 	 	(4,238	)
	 	 	 	
	 	 	 	
	 	 	 	
	 	 	 	 	 	 	 	
	 
	 	 	 	(9,113	)	 	 	3,012	 	 	 	—	 	 	 	 	 	 	 	(6,101	)
	 	 	 	
	 	 	 	
	 	 	 	
	 	 	 	 	 	 	 	
	 
	
    
    Earnings before the following:
    

    	 	 	169,554	 	 	 	(102,526	)	 	 	—	 	 	 	 	 	 	 	67,028	 
	
    
    Equity in earnings of Minera Alumbrera Ltd.
    

    	 	 	—	 	 	 	71,768	 	 	 	—	 	 	 	 	 	 	 	71,768	 
	 	 	 	
	 	 	 	
	 	 	 	
	 	 	 	 	 	 	 	
	 
	
    
    Earnings before taxes and non-controlling
    interests
    

    	 	 	169,554	 	 	 	(30,758	)	 	 	—	 	 	 	 	 	 	 	138,796	 
	
    
    Income and mining taxes
    

    	 	 	(61,506	)	 	 	30,758	 	 	 	—	 	 	 	 	 	 	 	(30,748	)
	 	 	 	
	 	 	 	
	 	 	 	
	 	 	 	 	 	 	 	
	 
	
    
    Earnings before non-controlling interests
    

    	 	 	108,048	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	108,048	 
	
    
    Non-controlling interests
    

    	 	 	(2,451	)	 	 	—	 	 	 	—	 	 	 	 	 	 	 	(2,451	)
	 	 	 	
	 	 	 	
	 	 	 	
	 	 	 	 	 	 	 	
	 
	
    
    Net earnings for the period
    

    	 	$	105,597	 	 	$	—	 	 	$	—	 	 	 	 	 	 	$	105,597	 
	 	 	 	
	 	 	 	
	 	 	 	
	 	 	 	 	 	 	 	
	 
	
    
    Marketable securities market value adjustment
    

    	 	 	 	 	 	 	 	 	 	 	 	 	 	 	6(b)	 	 	 	640	 
	
    
    Cumulative translation adjustment
    

    	 	 	 	 	 	 	 	 	 	 	 	 	 	 	6(e)	 	 	 	14,899	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
	 
	
    
    Comprehensive income under US GAAP
    

    	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	121,136	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
	 
	
    
    Earnings per share:
    

    	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	
    
    Basic
    

    	 	$	0.32	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	0.32	 
	 	
    
    Diluted
    

    	 	$	0.29	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	0.29	 
	
    
    Weighted-average number of shares outstanding
    

    	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	
    
    Basic
    

    	 	 	332,660	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	332,660	 
	 	
    
    Diluted
    

    	 	 	360,399	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	360,399	 

A-10

 

    
 Consolidated statement of earnings for the year
ended December 31, 2003:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
					Minera						
					Alumbrera Ltd.						
			Canadian		equity		US GAAP				
			GAAP		adjustment		adjustments		Notes		US GAAP
			
		
		
		
		

					(note 6(a))						
	
    
    Revenue
    

    	 	$	475,275	 	 	$	(109,907	)	 	$	—	 	 	 	 	 	 	$	365,368	 
	
    
    Expenses
    

    	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	
    
    Operating
    

    	 	 	199,172	 	 	 	(36,207	)	 	 	—	 	 	 	 	 	 	 	162,965	 
	 	
    
    Corporate administration
    

    	 	 	25,309	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	25,309	 
	 	
    
    Depreciation and depletion
    

    	 	 	81,242	 	 	 	(21,897	)	 	 	—	 	 	 	 	 	 	 	59,345	 
	 	
    
    Exploration
    

    	 	 	4,881	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	4,881	 
	 	 	 	
	 	 	 	
	 	 	 	
	 	 	 	 	 	 	 	
	 
	 	 	 	310,604	 	 	 	(58,104	)	 	 	—	 	 	 	 	 	 	 	252,500	 
	 	 	 	
	 	 	 	
	 	 	 	
	 	 	 	 	 	 	 	
	 
	
    
    Earnings from operations
    

    	 	 	164,671	 	 	 	(51,803	)	 	 	—	 	 	 	 	 	 	 	112,868	 
	
    
    Other income (expense)
    

    	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	
    
    Interest and other income
    

    	 	 	3,277	 	 	 	615	 	 	 	—	 	 	 	 	 	 	 	3,892	 
	 	
    
    Gain on sale of purchased bullion
    

    	 	 	1,664	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	1,664	 
	 	
    
    Gain on foreign currency
    

    	 	 	5,610	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	5,610	 
	 	
    
    Gain on marketable securities
    

    	 	 	12,325	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	12,325	 
	 	 	 	
	 	 	 	
	 	 	 	
	 	 	 	 	 	 	 	
	 
	 	 	 	22,876	 	 	 	615	 	 	 	—	 	 	 	 	 	 	 	23,491	 
	 	 	 	
	 	 	 	
	 	 	 	
	 	 	 	 	 	 	 	
	 
	
    
    Earnings before the following:
    

    	 	 	187,547	 	 	 	(51,188	)	 	 	—	 	 	 	 	 	 	 	136,359	 
	
    
    Equity in earnings of Minera Alumbrera Ltd.
    

