UNITED STATES SECURITIES AND EXCHANGE COMMISSIONWashington, D.C. 20549 FORM 10-Q[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934For the quarterly period ended: February 28, 2011

FORM 10-Q

[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended: August 31, 2010

[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from: ___________to ___________Commission File Number: 0-12132SILVERADO GOLD MINES LTD.(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)

For the transition period from: ___________to ___________

British Columbia, Canada	98-0045034
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

5455 152^ndStreet, Suite 308
Surrey, British Columbia, Canada	V3S 5A5
(Address of principal executive offices)	(Zip Code)

Commission File Number: 000-12132

SILVERADO GOLD MINES LTD.(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)

British Columbia, Canada	98-0045034
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
1111 West Georgia Street, Suite 1820,
Vancouver, British Columbia, Canada	V6E 4M3
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number: (800) 665-4646

Former name, former address, and former fiscal year, if changed since last report: N/A

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

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.

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

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes [ ] No [ X ]

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date: 2,~~245~~914,~~357~~377,~~531~~244 common shares, no par value, outstanding as of ~~October~~April 1214, ~~2010~~ 2011.

SILVERADO GOLD MINES LTD. AND ITS SUBSIDIARIES (An Exploration Stage Company) INDEX Quarterly Period Ended February 28, 2011

INDEX

			Page
PART I	FINANCIAL INFORMATION

	ITEM 1	FINANCIAL STATEMENTS	3

		Consolidated Balance Sheets as of February 28, 2011 (unaudited) and November 30, 2010 (audited)	3

		Consolidated Statements of Operations and Comprehensive Loss for the three months ended February 28, 2011 and 2010, and for the period from December 1, 2001 (Recommencement of Exploration Stage) through February 28, 2011 (unaudited)	4

		Consolidated Statements of Cash Flows for the three months ended February 28, 2011 and 2010, and for the period from December 1, 2001 (Recommencement of Exploration Stage) through February 28, 2011 (unaudited)	5

		Notes to the Consolidated Financial Statements as of February 28, 2011 (unaudited)	6-24

	ITEM 2	MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	25-33

	ITEM 3	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	34

	ITEM 4	CONTROLS AND PROCEDURES	34

PART II	OTHER INFORMATION

	ITEM 1	LEGAL PROCEEDINGS	35

	ITEM 2	UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	35

	ITEM 3	DEFAULTS UPON SENIOR SECURITIES	35

	ITEM 4	[REMOVED AND RESERVED]	35

	ITEM 5	OTHER INFORMATION	35

	ITEM 6	EXHIBITS	36-37

SIGNATURES			38

Quarterly Period Ended August 31, 2010

			Page
PART I	FINANCIAL INFORMATION
	ITEM 1	FINANCIAL STATEMENTS
		Consolidated Balance Sheets as of August 31, 2010 (unaudited) and November 30, 2009 (audited)	3
		Consolidated Statements of Operations and Other Comprehensive Loss for the three months and nine months ended August 31, 2010 and 2009, and for the period from December 1, 2001 (Recommencement of Exploration Stage) through August 31, 2010 (unaudited)	4
		Consolidated Statements of Cash Flows for the nine months ended August 31, 2010 and 2009, and for the period from December 1, 2001 (Recommencement of Exploration Stage) through August 31, 2010 (unaudited)	5
		Notes to the Consolidated Financial Statements as of August 31, 2010 (unaudited)	6-26
	ITEM 2	MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	27-39
	ITEM 3	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	39
	ITEM 4	CONTROLS AND PROCEDURES	39
PART II	OTHER INFORMATION
	ITEM 1	LEGAL PROCEEDINGS	41
	ITEM 2	UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	41
	ITEM 3	DEFAULTS UPON SENIOR SECURITIES	41
	ITEM 4	SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS	41
	ITEM 5	OTHER INFORMATION	41
	ITEM 6	EXHIBITS	42-43
SIGNATURES			44

PART IIFINANCIAL ~~FINANCIAL~~ INFORMATION ~~ITEM 1. FINANCIAL STATEMENTS SILVERADO GOLD MINES LTD. AND ITS SUBSIDIARIES (An Exploration Stage Company) CONSOLIDATED BALANCE SHEETS (Stated In United States Dollars)~~

		August 31, 2010			November 30, 2009
		(Unaudited)			(Audited)
ASSETS
Current Assets
Cash and cash equivalents	$	17,655		$	-
Gold inventory		6,316			6,316
Prepaid and other receivables		86,457			738,473
Total Current Assets		110,428			744,789
Mineral rights		1,577,681			1,398,601
Property, plant and equipment, net		859,838			1,002,009
TOTAL ASSETS	$	2,547,947		$	3,145,399
LIABILITIES
Current Liabilities
Accounts payable and accrued liabilities	$	1,163,811		$	882,768
Due to related parties		946,915			1,064,046
Promissory note		54,500			-
Convertible debt instruments		268,674			69,760
Total Current Liabilities		2,433,900			2,016,574
Asset retirement obligation		558,261			540,407
Mineral claims royalty payable		550,000			470,000
Total Liabilities		3,542,161			3,026,981
STOCKHOLDERS' (DEFICIT) EQUITY
Common stock
Authorized: unlimited common shares with no par value
Issued and outstanding: 2,114,975,373 common shares (2009: 1,577,667,073)		102,824,264			100,883,269
Additional paid-in capital		1,217,161			1,206,124
Shares to be issued		33,250			100,000
Accumulated deficit during exploration stage		(105,068,889	)		(102,070,975	)
Total Stockholders' (Deficit) Equity		(994,214	)		118,418
TOTAL LIABILITIES AND STOCKHOLDERS' (DEFICIT) EQUITY	$	2,547,947		$	3,145,399

ITEM 1. FINANCIAL STATEMENTS

~~The~~SILVERADO ~~accompanying~~GOLD ~~notes~~MINES ~~are~~LTD. anAND ~~integral~~ITS ~~part~~SUBSIDIARIES of(An ~~these consolidated~~Exploration ~~financial~~Stage ~~statements~~Company) CONSOLIDATED BALANCE SHEETS (Stated In United States Dollars)

	February 28,		November 30,
	2011		2010
	$		$
	(unaudited)
ASSETS
Current Assets
Cash	41,216		66,267
Gold inventory (Note 3)	6,316		6,316
Prepaid expenses and other receivables (Note 4)	138,138		316,393
Total Current Assets	185,670		388,976
Mineral Properties and Rights (Note 5)	1,621,692		1,600,442
Property and Equipment (Note 6)	471,248		494,416
Total Assets	2,278,610		2,483,834

LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current Liabilities
Accounts payable and accrued liabilities	894,679		915,819
Due to related parties (Note 10)	665,765		871,744
Promissory notes (Note 7)	50,000		62,327
Convertible debt, net of unamortized discount of $330,226 (Note 8)	19,774		10,620
Mineral claims royalty payable	571,250		550,000
Total Current Liabilities	2,201,468		2,410,510
Asset Retirement Obligation (Note 9)	572,079		565,016
Total Liabilities	2,773,547		2,975,526
Commitments and Contingencies (Notes 1 and 15)
Subsequent Event (Note 19)
Stockholders’ Deficit
Common Stock, unlimited shares authorized, no par value; 2,921,377,244 shares issued and outstanding (November 30, 2010 - 2,441,343,879 shares )	105,584,639		103,999,508
Additional Paid-in Capital	1,368,584		1,397,805
Shares To Be Issued	251,671		207,716
Deficit Accumulated During the Exploration Stage	(107,699,831	)	(106,096,721	)
Total Shareholders’ Deficit	(494,937	)	(491,692	)
Total Liabilities and Stockholders’ Deficit	2,278,610		2,483,834

~~SILVERADO~~The ~~GOLD~~accompanying ~~MINES~~notes ~~LTD.~~are ~~AND~~an ~~ITS~~integral ~~SUBSIDIARIES~~part ~~(An~~of ~~Exploration~~these consolidated ~~Stage~~financial ~~Company) CONSOLIDATED STATEMENTS OF OPERATIONS AND OTHER COMPREHENSIVE LOSS (UNAUDITED) (Stated In United States Dollars)~~statements3

														Period Since
														Recommencement of
														Exploration Stage from
		Three Months Ended August 31,						Nine Months Ended August 31,						December 1, 2001 to
		2010			2009			2010			2009			August 31 2010
General and administrative expenses
Accounting and auditing	$	29,492		$	33,746		$	48,082		$	70,689		$	883,204
Advertising, promotion and travel		221			16,547			15,643			39,286			3,026,246
Consulting fees		262,222			559,202			1,123,750			2,209,259			11,655,438
Depreciation, accretion and impairment		53,328			36,521			163,642			166,855			2,939,457
Exploration expenses		74,405			361,860			346,919			653,568			15,930,666
Financing activities		270,738			2,597			271,100			2,597			660,603
Legal and other professional fees		33,964			61,053			270,654			218,660			1,836,801
Management services		42,993			165,053			111,841			595,926			6,510,828
Office expenses		83,450			77,601			316,841			247,419			5,266,779
Related party charges in excess of costs incurred		(23,108	)		(434,870	)		17,048			(143,690	)		4,928,136
Reporting and investor relations		34,252			100,426			165,233			269,367			1,508,584
Research		-			-			-			-			1,064,735
Transfer agent and filing fees		20,234			27,670			50,557			87,154			430,388
Write-off of mineral claim expenditures		-			-			-			-			1,159,529
Write-down of property, plant and equipment		-			-			-			-			329,679
Total expenses		882,191			1,007,406			2,901,310			4,417,090			58,131,073
Loss from operations		(882,191	)		(1,007,406	)		(2,901,310	)		(4,417,090	)		(58,131,073	)
Gold income earned during the exploration stage
Gold sale proceeds earned during the exploration stage		-			-			-			52,450			3,714,310
Cost of gold sold		-			-			-			(43,790	)		(3,250,373	)
Gold inventory addition from gold extraction		-			-			-			-			3,248,056
Total gold income earned during the exploration stage		-			-			-			8,660			3,711,993
Other income (expenses)
Interest and other income		-			81			77			145			278,067
Interest expenses on capital lease obligations		-			-			-			-			(333,221	)
Accrued interests on convertible and promissory debentures		(20,004	)		-			(40,714	)		-			(748,197	)
Other interest expenses and bank charges		50,358			(2,439	)		(39,280	)		(9,537	)		(111,489	)
Commitment fees		-			-			-			(960,000	)		(960,000	)
Loss on disposal of property, plant and equipment		-			-			-			(173,921	)		(279,529	)
Forgiveness of convertible debentures and accrued interests		-			-			-			260,827			260,827
Total other income (expenses)		30,354			(2,358	)		(79,917	)		(882,486	)		(1,893,542	)
Net loss before cumulative effect of accounting change		(851,837	)		(1,009,764	)		(2,981,227	)		(5,290,916	)		(56,312,622	)
Cumulative effect of accounting change		-			-			-			-			(99,481	)
Net loss		(851,837	)		(1,009,764	)		(2,981,227	)		(5,290,916	)		(56,412,103	)
Other comprehensive income (loss)
Gain (Loss) on foreign exchange		28,171			(49,842	)		(16,687	)		(72,930	)		248,158
Net comprehensive loss for the period	$	(823,666	)	$	(1,059,606	)	$	(2,997,914	)	$	(5,363,846	)	$	(56,163,945	)
Net loss per share	$	(0.0004	)	$	(0.0007	)	$	(0.0017	)	$	(0.0044	)
Basic and diluted weighted average number of common shares outstanding		1,961,368,207			1,386,724,534			1,774,211,507			1,197,296,139

SILVERADO GOLD MINES LTD. AND ITS SUBSIDIARIES

(An Exploration Stage Company)

CONSOLIDATED STATEMENTS OF OPERATIONS AND OTHER COMPREHENSIVE LOSS

(UNAUDITED)

(Stated In United States Dollars)

The accompanying notes are an integral part of these consolidated financial statements

	Accumulated From
	December 1, 2001
	(Date of
	Recommencement of
	Exploration Stage)		Three Months Ended
	to February 28,		February 28,
	2011		2011		2010
	$		$		$
					(Restated – Note 20)

Revenue	–		–		–

Expenses

Accounting and auditing	981,443		85,402		6,883
Advertising, promotion and travel	3,028,547		2,203		12,051
Consulting fees	13,079,180		1,042,271		563,167
Depreciation and accretion	2,968,689		24,679		48,746
Exploration expenses	16,117,826		94,980		85,732
Amortization of debt issuance costs	320,828		1,525		1,825
Foreign exchange (gain) loss	(392,825	)	(792	)	3,041
Legal and other professional fees	1,893,848		28,518		191,819
Management services (Note 10)	6,583,692		40,446		46,417
Office expenses	5,464,540		132,125		75,610
Related party charges in excess of cost incurred (Note 10)	4,936,979		4,953		7,413
Reporting and investor relations	1,587,514		29,602		58,039
Research	1,064,735		–		–
Transfer agent and filing fees	454,995		13,991		17,752
Impairment of mineral claim expenditures	1,159,529		–		–
Impairment of property and equipment	329,679		–		–
Impairment of leasehold improvements	340,821		–		–

Total Operating Expenses	59,920,020		1,499,903		1,118,495

Operating Loss	(59,920,020	)	(1,499,903	)	(1,118,495	)

Gold income earned during the exploration stage

Gold sale proceeds earned during the exploration stage	3,714,310		–		–
Cost of gold sold	(3,250,373	)	–		–
Gold inventory addition from gold extraction	3,248,056		–		–

Total Gold Income Earned During the Exploration Stage	3,711,993		–		–

Other Income (Expense)

Interest and other income	278,067		–		33
Interest expenses on capital lease obligations	(333,221	)	–		–
Accretion of discount on convertible and promissory debentures	(1,224,220	)	(107,342	)	(25,176	)
Other interest expenses and bank charges	(136,833	)	(8,192	)	(6,977	)
Penalty on convertible debt	(75,000	)	–		–
Commitment fees	(960,000	)	–		–
Loss on disposal of property and equipment	(279,529	)	–		–
Gain on derivatives	(29,797	)	–		14,292
Gain on derecognition of convertible debentures, promissory note and accrued interest	273,154		12,327		–

Total Other Expenses	(2,487,379	)	(103,207	)	(17,828	)

Loss before cumulative effect of accounting change	(58,695,406	)	(1,603,110	)	(1,136,323	)

Cumulative effect of accounting change	(99,481	)	–		–

Net Loss	(58,794,887	)	(1,603,110	)	(1,136,323	)

Net Loss Per Share – Basic and Diluted			(0.00	)	(0.00	)

Weighted Average Shares Outstanding			2,820,131,327		1,613,165,291

4The accompanying notes are an integral part of these consolidated financial statements4

SILVERADO GOLD MINES LTD. AND ITS SUBSIDIARIES

(An Exploration Stage Company)

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

(Stated In United States Dollars)