    	 	 	7,324	 	 	 	35,832	 	 	 	—	 	 	 	 	 	 	 	43,156	 
	 	 	 	
	 	 	 	
	 	 	 	
	 	 	 	 	 	 	 	
	 
	
    
    Earnings before taxes and non-controlling
    interests
    

    	 	 	194,871	 	 	 	(15,356	)	 	 	—	 	 	 	 	 	 	 	179,515	 
	
    
    Income and mining taxes
    

    	 	 	(71,971	)	 	 	15,356	 	 	 	—	 	 	 	 	 	 	 	(56,615	)
	 	 	 	
	 	 	 	
	 	 	 	
	 	 	 	 	 	 	 	
	 
	
    
    Earnings before non-controlling interests
    

    	 	 	122,900	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	122,900	 
	
    
    Non-controlling interests
    

    	 	 	(487	)	 	 	—	 	 	 	—	 	 	 	 	 	 	 	(487	)
	 	 	 	
	 	 	 	
	 	 	 	
	 	 	 	 	 	 	 	
	 
	
    
    Earnings before cumulative effect of accounting
    change
    

    	 	 	122,413	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	122,413	 
	
    
    Cumulative effect of accounting change
    

    	 	 	—	 	 	 	—	 	 	 	(1,021	)	 	 	6(c)	 	 	 	(1,021	)
	 	 	 	
	 	 	 	
	 	 	 	
	 	 	 	 	 	 	 	
	 
	
    
    Net earnings for the year
    

    	 	$	122,413	 	 	$	—	 	 	$	(1,021	)	 	 	 	 	 	$	121,392	 
	 	 	 	
	 	 	 	
	 	 	 	
	 	 	 	 	 	 	 	
	 
	
    
    Marketable securities market value adjustment
    

    	 	 	 	 	 	 	 	 	 	 	 	 	 	 	6(b)	 	 	 	4,781	 
	
    
    Cumulative translation adjustment
    

    	 	 	 	 	 	 	 	 	 	 	 	 	 	 	6(e)	 	 	 	80,909	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
	 
	
    
    Comprehensive income under US GAAP
    

    	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	207,082	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
	 
	
    
    Earnings per share:
    

    	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	
    
    Basic
    

    	 	$	0.37	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	0.37	 
	 	
    
    Diluted
    

    	 	$	0.34	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	0.34	 
	
    
    Weighted-average number of shares outstanding
    

    	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	
    
    Basic
    

    	 	 	326,594	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	326,594	 
	 	
    
    Diluted
    

    	 	 	355,789	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	355,789	 

    
 The areas of material differences between
Canadian and United States GAAP and their impact on the pro
forma consolidated financial statements of Goldcorp are
described below:

			
	 	(a)	
    Under Canadian GAAP, the Company has accounted
    for its joint venture interest in Alumbrera on a proportionate
    consolidation basis. Under US GAAP, the Company is required
    to equity account for its investment in Alumbrera and record in
    earnings its proportionate share of Alumbrera net income in
    accordance with US GAAP.
    
	 
	 	(b)	
    Under US GAAP (FAS 115), the
    Company’s investments in securities would be classified as
    available-for-sale securities and carried at fair value. The
    unrealized holding gains at December 31, 2003 on
    available-for-sale securities are not recognized under Canadian
    accounting principles, but are recognized under United States
    accounting principles as a component of comprehensive income and
    reported as a net amount in a separate component of
    shareholders’ equity until realized.
    
	 
	 	(c)	
    On January 1, 2003, the Company adopted
    FAS 143, “Accounting for Asset Retirement
    Obligations” which is consistent with the Canadian
    standards. Under US GAAP, prior periods are not restated
    and the cumulative effect of the adoption of the standard is
    recorded in the current period earnings with the effect for 2003
    being a decrease in earnings of $1,021,000.
    
	 
	 	(d)	
    US GAAP does not allow for the use of
    contributed surplus to eliminate a deficit.
    
	 
	 	(e)	
    Under US GAAP, FAS 130, “Reporting
    Comprehensive Income” establishes rules for the reporting
    and display of comprehensive income and its components.
    Comprehensive income is net income, plus certain other items
    that are recorded directly to shareholders’ equity such as
    foreign currency translation adjustments and unrealized gains
    (losses) on marketable securities.
    
	 
	 	(f)	
    Under US GAAP, the renunciation of tax deductions
    to holders of flow-through shares is treated as a future tax
    expense rather than as a cost of issuing equity as required by
    Canadian accounting principles.
    
	 
	 	(g)	
    Under US GAAP a proportionate amount of the
    cumulative translation adjustment account is not recognized in
    earnings when there is a reduction in the Company’s net
    investment in a subsidiary as a result of dividend distributions.
    

A-11

 

SUPPLEMENTARY INFORMATION

GOLDCORP INC.

RECONCILIATION TO UNITED STATES GENERALLY
ACCEPTED ACCOUNTING PRINCIPLES

(In US dollars, tabular amounts in thousands
except per share amounts)

(unaudited)

     
The following supplementary information is
provided in accordance with the United States Securities
Exchange Act of 1934 as required for companies reporting under
the Multijurisdictional Disclosure System.

     
The areas of material difference between Canadian
and United States GAAP and their impact on the consolidated
financial statements of the Company are described below. The
application of United States GAAP would have the following
effect on the net earnings as reported:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
			Three months		Three months		Nine months		Nine months
			ended		ended		ended		ended
			September 30,		September 30,		September 30,		September 30,
			2004		2003		2004		2003
			
		
		
		

	
    
    Earnings for the period as reported under
    Canadian GAAP
    

    	 	$	9,854	 	 	$	23,671	 	 	$	36,380	 	 	$	55,474	 
	
    
    FAS 143 cumulative adjustment (d)
    

    	 	 	—	 	 	 	—	 	 	 	—	 	 	 	(1,021	)
	 	 	 	
	 	 	 	
	 	 	 	
	 	 	 	
	 
	
    
    Earnings for the period in accordance with US GAAP
    

    	 	 	9,854	 	 	 	23,671	 	 	 	36,380	 	 	 	54,453	 
	
    
    Unrealized gains on securities (c)
    

    	 	 	3,027	 	 	 	2,433	 	 	 	640	 	 	 	3,059	 
	
    
    Cumulative translation adjustment
    

    	 	 	28,730	 	 	 	(43	)	 	 	14,899	 	 	 	60,105	 
	 	 	 	
	 	 	 	
	 	 	 	
	 	 	 	
	 
	
    
    Comprehensive income for the period under
    US GAAP (f)
    

    	 	$	41,611	 	 	$	26,061	 	 	$	51,919	 	 	$	117,617	 
	 	 	 	
	 	 	 	
	 	 	 	
	 	 	 	
	 
	
    
    Earnings per share in accordance with US
    GAAP

    	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	
    
    Basic
    

    	 	$	0.05	 	 	$	0.13	 	 	$	0.19	 	 	$	0.30	 
	 	
    
    Diluted
    

    	 	$	0.05	 	 	$	0.12	 	 	$	0.19	 	 	$	0.28	 

     
Differences between Canadian and US GAAP, as they
affect the Company’s financial statements, are as follows:

			
	 	(a)	
    Under US GAAP a proportionate amount of the
    cumulative translation adjustment account is not recognized in
    earnings when there is a reduction in the Company’s net
    investment in a subsidiary as a result of dividend distributions.
    
	 
	 	(b)	
    Under US GAAP, the renunciation of tax deductions
    to holders of flow-through shares is treated as a future tax
    expense rather than as a cost of issuing equity as required by
    Canadian accounting principles.
    
	 
	 	(c)	
    Under US GAAP (FAS 115), the Company’s
    investments in securities would be classified as
    available-for-sale securities and carried at fair value. The
    unrealized holding gains on available-for-sale securities are
    not recognized under Canadian accounting principles, but are
    recognized under United States accounting principles as a
    component of comprehensive income and reported as a net amount
    in a separate component of shareholders’ equity until
    realized. The amounts recorded in comprehensive income are shown
    net of taxes of $757,000 and $160,000 for the three and nine
    month periods ending September 30, 2004, respectively and
    $608,000 and $765,000 for the three and nine month periods
    ending September 30, 2003 respectively.
    
	 
	 	(d)	
    On January 1, 2003, the Company adopted FAS
    143, “Accounting for Asset Retirement Obligations”
    which is consistent with the Canadian standard described in
    Note 3(b) to the 2003 annual financial statements. Under US
    GAAP, prior periods are not restated and the cumulative effect
    of the adoption of the standard is recorded in the period of
    adoption with the effect for 2003 being a decrease in earnings
    of $1,021,000.
    
	 
	 	(e)	
    United States accounting principles do not allow
    for the use of contributed surplus to eliminate a deficit.
    
	 
	 	(f)	
    Under US GAAP, FAS 130, “Reporting
    Comprehensive Income” establishes rules for the reporting
    and display of comprehensive income and its components.
    Comprehensive income is net income, plus certain
    

A-12

 

			
	 		
    other items that are recorded directly to
    shareholders’ equity such as foreign currency translation
    adjustments and unrealized gains (losses) on marketable
    securities.
    
	 
	 	(g)	
    Shareholders’ equity determined in
    accordance with Canadian GAAP is reconciled to
    shareholders’ equity in accordance with US GAAP as follows:
    

	 	 	 	 	 	 	 	 	 	 
			September 30,		December 31,
			2004		2003
			
		

	
    
    Capital stock

    	 	 	 	 	 	 	 	 
	
    
    In accordance with Canadian GAAP
    

    	 	$	379,173	 	 	$	375,827	 
	
    
    Renunciation of tax deductions on flow-through
    shares (b)
    

    	 	 	1,281	 	 	 	1,281	 
	 	 	 	
	 	 	 	
	 
	
    
    In accordance with US GAAP
    

    	 	$	380,454	 	 	$	377,108	 
	 	 	 	
	 	 	 	
	 
	
    
    Accumulated Other Comprehensive
    Income

    	 	 	 	 	 	 	 	 
	 	
    
    Cumulative translation adjustment

    	 	 	 	 	 	 	 	 
	
    
    In accordance with Canadian GAAP
    

    	 	$	81,181	 	 	$	66,282	 
	
    
    Realization of cumulative translation
    adjustment (a)
    

    	 	 	3,371	 	 	 	3,371	 
	 	 	 	
	 	 	 	
	 
	
    
    In accordance with US GAAP
    

    	 	$	84,552	 	 	$	69,653	 
	 	 	 	
	 	 	 	
	 
	 	
    
    Unrealized gain on available-for-sale
    securities

    	 	 	 	 	 	 	 	 
	
    
    In accordance with Canadian GAAP
    

    	 	 	—	 	 	 	—	 
	
    
    Unrealized holding gains arising during the
    period, net of taxes of $2,387,000 (2003 — $4,002,000)
    

    	 	$	9,548	 	 	$	16,007	 
	
    
    Reclassification adjustments for gains recorded
    in earnings, net of taxes of $271,000 (2003 —
    $2,046,000) (c)
    

    	 	 	(1,085	)	 	 	(8,184	)
	 	 	 	
	 	 	 	
	 
	
    
    In accordance with US GAAP
    

    	 	 	8,463	 	 	 	7,823	 
	 	 	 	
	 	 	 	
	 
	
    
    Total Accumulated Other Comprehensive
    Income

    	 	$	93,015	 	 	$	77,476	 
	 	 	 	
	 	 	 	
	 
	
    
    Contributed surplus

    	 	 	 	 	 	 	 	 
	
    
    In accordance with Canadian GAAP
    

    	 	$	5,573	 	 	$	2,275	 
	
    
    Elimination of deficit with offsetting reduction
    to contributed surplus (e)
    

    	 	 	70,573	 	 	 	70,573	 
	
    
    Adjusted reduction to contributed surplus
    resulting from the amalgamation with CSA Management
    Inc. 