								Period Since
		Accumulated From
								Recommencement of
		December 1, 2001 (Date
								Exploration Stage from
		of Recommencement of
		Nine Months Ended August 31,						December 1, 2001 to
		Exploration Stage)			Three Months Ended
		2010			2009			August 31, 2010
		to February 28,			February 28,
CASH AND CASH EQUIVALENTS PROVIDED BY (USED IN):
		2011			2011			2010
Operating activities:
		$			$			$
Net comprehensive loss for the period	$	(2,997,914	)	$	(5,363,846	)	$	(56,163,945	)
								(Restated – Note 20)
Adjustments to reconcile net comprehensive loss to net cash used in operating activities:
Operating Activities
Cumulative effect of accounting change		-			-			99,481
Net loss		(58,794,887	)		(1,603,110	)		(1,136,323	)
Depreciation, amortization, accretion and impairment		163,642			166,855			2,939,457
Adjustments to reconcile net loss to cash used in operating activities:
Loss on disposal of property, plant and equipment		-			173,921			279,529
Cumulative effect of accounting change		99,481			–			–
Stock-based compensation included in management fees		-			-			3,375,644
Amortization of debt issue costs		7,500			–			1,825
Stock issued for debenture		-			-			217,687
Depreciation and accretion		2,968,689			24,679			48,746
Non-cash consulting and other expenses resulting from share issuance		1,007,366			1,908,036			- 6,893,404
Loss on disposal of property and equipment		279,529			–			–
Non-cash prepaid consulting fees expensed during the period		716,865			333,500			1,050,365
Stock-based compensation included in management fees		3,375,644			–			–
Non-cash commitment fees resulting from share issuance		-			960,000			960,000
Stock issued for debenture		217,687			–			–
Non-cash financing expense		75,000			-			327,003
Stock issued for consulting and other expenses		7,796,962			885,893			243,936
Finance costs accrued or incurred on convertible debentures		36,213			-			534,259
Prepaid consulting fees expensed		1,249,059			198,693			482,282
Accrued interest on promissory debentures		4,500			-			4,500
Stock issued for commitment fees		960,000			–			–
Forgiveness of convertible debentures and accrued interests		-			(260,827	)		(260,827	)
Financing expense		252,003			–			–
Write-off of mineral claim expenditures		-			-			1,159,529
Accretion of discount on convertible debt		1,014,783			107,342			25,176
Write-down of property, plant and equipment		-			-			329,679
Loss (gain) on derivative		29,797			–			(14,292	)
Changes in non-cash operating assets and liabilities:
Gain on derecognition of convertible debt, promissory note and accrued interest		(273,154	)		(12,327	)		–
Gold inventory		-			43,790			2,317
Impairment of mineral claim expenditures		1,159,529			–			–
Prepaid and other receivables		(10,139	)		38,282			(28,872	)
Impairment of property and equipment		329,679			–			–
Accounts payable and accrued liabilities		281,043			342,713			666,905
Impairment of leasehold improvements		340,821			–			–
Advances (to) from related party		(117,131	)		(5,406	)		655,603
Changes in operating assets and liabilities:
Asset retirement obligation		(2,411	)		18,046			8,685
Gold inventory		2,317			–			–
Net cash used in operating activities		(842,966	)		(1,644,936	)		(36,949,597	)
Prepaid expenses and deposits		(44,409	)		2,167			1,058
Investing activities:
Accounts payable and accrued liabilities		652,575			31,218			117,592
Investment in mineral properties, net		(99,080	)		(99,080	)		(1,344,181	)
Advances to related party		374,451			(205,981	)		(43,094	)
Purchase of property, plant and equipment		(1,206	)		(2,001	)		(3,080,902	)
Asset retirement obligation		42,768			7,063			6,756
Proceeds from sale of property, plant and equipment, net		-			222,509			825,299
Net Cash Used in Operating Activities		(37,959,176	)		(564,363	)		(266,338	)
Net cash (used in) provided by investing activities		(100,286	)		121,428			(3,599,784	)
Investing Activities
Financing activities:
Investment in mineral properties and rights		(1,366,942	)		–			–
Repayment of loans payable		-			-			(110,728	)
Purchase of property and equipment		(3,082,630	)		(1,511	)		–
Repayment of capital lease obligation		-			-			(1,131,607	)
Proceeds from sale of property and equipment, net		825,299			–			–
Convertible debentures, net		251,000			-			326,000
Net Cash (Used In) Provided By Investing Activities		(3,624,273	)		(1,511	)		–
Promissory note		50,000			-			50,000
Financing Activities
Shares to be issued		33,250			70,000			33,250
Repayment of loans payable		(110,728	)		–			–
Common stock issued for cash (net of share issue costs)		626,657			1,416,500			41,383,028
Repayment of capital lease obligation		(1,131,607	)		–			–
Net cash provided by financing activities		960,907			1,486,500			40,549,943
Proceeds from issuance of convertible debt, net		570,000			–			75,000
Increase (Decrease) in cash and cash equivalents		17,655			(37,008	)		562
Proceeds from issuance of promissory notes		62,327			–			50,000
Cash and cash equivalents, at beginning of the period		-			50,991			17,093
Share subscriptions received		203,745			104,453			172,324
Cash and cash equivalents, at end of the period	$	17,655		$	13,983		$	17,655
Proceeds from issuance of common stock, net		41,782,029			431,877			65,250
Proceeds from exercise of warrants		231,806			4,493			–
Net Cash Provided By Financing Activities		41,607,572			540,823			362,574
Increase (Decrease) In Cash		24,123			(25,051	)		96,236
Cash - Beginning of Period		17,093			66,267			–
Cash - End of Period		41,216			41,216			96,236
Supplemental Disclosures
Interest paid					–			4,978
Income taxes paid					–			–

~~Supplemental~~The ~~Cash~~accompanying ~~Flow~~notes ~~Information~~are ~~(Note~~an ~~13)~~integral part of these consolidated financial statements5

~~The~~SILVERADO ~~accompanying~~GOLD ~~notes~~MINES ~~are~~LTD. anAND ~~integral~~ITS ~~part~~SUBSIDIARIES (An Exploration Stage Company) NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS as of ~~these consolidated~~February ~~financial~~28, ~~statements~~2011 (Unaudited) (Stated in United States Dollars)

1.	Nature of Operations

	Silverado Gold Mines Ltd. (“Silverado” or the “Company”) was incorporated under the laws of British Columbia, Canada in June 1963. The Company is engaged in the exploration of mineral properties in the State of Alaska, through its wholly- owned subsidiary, Silverado Gold Mines Inc. (incorporated under the laws of the State of Alaska, U.S.A. on May 29, 1981) and in the research and development of low-rank coal-water fuel as a replacement fuel for oil fired boilers and utility generators through its other wholly-owned subsidiary, Silverado Green Fuel, Inc. (incorporated under the laws of the State of Alaska, U.S.A. on August 14, 2006).

	The Company is considered to be an Exploration Stage Company, as defined by Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 915, Development Stage Entities. Accumulated results of operations and cash flows are presented from December 1, 2001, the date the Company re-entered the exploration stage.

	The accompanying consolidated financial statements have been prepared assuming the Company will continue as a going concern, which implies that the Company would continue to realize its assets and discharge its liabilities in the normal course of business. The Company has never paid any dividends and is unlikely to pay dividends or generate earnings in the immediate or foreseeable future. As at February 28, 2011, the Company has a working capital deficiency of $2,015,798 and has accumulated losses of $107,699,831 since inception and its operations continue to be funded primarily from sales of its stock and the sale of gold extracted during exploration activities. The ability of the Company to continue as a going concern, including completion of the acquisition, exploration and development of its mineral properties and completion of the research and development of its low-rank coal-water fuel project is dependent on the Company’s ability to obtain the necessary financing from sales of its stock and debt financings. The consolidated financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.

	The Company's plan for the 2011 exploration season for its Alaska operations is to drill further reserves and core analysis through a contracted diamond drill operation at the Nolan project and to use the Company's own smaller diamond drill core rig for preliminary exploration drilling on its Eagle Creek property 8 miles North of Fairbanks, Alaska. The Company intends to fund these activities through debt and equity financing arrangements, which may be insufficient to fund its capital expenditures, working capital and other cash requirements for the year ending November 30, 2011. There is no assurance that the Company will obtain the necessary financing to complete its objectives.

2.	Summary of Significant Accounting Policies

	a)	Basis of Presentation and Principles of Consolidation

		These consolidated financial statements and related notes are presented in accordance with accounting principles generally accepted in the United States, and are expressed in US dollars. These consolidated financial statements include the accounts of the Company and the accounts of its wholly-owned subsidiaries, Silverado Gold Mines Inc. and Silverado Green Fuel Inc. All inter-company transactions and balances have been eliminated. The Company’s fiscal year-end is November 30.

	b)	Interim Financial Statements

		The interim unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with the instructions for Securities and Exchange Commission (“SEC”) Form 10-Q. They do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. Therefore, these financial statements should be read in conjunction with the Company’s audited financial statements and notes thereto for the year ended November 30, 2010, included in the Company’s Annual Report on Form 10-K filed on March 15, 2011, with the SEC.

~~SILVERADO GOLD MINES LTD. AND ITS SUBSIDIARIES (An Exploration Stage Company) NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS as of August 31, 2010 (Unaudited) (Stated in United States Dollars)~~6

~~Note~~SILVERADO 1GOLD –MINES ~~Nature~~LTD. ~~and~~AND ~~Continuance~~ITS SUBSIDIARIES (An Exploration Stage Company) NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS as of ~~Operations~~February 28, 2011 (Unaudited) (Stated in United States Dollars)

Silverado Gold Mines Ltd. (“Silverado” or the “Company”) was incorporated under the laws of British Columbia, Canada in June 1963. The Company is engaged in the exploration of mineral properties in the State of Alaska, through its wholly-owned subsidiary, Silverado Gold Mines Inc. (incorporated under the laws of the State of Alaska, U.S.A. on May 29, 1981) and in the research and development of low-rank coal-water fuel as a replacement fuel for oil fired boilers and utility generators through its other wholly-owned subsidiary, Silverado Green Fuel, Inc. (incorporated under the laws of the State of Alaska, U.S.A. on August 14, 2006).

2.	Summary of Significant Accounting Policies (continued)

	c)	Use of Estimates

		The preparation of these consolidated statements in accordance with United States generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses in the reporting period. The Company regularly evaluates estimates and assumptions related to useful life and recoverability of long-lived assets, stock-based compensation, deferred income tax asset valuations, asset retirement obligations, financial instrument valuations, and loss contingencies. The Company bases its estimates and assumptions on current facts, historical experience and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced by the Company may differ materially and adversely from the Company’s estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected.

	d)	Cash and Cash Equivalents

		Cash and cash equivalents are carried at cost and they comprise cash on hand, deposits held with banks and other highly liquid investments. Highly liquid investments are readily convertible to cash and generally have maturities of three months or less from the time acquired. The Company places its cash and cash equivalents with high quality financial institutions which the Company believes limits credit risks.

	e)	Property and Equipment

		Property and equipment are recorded at cost and are depreciated on a straight-line basis as follows:

The accompanying interim consolidated financial statements have been prepared assuming the Company will continue as a going concern, which implies that the Company would continue to realize its assets and discharge its liabilities in the normal course of business. The Company lacks sufficient working capital, has recurring losses and its operations continue to be funded primarily from sales of its stock and the sale of gold extracted during exploration activities. The ability of the Company to continue as a going concern, including completion of the acquisition, exploration and development of its mineral properties and completion of the research and development of its low-rank coal-water fuel project is dependent on the Company’s ability to obtain the necessary financing from sales of its stock and debt financings. The consolidated financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.

	Mining equipment	10 years
	Auto and trucks	5 years
	Computer equipment	3 years
	Computer software	1 year
	Leasehold improvements	5 – 7 years
	Furniture and fittings	10 years

Note 2 – Basis of Presentation and Summary of Significant Accounting Policies

f)	Financial Instruments

	FASB ASC 820, Fair Value Measurements and Disclosures, defines fair value, establishes a framework for measuring fair value under generally accepted accounting principles and enhances disclosures about fair value measurements. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Valuation techniques used to measure fair value, as required by ASC 820, must maximize the use of observable inputs and minimize the use of unobservable inputs.

	The Company’s assessment of the significance of a particular input to the fair value measurements requires judgment, and may affect the valuation of the assets and liabilities being measured and their placement within the fair value hierarchy. The carrying values of cash, other receivables, accounts payable, mineral claims royalty payable, promissory notes, and due to related parties approximate fair values because of the short-term maturity of these instruments. The carrying amount reported in the balance sheet for convertible debt approximates fair value based on current market rates for similar financial instruments. Unless otherwise noted, it is management’s opinion that the Company is not exposed to significant interest, currency or credit risks arising from these financial instruments.

g)	Gold Inventory

	The Company values its gold inventories at the lower of cost or market. Since the Company is still in the exploration stage, by definition, the Company’s direct and absorbed costs would exceed the market value of any gold recovery. Therefore, the Company values gold inventory additions from gold extraction at the spot price as of the date of the addition to the gold inventory, and records the costs of gold inventory sold on a first-in first-out basis. Gold sale proceeds and cost of gold sold are recorded as other income earned during the exploration stage.

These interim consolidated financial statements are prepared in conformity with United States of America generally accepted accounting principles (“GAAP”). The application of Canadian generally accepted accounting principles to these financial statements would not result in material measurement or disclosure differences.7

~~The~~SILVERADO ~~unaudited~~GOLD ~~interim~~MINES ~~consolidated financial statements do not include all information and footnote disclosures required under GAAP~~LTD. ~~In management’s~~AND ~~opinion,~~ITS ~~all~~SUBSIDIARIES ~~adjustments~~ (~~consisting~~An ~~solely~~Exploration ofStage ~~normal recurring accruals~~Company) ~~considered~~NOTES ~~necessary~~TO ~~for~~THE aINTERIM ~~fair~~CONSOLIDATED ~~presentation~~FINANCIAL ofSTATEMENTS ~~the financial position~~ as of ~~August~~February 3128, ~~2010,~~2011 ~~and~~(Unaudited) ~~the~~(Stated ~~results~~in ofUnited ~~operations~~States and cash flows for all periods presented, have been included. Readers of these financial statements should note that interim results for the periods presented are not necessarily indicative of the results that can be expected for the entire fiscal year as a whole.Dollars)

These unaudited interim consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in Silverado’s Annual Report on Form 10-K, for the fiscal year ended November 30, 2009.

2.	Summary of Significant Accounting Policies (continued)

	h)	Revenue Recognition

		Proceeds from the sale of gold recoveries from test mining are recorded as other income earned during the exploration stage. The Company recognizes revenue when production is sold at a fixed or determinable price, persuasive evidence of an arrangement exists, delivery has occurred and title has transferred, and collectability is reasonably assured.

	i)	Mineral Property Costs

		The Company has been in the exploration stage since its inception and has not yet realized any revenues from its planned operations. It is primarily engaged in the acquisition and exploration of mineral properties. Mineral property exploration costs are expensed as incurred. Mineral property acquisition costs are initially capitalized. The Company assesses the carrying costs for impairment under ASC 360, Property, Plant, and Equipment at each fiscal quarter end. When it has been determined that a mineral property can be economically developed as a result of establishing proven and probable reserves, the costs then incurred to develop such property, will be capitalized. Such costs will be amortized using the units-of-production method over the estimated recoverable reserves. If mineral properties are subsequently abandoned or impaired, any capitalized costs will be charged to operations.

	j)	Asset Retirement Obligation

		The Company records asset retirement obligations in accordance with ASC 410-20, Asset Retirement Obligations, which addresses financial accounting and reporting for obligations associated with the retirement of tangible long- lived assets and the associated retirement costs. The standard applies to legal obligations associated with the retirement of long-lived assets that result from the acquisition, construction, development and normal use of the asset. ASC 410-20 requires that the fair value of a liability for an asset retirement obligation be recognized in the period in which it is incurred if a reasonable estimate of fair value can be made. The fair value of the liability is added to the carrying amount of the associated asset and this additional carrying amount is depreciated over the life of the asset. The liability is accreted at the end of each period through charges to operating expense. If the obligation is settled for other than the carrying amount of the liability, the Company will recognize a gain or loss on settlement.

	k)	Foreign Currency Translation

		The functional and reporting currency of the Company is the United States dollar. Monetary assets and liabilities denominated in foreign currencies are translated to United States dollars in accordance with ASC 740, Foreign Currency Translation Matters, using the exchange rate prevailing at the balance sheet date. Gains and losses arising on translation or settlement of foreign currency denominated transactions or balances are included in the determination of income. Foreign currency transactions are primarily undertaken in Canadian dollars. The Company has not, to the date of these consolidated financial statements, entered into derivative instruments to offset the impact of foreign currency fluctuations.

	l)	Comprehensive Loss

		ASC 220, Comprehensive Income establishes standards for the reporting and display of comprehensive loss and its components in the consolidated financial statements. As at February 28, 2011 and 2010, the Company has no items that represent other comprehensive loss and, therefore, has not included a schedule of other comprehensive loss in the financial statements.

	m)	Long-lived Assets

		In accordance with ASC 360, Property Plant and Equipment the Company tests long-lived assets or asset groups for recoverability when events or changes in circumstances indicate that their carrying amount may not be recoverable. Circumstances which could trigger a review include, but are not limited to: significant decreases in the market price of the asset; significant adverse changes in the business climate or legal factors; accumulation of costs significantly in excess of the amount originally expected for the acquisition or construction of the asset; current period cash flow or operating losses combined with a history of losses or a forecast of continuing losses associated with the use of the asset; and current expectation that the asset will more likely than not be sold or disposed significantly before the end of its estimated useful life.

~~The financial statements have, in management’s opinion, been properly prepared within the framework of the significant accounting policies summarized below:~~8

aSILVERADO GOLD MINES LTD. AND ITS SUBSIDIARIES (An Exploration Stage Company) ~~Basis~~NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS as of ~~Consolidation~~February 28, 2011 (Unaudited) (Stated in United States Dollars)

The consolidated financial statements include the accounts of Silverado Gold Mines Ltd. and its wholly-owned subsidiaries Silverado Gold Mines Inc. and Silverado Green Fuel Inc. All significant inter-company transactions have been eliminated.

2.	Summary of Significant Accounting Policies (continued)

		Recoverability is assessed based on the carrying amount of the asset and its fair value which is generally determined based on the sum of the undiscounted cash flows expected to result from the use and the eventual disposal of the asset, as well as specific appraisal in certain instances. An impairment loss is recognized when the carrying amount is not recoverable and exceeds fair value.

	n)	Stock-based Compensation

		The Company records stock-based compensation in accordance with ASC 718, Compensation – Stock Based Compensation, and ASC 505-50, Equity-Based Payments to Non-Employees using the fair value method. All transactions in which goods or services are the consideration received for the issuance of equity instruments are accounted for based on the fair value of the consideration received or the fair value of the equity instrument issued, whichever is more reliably measurable.

	o)	Basic and Diluted Net Loss Per Share

		The Company computes net loss per share in accordance with ASC 260, Earnings per Share. ASC 260 requires presentation of both basic and diluted earnings per share (EPS) on the face of the statement of operations. Basic EPS is computed by dividing net income (loss) available to common shareholders (numerator) by the weighted average number of shares outstanding (denominator) during the period. Diluted EPS gives effect to all dilutive potential common shares outstanding during the period using the treasury stock method and convertible preferred stock using the if-converted method. In computing diluted EPS, the average stock price for the period is used in determining the number of shares assumed to be purchased from the exercise of stock options or warrants. Diluted EPS excludes all dilutive potential shares if their effect is anti-dilutive. Shares underlying these securities totaled approximately 445,037,093 as of February 28, 2011.

	p)	Debt Issuance Costs

		The Company recognizes debt issue costs on the balance sheet when incurred, and amortizes the balance over the term of the related debt.

	q)	Income Taxes

		The Company accounts for income taxes using the asset and liability method in accordance with ASC 740, Income Taxes. The asset and liability method provides that deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities, and for operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using the currently enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company records a valuation allowance to reduce deferred tax assets to the amount that is believed more likely than not to be realized.

	r)	Reclassifications

		Certain reclassifications have been made to the prior period’s consolidated financial statements to conform to the current period’s presentation.

	s)	Recently Issued and Adopted Accounting Pronouncements

		The Company has implemented all other new accounting pronouncements that are in effect and that may impact its financial statements and does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations.