    	 	 	(56,276	)	 	 	(56,276	)
	 	 	 	
	 	 	 	
	 
	
    
    In accordance with US GAAP
    

    	 	$	19,870	 	 	$	16,572	 
	 	 	 	
	 	 	 	
	 
	
    
    Retained earnings (deficit)

    	 	 	 	 	 	 	 	 
	
    
    In accordance with Canadian GAAP
    

    	 	$	74,140	 	 	$	63,358	 
	
    
    Realization of cumulative translation
    adjustment (a)
    

    	 	 	(3,371	)	 	 	(3,371	)
	
    
    Elimination of deficit with offsetting reduction
    to contributed surplus (e)
    

    	 	 	(70,573	)	 	 	(70,573	)
	
    
    Adjusted reduction to contributed surplus
    resulting from the amalgamation with CSA Management
    Inc. 

    	 	 	56,276	 	 	 	56,276	 
	
    
    Renunciation of tax deductions on flow-through
    shares (b)
    

    	 	 	(1,281	)	 	 	(1,281	)
	 	 	 	
	 	 	 	
	 
	
    
    In accordance with US GAAP
    

    	 	$	55,191	 	 	$	44,409	 
	 	 	 	
	 	 	 	
	 
	
    
    Shareholders’ equity

    	 	 	 	 	 	 	 	 
	
    
    In accordance with Canadian GAAP
    

    	 	$	540,067	 	 	$	507,742	 
	 	 	 	
	 	 	 	
	 
	
    
    In accordance with US GAAP
    

    	 	$	548,530	 	 	$	515,565	 
	 	 	 	
	 	 	 	
	 

A-13

 

Any questions and requests for assistance may be
directed to

Kingsdale Shareholder Services Inc.

at the telephone number and location set out
below:

By Mail

The Exchange Tower

130 King Street West, Suite 2950, P.O.
Box 361

Toronto, Ontario

M5X 1E2

By Hand or Courier

The Exchange Tower

130 King Street West, Suite 2950

Toronto, Ontario

M5X 1C7

North American Toll Free Phone: 1-866-749-5464

Facsimile: 416-867-2271

Toll Free Fax: 1-866-545-5580

Banks and Brokers Call Collect: 416-867-2335exv4w2

 

The instructions accompanying this Letter of
Acceptance and Transmittal should be read carefully before this
Letter of Acceptance and Transmittal is completed. Kingsdale
Shareholder Services Inc. (the “Depositary”) (see last
page for address and telephone numbers) or your broker or other
financial advisor can assist you in completing this Letter of
Acceptance and Transmittal.

LETTER OF ACCEPTANCE AND TRANSMITTAL

for Common Shares of

WHEATON RIVER MINERALS LTD.

Pursuant to the Offer dated December 29,
2004 of

GOLDCORP INC.

and

GOLDCORP ACQUISITION ULC

THE OFFER WILL BE OPEN FOR ACCEPTANCE UNTIL 5:00 P.M.
(VANCOUVER TIME) ON FEBRUARY 3, 2005 (THE “EXPIRY
TIME”), UNLESS THE OFFER IS EXTENDED OR WITHDRAWN.

      
This Letter of Acceptance and Transmittal (or a
manually signed facsimile thereof), properly completed and duly
executed, together with all other required documents, must
accompany share certificates for Common Shares (“Common
Shares”) of Wheaton River Minerals Ltd. (the
“Corporation”) deposited pursuant to the offer (the
“Offer”) dated December 29, 2004, made by
Goldcorp Inc. (“Goldcorp”) and its wholly-owned
subsidiary Goldcorp Acquisition ULC (“Subco” and
together with Goldcorp, the “Offerors”) to holders of
Common Shares. All such documents must be actually delivered to
the Depositary at or before the Expiry Time.

     
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 and accompanying Circular (together, the “Offer and
Circular”) dated December 29, 2004, have the
respective meanings ascribed to them in the Offer and Circular.

     
Holders of Common Shares who wish to deposit
Common Shares but whose certificates for such Common Shares are
not immediately available or who cannot deliver all other
required documents to the Depositary by the Expiry Time may
deposit their Common Shares in accordance with the guaranteed
delivery procedure described in Section 3 of the Offer,
“Manner of Acceptance — Procedure for Guaranteed
Delivery”. See Instruction 2 herein, “Procedure
for Guaranteed Delivery”.

     
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.

 

       
TO: Goldcorp Inc. or Goldcorp Acquisition ULC,
as applicable

			
	 	AND TO:	
    Kingsdale Shareholder Services Inc. (the
    “Depositary”), 

     at its office set out herein

       
The undersigned delivers to you the enclosed
certificate(s) for Common Shares and, subject only to the
provisions of the Offer regarding withdrawal, irrevocably
accepts the Offer for such Common Shares and hereby assigns all
right, title and interest therein to the purchasing Offeror as
provided herein. The following are the details of the enclosed
certificate(s):

	 	 	 	 	 	 	 
	
	

	
	DESCRIPTION OF COMMON SHARES DEPOSITED
	
	

			Number of Common		Number of
			Name(s) and Address(es) of Holder(s) (please fill in		Shares Represented		Common Shares
	Certificate Number(s)		exactly as name(s) appear(s) on certificate(s))		by Certificate		Deposited*
	
	

	 
	 
	

	 
	 
	

	 
	 
	

	 
	 
	

	 
	 	 	
    TOTAL:
    	 	 	 	 
	 	 	 	 	

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

	
      * Unless otherwise indicated,
    all Common Shares evidenced by any certificate(s) submitted to
    the Depositary will be deemed to have been deposited under the
    Offer. See Instruction 7, “Partial Deposits”.
    
	

     
The undersigned hereby acknowledges receipt of
the Offer and Circular and represents and warrants that:
(i) the undersigned has full power and authority to
deposit, sell, assign and transfer the Common Shares covered by
this Letter of Acceptance and Transmittal (the “Deposited
Shares”) being deposited; (ii) the undersigned or the
Person on whose behalf the Deposited Shares are being deposited
owns the Deposited Shares that are being deposited;
(iii) the Deposited Shares have not been sold, assigned or
transferred, nor has any agreement been entered into to sell,
assign or transfer any of the Deposited Shares, to any other
Person; (iv) the deposit of the Deposited Shares complies
with applicable laws; and (v) when the Deposited Shares are
taken up and paid for by the purchasing Offeror, such Offeror
will acquire good title thereof, free and clear of all liens,
restrictions, charges, encumbrances, claims, adverse interests
and rights of others. The acceptance of the Offer pursuant to
the procedures set forth herein shall constitute a binding
agreement between the depositing holder of Common Shares and the
purchasing Offeror in accordance with the terms and conditions
of the Offer.

     
The undersigned acknowledges that all questions
as to validity, form, eligibility (including timely receipt) and
acceptance of any Common Shares deposited pursuant to the Offer
and of any notice of withdrawal shall be determined by the
Offerors in their sole discretion and that such determination
shall be final and binding. The undersigned acknowledges that
there is no duty or obligation upon the Offerors, the Depositary
or any other person to give notice of any defect or irregularity
in any deposit or notice of withdrawal and no liability will be
incurred by any of them for failure to give any such notice.

     
The undersigned recognizes that, under the
circumstances set forth in Section 4 of the Offer,
“Conditions of the Offer”, the Offerors may not be
required to accept for payment any of the Common Shares
deposited hereby. The undersigned acknowledges that such
conditions are for the exclusive benefit of the Offerors and may
be asserted by the Offerors regardless of the circumstances
giving rise to such assertion, including any action or inaction
by the Offerors or may be waived by the Offerors in whole or in
part, at any time and from time to time, prior to the Expiry
Time without prejudice to any other rights which the Offerors
may have.

     
IN CONSIDERATION OF THE OFFER AND FOR VALUE
RECEIVED, upon the terms and subject to the conditions set forth
in the Offer and in this Letter of Acceptance and Transmittal,
subject only to the provisions of the Offer regarding withdrawal
rights, the undersigned irrevocably accepts the Offer for and in
respect of the Deposited

2

 

Shares and delivers to you the enclosed Common
Share certificate(s) representing the Deposited Shares and, on
and subject to the terms and conditions of the Offer, deposits,
sells, assigns and transfers to the purchasing Offeror as
provided herein 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 the undersigned’s Common Share
certificates are not immediately available, or the undersigned
cannot deliver its Common Share certificates and all other
required documents to the Depositary by the Expiry Time, the
undersigned must deliver its Common Shares according to the
guaranteed delivery procedures set forth in Section 3 of
the Offer, “Manner of Acceptance — Procedure for
Guaranteed Delivery”.

     
The undersigned irrevocably appoints each officer
of the Depositary and each officer of the purchasing Offeror and
any other Person designated by such Offeror in writing, as the
true and lawful agents, attorneys and attorneys-in-fact and
proxies of the undersigned with respect to Common Shares
registered in the name of the holder on the share register of
the Corporation and deposited pursuant to the Offer and
purchased by an Offeror (the “Purchased Securities”).

     
The power of attorney granted under this Letter
of Acceptance and Transmittal shall be effective on and after
the date that the purchasing Offeror 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 on the share register of
the Corporation; (ii) execute and deliver, as and when
requested by the purchasing Offeror, any instruments of proxy,
authorization or consent in form and on terms satisfactory to
the Corporation in respect of such Purchased 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 the relevant securities of the
Corporation; and (iii) exercise any rights of the
undersigned with respect to such Purchased 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 at any meeting (whether annual, special or otherwise
or any adjournment thereof) of holders of Common Shares and not
to exercise any or all of the other rights or privileges
attached to the Purchased Securities and agrees to execute and
deliver to the purchasing Offeror any and all instruments of
proxy, authorizations or consents, in form and on terms
satisfactory to such Offeror, in respect of all or any of the
Purchased Securities, and to designate in such instruments of
proxy the Person or Persons specified by such Offeror as the
proxy or the proxy nominee or nominees of the holder in respect
of the Purchased Securities. Upon such appointment, all prior
proxies given by the holder of such Purchased 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 the purchasing Offeror, any additional
documents, transfers and other assurances as may be necessary or
desirable to complete the sale, assignment and transfer of the
Purchased Securities to such Offeror 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.

     
No fractional Goldcorp Shares shall be issued
pursuant to the Offer. Any fractional number of Goldcorp Shares
equal to or greater than 0.5 will be rounded up to the nearest
whole number of Goldcorp Shares and less than 0.5 will be
rounded down to the nearest whole number of Goldcorp
Shares.

     
The undersigned instructs the purchasing Offeror
and the Depositary, upon such Offeror taking up the Deposited
Shares, to issue or cause to be issued, and representing the
Offer Consideration to which the undersigned is entitled, share
certificate(s) representing the Goldcorp Shares issued in
exchange for Deposited Shares and to mail such certificates by
first class mail, postage prepaid, or to hold such certificates
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 the Offerors have no
obligation pursuant to the instructions given below to transfer
any Deposited Shares from the name of the registered holder
thereof if an Offeror does not purchase any of the Deposited
Shares.