The Company considers its functional currency to be the U.S. dollar for its U.S. and Canadian operations. Monetary assets and liabilities denominated in foreign currencies are translated into the U.S. dollar at the rates of exchange in effect at the consolidated balance sheet date. Non-monetary assets and liabilities are translated at the rate in effect at the time at which the transactions took place. Revenue and expense transactions are translated at the average rate of exchange for the period. Foreign exchange gains and losses are included in the determination of results from operations for the periods as other comprehensive gains and losses.9

6SILVERADO GOLD MINES LTD. AND ITS SUBSIDIARIES (An Exploration Stage Company) NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS as of February 28, 2011 (Unaudited) (Stated in United States Dollars)

~~SILVERADO~~3. ~~GOLD~~Gold ~~MINES~~Inventory ~~LTD~~The Company’s test production in past years has yielded gold dust and gold nuggets. ~~AND~~Gold ~~ITS~~dust ~~SUBSIDIARIES~~has yielded sales prices equivalent to the spot gold price. Gold nuggets, however, are considered to be gem or jewelry items, which in the industry sell at a higher price than the spot price. They are valued according to weight, purity, character, and relative flatness (Anwearing ~~Exploration~~quality). ~~Stage~~Historically, the Company)’s ~~NOTES~~gold TOnuggets ~~THE~~have ~~INTERIM~~sold ~~CONSOLIDATED~~at ~~FINANCIAL~~prices ~~STATEMENTS~~above asthe spot gold price. The following is a summary of ~~August~~gold 31inventory changes during the three months ended February 28, ~~2010~~2011, ~~(Unaudited)~~and ~~(Stated~~during inthe ~~United~~fiscal ~~States~~year ~~Dollars)~~ended November 30, 2010:

Note 2 – Basis of Presentation and Summary of Significant Accounting Policies (Continued)

			Weighted
	Troy Ounces		Average Price		Value

Balance as of November 30, 2009	10	$	657.50	$	6,316
Cost of gold sold	–		–		–
Balance as of November 30, 2010	10	$	657.50	$	6,316
Cost of gold sold	–		–		–
Balance as of February 28, 2011	10	$	657.50	$	6,316

~~b) Accounting Standards~~4. ~~Codification~~Prepaid Expenses and Other Receivables Prepaid expenses and other receivables consist of:

In June 2009, the Financial Accounting Standards Board (“FASB”) issued FASB Accounting Standards Codification (“ASC”) 105, “Generally Accepted Accounting Principles”, which establishes the FASB ASC as the sole source of authoritative GAAP. All existing accounting standards are superseded as described in FASB ASC No. 168, aside from those issued by the SEC. All other accounting literature not included in the Codification is non-authoritative. In accordance with the ASC, references to previously issued accounting standards have been replaced by ASC references. Subsequent revisions to GAAP will be incorporated into the ASC through Accounting Standards Updates (“ASU”). Pursuant to this codification, the Company has updated references to GAAP in its financial statements.

				November 30,
		February 28, 2011		2010

Prepaid consulting and other fees resulting from share issuance	$	2,605	$	223,193
Shares issued for attorney retainer		92,500		48,000
Total prepaid expenses resulting from share issuance		95,105		271,193
Insurance deposits, GST refund and others		43,033		45,200
Total	$	138,138	$	316,393

~~c) Exploration~~During the three months ended February ~~Stage~~28, 2011, the Company issued an aggregate of 251,252,211 shares of the Company’s common stock for consulting and other service fees, valued at the fair market price on the measurement date, for total consideration of $908,498, of which $22,605 was recorded as prepaid expenses at February 28, 2011.

~~The~~Of ~~Company~~the ~~has~~shares ~~not generated revenues since recommencement~~ of ~~the~~ ~~exploration stage from December 1, 2001, and is considered to be in~~ the ~~development~~ ~~stage, as defined in FASB ASC 915-10-05. However, the Securities and Exchange Commission~~Company’s ~~Industry Guide 7, “Description of Property by Issuers~~common ~~Engaged~~stock orissued tofor beconsulting ~~Engaged~~and inother ~~Significant~~services, ~~Mining Operations” requires that mining companies in the exploration stage should not refer to themselves as development stage companies in the financial statements~~225,000,000 ~~even~~shares ~~though such companies should comply~~ with ~~FASB~~a ~~ASC~~fair value ~~915-10-05,~~of ~~if applicable. Accordingly~~$817,500 ~~the Company~~were ~~has~~issued ~~been referred~~ to asa anconsultant ~~exploration~~to ~~stage~~render ~~company,~~services ~~not~~for a ~~development~~3 month ~~stage~~period ~~company.~~commencing ~~Accumulated~~on ~~results of operations and cash flows are presented from~~ December 13, ~~2001, the date the Company re-entered the exploration stage~~2010.

~~d) Basic~~5. Mineral Properties and ~~Diluted~~ ~~Loss~~Rights ~~Per~~The ~~Share~~Company holds interests in four groups of mineral properties, Nolan, Ester Dome, Hammond and Eagle Creek, in Alaska, U.S.A. All of these properties are in the exploration stage and have no proven reserves as of February 28, 2011. The Nolan property has a probable reserve; however, a more extensive feasibility study is required to ascertain if such probable reserve can be classified as a proven reserve.

Basic loss per share is computed by dividing the loss for the period by the weighted average number of common shares outstanding during the period. Diluted earnings per share reflect the potential dilution that could occur if potentially dilutive securities were exercised or converted to common stock. The dilutive effect of options and warrants and their equivalent is computed by application of the treasury stock method and the effect of convertible securities by the “if converted” method. Fully diluted amounts are not presented when the effects of the computations are anti-dilutive due to the losses incurred. Accordingly, there is no difference in the amounts presented for basic and diluted loss per share.10

eSILVERADO GOLD MINES LTD. AND ITS SUBSIDIARIES (An Exploration Stage Company) ~~Gold Inventory~~ NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS as of February 28, 2011 (Unaudited) (Stated in United States Dollars)

~~The~~5. ~~Company~~Mineral ~~values~~Properties ~~its~~and ~~gold~~Rights ~~inventories~~(continued) atSince the ~~lower~~Company ofhas ~~cost~~no ~~or market.~~proven ~~Since~~reserves ~~the~~on ~~Company~~its isproperties ~~still~~as inof ~~the~~February ~~exploration stage~~28, ~~by definition~~2011, the Company’s ~~direct~~does ~~and~~not ~~absorbed~~amortize ~~costs would exceed~~ the ~~market~~capitalized ~~value~~mineral ofcosts, ~~any~~but ~~gold recovery.~~evaluates ~~Therefore,~~ the ~~Company~~capitalized ~~values~~mineral ~~gold~~costs ~~inventory~~periodically ~~additions~~for ~~from~~impairment ~~gold extraction~~in ataccordance ~~the~~with ~~spot~~ASC ~~price~~360 asand ofhas ~~the~~not ~~date~~recognized ofany ~~the~~impairment. ~~addition~~A tosummary ~~the~~of ~~gold inventory,~~such ~~and~~capitalized ~~records~~direct ~~the~~ costs offor ~~gold~~the ~~inventory~~three ~~sold~~months onended aFebruary ~~first-in~~28, ~~first-out basis.~~2011, ~~Gold~~and ~~sale~~for ~~proceeds~~the ~~and~~fiscal ~~cost~~year ofended ~~gold~~November ~~sold~~30, ~~are~~2010 ~~recorded~~is as ~~other income earned during the exploration stage.~~follows:

f) Fair Value of Financial Instruments

		Nolan		Ester Dome		Hammond		Eagle Creek		Total
		(a)		(b)		(c)		(d)
Balance as of November 30, 2009	$	743,859	$	40,702	$	525,900	$	88,140	$	1,398,601
Additions during the year:
Claim fees paid during the year		85,953		9,398		8,400		13,090		116,841
Royalty payment		–		–		–		5,000		5,000
Accrued royalty payment		–		–		80,000		–		80,000
Balance as of November 30, 2010		829,812		50,100		614,300		106,230		1,600,442
Additions during the period:
Claim fees paid during the period		–		–		–		–		–
Royalty payment		–		–		–		–		–
Accrued royalty payment		–		–		20,000		1,250		21,250
Balance as of February 28, 2011	$	829,812	$	50,100	$	634,300	$	107,480	$	1,621,692

FASB ASC 820, “Fair Value Measurements and Disclosures”, defines fair value, establishes a framework for measuring fair value under generally accepted accounting principles and enhances disclosures about fair value measurements. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Valuation techniques used to measure fair value, as required by Topic 820 of the FASB ASC, must maximize the use of observable inputs and minimize the use of unobservable inputs.

a)	Nolan Gold Project, Wiseman Mining District, Alaska

	The Nolan Gold Project consists of 5 contiguous claim groups covering approximately 6 square miles, 8 miles west of Wiseman and 175 miles north of Fairbanks, Alaska. In addition, The Clara Creek and Marion Creek claim groups are located approximately 1.5 and 3 miles north of Coldfoot, Alaska, and are situated near the Dalton Highway. Both Clara Creek and Marion Creeks are left limit tributaries to the Middle Fork of the Koyukuk River.

	In total, the Company owns a 100% interest in 204 federal placer mining claims and 407 federal lode claims in the Nolan Gold Project. The specific claim groups at this site are as follows:

	i)	Nolan Placer: This claim group consists of 148 unpatented federal placer claims.

	ii)	Thompson’s Pup: This claim group consists of 6 unpatented federal placer claims and is subject to a royalty of 3% of net profits on 80% of production.

	iii)	Dionne (Mary’s Bench): This claim group consists of 15 unpatented federal placer claims.

	iv)	Smith Creek: This claim group consists of 28 unpatented federal placer claims.

	v)	Marion Creek and Clara Creek: This claim group consists of 2 unpatented federal placer mining claims located on Marion Creek and 5 unpatented federal placer mining claims located on Clara Creek.

	vi)	Nolan Lode: this claim group consists of 407 unpatented federal lode claims.

	The Company currently is in a transitional phase between exploration and development on this property. The preliminary feasibility study, effective January 1, 2009 and amended on June 1, 2009 to reflect additional data, supported a probable mineral reserve of antimony and gold underlying the southwestern portion of the Solomon Shear Zone, an area referred to by the Company as Workman’s Bench.

711

SILVERADO GOLD MINES LTD. AND ITS SUBSIDIARIES (An Exploration Stage Company) NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS as of ~~August~~February 3128, ~~2010~~2011 (Unaudited) (Stated in United States Dollars)

Note 2 – Basis of Presentation and Summary of Significant Accounting Policies (Continued)

5.	Mineral Properties and Rights (continued)

	b)	Ester Dome Gold Project, Fairbanks Mining District, Alaska

		The Ester Dome Gold Project encompasses all of the Company’s properties on Ester Dome, which is accessible by road 10 miles northwest of Fairbanks, Alaska. This property consists of 1 unpatented Federal claim and 52 state mineral claims. The specific properties at this site are as follows:

		i)	Grant Mine: This property consists of 26 state mineral claims subject to payments of 15% of net profits until $2,000,000 has been paid and a royalty payment of 3% of net profits thereafter. The mill has remained inactive since February 1989 and the plant and equipment cost was written down on our accounting records. During fiscal 2009, the work on Grant Mine was limited to assessment work. Upon payment of the $2,000,000, the titles of the mineral claims will be transferred.

		ii)	May (St. Paul)/Barelka: This gold property consists of 22 state mineral claims subject to payments of 15% of net profits until $2,000,000 has been paid and a royalty payment of 3% of net profits thereafter.

		iii)	Dobb’s: This leased property consists of 1 unpatented Federal mineral claim and 4 State mineral claims subject to payments of 15% of net profits until $1,500,000 has been paid and 3% of net profits thereafter.

		The Company has maintained claim rental payments and continued with assessment work for this property.

	c)	Hammond Property, Wiseman Mining District, Alaska

		This property consists of 24 Federal placer claims and 36 Federal lode claims covering one and one-half square miles and adjoining the Nolan Gold Properties. The Company has leased this property from Alaska Mining Company, Inc. (“Alminco”) since December 14, 1994 and is obligated to pay a royalty equal to 10% of gross production and is subject to a minimum royalty of $80,000 per year. As of February 28, 2011, the capitalized mineral rights of $634,300 (November 30, 2010 - $614,300) for the Hammond property includes royalty accruals totalling $570,000 (November 30, 2010 - $550,000) that are unpaid, and are included in mineral claims payable on the accompanying consolidated balance sheets. During the three months ended February 28, 2011, the Company accrued $20,000 in payable royalties. During the three months ended February 28, 2011, the Company paid $nil (2010 - $nil) in federal claim fees to BLM.

	d)	Eagle Creek Property, Fairbanks Mining District, Alaska

		This property consists of 77 state mineral claims. All claims are contiguous and are located in the Fairbanks North Star Borough. The Company owns a 50% interest and has an option to purchase a full 100% interest in the property for $400,000, towards which $38,000 remains to be paid. This property is subject to a royalty of 15% of net profits. A payment in the amount of $5,000 is due on August 1st of each year until the remaining $38,000 is paid. Such yearly payment is required to keep the option in good standing. Ownership of the claims is in the name of the Company’s subsidiary, Silverado Gold Mines Inc. During the three months ended February 28, 2011, the Company accrued the required $1,250 option payment.

~~f) Fair Value of Financial Instruments (Continued)~~12

~~The~~SILVERADO ~~Company’s~~GOLD ~~assessment~~MINES of the significance of a particular input to the fair value measurements requires judgment, and may affect the valuation of the assets and liabilities being measured and their placement within the fair value hierarchyLTD. ~~The~~AND ~~carrying~~ITS ~~value~~SUBSIDIARIES of(An ~~gold~~Exploration ~~inventory, receivables,~~Stage ~~accounts~~Company) ~~payable~~NOTES ~~and~~TO ~~accrued~~THE ~~liabilities,~~INTERIM ~~mineral~~CONSOLIDATED ~~claims~~FINANCIAL ~~royalty payable~~STATEMENTS and payable to related party approximate fair value because of the short-term maturity of these instruments. The carrying amounts reported in the balance sheets for convertible debentures approximate their fair values as of ~~the~~ ~~date~~February ~~of issuance. Unless otherwise noted~~28, it2011 is(Unaudited) ~~management’s~~(Stated ~~opinion~~in ~~that the~~United ~~Company~~States ~~is not exposed to significant interest, currency or credit risks arising from these financial instruments.~~Dollars)

g) Mineral Rights Payments and Exploration Costs

6.	Property and Equipment

	Property and equipment primarily include capital expenditures associated with the Company’s Vancouver office, and mining equipment and camp facilities at the Nolan Gold Project in Alaska. Depreciation expense for the three months ended February 28, 2011, was $24,679 (2010 - $48,746).

	A summary of the Company’s property and equipment as of February 28, 2011, and November 30, 2010, is as follows:

Pursuant to EITF 04-02, “Whether Mineral Rights are Tangible or Intangible Assets and Related Issues”, the Company has modified its accounting policy in 2008 with respect to mineral claim payments, retroactively effective to June 1, 2004, to capitalize the direct costs to acquire or lease mineral properties and mineral rights as tangible assets. The direct costs include the costs of signature (lease) bonuses, options to purchase or lease properties, and brokers’ and legal fees. If the acquired mineral rights relate to unproven properties, the Company does not amortize the capitalized mineral costs, but evaluates the capitalized mineral costs periodically for impairment. The Company expenses all costs related to the exploration of mineral claims in which it had secured exploration rights prior to establishment of proven and probable reserves.

			February 28,	November 30,
			2011	2010
		Accumulated	Net Carrying	Net Carrying
	Cost	Depreciation	Value	Value
	$	$	$	$

Offices
Computer equipment and software	140,079	136,324	3,755	3,951
Furniture and fittings	394,559	390,769	3,790	3,725

Mining Project
Nolan gold project buildings	63,000	63,000	–	–
Leasehold improvements	48,123	33,686	14,437	16,843
Nolan mining equipment	1,017,987	601,923	416,064	435,735
Auto and trucks	19,193	10,236	8,957	9,917
Assets under construction	24,245	–	24,245	24,245
	1,707,186	1,235,938	471,248	494,416

~~When~~Assets itunder ~~has~~construction ~~been determined that a mineral property can be economically developed as a result of establishing proven and probable reserves, the costs then incurred to develop such property~~ are ~~capitalized. Capitalized~~not ~~costs~~subject ~~related~~ to ~~such~~depreciation ~~property~~until ~~will~~substantially ~~be amortized using the units-of-production method over the estimated life of the probable reserve~~complete.

h) Convertible Debt Instruments

7.	Promissory Notes

	In February 2010, the Company received $50,000 from an investor and issued a promissory note dated as of March 1, 2010. The unpaid principal balance of the note bears interest at a rate equal to twelve percent (12%) per annum if repaid by the Company within ninety (90) days from the date of the note, or eighteen percent (18%) per annum if repaid at any time thereafter. The note matured on September 1, 2010. As of February 28, 2011, the Company has not repaid the note and has accrued interest of $8,650 which is recorded in accrued liabilities.