3

 

     
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 réputés 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 rédigés
exclusivement en langue anglaise.

4

 

IMPORTANT:

HOLDERS OF COMMON SHARES: SIGN HERE AND
COMPLETE

THIS SECTION IF YOU WISH TO DEPOSIT YOUR
COMMON SHARES.

Dated: __________________________________________________________________,
2005

Signature of holder of Common Shares or
Authorized Representative —

See Instructions 3 and 5

Name of holder of Common Shares

(please print or type)

Name of Authorized Representative, if
applicable

(please print or type)

Daytime telephone number of holder of Common
Shares

or Authorized Representative

Daytime facsimile number of holder of Common
Shares

or Authorized Representative

Tax Identification, Social Insurance
or

Social Security Number of holder of Common
Shares

COMPLETE THE FOLLOWING SIGNATURE GUARANTEE
ONLY IF REQUIRED

UNDER INSTRUCTION 4 BELOW:

Signature guaranteed by (if required under
Instruction 4):

Authorized Signature of Guarantor

Name of Guarantor (please print or
type)

Address of Guarantor (please print or
type)

5

 

ELIGIBILITY TO TENDER COMMON SHARES TO
GOLDCORP

You must complete the following if you are an
Eligible Holder and wish to tender your Common Shares to
Goldcorp. An “Eligible Holder” is a Shareholder who is
(a) a resident of Canada for the purposes of the Income
Tax Act (Canada), as amended (“Tax Act”), holds
Common Shares as capital property and is not exempt from tax on
income under the Tax Act, or (b) a non-resident of Canada
for the purposes of the Tax Act whose Common Shares constitute
“taxable Canadian property” (as defined by the Tax
Act) and who is not exempt from Canadian tax in respect of any
capital gain realized on the disposition of Common Shares by
reason of an exemption contained in an applicable income tax
treaty, or (c) a partnership if one or more members of the
partnership are described in (a) or (b);

I hereby certify that (i) I am an Eligible
Holder and (ii) I am tendering Common Shares to Goldcorp
for purposes of achieving a tax-deferred rollover.

I agree, at the request of Goldcorp, to
co-operate in good faith with Goldcorp in connection with the
preparation, filing and execution of any documents required
pursuant to an election under subsection 85(1) of the Tax
Act (provided such election provides me with the ability to make
the exchange of Common Shares for Goldcorp Shares with the same
tax-deferred rollover as described in the Circular).

Dated
this       day
of                     ,
2005.

		
	 	
    

	 	
    Signature of holder of Common Shares or
    Authorized Representative — see Instructions 3
    and 5
    

You should refer to “Certain Canadian
Federal Income Tax Considerations” and “Certain United
States Federal Income Tax Considerations” in the Circular
before completing this section.

ELIGIBLE HOLDERS WHO DO NOT SEEK A
TAX-DEFERRED ROLLOVER SHOULD NOT COMPLETE THE FOREGOING
CERTIFICATE. SHAREHOLDERS WHO DO NOT COMPLETE THE CERTIFICATE
WILL BE DEEMED TO HAVE TENDERED THEIR SHARES TO SUBCO.

BLOCK A

REGISTRATION AND PAYMENT
INSTRUCTIONS

CERTIFICATE IN THE NAME OF:

(please print or type)

(Name)

(Street Address and Number)

(City and Province or State)

(Country and Postal Code (or Zip)
Code)

(Telephone — Business
Hours)

(Tax Identification, Social Insurance
or

Social Security Number)

(U.S. Shareholders see Form W-9 and
Instruction 10)

BLOCK B

DELIVERY INSTRUCTIONS

(Unless Block “C” is checked)

SEND CERTIFICATE TO:

(please print or type)

(Name)

(Street Address and Number)

(City and Province or State)

(Country and Postal Code (or Zip)
Code)

(U.S. Shareholders see Form W-9 and
Instruction 10)

6

 

BLOCK C

		
	o	
    HOLD CERTIFICATE FOR PICK-UP AT THE OFFICES OF
    THE DEPOSITARY WHERE THIS LETTER OF ACCEPTANCE AND TRANSMITTAL
    IS DEPOSITED. (Check box)
    

BLOCK D

		
	o	
    CHECK HERE IF COMMON 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

(See Instruction 8)

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
    

7

 

SUBSTITUTE FORM W-9

TO BE COMPLETED BY U.S. SECURITY HOLDERS
ONLY

(See Instruction 10)

	 	 	 	 	 
	

	
    PAYOR’S NAME:
	

	
    
  SUBSTITUTE
  Form
    W-9	 	
    
    

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

    	 	
    

     TIN:

    
Social Security
    Number
 OR
   

    Employer Identification Number
	 	 	

	 	 	
    

    Part II —
    For Payees exempt from backup
    withholding, see the enclosed Guidelines for Certification of
    Taxpayer Identification Number on Substitute Form W-9 and
    complete as instructed therein.
    
	 	 	

	
    Payor’s Request for Taxpayer
    Identification Number (“TIN”) and
    Certification	 	
    Part III —
    Certification — Under
    penalties of perjury, I certify that:

    

     (1)   The number shown on this form is my
    correct TIN (or I am waiting for a number to be issued to me);
    and
    

	 	 	 
	 	 	
    
    (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 (‘IRS’) that I am subject to backup
    withholding as a result of a failure to report all interest or
    dividends or (c) 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: 
    DATE: 

    

    
	

	
    Certification Instructions —
    You must cross out item (2) above
    if you have been notified by the IRS that you are subject to
    backup withholding because of underreporting interest or
    dividends on your tax return. However, if after being notified
    by the IRS that you were subject to backup withholding, you
    received another notification from the IRS that you are no
    longer subject to backup withholding, do not cross out
    item (2). (Also see the instructions in the enclosed
    Guidelines.)
    