	During the fiscal year ended November 30, 2010, the Company received advances of $12,327 from a consultant which is due on demand, and bears interest at 7% per annum. During the three months ended February 28, 2011, the advances were forgiven by the consultant and the Company recognized a gain of $12,327.

8.	Convertible Debt

	a)	On June 15, 2010, the Company entered into a secured convertible note agreement and issued a convertible note in the sum of $75,000 with a maturity date of June 15, 2011. The note bears no interest and is to be paid in full on the maturity date, unless previously paid or converted into the Company’s common stock. The Company paid $7,500 to the Note holder from the proceeds of the sale of the note and the amount was recorded as a discount to the convertible note. The Note holder has the right from December 1, 2010 to convert any unpaid principal portion, at a conversion price per share equal to the lower of $0.003 or 70% of the average of the three lowest closing bid prices of the Company’s common stock for the 20 trading days preceding a conversion date. The Company issued 20,000,000 shares (“compensation shares”) of the Company’s common stock to the Note holder as compensation costs.

		In accordance with ASC 470-20, Debt with Conversion and Other Options, the net proceeds of $67,500 were allocated based on the relative fair values of the convertible note and the compensation shares at time of issuance. The Company allocated $37,779 of the net proceeds to the compensation shares and recorded an equivalent discount. The Company then recognized the intrinsic value of the embedded beneficial conversion feature of $29,221 as additional-paid-in capital and an equivalent discount.

The Company separately accounts for the liability and equity components of convertible debentures to reflect the fair value of the liability component based on our non-convertible borrowing cost at the issuance date. Accordingly, the Company has recorded the liability components of the convertible debentures at fair value as of the date of issuance based on effective interest rate and amortized the resulting discount as an increase to interest expense over the expected life of the debt. The excess proceeds received over the fair value of the debt at the date of issuance are attributed to the conversion feature of the convertible debentures and included in additional paid-in capital on the consolidated balance sheets. The Company will account for any embedded conversion features, if there are any, in accordance with ASC 470-20, “Debt With Conversion and Other Options”. 13

iSILVERADO GOLD MINES LTD. AND ITS SUBSIDIARIES (An Exploration Stage Company) ~~Asset Retirement~~ ~~Obligation~~NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS as of February 28, 2011 (Unaudited) (Stated in United States Dollars)

The Company adopted FASB ASC 410-20, “Asset Retirement Obligations”, which addresses financial accounting and reporting for obligations associated with the retirement of tangible long-lived assets and the associated retirement costs. The standard applies to legal obligations associated with the retirement of long-lived assets that result from the acquisition, construction, development and normal use of the asset.

8.	Convertible Debt (continued)

		The total discount immediately after the initial accounting is performed is $74,500 reducing the carrying value of the convertible debt to $500. The discount is being expensed over the term of the loan to increase the carrying value to the face value of the loan.

		During the year ended November 30, 2010, the Company recorded accretion of discount of $4,420 increasing the carrying value of the loan to $4,920. During the three months ended February 28, 2011, the Company issued 35,256,411 shares upon the conversion of the principal amount of $75,000. In accordance with ASC 470-20, the Company recognized unamortized discount of $65,522 as interest expense upon the conversion of the note. During the three months ended February 28, 2011, the Company recorded accretion of discount of $4,558.

	b)	On July 27, 2010, the Company entered into a secured convertible note agreement and issued a convertible note in the sum of $75,000 with a maturity date of July 27, 2011. The note bears no interest and is to be paid in full on the maturity date, unless previously paid or converted into the Company’s common stock. The Company paid $7,500 to the Note holder from the proceeds of the sale of the note and the amount was recorded as a discount to the convertible note. The Note holder has the right from December 1, 2010 to convert any unpaid principal portion, at a conversion price per share equal to the lower of $0.003 or 70% of the average of the three lowest closing bid prices of the Company’s common stock for the 20 trading days preceding a conversion date. The Company issued 20,000,000 shares (“compensation shares”) of the Company’s common stock to the Note holder as compensation costs.

		In accordance with ASC 470-20, Debt with Conversion and Other Options, the net proceeds of $67,500 were allocated based on the relative fair values of the convertible note and the compensation shares at time of issuance. The Company allocated $36,901 of the net proceeds to the compensation shares and recorded an equivalent discount. The Company then recognized the intrinsic value of the embedded beneficial conversion feature of $30,099 as additional-paid-in capital and an equivalent discount.

		The total discount immediately after the initial accounting is performed is $74,500 reducing the carrying value of the convertible debt to $500. The discount is being expensed over the term of the loan to increase the carrying value to the face value of the loan.

		During the year ended November 30, 2010, the Company recorded accretion of discount of $2,501 increasing the carrying value of the loan to $3,001. During the three months ended February 28, 2011, the Company recorded accretion of discount of $6,616 increasing the carrying value of the loan to $9,617.

	c)	On September 17, 2010, the Company entered into a secured convertible note agreement and issued a convertible note in the sum of $165,000 with a maturity date of September 17, 2011. The Company received net proceeds of $148,500 and recorded a 10% discount on this note. The note bears no interest and is to be paid in full on the maturity date, unless previously paid or converted into the Company’s common stock. The Note holder has the right from October 1, 2010 to convert any unpaid principal portion, at a conversion price per share equal to the lower of $0.0045 or 70% of the average of the three lowest VWAP prices of the Company’s common stock for the 20 trading days preceding a conversion date. Pursuant to the note agreement, the Company will issue 20,000,000 shares (“compensation shares”) of the Company’s common stock to the Note holder as compensation costs. As at February 28, 2011, the Company has not issued the shares.

		In accordance with ASC 470-20, Debt with Conversion and Other Options, the net proceeds of $148,500 were allocated based on the relative fair values of the convertible note and the compensation shares at time of issuance. The Company allocated $62,459 of the net proceeds to the compensation shares and recorded an equivalent discount. The Company then recognized the intrinsic value of the embedded beneficial conversion feature of $85,541 as additional-paid-in capital and an equivalent discount.

		The total discount immediately after the initial accounting is performed is $164,500 reducing the carrying value of the convertible debt to $500. The discount is being expensed over the term of the loan to increase the carrying value to the face value of the loan.

FASB ASC 410-20 requires that the fair value of a liability for an asset retirement obligation be recognized in the period in which it is incurred if a reasonable estimate of fair value can be made. The fair value of the liability is added to the carrying amount of the associated asset and this additional carrying amount is depreciated over the life of the asset. The liability is accreted at the end of each period through charges to operating expense. If the obligation is settled for other than the carrying amount of the liability, the Company will recognize a gain or loss on settlement.14

8SILVERADO GOLD MINES LTD. AND ITS SUBSIDIARIES (An Exploration Stage Company) NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS as of February 28, 2011 (Unaudited) (Stated in United States Dollars)

SILVERADO GOLD MINES LTD. AND ITS SUBSIDIARIES (An Exploration Stage Company) NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS as of August 31, 2010 (Unaudited) (Stated in United States Dollars)

8.	Convertible Debt (continued)

		During the year ended November 30, 2010, the Company recorded accretion of discount of $1,202 increasing the carrying value of the loan to $1,702. During the three months ended February 28, 2011, the Company recorded accretion of discount of $4,977 increasing the carrying value of the loan to $6,679.

	d)	On October 25, 2010, the Company entered into a secured convertible note agreement and issued a convertible note in the sum of $110,000 with a maturity date of October 25, 2011. The Company received net proceeds of $99,000 and recorded a 10% discount on this note. The note bears no interest and is to be paid in full on the maturity date, unless previously paid or converted into the Company’s common stock. The Note holder has the right to convert any unpaid principal portion, at a conversion price per share equal to the lower of $0.004 or 65% of the average of the three lowest VWAP prices of the Company’s common stock for the 20 trading days preceding a conversion date. Pursuant to the note agreement, the Company will issue 15,000,000 shares (“compensation shares”) of the Company’s common stock to the Note holder as compensation costs. As at February 28, 2011, the Company has not issued the shares.

		In accordance with ASC 470-20, Debt with Conversion and Other Options, the net proceeds of $99,000 were allocated based on the relative fair values of the convertible note and the compensation shares at time of issuance. The Company allocated $45,964 of the net proceeds to the compensation shares and recorded an equivalent discount. The Company then recognized the intrinsic value of the embedded beneficial conversion feature of $52,536 as additional-paid-in capital and an equivalent discount.

		The total discount immediately after the initial accounting is performed is $109,500 reducing the carrying value of the convertible debt to $500. The discount is being expensed over the term of the loan to increase the carrying value to the face value of the loan.

		During the year ended November 30, 2010, the Company recorded accretion of discount of $497 increasing the carrying value of the loan to $997. During the three months ended February 28, 2011, the Company recorded accretion of discount of $2,481 increasing the carrying value of the loan to $3,478.

	e)	On December 6, 2010, the Company issued a 6% convertible redeemable note in the amount of $34,852 with a maturity date of December 6, 2012. The note bears interest at 6% per annum and shall increase to 8% upon an event of default. At any time, the Company has the option to redeem this note and pay the Note holder 150% of the unpaid principal. The note is to be paid in full on the maturity date, unless previously paid or converted into the Company’s common stock. The Note holder has the right to convert any unpaid principal portion, at a conversion price per share equal to 65% of the average of the three lowest volume weighted average prices (“VWAP”) of the Company’s common stock for the 20 trading days including the day upon which a notice of conversion is received by the Company.

		Pursuant to ASC 470-20-25, the Company recognized the intrinsic value of the embedded beneficial conversion feature of $23,189 as additional paid-in capital and an equivalent discount that reduced the carrying value of the convertible debenture to $11,663. The discount is being expensed over the term of the loan to increase the carrying value to the face value of the loan.

		On December 7, 2010, the Company issued 16,596,171 unrestricted shares of common stock upon the conversion of the note. In accordance with ASC 470-20, the Company recognized unamortized discount of $23,189 as interest expense.

~~Note 2 – Basis of Presentation and Summary of Significant Accounting Policies (Continued)~~15

jSILVERADO GOLD MINES LTD. AND ITS SUBSIDIARIES (An Exploration Stage Company) ~~Use~~ NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS as of ~~Estimates~~ February 28, 2011 (Unaudited) (Stated in United States Dollars)

~~The~~9. ~~preparation~~Asset ofRetirement ~~financial~~Obligations ~~statements~~Asset inretirement ~~conformity~~obligations ~~with accounting~~relate ~~principles~~to ~~generally~~the ~~accepted~~closure inand reclamation of the ~~United~~Grant ~~States~~Mill ofTailings ~~America requires~~Pond ~~management~~and tothe ~~make~~Mill ~~estimates~~complex, and ~~assumptions~~to ~~that~~the ~~affect~~reclamation work associated with the ~~reported amount~~Nolan Gold Project consisting of ~~assets~~dismantling and ~~liabilities,~~removal ~~disclosure~~ of ~~contingent~~site ~~assets~~structures and ~~liabilities~~ atequipment, ~~the~~and ~~date~~reshaping ofand re-vegetating the ~~financial~~disturbed ~~statements,~~areas. ~~and~~The ~~the~~Company ~~reported~~has ~~amounts~~no assets legally restricted for purposes of ~~revenues~~ ~~and~~settling ~~expenses~~asset ~~during~~retirement obligations. A summary of assets retirement obligation for the ~~reporting~~three ~~period.~~months ~~Actual~~ended ~~results~~February ~~could~~28, ~~differ from~~2011, ~~these~~and ~~estimates~~for orthe ~~assumptions.~~fiscal year ended November 30, 2010, is as follows:

k) Cash and Cash Equivalents

		Grant			Nolan
		Mine			Project			Total
Balance as of November 30, 2009	$	368,884		$	171,523		$	540,407
Accretion expense		18,444			8,576			27,020
Liabilities settled		(1,511	)		(900	)		(2,411	)
Balance as of November 30, 2010	$	385,817		$	179,199		$	565,016
Accretion expense		4,823			2,240			7,063
Liabilities settled		–			–			–
Balance as of February 28, 2011	$	390,640		$	181,439		$	572,079

Cash and cash equivalents are carried at cost and they comprise cash on hand, deposits held with banks and other highly liquid investments. Highly liquid investments are readily convertible to cash and generally have maturities of three months or less from the time acquired. The Company places its cash and cash equivalents with high quality financial institutions which the Company believes limits credit risks.

	a)	Grant Mine

		The Grant Mine is not an active mine and related assets were written off as impaired effective December 1, 2001. The retirement obligations associated with the Grant Mine involves the decommissioning of the Grant Mill Tailings Pond and the Mill complex that was built in the early 1980s and no longer used after 1989.

		The Company has retained a geotechnical and environmental consulting firm to assist with a preliminary report for the closure of the tailings pond. The preliminary report is part of the closure plan, and further reclamation work involves another closure phase that needs permits and/or approval by the State of Alaska regulatory agencies.

		The Company believes that the estimated fair value of the cost of reclamation at this time will approximate the accrued obligations plus 5% accretion expense per annum until reclaimed. During the three months ended February 28, 2011, the Company recorded $4,823 (2010 - $4,611) accretion expense.

	b)	Nolan Gold Project

		The retirement obligations associated with the Nolan mineral properties are associated with the reclamation of disturbed land resulting from normal operations and are not the result of improper operations of an asset such as environmental remediation liabilities. The Nolan mineral properties are on Federal mining claims and thus are under the active supervision of the Bureau of Land Management.

		As of February 28, 2011, and November 30, 2010, the Company is obligated to reclaim 21 acres at Nolan Creek. These 21 acres are areas essential for the Company’s operations and consist of the camp area, equipment storage area, processing area, explosives storage area, and the portal area, as well as the roads and core storage area.

		The Company believes that the remaining accrued obligations plus 5% accretion expense per annum until the remaining 21 acres are reclaimed is sufficient to cover the cost of reclamation. During the three months ended February 28, 2011, the Company recorded $2,240 (2010 - $2,144) accretion expense.

~~l) Property, Plant and Equipment~~16

~~Property,~~SILVERADO ~~plant~~GOLD ~~and~~MINES ~~equipment~~LTD. ~~are~~AND ~~stated~~ITS atSUBSIDIARIES ~~cost.~~(An ~~Depreciation is~~Exploration ~~provided~~Stage onCompany) aNOTES ~~straight~~TO ~~line~~THE ~~basis~~INTERIM CONSOLIDATED FINANCIAL STATEMENTS as ~~follows:~~of February 28, 2011 (Unaudited) (Stated in United States Dollars)

Mining equipment	10 years
10.	Related Party Transactions / Balances
Auto and trucks	5 years
	a)	The Company has had related party transactions with Tri-Con Mining Ltd., Tri-Con Mining Inc. and Tri-Con Mining Alaska Inc. (collectively, the “Tri-Con Group”), all of which are controlled by a director and officer of the Company. The Tri-Con Group are operations, exploration and development contractors and have been employed by the Company under contract since 1972 to carry out all the Company’s fieldwork and to provide administrative and management services.
Computer equipment	3 years
		Under the current contracts dated January 1, 1997, Tri-Con Group bills the Company cost plus 25% for exploration and cost plus 15% for development, mining and reclamation. The term “cost” means out-of-pocket or actual cost incurred by Tri-Con Group plus 15% for office overhead including stand-by and contingencies. There is no mark-up on capital purchases. The Tri-Con Group does not charge the Company for the services of its directors who are also directors of the Company. In addition, per the terms of the agreements, the Company paid a base administration fee of CDN $10,000 per month to Tri-Con Mining Ltd. and US $10,000 per month to Tri-Con Mining Inc., respectively. Both the Company the Tri-Con Group have the right to terminate the agreement in its entirety at any time upon 30 days advances written notice.
Computer software	1 year
		During the three months ended February 28, 2011, the Tri-Con Group’s services focused mainly on corporate planning; mining, drilling and engineering planning and preparation for production on the Company’s Nolan property; and administration services. During the three months ended February 28, 2011, there were nominal exploration activities due to the Company’s cash flow constraints and consequently the Tri-Con Group waived the US $10,000 monthly fee and the CDN $10,000 monthly fee for the three months ended February 28, 2011 for a total of US $59,898.
Leasehold improvements	5 – 7 years
		As of February 28, 2011, the Company owed $662,645 (November 30, 2010 - $849,026) to the Tri-Con Group for exploration and administration services performed on behalf of Silverado. The following is a summary of Tri-Con Group charges for the three months ended February 28, 2011 and 2010:
Furniture and fittings	10 years

m) Long Lived Asset Impairment

		Three months		Three months
		ended		ended
		February 28, 2011		February 28, 2010

Exploration services	$	–	$	–
Administration and management services		37,970		56,832
Amounts forgiven by Tri-Con Group		–		–
	$	37,970	$	56,832
Amount of total charges in excess of the cost	$	4,953	$	7,413
Percentage of excess of the cost charged over total amount billed		13.04%		13.04%

Inb) ~~accordance~~As ~~with~~of ~~FASB~~February ~~ASC~~28, ~~360-10~~2011, ~~“Impairment~~the orCompany ~~Disposal of~~owed ~~Long-Lived~~$3,120 ~~Assets”~~(November 30, ~~long-lived~~2010 ~~assets~~– ~~held~~$3,120) ~~and~~to ~~used~~the byPresident of the Company for amounts advanced. The advances are ~~reviewed~~ ~~for~~due ~~impairment~~on ~~whenever~~demand, ~~events~~unsecured, orand ~~changes~~non-interest inbearing. ~~circumstances~~c) ~~indicate that~~As of November 30, 2010, the ~~carrying~~Company ~~amount~~owed of$19,598 an(Cdn$20,000) ~~asset~~to ~~may~~a ~~not~~director beof ~~recoverable~~the Company for amounts advanced. The ~~Company recognizes~~advances ~~impairment~~were ~~when~~due on demand, unsecured and bore interest at 5% per annum. During the ~~sum~~three ofmonths ended February 28, 2011, the ~~expected~~Company ~~undiscounted~~repaid ~~future~~the ~~cash flows~~advances. isd) ~~less~~Effective ~~than~~April 1, 2009, a consulting agreement was signed between the ~~carrying~~Company ~~amount~~and a private company controlled by a former director of the ~~asset~~Company who resigned on April 20, 2010. ~~Impairment~~Pursuant ~~losses~~to the agreement, ifthe ~~any~~Company agreed to pay the private company Cdn $7, ~~are~~500 ~~measured~~plus GST per month for corporate planning, business development and investor relations services, as requested by the ~~excess~~Company. ofDuring the ~~carrying~~three ~~amount~~months ofended February 28, 2011, the ~~asset~~Company ~~over~~was ~~its estimated~~billed ~~fair~~$15,101 ~~value~~(Cdn$15,000) (2010 - $21,746 (Cdn$22,500)) by the private company. At February 28, 2011, the Company is indebted to the private company for $3,260 (November 30, 2010 – $15,372). This amount has been recorded in accounts payable and accrued liabilities.

~~n) Accounting for Stock-based Compensation~~17

~~The~~SILVERADO ~~Company~~GOLD ~~follows~~MINES ~~FASB~~LTD. ~~ASC~~AND ~~718,~~ITS ~~“Compensation~~SUBSIDIARIES –(An ~~Stock Compensation”,~~Exploration ~~requiring~~Stage ~~equity~~Company) ~~awards~~NOTES ~~granted~~TO ~~under~~THE ~~its~~INTERIM ~~stock~~CONSOLIDATED ~~option~~FINANCIAL ~~plan to~~STATEMENTS beas ~~accounted for under the fair value method. Accordingly, share-based compensation is measured at grant date, based on the fair value~~ of ~~the~~February ~~award. Prior to December 1~~28, ~~2006,~~2011 ~~the Company accounted for awards granted under its stock option plans utilizing the intrinsic value method prescribed by Accounting Principles Board~~ (~~APB~~Unaudited) ~~Opinion No. 25, “Accounting for Stock Issued to Employees”~~ (~~APB~~Stated ~~25),~~in ~~and~~United ~~related~~States interpretations, and provided the required pro forma disclosures prescribed by SFAS 123, “Accounting for Stock-Based Compensation”, as amended. Under the existing stock option plans, all options vest entirely on the grant date. Therefore, there were no partially vested options outstanding as of the FASB ASC 718 adoption date.Dollars)

~~o) Revenue Recognition~~11. Common Stock The authorized common stock of the Company consists of an unlimited number of common shares, without par value. The following is a summary of the Company’s issuances of common stock during the three months ended February 28, 2011:

Proceeds from the sale of gold recoveries from test mining are recorded as other income earned during the exploration stage, retroactively effective from the period since recommencement of exploration stage from December 1, 2001.

	Number of	Common		Shares
	Common	Stock		to be
	Shares	Amount		Issued
	#	$		$
Balance as of November 30, 2010	2,441,343,879	103,999,508		207,716
Share Issued:
For Private Placements
$0.004 per share	75,000,000	300,000		–
$0.0021 per unit (1 unit = 1 share and 1 warrant)	100,000,000	210,000		(78,000	)
	175,000,000	510,000		(78,000	)
For Warrant Exercises
$0.00233 per share	1,928,572	4,494		–
For Conversion of Debentures
$0.0021 per share	40,405,695	84,852		–
$0.002184 per share	11,446,887	25,000		–
	51,852,582	109,852		–
Shares granted under Equity Compensation Plans
For consulting fees granted at a weighted average price of $0.00372	230,468,002	835,000		–
For investor relation and shareholder communication services granted at a weighted average price of $0.00346	8,536,084	29,536		–
For legal and other services granted at a weighted average price of $0.00359	12,248,125	43,962		–
	251,252,211	908,498		–
Reclassification of beneficial conversion features on conversions of convertible debt		52,410
Stock issuance costs		(123	)
Stock subscriptions received				104,453
Shares issuable for services				17,502
Balance as of February 28, 2011	2,921,377,244	105,584,639		251,671

9a) During the three months ended February 28, 2011, the Company issued 75,000,000 shares of common stock at $0.004 per share for gross proceeds of $300,000. b) During the three months ended February 28, 2011, the Company issued 100,000,000 units at $0.0021 per unit for gross proceeds of $210,000. Each unit consists of one share of common stock and one share purchase warrant. Each warrant is exercisable at a price of $0.01 per share for a period of one year. c) During the three months ended February 28, 2011, the Company issued 1,928,572 shares of common stock upon the exercise of share purchase warrants at $0.00233 per share for gross proceeds of $4,494. d) Pursuant to several agreements for various corporate planning, business development and strategies, media solutions and legal services, the Company issued an aggregate of 251,252,211 shares of the Company’s unrestricted free trading common stock during the three months ended February 28, 2011, valued at the fair market price on the measurement date, for total consideration of $908,498. These shares were issued under the Company’s Equity Compensation Plans. e) During the three months ended February 28, 2011, the Company issued an aggregate of 51,852,582 shares of common stock upon the conversion of the convertible notes in the amount of $109,852.

~~Note~~SILVERADO 2GOLD –MINES ~~Basis~~LTD. ofAND ~~Presentation~~ITS ~~and~~SUBSIDIARIES ~~Summary~~(An Exploration Stage Company) NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS as of ~~Significant Accounting~~February ~~Policies~~28, 2011 (~~Continued~~Unaudited) (Stated in United States Dollars)

p) Income Taxes

12.	Equity Compensation Plans

	On June 3, 2010, the Company adopted the 2010-I Equity Compensation Plan (the “2010-I Plan”) to encourage certain directors, officers, employees, and consultants of the Company to acquire and hold stock in the Company as an added incentive to remain with the Company and to increase their efforts in promoting the interests of the Company and to enable the Company to attract and retain capable individuals. The number of shares issued under the 2010-I Plan may not exceed 180,000,000 in aggregate. On June 9, 2010, the Company filed a registration statement on Form S-8 to register all 180,000,000 of such shares.

	On December 2, 2010, the Company adopted the 2010-II Equity Compensation Plan to encourage certain directors, officers, employees, and consultants of the Company to acquire and hold stock in the Company as an added incentive to remain with the Company and to increase their efforts in promoting the interests of the Company and to enable the Company to attract and retain capable individuals. The number of shares issued under the 2010-II Plan may not exceed 400,000,000 in aggregate. On December 2, 2010, the Company filed a registration statement on Form S-8 to register all 400,000,000 of such shares.

	During the three months ended February 28, 2011, the Company issued an aggregate of 251,252,211 (2010 – 36,701,971) shares of common stock under the Company’s Equity Compensation Plans in payment of consulting and other services.

13.	Stock Options

	There were no stock options granted during the three months ended February 28, 2011. The Company uses the Black- Scholes option pricing model to calculate the fair value of stock options when the options are granted. Expected volatility is based on historical volatility. Because trading tends to be thin, in relation to the total shares outstanding, average weekly stock prices were used to calculate volatility. Management believes that the annualized weekly average of volatility is the best measure of expected volatility. U.S. Treasury constant maturity rates were utilized with maturities most closely approximating the expected term of the option. The expected term of the options was calculated using the alternative simplified method, which defines the expected life as the average of the contractual term of the options and the weighted average vesting period for all option tranches.

	The following table summarizes the continuity of the Company’s stock options:

The Company accounts for income taxes in accordance with FASB ASC 740, “Income Taxes”. FASB ASC 740 prescribes the use of the liability method thereby deferred tax asset and liability account balances are determined based on differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company provides a valuation allowance, if necessary, to reduce deferred tax assets to their estimated realizable value. Deferred tax assets will be reflected on the balance sheet when it is determined that it is more likely than not that the asset will be realized.

					Weighted-
			Weighted		Average
	Number		Average		Remaining
	of		Exercise		Contractual Term	Intrinsic
	Options		Price		(years)	Value
			$
Outstanding, November 30, 2009	48,200,000		0.056		2.72
Cancelled	(3,900,000	)	(0.058	)
Outstanding, November 30, 2010	44,300,000		0.056		1.68	–
Expired	(2,600,000	)	(0.050	)
Outstanding, February 28, 2011	41,700,000		0.056		1.54	–

FASB ASC 740-10 also clarifies the accounting for income taxes, by prescribing a minimum recognition threshold a tax position is required to meet before being recognized in the financial statements. It also provides guidance on derecognizing, measurement and classification of amounts relating to uncertain tax positions, accounting for and disclosure of interest and penalties, accounting in interim periods, disclosures and transition relating to the adoption of the new accounting standard. 19

qSILVERADO GOLD MINES LTD. AND ITS SUBSIDIARIES (An Exploration Stage Company) ~~Reclassifications~~ NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS as of February 28, 2011 (Unaudited) (Stated in United States Dollars)

~~Certain~~13. ~~prior~~Stock ~~years’~~Options ~~comparative~~(continued) ~~figures~~As ~~have~~at ~~been~~February ~~reclassified to~~28, ~~conform~~2011, to the ~~financial~~following ~~statement~~common ~~presentation~~stock ~~adopted~~options ~~for~~were ~~this~~outstanding ~~year.~~and exercisable:

r) Recent Accounting Pronouncements

		Remaining
		Contractual
	Exercise Price	Life (years)
Number of Options
	$
1,500,000	0.05	0.33
7,500,000	0.05	0.36
20,000,000	0.05	1.85
12,700,000	0.07	1.87

41,700,000

FASB ASU 2010-17 Revenue Recognition – Milestone Method (Topic 605) (“ASU 2010-17”). This Update provides guidance on defining a milestone under Topic 605 and determining when it may be appropriate to apply the milestone method of revenue recognition for research or development transactions. Consideration that is contingent on achievement of a milestone in its entirety may be recognized as revenue in the period in which the milestone is achieved only if the milestone is judged to meet certain criteria to be considered substantive. Milestones should be considered substantive in their entirety and may not be bifurcated. An arrangement may contain both substantive and nonsubstantive milestones that should be evaluated individually. The amendments in this Update are effective on a retrospective or prospective basis for milestones achieved in fiscal years, and interim periods within those years, beginning on or after June 15, 2010. Early adoption is permitted. The Company is currently evaluating the early adoption option and does not anticipate that the adoption would have a material impact on the consolidated financial statements.

14.	Stock Purchase Warrants

	During the three months ended February 28, 2011, 12,785,715 stock purchase warrants, exercisable at weighted average exercise price of $0.012 per share, expired. The Company issued 100,000,000 common stock purchase warrants upon the completion of a private placement during the three months ended February 28, 2011. Each common stock purchase warrant issued during the period is exercisable into one share of common stock for a period of one year commencing from the date of the subscription agreement. There was no value assigned to these warrants when they were issued. During the three month period ended February 28, 2011, the Company issued 1,928,572 shares of common stock upon the exercise of stock purchase warrants for gross proceeds of $4,494.

	A summary of the changes in the Company’s common share purchase warrants is presented below:

FASB ASU 2010-13 Compensation – Stock Compensation (Topic 718) (“ASU 2010-13”). This ASU codifies the consensus reached in EITF issue No. 09-J, “Effect of Denominating the Exercise Price of a Share-Based Payment Award in the Currency of the Market in Which the Underlying Equity Security Trades”. The amendments to the Codification clarify that an employee share-based payment award with an exercise price denominated in the currency of a in which a substantial portion of the entity’s equity shares trades should not be considered to contain a condition that is not a market, performance, or service condition. Therefore, the Company would not classify such an award as a liability if it otherwise qualifies as equity.

			Weighted Average
	Number		Exercise Price
			$
Balance November 30, 2009	84,900,000		0.020
Issued	172,307,324		0.0079*
Exercised	(82,917,550	)	0.0027*
Expired	(48,000,000	)	0.020
Balance November 30, 2010	126,289,774		0.010
Issued	100,000,000		0.01
Exercised	(1,928,572	)	0.00233*
Expired	(12,785,715	)	0.004
Balance February 28, 2011	211,575,487		0.01

~~The~~*Weighted ~~Company~~average ~~has~~exercise ~~evaluated~~price ~~all other recently issued~~were ~~pronouncements~~calculated ~~and~~based ~~does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact~~ on ~~its financial~~reduced ~~position~~exercise ~~or results of operations~~prices.

10As at February 28, 2011, the following common share purchase warrants were outstanding:

		Remaining
		Contractual Life
	Exercise Price	(years)
Number of Warrants
	$
101,575,487	0.010	0.07 – 0.63
10,000,000	0.0023	0.41
100,000,000	0.01	0.77

211,575,487

~~Note 3 – Gold Inventory~~20

~~There~~SILVERADO ~~were~~GOLD noMINES ~~changes in gold inventory during the nine months ended August 31, 2010~~LTD. ~~For~~AND ~~the~~ITS ~~nine~~SUBSIDIARIES ~~months~~(An ~~ended~~Exploration ~~August~~Stage ~~31, 2009, the~~ Company ~~sold~~) ~~58.15~~NOTES ~~troy~~TO ~~ounces~~THE ofINTERIM ~~gold~~CONSOLIDATED ~~for~~FINANCIAL ~~net~~STATEMENTS ~~proceeds of $52,450, which were recorded~~ as ~~other income earned during the exploration stage. In addition, the Company wrote off 8.45 troy ounces gold inventory for the inventory shrinkage during the period ended August 31, 2009, the value~~ of ~~which~~February ~~is $5~~28,~~556~~ ~~recorded~~2011 as(Unaudited) ~~cost~~(Stated ~~of gold~~in ~~sold.~~United States Dollars)

Note 4 – Prepaid and Other Receivables

15.	Commitments

	a)	The Company entered into a severance agreement with a director and chief executive officer of the Company. The agreement provides for severance arrangements where a change of control of the Company occurs, as defined, and the director is terminated. The compensation payable to the director aggregates $4,000,000 plus the amount of annual bonuses and other benefits that he would have received in the eighteen months following termination.

	b)	The Company entered into Indemnity Agreements (“Agreements”) dated December 23, 2009, with each of its directors and executives, Garry L. Anselmo, Stuart McCulloch, Donald G. Balletto, Robert M. Dynes (former director), and John Mackay (collectively, the “Executives”). These agreements supersede all prior agreements whether oral or written. Pursuant to the terms of the Agreements, the Company granted a general indemnification to the Executives against all claims and costs that arise out of the scope or performance of duties as a director or executive officer of the Company. The Agreements are conclusively deemed to commence on, and be effective as of, the day upon which the Executive first became or becomes a director or officer of the Company and survive and remain in full force and effect after the Executive ceases to be a director or officer of the Company and after the termination of the Executive’s employment with the Company.

	c)	In January 2011, the Company entered into a new office lease, which commenced on April 1, 2011 until March 31, 2016. The minimum rent from April 1, 2011 to September 30, 2013 is $6,359 (Cdn$6,193) per month and the minimum rent from October 1, 2013 to March 31, 2016 will be $6,647 (Cdn$6,474) per month. The Company’s future minimum lease payments under the existing leases entered into during the year are as follows:

The Company issued the Company’s common stock for consulting and other service fees, valued at the fair market price at the dates of the agreements or at the dates of shares issued in accordance with the agreements. Non-cash prepaid expenses were recorded based on the terms of the agreements.

Fiscal year ending November 30, 2011	$	50,872 (Cdn$49,544)
Fiscal year ending November 30, 2012		76,308 (Cdn$74,316)
Fiscal year ending November 30, 2013		76,884 (Cdn$74,879)
Fiscal year ending November 30, 2014		79,764 (Cdn$77,694)
Fiscal year ending November 30, 2015		79,764 (Cdn$77,694)
	$	363,592 (Cdn$354,127)

Non-cash prepaid and other receivables consist of:

	d)	On November 26, 2010, the Company entered into three year equipment lease that expires on November 30, 2013. The lease payment for the first 35 months will be $2,567 (Cdn$2,500) and the last month will be $1,654 (Cdn$1,611). The lease is secured by the leased equipment.

	e)	On March 27, 2010, the Company entered into a 1 year consulting agreement in which the Company will issue shares of the Company’s common stock equal in value to Cdn$6,000 plus GST at the average price over the immediate 20 preceding days payable on the 20^thof each month, for an aggregate maximum of 6,000,000 shares of common stock if the consulting services are provided for the full term of this agreement. The Company will pay the consultant a commitment fee of $8,625 (Cdn$8,400).