		
	NOTE:	
    FAILURE TO COMPLETE AND RETURN THIS SUBSTITUTE
    FORM W-9 MAY RESULT IN BACKUP WITHHOLDING OF A PORTION
    OF ALL REPORTABLE PAYMENTS MADE TO YOU. 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 ARE AWAITING YOUR TIN.

CERTIFICATE OF AWAITING TAXPAYER
IDENTIFICATION NUMBER

     
I certify under penalties of perjury that a TIN
has not been issued to me, and either (a) I have mailed or
delivered an application to receive a TIN 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 TIN by the time of
payment, a portion of all reportable payments made to me will be
withheld.

	 	 	 
	
    
    Signature: 

    	 	
    Date: 
	
	 	

8

 

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 and this Letter of
    Acceptance and Transmittal must be physically received by the
    Depositary at the office specified on the back cover page by the
    Expiry Time, unless the Offer in respect of the Common 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 COMMON 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. THE OFFERORS
    RECOMMEND 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 COMMON SHARES WHOSE COMMON 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 COMMON SHARES.
    

 

		
	2.	
    Procedure for Guaranteed Delivery

     
If a holder of Common Shares wishes to deposit
such Common Shares pursuant to the Offer and certificates for
such Common Shares are not immediately available or the holder
cannot deliver all other required documents to the Depositary by
the Expiry Time, those Common Shares may nevertheless be
deposited under the Offer provided that all of the following
conditions are met:

			
	 	(a)	
    the deposit is made by or through an Eligible
    Institution (as defined below);
    

			
	 	(b)	
    a Notice of Guaranteed Delivery (which is printed
    on green paper) in the form accompanying the Offer and Circular
    or a facsimile thereof, properly completed and duly executed,
    including a guarantee by an Eligible Institution in the form
    specified in the Notice of Guaranteed Delivery, is received by
    the Depositary at the applicable addresses set out in the Notice
    of Guaranteed Delivery by the Expiry Time; and
    

			
	 	(c)	
    the certificate(s) representing the deposited
    Common Shares in proper form for transfer, together with this
    Letter of Acceptance and Transmittal (or a manually signed
    facsimile hereof), properly completed and duly executed with any
    required signature guarantees, covering the deposited Common
    Shares and all other documents required by this Letter of
    Acceptance and Transmittal, are received by the Depositary at
    the applicable address specified in the Notice of Guaranteed
    Delivery before 5:00 p.m., Vancouver time, on the third
    trading day on the TSX after the Expiry Time.
    

     
The Notice of Guaranteed Delivery may be
delivered by hand or transmitted by facsimile or mail to the
Depositary at the 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 Common Share
certificates to any office other than the 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), a member of the New York Stock Exchange, Inc.
Medallion Signature Program (MSP) or any other “Eligible
Guarantor Institution”, as such term is defined in Rule
l7Ad-l5 of the U.S. Exchange Act.

9

 

 

		
	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 any of the Common Shares tendered hereby 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 payment is to be issued in
    the name of a person other than the registered owner(s):
    

			
	 	(i)	
    such deposited certificate(s) must be endorsed or
    accompanied by an appropriate share 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 register of the Corporation 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 in the space provided on
the signature page, or in some other manner acceptable to the
Depositary (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.
The Offerors or the Depositary, at their discretion, may require
additional evidence of authority or additional documentation.

 

		
	6.	
    Delivery Instructions

     
If share certificate(s) to which the registered
owner(s) of deposited Common Shares is (are) entitled is to be
issued in the name of a person other than such registered
owner(s), complete Block A on this Letter of Acceptance and
Transmittal. If Block A is not completed, such share
certificate(s) will be issued in the name of the registered
owner(s).

     
If such share certificate(s) is (are) to be
mailed to a person other than the registered owner(s), complete
Block B on this Letter of Acceptance and Transmittal. If
such share certificate(s) is (are) to be held for pick-up at the
offices of the Depositary, complete Block C. If neither
Block B nor Block C is completed, such share
certificate(s) will be mailed to the address of the registered
owner(s) as shown on the registers of the Corporation.

 

		
	7.	
    Partial Deposits

     
If the registered owner(s) wish(es) to deposit
less than the total number of Common Shares evidenced by any
certificate submitted, fill in the number of Common Shares to be
deposited in the appropriate space on this Letter of Acceptance
and Transmittal. In such case, new certificate(s) for the number
of Common Shares not deposited will be sent to the registered
holder as soon as practicable after the Expiry Time. The total
number of Common Shares evidenced by all certificates delivered
will be deemed to have been deposited unless otherwise indicated.

10

 

 

		
	8.	
    Solicitation

     
Identify the dealer or broker, if any, who
solicited acceptance of the Offer by completing Block E on this
Letter of Acceptance and Transmittal. Present a list of
beneficial holders, if applicable.

 

		
	9.	
    Stock Transfer Taxes

     
Except as otherwise provided in this
Instruction 9, the Offerors will pay all stock transfer
taxes with respect to the transfer and sale of any Common Shares
to them or their order pursuant to the Offer. If, however,
payment of the purchase price is to be made to, or if
certificates for Common 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
Common 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
promptly remitted and transferred to the purchasing Offeror,
unless evidence satisfactory to such Offeror, in its sole
discretion, of the payment of such taxes, or exemption
therefrom, is submitted.