		August 31, 2010		November 30, 2009
Prepaid consulting and other fees resulting from share issuance	$	54,710	$	608,640
Shares issued for attorney retainer		-		108,225
Total prepaid expenses resulting from share issuance		54,710		716,865
Insurance deposits, GST refund and others		31,747		21,608
Total	$	86,457	$	738,473

~~Note~~SILVERADO 5GOLD –MINES ~~Mineral~~LTD. ~~Properties~~AND ~~and~~ITS ~~Mineral~~SUBSIDIARIES ~~Rights~~(An Exploration Stage Company) NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS as of February 28, 2011 (Unaudited) (Stated in United States Dollars)

The Company holds interests in four groups of mineral properties, Nolan, Ester Dome, Hammond and Eagle Creek, in Alaska, U.S.A. All of these properties are in the exploration stage and have no proven reserves as of August 31, 2010. The Nolan property has a probable reserve; however, a more extensive feasibility study is required to ascertain if such probable reserve can be classified as a proven reserve.

16.	Segment Disclosures

	The Company operates in one reportable segment, located in United States, being the acquisition and exploration of mineral properties. The Company’s development of low-rank coal-water fuel, located in United States, is in its initial stages and is not a reportable segment. Segmented information has been compiled based on the geographic regions that the Company and its subsidiaries registered and performed exploration and administration activities.

	Long-lived assets by geographical segment as of February 28, 2011, and November 30, 2010 are as follows:

Pursuant to EITF 04-02, “Whether Mineral Rights are Tangible or Intangible Assets and Related Issues”, the Company, retroactively effective to June 1, 2004, has capitalized the direct costs to acquire or lease mineral properties and mineral rights as tangible assets. The direct costs include the costs of signature (lease) bonuses, options to purchase or lease properties, and brokers’ and legal fees. Since the Company has no proven reserves on its properties as of August 31, 2010, the Company does not amortize the capitalized mineral costs, but evaluates the capitalized mineral costs periodically for impairment in accordance with EITF 04-02 and has not recognized any impairment. A summary of such capitalized direct costs for the nine months ended August 31, 2010 and for the fiscal year ended November 30, 2009 is as follows:

		Canada		United States		Total
As of February 28, 2011
Mineral properties and rights		-		1,621,692		1,621,692
Property and equipment		7,544		463,704		471,248
	$	7,544	$	2,085,396	$	2,092,940

As of November 30, 2010
Mineral properties and rights		-		1,600,442		1,600,442
Property and equipment		7,676		486,740		494,416
	$	7,676	$	2,087,182	$	2,094,858

Capitalized Mineral Rights:		Nolan		Ester Dome		Hammond		Eagle Creek		Total
		(a)		(b)		(c)		(d)
Balance as of November 30, 2008	$	658,319	$	31,722	$	437,500	$	70,050	$	1,197,591
Additions during the year:
Claim fees payment		85,540		8,980		8,400		13,090		116,010
Royalty payment		-		-		-		5,000		5,000
Accrued royalty payment		-		-		80,000		-		80,000
Balance as of November 30, 2009		743,859		40,702		525,900		88,140		1,398,601
Additions during the period:
Claim fees payment		85,540		140		8,400		-		94,080
Royalty payment		-		-		-		5,000		5,000
Accrued royalty payment		-		-		80,000		-		80,000
Balance as of August 31, 2010	$	829,399	$	40,842	$	614,300	$	93,140	$	1,577,681

17.	Supplemental Cash Flow Information

	Investing and financing activities that do not have a direct impact on current cash flows are excluded from the cash flow statements. A summary of non-cash transactions and other cash information for the three months ended February 28, 2011, and 2010 is as follow:

	Three Months Ended
	February 28,
	2011	2010
	$	$
Changes in non-cash financing and investing activities:
Common stock issued on conversion of convertible debentures	109,852	-
Mineral claims royalty payable changes at period-end for mineral rights	21,250	20,000
Convertible debenture issued on repayment of accounts payable	34,852	-

~~SILVERADO~~18. ~~GOLD~~Fair ~~MINES~~Value ~~LTD.~~Measurements ~~AND~~ASC ~~ITS~~820, ~~SUBSIDIARIES~~Fair ~~(An~~Value ~~Exploration~~Measurements ~~Stage~~and ~~Company)~~Disclosures ~~NOTES~~requires TOan ~~THE~~entity ~~INTERIM~~to ~~CONSOLIDATED~~maximize ~~FINANCIAL~~the ~~STATEMENTS~~use asof observable inputs and minimize the use of ~~August~~unobservable 31inputs when measuring fair value. ASC 820 establishes a fair value hierarchy based on the level of independent, ~~2010~~objective ~~(Unaudited)~~evidence ~~(Stated~~surrounding inthe ~~United~~inputs ~~States~~used ~~Dollars)~~to measure fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. ASC 820 prioritizes the inputs into three levels that may be used to measure fair value:

~~Note~~Level ~~5 – Mineral Properties and Mineral Rights (Continued)~~1

~~a) Nolan~~Level ~~Gold~~1 applies to assets or ~~Project,~~liabilities ~~Wiseman~~for ~~Mining~~which ~~District,~~there ~~Alaska~~are quoted prices in active markets for identical assets or liabilities. Valuations are based on quoted prices that are readily and regularly available in an active market and do not entail a significant degree of judgment.

The Nolan Gold Project consists of 5 contiguous claim groups covering approximately 6 square miles, 8 miles west of Wiseman and 175 miles north of Fairbanks, Alaska. In addition, The Clara Creek and Marion Creek claim groups are located approximately 1.5 and 3 miles north of Coldfoot, Alaska, and are situated near the Dalton Highway. Both Clara Creek and Marion Creeks are left limit tributaries to the Middle Fork of the Koyukuk River. In total, the Company owns a 100% interest in 204 federal placer mining claims and 407 federal lode claims in the Nolan Gold Project. 22

~~During~~SILVERADO ~~the~~GOLD ~~nine~~MINES ~~months~~LTD. ~~ended~~AND ~~August~~ITS ~~31,~~SUBSIDIARIES ~~2010,~~(An ~~the~~Exploration Stage Company) ~~paid claim~~NOTES ~~maintenance~~TO ~~and~~THE ~~holding~~INTERIM ~~fees~~CONSOLIDATED ofFINANCIAL ~~$85,540~~STATEMENTS ~~(fiscal~~as ~~year~~of ~~ended~~February ~~November 30~~28, ~~2009:~~ ~~$85,540)~~2011 ~~to the Bureau of Land Management~~ (~~“BLM”~~Unaudited). ~~The~~(Stated ~~Company currently is~~ in aUnited ~~transitional~~States ~~phase between exploration and development on this property.~~ Dollars)

~~b) Ester~~18. ~~Dome Gold~~Fair ~~Project,~~Value ~~Fairbanks~~Measurements ~~Mining District, Alaska~~(continued)

~~The~~Level Ester Dome Gold Project encompasses all of the Company’s properties on Ester Dome, which is accessible by road 10 miles northwest of Fairbanks, Alaska. This property consists of 1 unpatented Federal claim and 52 state mineral claims. The Grant Mine mill in this gold project has remained inactive since February 1989 and the plant and equipment cost was written down to zero on our accounting records. 2

~~During~~Level ~~the~~2 ~~nine~~applies ~~months~~to ~~ended~~assets ~~August~~or liabilities ~~31,~~for ~~2010,~~which ~~the~~there ~~Company~~are ~~paid claim~~other ~~maintenance~~than ~~and~~Level ~~holding~~1 ~~fees~~observable ofinputs ~~$140~~such ~~(Fiscal~~as quoted ~~year~~prices ~~ended~~for ~~November~~similar ~~30,~~assets ~~2009: $140)~~or toliabilities ~~BLM.~~in ~~During~~active ~~the~~markets; ~~fiscal~~quoted ~~year~~prices for ~~ended~~identical ~~November~~assets ~~30,~~or ~~2009,~~liabilities ~~the~~in ~~Company~~markets ~~also~~with insufficient volume or ~~paid~~infrequent ~~state~~transactions ~~mining~~(less ~~claim~~active ~~fees~~markets); ofor ~~$8,840~~model-derived tovaluations ~~the~~in which ~~State~~significant ofinputs ~~Alaska~~are ~~Department~~observable ofor can be derived principally from, or ~~Natural~~corroborated ~~Resources~~by, observable market data.

~~c) Hammond~~Level 2 instruments require more ~~Property~~management judgment and subjectivity as compared to Level 1 instruments. For instance: determining which instruments are most similar to the instrument being priced requires management to identify a sample of similar securities based on the coupon rates, ~~Wiseman~~maturity, ~~Mining~~issuer, ~~District~~credit rating and instrument type, ~~Alaska~~and subjectively select an individual security or multiple securities that are deemed most similar to the security being priced; and determining whether a market is considered active requires management judgment.

~~This~~Level property consists of 24 Federal placer claims and 36 Federal lode claims covering one and one-half square miles and adjoining the Nolan Gold Properties. The Company has leased this property from Alaska Mining Company, Inc. (“Alminco”) since December 14, 1994 and is obligated to pay a royalty equal to 10% of gross production and is subject to a minimum royalty of $80,000 per year. As of August 31, 2010, the capitalized mineral rights of $614,300 (November 30, 2009: $525,900) for the Hammond property includes royalty accruals totalling $550,000 (November 30, 2009: $470,000) that are unpaid, and are included in mineral claims payable on the accompanying consolidated balance sheets. During the nine months ended August 31, 2010, the Company accrued $80,000 in payable royalties. During the nine months ended August 31, 2010, the Company paid $8,400 (fiscal year ended November 30, 2009: $8,400) in federal claim fees to BLM. 3

~~d) Eagle~~Level 3 applies to assets or ~~Creek~~liabilities ~~Property,~~for ~~Fairbanks~~which ~~Mining~~there ~~District,~~are ~~Alaska~~unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. The determination of fair value for Level 3 instruments requires the most management judgment and subjectivity.

~~This~~Pursuant ~~property~~to ~~consists~~ASC of825, 77cash ~~state~~is ~~mineral~~based ~~claims. All claims~~on ~~are~~"Level ~~contiguous~~1" ~~and~~inputs ~~are located in the Fairbanks North Star Borough. The Company owns a 50% interest~~ and ~~has~~due ~~an option~~ to ~~purchase~~related ~~a full 100% interest in the property for $400~~parties,~~000,~~ ~~towards~~promissory ~~which~~notes ~~$38,000~~and ~~remains to be paid. A payment in~~convertible ~~the~~debt ~~amount~~are ofvalued ~~$5,000~~based ~~is due~~ on ~~August~~“Level ~~1st~~2” ~~of each year until the remaining $38~~inputs,~~000~~ isconsisting ~~paid.~~of ~~Such~~model ~~yearly payment is required to keep the option in~~driven ~~good standing~~valuations. ~~Ownership~~The ~~of the claims is in the name of the~~ Company~~’s subsidiary,~~ ~~Silverado~~believes ~~Gold~~that ~~Mines Inc. During~~ the ~~nine~~recorded ~~months~~values ~~ended~~of ~~August~~these ~~31,~~financial ~~2010~~instruments, ~~the~~other ~~Company~~receivables ~~paid~~and ~~the~~accounts ~~required~~payable ~~$5,000~~approximate ~~option~~their ~~payment. During the fiscal~~current ~~year~~fair ~~ended~~values ~~November~~because ~~30,~~of ~~2009,~~their ~~the~~nature ~~Company~~or ~~paid~~respective ~~the~~relatively ~~required $5,000 option~~short ~~payment and $13,090 in state mining claim fees~~durations.

12Assets measured at fair value on a recurring basis were presented on the Company’s consolidated balance sheet as of February 28, 2011, as follows.

Fair Value Measurements Using

Quoted Prices in

Significant

Active Markets

Other

Significant

For Identical

Observable

Unobservable

Balance as of

Instruments

Inputs

February 28,

(Level 1)

(Level 2)

(Level 3)

2011

Assets:

Cash

41,216

–

41,216

~~Note~~As 6at –February ~~Property~~28, ~~Plant~~2011, ~~and~~there ~~Equipment~~were no liabilities measured at fair value on a recurring basis presented on the Company’s consolidated balance sheet.

~~Property,~~19 ~~plant~~Subsequent and equipment primarily include capital expenditures associated with the Company’s Vancouver office, and mining equipment and camp facilities at the Nolan Gold Project in Alaska. A summary of the Company’s property, plant and equipment as of August 31, 2010 is as follows:Event

		August 31, 2010
				Accumulated
				Depreciation and		Net Book
		Cost		Amortization		Value
Offices
Office leasehold improvements	$	597,557	$	256,736	$	340,821
Computer equipment and software		138,552		133,080		5,472
Furniture and fittings		394,358		390,494		3,864
Mining Project
Nolan gold project buildings		63,000		63,000		-
Leasehold improvements		48,123		28,874		19,249
Nolan mining equipment		1,017,987		562,676		455,311
Auto and trucks		19,193		8,317		10,876
Capital assets in construction		24,245		-		24,245
	$	2,303,015	$	1,443,177	$	859,838

On April 1, 2011, the Company received a loan in the amount of $15,000 which is unsecured, non-interest bearing and due on demand.

~~A summary of the Company’s property, plant and equipment as of November 30, 2009 is as follows:~~23

		November 30, 2009
				Accumulated
				Depreciation and		Net Book
		Cost		Amortization		Value
Offices
Office leasehold improvements	$	597,557	$	192,832	$	404,725
Computer equipment and software		137,346		123,232		14,114
Furniture and fittings		394,358		390,075		4,283
Mining Project
Nolan gold project buildings		63,000		63,000		-
Leasehold improvements		48,123		21,655		26,468
Nolan mining equipment		1,017,987		503,568		514,419
Auto and trucks		19,193		5,438		13,755
Capital assets in construction		24,245		-		24,245
	$	2,301,809	$	1,299,800	$	1,002,009

SILVERADO GOLD MINES LTD. AND ITS SUBSIDIARIES

(An Exploration Stage Company)

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS

as of February 28, 2011 (Unaudited)

(Stated in United States Dollars)

Note 7 – Promissory Note

20.	Restatement

	During the year ended November 30, 2010, the Company identified an error relating to the accounting for the convertible debt described in Note 8(a) in its financial statements included in the Company’s Form 10-K filed with the SEC on March 12, 2010. The Company had previously separately accounted for the liability and equity components of convertible debentures to reflect the fair value of the liability component based on the Company’s non-convertible borrowing cost at the issuance date. The value attributed to the conversion feature of the convertible note was included in additional paid-in capital on the consolidated balance sheet. Debt issuance costs of $7,500 and shares issued with the convertible debt valued at $80,000 were expensed in the statement of operations. After further review, the Company has determined that the proceeds should have been allocated based on the relative fair values of the convertible note and the shares at time of issuance, the resulting beneficial conversion of the convertible note recorded in additional paid-in capital, and debt issuance costs capitalized as deferred charges and amortized over the term of the convertible debt.

	The Company also identified an error related to the accounting for the convertible debt described in Note 8(a) in its financial statements included in the Company’s Form 10-Q filed with the SEC on April 14, 2010. The Company had previously separately accounted for the liability and equity components of convertible debentures to reflect the fair value of the liability component based on the Company’s non-convertible borrowing cost at the issuance date. The value attributed to the conversion feature of the convertible note was included in additional paid-in capital on the consolidated balance sheet. After further review, the Company has determined that the conversion option should be separated from the host contract and accounted for as a derivative at time of issuance, the conversion feature classified as liability and measured at fair value with changes in fair value recorded in the statement of operations.

	The following table reflects the adjustment and restated amounts:

In February 2010, the Company received $50,000 from an investor and issued a promissory note dated as of March 1, 2010. The unpaid principal balance of the note bears interest at a rate equal to twelve percent (12%) per annum if repaid by the Company within ninety (90) days from the date of the note, or eighteen percent (18%) per annum if repaid at any time thereafter. The note matures on September 1, 2010. The Company accrued interest of $4,500 during the nine months ended August 31, 2010.

	For the Three Months Ended February 28, 2010
	As Reported		Adjustment		As Restated
Consolidated Statement of Operations	$		$		$
Operating expenses
Amortization of debt issuance costs	–	a)	1,825		1,825

Total operating expenses	1,116,670		1,825		1,118,495

Accretion of discount on convertible and promissory debentures	13,563	b)	11,613		25,176
Gain on fair value of derivative liability	–	c)	(14,292	)	(14,292	)

Net Loss	1,137,177		(854	)	1,136,323

13a) To amortize debt issuance costs. b) To record accretion of discount on convertible debts. c) To recognized change in fair value of derivative liability as at February 28, 2010.

Note 8 – Convertible Debt Instruments

The Company separately accounts for the liability and equity components of convertible debentures to reflect the fair value of the liability component based on our non-convertible borrowing cost at the issuance date. The present value of a non-convertible note at the issuance date would be valued using the effective interest rate of 8.25% . The Company records the liability components of the convertible note as of the date of issuance and the excess proceeds received over the fair value of the debt at the date of issuance were attributed to the conversion feature of the convertible note and accordingly has been included in additional paid-in capital on the consolidated balance sheets. At the date of conversion, the company reverses related conversion feature from the additional paid-in capital to the common stock. The Company amortizes the resulting discount as an increase to financing cost expense on convertible debentures.

i)	On January 22, 2010, the Company entered into a Note Purchase Agreement (the “Agreement”) with an investor (the “Investor”). Pursuant to the terms of the Agreement, the Company issued and sold a convertible promissory note, dated January 22, 2010 (the “Note”) to the Investor for the purchase price of $80,000 with a maturity date of March 15, 2010. An origination fee of $5,000 was paid by the Company to the Investor from the proceeds of the sale of the Note.
	The Company recorded $66,944 of the liability components of the convertible note as of the date of issuance and the excess proceeds of $8,056 received over the fair value of the debt at the date of issuance were attributed to the additional paid-in capital. During the period ended August 31, 2010, $65,000 of the Note was converted into 36,111,111 shares of the Company’s common stock at a price of $0.0018 per share. The Company reversed related conversion feature of $6,546 from the additional paid-in capital to the common stock.
	The Note provides that interest on the unpaid principal balance of the Note shall not accrue unless a trigger event, as set forth therein, occurs. The Company failed to repay the Note on March 15, 2010 and the principal balance of the Note increased by $75,000 plus $6,844 of accrued interests and issuance costs based on the agreement during the quarter ended August 31, 2010. The remaining outstanding carrying value of $96,844 plus additional $1,231 of accrued interests for a total of $98,075 were settled by $83,075 of cash payment and $15,000 of conversion to 10,431,154 shares in September 2010, subsequent to the quarter-end.
ii)	On April 28, 2010, the Company entered into a Secured Convertible Note Agreement (the “Note Agreement”) with an investor. Pursuant to the terms of the Note Agreement, the Company sold and issued a convertible note in the sum of $50,000 with a maturity date of April 28, 2011. An origination fee of $5,000 was paid by the Company to the Note holder from the proceeds of the sale of the Note. The Note bears no interest and is to be paid in full on the maturity date, unless previously paid or converted into the Company’s common stock. The Note holder has the right to convert any unpaid principal portion, at a conversion price per share equal to the lower of $0.003 or 70% of the average of the three lowest closing bid prices of the Company’s common stock for the 20 trading days preceding a conversion date.
	The Company issued 13,000,000 shares of the Company’s common stock to the Note holder as compensation costs. Such shares were valued at $61,100 using the closing price of the Company’s common stock on April 27, 2010 and were recorded as financing costs.
	The Company recorded $41,189 of the liability components of the convertible note as of the date of issuance and the excess proceeds of $8,811 received over the fair value of the debt at the date of issuance were attributed to the additional paid-in capital. During the nine months ended August 31, 2010, the Company recorded amortization of the resulting discount of $3,018 as an increase to financing cost expense on convertible debentures, and will amortize the remaining discount of $5,793 over the expected life of the debt. At August 31, 2010, the carrying value of the Note was $44,207.

Note 8 – Convertible Debt Instruments (Continued)

a) Convertible Notes Issued in Fiscal Year 2010 (Continued) iii) In June 2010, the Company entered into two Note Agreements with an investor. Pursuant to the terms of the Note Agreements, the Company sold and issued two convertible notes with a principal amount of $75,000 per each Note for a total of $150,000. The maturity dates of these two Notes are June 15, 2011 and June 27, 2011, respectively. An original issue discount of $7,500 per each note for a total of $15,000 was paid by the Company to the Note holder from the proceeds of the sale of the Note. The Note bears no interest and is to be paid in full on the maturity date, unless previously paid or converted into the Company’s common stock. The Note holder has the right to convert any unpaid principal portion commencing December 1, 2010, at a conversion price per share equal to the lower of $0.003 or 70% of the average of the three lowest closing bid prices of the Company’s common stock for the 20 trading days preceding a conversion date. The Company issued 40,000,000 shares of the Company’s common stock to the Note holder as compensation costs. Such shares were valued at $135,000 using the closing price of the Company’s common stock on the date before the Note date and were recorded as financing costs. The Company recorded $123,568 of the liability components and the excess proceeds of $26,432 received over the fair value of the debt were attributed to the additional paid-in capital. During the nine months ended August 31, 2010, the Company recorded amortization of the resulting discount of $4,055 as an increase to financing cost expense on convertible debentures, and will amortize the remaining discount of $22,377 over the expected life of the debt. At August 31, 2010, the carrying value of these two Notes was $127,623. b) Convertible Note Issued in Fiscal Year 2009

On October 30, 2009, the Company sold and issued a convertible note in the sum of $75,000 with a maturity date of October 30, 2010. The note bears no interest and is to be paid in full on the maturity date, unless previously paid or converted into the Company’s common stock. The Note holder has the right from March 1, 2010 to convert any unpaid principal portion, at a conversion price per share equal to 70% of the average of the three lowest closing bid prices of the Company’s common stock for the 20 trading days preceding a conversion date.

The Company issued 5,000,000 shares of the Company’s common stock to the Note holder as compensation and issuance costs reimbursement. Such shares were valued at $80,000 using the closing price of the Company’s common stock on October 29, 2009 and were recorded as financing costs. The Company also paid $7,500 cash to a third party as a finder’s fee on this note.

The Company recorded $69,284 of the liability components of the convertible note and the excess proceeds of $5,716 received over the fair value of the debt were attributed to the additional paid-in capital. The Company amortized the resulting discount of $476 during the fiscal year ended November 30, 2009 and $5,240 during the nine months ended August 31, 2010 as an increase to financing cost expenses on convertible. During the nine months ended August 31, 2010, the Note was fully converted into 32,258,055 shares of the Company’s common stock at a weighted average price of $0.00233 per share. The Company reversed related conversion feature of $5,716 from the additional paid-in capital to the common stock.

Note 9 – Asset Retirement Obligations

Asset retirement obligations relate to the closure and reclamation of the Grant Mill Tailings Pond and the Mill complex, and to the reclamation work associated with the Nolan Gold Project consisting of dismantling and removal of site structures and equipment, and reshaping and revegetating the disturbed areas. The Company has no assets legally restricted for purposes of settling asset retirement obligations. A summary of assets retirement obligation for the nine months ended August 31, 2010 and the fiscal year ended November 30, 2009 is as follows:

Note 9 – Asset Retirement Obligations (Continued)

		Grant			Nolan
		Mine			Project			Total
Balance, November 30, 2008	$	364,651		$	172,607		$	537,258
Accretion expense		18,233			8,630			26,863
Liabilities settled		(14,000	)		(4,258	)		(18,258	)
Reclamation bond refunded		-			(5,456	)		(5,456	)
Balance, November 30, 2009		368,884			171,523			540,407
Accretion expense		13,833			6,432			20,265
Liabilities settled		(1,511	)		(900	)		(2,411	)
Balance, August 31, 2010	$	381,206		$	177,055		$	558,261

Grant Mine

The Grant Mine is not an active mine and related assets were written off as impaired effective December 1, 2001. The retirement obligations associated with the Grant Mine involves the decommissioning of the Grant Mill Tailings Pond and the Mill complex that was built in the early 1980s and no longer used after 1989.

The Company believes that the estimated fair value of the cost of reclamation at this time will approximate the accrued obligations plus 5% accretion expense per annum until reclaimed. During the nine months ended August 31, 2010, the Company recorded $13,833 accretion expense and spent $1,511 on the Grant Mine closure. During the fiscal year ended November 30, 2009, the Company recorded $18,233 accretion expense, paid $1,511 to the State of Alaska regulatory agencies and spent another $12,489 on the closure.

Nolan Gold Project

The retirement obligations associated with the Nolan mineral properties are associated with the reclamation of disturbed land resulting from normal operations and are not the result of improper operations of an asset such as environmental remediation liabilities. The Nolan mineral properties are on Federal mining claims and thus are under the active supervision of the Bureau of Land Management. As of May 31, 2010 and November 30, 2009, the Company is obligated to reclaim 21 acres at Nolan Creek. These 21 acres are areas essential for the Company’s operations and consist of the camp area, equipment storage area, processing area, explosives storage area, and the portal area, as well as the roads and core storage area.

The Company believes that the remaining accrued obligations plus 5% accretion expense per annum is sufficient to cover the cost of reclamation. During the nine months ended August 31, 2010, the Company recorded $6,432 accretion expense and spent $900 on reclamation. During the fiscal year ended November 30, 2009, the Company recorded $8,630 accretion expense and spent $4,258 on reclamation.

Note 10 – Related Party Transactions

(a) Service Agreements

The Company has had related party transactions with Tri-Con Mining Ltd., Tri-Con Mining Inc. and Tri-Con Mining Alaska Inc. (collectively, the “Tri-Con Group”), all of which are controlled by a director and officer of the Company.

Note 10 – Related Party Transactions (Continued)

(a) Service Agreements (Continued)

The Tri-Con Group are operations, exploration and development contractors and have been employed by the Company under contract since 1972 to carry out all the Company’s fieldwork and to provide administrative and management services. Under the current contracts dated January 1, 1997, Tri-Con Group has billed the Company cost plus 25% for exploration and cost plus 15% for development and mining. The term “cost” means out-of-pocket or actual cost incurred by Tri-Con Group plus 15% for office overhead including stand-by and contingencies. There is no mark-up on capital purchases. The Tri-Con Group does not charge the Company for the services of its directors who are also directors of the Company. In addition, per the terms of the agreements, the Company paid a base administration fee of CDN $10,000 per month to Tri-Con Mining Ltd. and US $10,000 per month to Tri-Con Mining Inc., respectively.

During the nine months ended August 31, 2010, the Tri-Con Group’s services focused mainly on corporate planning; mining, drilling and engineering planning and preparation for production on the Company’s Nolan property; and administration services. During the period ended August 31, 2010, there were nominal exploration activities due to the Company’s cash flow constraints and consequently the Tri-Con Group waived the US $10,000 and the CDN $10,000 monthly fee for the nine months ended August 31, 2010 for a total of US $176,264.

As of August 31, 2010, Silverado owed $946,915 (November 30, 2009: $1,064,046) to the Tri-Con Group for exploration and administration services performed on behalf of Silverado. The following is a summary of Tri-Con Group charges for the nine months ended August 31, 2010 and 2009:

		Nine Months Ended
		August 31, 2010		August 31, 2009
Exploration Services	$	-	$	1,213,603
Administration and management services		130,702		443,961
Amounts forgiven by Tri-Con Group		-		(600,000	)
	$	130,702	$	1,057,564
Amount of total charges in excess of Tri-Con’s costs incurred	$	17,048	$	(143,690	)
Percentage of excess amount charged		13.04%		(13.59%	)

(b) Consulting Agreement

Effective April 1, 2009, a consulting agreement was signed between the Company and a private company controlled by a former director of the Company who resigned on April 20, 2010. Pursuant to the agreement, the Company agreed to pay the private company CDN $7,500 plus GST per month for corporate planning, business development and investor relations services, as requested by the Company.

Note 11 – Common Stock

The authorized common stock of the Company consists of an unlimited number of common shares, without par value. The following is a summary of the Company’s issuances of common stock during the nine months ended August 31, 2010:

Note 11 – Common Stock (Continued)

	Number of			Common Stock			Shares to be
	Common Shares			Amount			Issued
Balance, November 30, 2009	1,577,667,073		$	100,883,269		$	100,000
Shares Issued:
For Private Placements
$0.01 per unit (1 unit = 1 share and 1 warrant) cancelled	(1,000,000	)		(10,000	)		-
$0.01 per unit (1 unit = 1 share and 1 warrant)	1,500,000			15,000			(15,000	)
$0.01 per unit (1 unit = 1 share and 1/2 warrant)	5,000,000			50,000			(50,000	)
$0.0035 per unit (1 unit = 1 share and 1 warrant)	68,106,838			238,374			(35,000	)
$0.003 per unit (1 unit = 1 share and 1 warrant)	77,588,335			232,765			-
	151,195,173			526,139			(100,000	)
For Warrants Exercise
$0.003 per share	50,917,550			152,753			-
$0.00233 per share	20,500,000			47,765			-
	71,417,550			200,518			-
For Conversion of Debenture
$0.0024 per share	8,333,333			20,000			-
$0.00233 per share	8,583,690			20,000			-
$0.00232 per share	7,552,870			17,500			-
$0.002247 per share	7,788,162			17,500			-
$0.0018 per share	36,111,111			65,000			-
	68,369,166			140,000			-
For Financing Costs
$0.0047 per share	13,000,000			61,100			-
$0.00357 per share	20,000,000			75,000			-
$0.003 per share	20,000,000			60,000			-
	53,000,000			196,100			-
Shares Granted under Equity Compensation Plans
For Consulting Fees Granted at a Weighted Average Price of $0.00422	120,752,641			509,715
For Investor Relation and Shareholder Communication Services Granted at a Weighted Average Price of $0.00468	26,394,185			123,444			-
For Exploration Services Fees Granted at a Weighted Average Price of $0.00524	24,179,585			126,617
For Legal Service Fees Granted at a Weighted Average Price of $0.00524	22,000,000			106,200
	193,326,411			865,976			-
Conversion feature on converted debentures	-			12,262			-
Share Subscriptions Received	-			-			33,250
Balance, August 31, 2010	2,114,975,373		$	102,824,264		$	33,250

Note 11 – Common Stock (Continued)

The following is a summary of the Company’s issuances of common stock for the fiscal year ended November 30, 2009:

	Number of		Common Stock			Shares to be
	Common Shares		Amount			Issued
Balance, November 30, 2008	977,437,101	$	94,718,072		$	-
Shares Issued:
For Private Placements
$0.00383 per share	18,260,870		70,000			-
$0.004 per share	19,250,000		77,000			-
$0.01 per share	53,000,000		530,000			-
$0.005 per share	40,000,000		200,000			-
$0.0025 per share	38,000,000		95,000			-
$0.01 per unit (1 unit = 1 share and 1 warrant)	56,400,000		564,000			-
$0.01 per unit (1 unit = 1 share and 1/2 warrant)	57,000,000		570,000			-
	281,910,870		2,106,000			-
For Commitment Fees at $0.0096 Per Share	100,000,000		960,000			-
For Financing costs at $0.0016 Per Share	5,000,000		80,000			-
Shares Granted under Equity Compensation Plans
For Consulting Fees Granted at a Weighted Average Price of $0.0147 Per Share	193,609,800		2,839,456
For Investor Relation and Shareholder Communication Services Granted at a Weighted Average Price of $0.0078 Per Share	11,709,302		91,241			-
For Legal Service Fees Granted at $0.0185 Per Share	8,000,000		148,000
	213,319,102		3,078,697			-
Share Subscriptions Received	-		-			100,000
Share Issue Costs	-		(59,500	)		-
Balance, November 30, 2009	1,577,667,073	$	100,883,269		$	100,000

a) Private Placements

For the nine months ended August 31, 2010

During the nine months ended August 31, 2010, the Company completed a private placement resulting in the issuance of 1,500,000 units at $0.01 per unit. Each unit consisted of one share of common stock and one common stock purchase warrant exercisable for a number of additional shares of common stock equal to the number of units purchased, at a per share exercise price of $0.02 within the one year period commencing from the date of the subscription agreement. The Company received gross proceeds of $15,000 from such private placement. In December 2009, a subscription agreement related to 1,000,000 units at $0.01 per unit was cancelled and issued units were returned and cancelled accordingly.

During the nine months ended August 31, 2010, the Company completed a private placement resulting in the issuance of 5,000,000 units at $0.01 per unit. Each unit consisted of one share of common stock and one half-warrant, with a full warrant (consisting of two half-warrants) being exercisable for one share of common stock at a per share exercise price of $0.02 within the one year period commencing from the date of the subscription agreement. The Company received proceeds of $50,000 from such private placement.

During the nine months ended August 31, 2010, the Company completed private placements resulting in the issuance of an aggregate of 68,106,838 units at $0.0035 per unit and 67,588,335 units at $0.003 per unit. Each unit consisted of one share of common stock and one common stock purchase warrant exercisable for a number of additional shares of common stock equal to the number of units purchased, at a per share exercise price of $0.01 within the one year period commencing from the date of the subscription agreement. The Company received gross proceeds of $441,139 from such private placements.

Note 11 – Common Stock (Continued)

a) Private Placements (Continued)

During the nine months ended August 31, 2010, the Company also completed a private placement resulting in the issuance of 10,000,000 units at $0.003 per unit. Each unit consisted of one share of common stock and one common stock purchase warrant exercisable for a number of additional shares of common stock equal to the number of units purchased, at a per share exercise price of $0.00233 within the one year period commencing from the date of the subscription agreement. The Company received gross proceeds of $30,000 from such private placements.

For the fiscal year ended November 30, 2009

During the fiscal year ended November 30, 2009, the Company completed private placements resulting in the issuance of an aggregate of 18,260,870 common shares at $0.0038 per share, 19,250,000 common shares at $0.004 per share, 38,000,000 common shares at $0.0025 per share, 40,000,000 common shares at $0.005 per share and 18,500,000 common shares at $0.01 per share. The Company received aggregate gross proceeds of $627,000 from such private placements and paid related commission fees of $20,000 which was recorded as a reduction of common stock.