 

		
	10.	
    Backup Withholding

     
Under U.S. Federal income tax law, a
Shareholder whose Deposited Shares are accepted for payment is
required, unless an exemption applies, to provide the Depositary
(as payor) with such Shareholder’s correct taxpayer
identification number (“TIN”) on the Substitute
Form W-9 above in order to avoid “backup
withholding” of the U.S. Federal income tax on
payments pursuant to the Offer. In addition, the Shareholder
must certify under penalties of perjury that such TIN is correct
and that such Shareholder is not subject to backup withholding.
If a tendering Shareholder is subject to backup withholding,
such Shareholder must cross out item (2) of the
Certification box on the Substitute Form W-9. If such
Shareholder is an individual, the TIN is such Shareholder’s
social security number.

     
The tendering Shareholder should indicate in
Part III of the Substitute Form W-9 if the tendering
Shareholder has not been issued a TIN and has applied for or
intends to apply for a TIN in the near future, in which case the
tendering Shareholder should complete the Certificate of
Awaiting Taxpayer Identification Number above.

     
If the Depositary is not provided with the
correct TIN or the certifications described above, the
Shareholder may be subject to a $50 penalty imposed by the
Internal Revenue Service.

     
Backup withholding is not an additional income
tax. Rather, the amount of the backup withholding can be
credited against the U.S. Federal income tax liability of
the person subject to the backup withholding, provided that the
required information is given to the IRS. If backup withholding
results in an overpayment of taxes, a refund can be obtained by
filing an income tax return with the IRS.

     
The Shareholder is required to give the
Depositary the TIN (i.e., social security number or employer
identification number) of the record owner of the Deposited
Shares. If the Deposited Shares are held in more than one name
or are not 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.

     
Certain Shareholders (including, among others,
all corporations and certain foreign individuals and entities)
are not subject to backup withholding. Non-corporate
non-U.S. Shareholders should complete and sign the main
signature form and a Form W-8BEN, Certificate of Foreign
Status of Beneficial Owner for United States Tax Withholding,
signed under penalties of perjury, attesting to that
Shareholder’s exempt status, in order to avoid backup
withholding. A copy of Form W-8BEN may be obtained from the
Information Agent. Exempt Shareholders, other than
non-U.S. Shareholders, should furnish their TIN, write
“Exempt” in Part II of the Substitute
Form W-9 above, and sign, date and return the Substitute
Form W-9 to the Depositary. See the enclosed Guidelines for
Certification of Taxpayer Identification Number on Substitute
Form W-9 for more instructions.

 

		
	11.	
    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.
    

11

 

			
	 	(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. All depositing holders of Common
    Shares by execution of this Letter of Acceptance and Transmittal
    (or a manually signed 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 Ontario 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 Ontario.
    

			
	 	(e) 	
    The Offerors will not pay any fees or commissions
    to any broker or dealer or any other Person for soliciting
    deposits of Common Shares pursuant to the Offer except as
    otherwise set forth in the Offer (other than to the Dealer
    Manager, the Soliciting Dealers, Information Agent 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
    address listed below.
    

			
	 	(g) 	
    ANY QUESTIONS AND REQUESTS FOR ASSISTANCE MAY BE
    DIRECTED BY HOLDERS OF COMMON SHARES TO THE DEPOSITARY AT ITS
    TELEPHONE NUMBER AND LOCATION SET OUT BELOW. SHAREHOLDERS MAY
    ALSO CONTACT THEIR BROKER, DEALER, COMMERCIAL BANK, TRUST
    COMPANY OR OTHER NOMINEE FOR ASSISTANCE CONCERNING THE OFFER.
    
	 
	 	(h) 	
    The Offerors reserve the right in their absolute
    discretion to instruct the Depositary of any defect or
    irregularity contained in any Letter of Acceptance and
    Transmittal received.
    

 

		
	12.	
    Lost Certificates

     
If a Common 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 the Corporation’s registrar and
transfer agent so that the transfer agent may provide
replacement instructions. If a Common Share certificate has been
lost or destroyed, please ensure that you provide your telephone
number so that the Depositary or the Corporation’s transfer
agent may contact you.

     
THIS LETTER OF ACCEPTANCE AND TRANSMITTAL OR A
MANUALLY SIGNED FACSIMILE THEREOF (TOGETHER WITH CERTIFICATES
FOR COMMON 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.

Important Tax Information for
U.S. Shareholders

     
Purpose of Substitute
Form W-9. All Shareholders who
are U.S. persons surrendering Deposited Shares pursuant to
the Offer should complete and sign the main signature form and
the Substitute Form W-9 to provide information and
certification necessary to avoid backup withholding (unless an
applicable exemption exists and is proved in a manner
satisfactory to the Offerors and the Depositary). The
Shareholder is required to notify the Depositary of such
Shareholder’s correct taxpayer identification number by
completing the form contained herein certifying that the
taxpayer identification number provided on Substitute
Form W-9 is correct (or that such Shareholder is awaiting a
taxpayer identification number).

     
What Number to Give the
Depositary. The Shareholder is
required to give the Depositary the social security number or
employer identification number of the record owner of the
Deposited Shares. If the Deposited Shares are in more than one
name or are not 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.

12

 

Any questions and requests for assistance may be
directed to

Kingsdale Shareholder Services Inc.

at the telephone number and location set out
below:

By Mail

The Exchange Tower

130 King Street West, Suite 2950, P.O.
Box 361

Toronto, Ontario

M5X 1E2

By Hand or Courier

The Exchange Tower

130 King Street West, Suite 2950

Toronto, Ontario

M5X 1C7

North American Toll Free Phone: 1-866-749-5464

Facsimile: 416-867-2271

Toll Free Fax: 1-866-545-5580

Banks and Brokers Call Collect: 416-867-2335

13

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