In addition, during the fiscal year ended November 30, 2009, the Company completed private placements resulting in the issuance of 34,500,000 common shares at a price of $0.01 per share. These private placements generated gross proceeds of $345,000 from the sale of shares related to the Equity Line of Credit Agreement (see Note 11(c), below). In accordance with the Equity Line of Credit Agreement, the Company paid commission fees of $34,500 which was recorded as a reduction of common stock.

During the fiscal year ended November 30, 2009, the Company completed private placements resulting in the issuance of an aggregate of 56,400,000 units at $0.01 per unit. Each unit consisted of one share of common stock and one common stock purchase warrant exercisable for a number of additional shares of common stock equal to the number of units purchased, at a per share exercise price of $0.02 within the one year period commencing from the date of the subscription agreement. The Company received gross proceeds of $564,000 from such private placements and paid commission fees of $5,000 which was recorded as a reduction of common stock. Subsequent to November 30, 2009, a subscription agreement related to 1,000,000 units was cancelled and issued units were returned and cancelled accordingly.

During the fiscal year ended November 30, 2009, the Company also completed private placements resulting in the issuance of an aggregate of 57,000,000 units at $0.01 per unit. Each unit consisted of one share of common stock and one half-warrant, with a full warrant (consisting of two half-warrants) being exercisable for one share of common stock at a per share exercise price of $0.02 within the one year period commencing from the date of the subscription agreement. The Company received proceeds of $570,000 from such private placements.

As of November 30, 2009, the Company received $65,000 for the sale of an aggregate of 6,500,000 common shares and 4,000,000 common stock purchase warrants. Each common stock purchase warrant is exercisable for an additional share of common stock at a per share exercise price of $0.02 within the one year period commencing from the date of the subscription agreement. The Company also received $35,000 for the sale of an aggregate of 10,000,000 units at a price of $0.0035 per unit. Each unit consisted of one share of common stock and one common stock purchase warrant exercisable at a per share exercise price of $0.01 for the purchase of one share of common stock within the one year period commencing from the subscription agreement. These private placements were not completed as of November 30, 2009, as shares had not been issued as of such date, but the purchase price received has been reflected as subscriptions received in stockholders’ equity in the accompanying balance sheet. The Company completed such private placements during the six months ended May 31, 2010.

Note 11 – Common Stock (Continued)

b) Common Stock Issued under Equity Compensation Plans

The Company entered into several agreements for corporate planning, business development and strategies, investor relation services, legal services and media solutions services. Pursuant to these agreements, the Company issued its common stock under equity compensation plans (See Note 12(a) – Equity Compensation Plans, below).

For the nine months ended August 31, 2010

The Company issued an aggregate of 193,326,411 shares of the Company’s unrestricted free trading common stock during the nine months ended August 31, 2010, valued at the fair market price at the dates of agreements or at the dates of shares issued, for total consideration of $865,976. Of this amount $811,266 was recorded as consulting, legal and other service fees and $54,710 was recorded as prepaid expenses based on the terms of the agreements. These shares were issued under the Company’s Equity Compensation Plans.

For the fiscal year ended November 30, 2009

During the fiscal year ended November 30, 2009, the Company issued an aggregate of 208,319,102 shares of the Company’s unrestricted free trading common stock and 5,000,000 shares of the Company’s restricted common stock, valued at the fair market price at the dates of agreements or at the dates of shares issued, for total consideration of $3,078,697. Of this amount $2,361,832 was recorded as consulting fees and $716,865 was recorded as prepaid expenses. Such prepaid expenses were expensed during the nine months ended August 31, 2010.

c) Common Stock Issued as Commitment Fee under Equity Line of Credit

On May 6, 2009, the Company entered into an Equity Line of Credit Agreement with an accredited investor pursuant to which the Company could have sold to the investor, if certain conditions were met, up to $100,000,000 in shares of its common stock over the term of the agreement, unless earlier terminated.

Upon execution, the Company issued to the investor 100,000,000 shares of the Company’s common stock as payment of a commitment fee, with such shares valued at the fair market price at the date of issuance ($0.0096 per share on May 6, 2009). Such shares were deemed fully earned as of the date of the agreement and therefore the fair market value of such shares ($960,000) was included in consolidated statements of operations and other comprehensive loss for the fiscal year ended November 30, 2009. As of November 30, 2009, the Company raised $345,000 from the investor pursuant to the sale of an aggregate of 34,500,000 common shares at a price of $0.01 per share and paid related commission fees of $34,500 (See Note 11(a) – Private Placements, above).

On December 16, 2009, the Company terminated the Equity Line of Credit Agreement in connection with its efforts to secure alternate sources for capital.

d) Common Stock Issued as Financing Expenses

During the nine months ended August 31, 2010, the Company issued 53,000,000 shares of the Company’s common stock to convertible notes holders as compensation costs. Such shares were valued at $196,100 using the market closing price one day before the convertible note issuance date and recorded as financing expenses (See Note 8(a) –Convertible Note Issued in Fiscal Year 2010, above).

In November 2009, the Company issued 5,000,000 shares of the Company’s common stock to a convertible note holder as compensation and issuance costs reimbursement. Such shares were valued at $80,000 using the market closing price one day before the convertible note issuance date and recorded as financing expenses (See Note 8(b) –Convertible Note Issued in Fiscal Year 2009, above).

Note 12 –Equity Compensation Plans, Stock Options and Common Stock Purchase Warrants

a) Equity Compensation Plans and Stock Options

Equity Compensation Plans

The Company has adopted Equity Compensation Plans to encourage certain directors, officers, employees, and consultants of the Company to acquire and hold stock in the Company as an added incentive to remain with the Company, to increase their efforts in promoting the interests of the Company and to enable the Company to attract and retain capable individuals.

On January 29, 2009, the Company adopted the 2009 Equity Compensation Plan (the “2009 Plan”). The number of shares issued under the Plan may not exceed 130,000,000 in aggregate. On January 29, 2009, the Company filed a registration statement on Form S-8 to register all 130,000,000 of such shares. These shares were granted during the fiscal year ended November 30, 2009.

On June 1, 2009, the Company adopted the 2009-II Equity Compensation Plan (the “2009-II Plan”). The number of shares issued under the 2009-II Plan may not exceed 80,000,000 in aggregate. On June 1, 2009, the Company filed a registration statement on Form S-8 to register all 80,000,000 of such shares. These shares were granted during the fiscal year ended November 30, 2009.

On December 11, 2009, the Company adopted the 2009-III Equity Compensation Plan (the “2009-III Plan”). The number of shares issued under the 2009-III Plan may not exceed 120,000,000 in aggregate. On December 16, 2009, the Company filed a registration statement on Form S-8 to register all 120,000,000 of such shares. These shares were granted during the nine months ended August 31, 2010.

On June 3, 2010, the Company adopted the 2010-I Equity Compensation Plan (the “2010-I Plan”). The number of shares issued under the 2010-I Plan may not exceed 180,000,000 in aggregate. On June 9, 2010, the Company filed a registration statement on Form S-8 to register all 180,000,000 of such shares. A total of 65,208,799 of such shares were granted during the nine months ended August 31, 2010.

Stock Options

There were no stock options granted and valued during the nine months ended August 31, 2010 and the fiscal year ended November 30, 2009. A summary of the change in outstanding and exercisable stock options for the nine months ended August 31, 2010 and the fiscal year ended November 30, 2009 is as follows:

					Weighted
	Outstanding and			Weighted	Average
	Exercisable			Average	Remaining
	Options			Excercise Price	Contractual Life
Balance, November 30, 2008	70,400,000		$	0.056	3.47 years
Options cancelled or expired	(22,200,000	)	$	0.055
Balance, November 30, 2009	48,200,000		$	0.056	2.72 years
Options cancelled or expired	-
Balance, August 31, 2010	48,200,000		$	0.056	1.97 years

Note 12 – Equity Compensation Plans, Stock Options and Common Stock Purchase Warrants (Continued)

a) Equity Compensation Plans and Stock Options (Continued)

The balance of outstanding and exercisable common stock options as at August 31, 2010 is as follows:

Number of Options			Remaining
Outstanding and		Exercise	Contractual Life
Exercisable		Price	(Years)
33,900,000	$	0.05	0.36 - 2.35
14,300,000	$	0.07	2.37
48,200,000

b) Common Stock Purchase Warrants

A summary of the change in common stock purchase warrants during the nine months ended August 31, 2010 and the fiscal year ended November 30, 2009 is as follows:

					Weighted
				Weighted	Average
	Outstanding			Average	Remaining
	Warrants			Excercise Price	Contractual Life
Balance, November 30, 2008	40,349,230		$	0.0700	0.17 years
Warrants issued	84,900,000		$	0.0200
Warrants expired	(40,349,230	)	$	0.0700
Balance, November 30, 2009	84,900,000		$	0.0200	0.72 years
Warrants issued	149,695,173		$	0.0098
Warrants exercised	(71,417,550	)	$	0.0028
Warrants cancelled or expired	(27,250,000	)	$	0.0200
Balance, August 31, 2010	135,927,623		$	0.0116	0.58 years

The balance of outstanding and exercisable common stock purchase warrants as of August 31, 2010 is as follows:

			Remaining
Number of Warrants			Contractual Life
Outstanding		Exercise Price	(Years)
29,750,000	$	0.0200	0.05 - 0.22
96,177,623	$	0.0100	0.35 - 0.98
10,000,000	$	0.0023	0.91
135,927,623

Note 12 – Equity Compensation Plans, Stock Options and Common Stock Purchase Warrants (Continued)

b) Common Stock Purchase Warrants (Continued)

During the nine months ended August 31, 2010, 27,250,000 of the Company’s outstanding common stock purchase warrants cancelled or expired and 149,695,173 of common stock purchase warrants were granted at a per share weighted average exercise price of $0.0098. Each common stock purchase warrant issued during the period is exercisable for one share of common stock within the one year period commencing from the date of the subscription agreement.

During the nine months ended August 31, 2010, the Company reduced the exercise price of 31,400,000 of its common stock purchase warrants from $0.02 to $0.003, 19,517,550 from $0.01 to $0.003 per common share and 20,500,000 from $0.01 to $0.00233 per common share. All of such warrants were exercised during the period. The exercise price reduction incentivized the holders to exercise the warrants, which assisted the Company in meeting its working capital requirements. The Company received less proceeds from these exercised warrants due to the price reductions, but the Company believes these warrants would have been left to expire had the Company not effected the exercise price reductions.

During the fiscal year ended November 30, 2009, 40,349,230 of the Company’s outstanding common stock purchase warrants expired and 84,900,000 common stock purchase warrants were granted at a per share exercise price of $0.02. Each common stock purchase warrant granted during the period is exercisable for one share of common stock at a per share exercise price of $0.02 within the one year period commencing from the date of the subscription agreement.

Note 13 – Supplemental Cash Flow Information

Investing and financing activities that do not have a direct impact on current cash flows are excluded from the cash flow statements. A summary of non-cash transactions and other cash information for the nine months ended August 31, 2010 and 2009 is as follow:

		Nine Months Ended August 31,
		2010		2009
Changes in non-cash financing and investing activities:
Common stock issued for consulting fees and other expenses	$	1,007,366	$	1,908,036
Common stock issued for prepaid consulting and other service fees	$	54,710	$	739,791
Common stock issued for commitment fees	$	-	$	960,000
Common shares issued for subscriptions received	$	100,000	$	-
Common shares issued for convertible debentures	$	140,000	$	-
Conversion feature reverse on converted debentures	$	12,262	$	-
Conversion feature on convertible debenture	$	11,037	$	-
Non-cash convertible debentures	$	75,000	$	-
Mineral claims royalty payable changes at period-end for mineral rights	$	80,000	$	80,000
Other cash flow information:
Interest paid or incurred	$	73,830	$	7,230

Note 14 – Commitments and Contingencies

a) Severance Agreement with Director

The Company has entered into a severance agreement with a director and chief executive officer of the Company. The agreement provides for severance arrangements where a change of control of the Company occurs, as defined, and the director is terminated. The compensation payable to the director aggregates $4,000,000 plus the amount of annual bonuses and other benefits that he would have received in the eighteen months following termination.

b) Indemnity Agreements with Directors

The Company entered into Indemnity Agreements (“Agreements”) dated December 23, 2009, with each of its directors and executives, Garry L. Anselmo, Stuart McCulloch, Donald G. Balletto, Robert M. Dynes, and John Mackay (collectively, the “Executives”). These agreements supersede all prior agreements whether oral or written. Pursuant to the terms of the Agreements, the Company granted a general indemnification to the Executives against all claims and costs that arise out of the scope or performance of duties as a director or executive officer of the Company. The Agreements are conclusively deemed to commence on, and be effective as of, the day upon which the Executive first became or becomes a director or officer of the Company and survive and remain in full force and effect after the Executive ceases to be a director or officer of the Company and after the termination of the Executive’s employment with the Company.

c) Office Lease

The Company entered into a seven year office lease agreement expiring in July 2014 for its Vancouver office when obliged to vacate its previous lease location at the expiry of the lease. The Company’s future minimum lease payments under this lease are as follows:

Fiscal year ending November 30, 2010	$	30,921
Fiscal year ending November 30, 2011		123,682
Fiscal year ending November 30, 2012		125,268
Fiscal year ending November 30, 2013		128,439
Fiscal year ending November 30, 2014		85,626
	$	493,936

Note 15 – Subsequent Events

The Company has evaluated subsequent events subsequent to August 31, 2010 through the date the financial statements were made available for issuance. Below are the reportable events.

a) On September 13, 2010, the Company sold and issued a 6% Convertible Redeemable Note to an investor in the principal amount of $98,660 in lieu of past due payments dating from August through December 2009. The holder of this note is entitled, at its option, at any time, to convert all or any amount of the outstanding principal face amount into shares of the Company’s common stock, at a conversion price for each share of common stock equal to 65% of the variable weighted average price (the “VWAP”) comprised of 3 of the lowest VWAP prices for the prior 20 trading days. This note was converted to 52,339,348 of the Company’s restricted common shares at a price of $ 0.00189 per share in September 2010.

Note 15 – Subsequent Events (Continued)

b) On October 5, 2010, the Company sold and issued a 6% Convertible Redeemable Note to an investor in the principal amount of $77,229 in lieu of past due payments dating prior to March 8, 2010. The holder of this note is entitled, at its option, at any time, to convert all or any amount of the outstanding principal face amount into shares of the Company’s common stock, at a conversion price for each share of common stock equal to 65% of the VWAP comprised of three of the lowest VWAP prices for the prior 35 trading days. This note was converted to 40,970,328 of the Company’s restricted common shares at a price of $0.00189 per share in October 2010. c) On October 14, 2010, the Company sold and issued a 6% Convertible Redeemable Note to an investor in the principal amount of $26,555 in lieu of past due payments dating prior to March 8, 2010. The holder of this note is entitled, at its option, at any time, to convert all or any amount of the outstanding principal face amount into shares of the Company’s common stock, at a conversion price for each share of common stock equal to 65% of the VWAP comprised of three of the lowest VWAP prices for the prior 35 trading days. This note was converted to 14,087,347 of the Company’s restricted common shares at a price of $0.00189 per share in October 2010. d) On September 17, 2010, the Company sold and issued a Secured Convertible Note (the “Note”) to an investor (the “Holder”) for the purchase price of $165,000. An original issue discount of 10% of the principal amount of the Note took effect upon issuance, and the Company also will issue 20,000,000 shares of its common stock to the Holder in connection with the issuance of the Note. Unless sooner converted in full by the Holder, the Note shall mature on September 17, 2011. The Note provides the Holder with the option, from and after October 1, 2010, to convert the outstanding amount of the Note into shares of the Company’s common stock. e) The Company issued 10,000,000 shares at a price of $0.00320 per share, 2,918,195 shares at a price of $0.00290, 8,132,991 shares at a price of $0.00522 per share and 1,758,525 shares at a price of $0.0066108 per share totaling $94,542 as various service fees. f) The Company issued 9,500,000 restricted common shares at a price of $0.00233 totaling $22,135 following certain investors’ exercise of common stock purchase warrants. g) The Company completed two private placements resulting in the issuance of 15,945,484 units at a price of $ 0.003 per unit. Each unit consisted of one share of common stock and one common stock purchase warrant exercisable for a number of additional shares of common stock equal to the number of units purchased, at a per share exercise price of $0.01 within the one year period commencing from the date of the subscription agreement. The Company received $47,836 from such private placements. h) The Company completed the sale and issuance of 10,431,154 restricted common shares to one accredited investor following such investor’s partial conversion of a convertible promissory note. The per share conversion price of such shares was $ 0.00144, resulting in a conversion price of $ 15,000.

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following is a discussion of the operating results and financial position of Silverado Gold Mines Ltd. (“Silverado” or the “Company”) for the ~~nine~~three months ended ~~August~~February 3128, ~~2010~~2011. It should be read in conjunction ~~with~~ with the Company’s audited consolidated financial statements and footnotes for ~~the~~ the fiscal year ended November 30, ~~2009~~2010 and the interim unaudited consolidated financial statements for the ~~nine~~three-month period ended ~~August~~February 3128, ~~2010~~2011.

All financial information in this Management’s Discussion and Analysis (“MD&A”) is expressed and prepared in conformity with US generally accepted accounting principles. All references are in US dollar, the Company’s reporting currency, unless otherwise noted. Some numbers in this MD&A have been rounded to the nearest thousand for discussion purposes.

Certain forward-looking statements are discussed in this MD&A with respect to the Company’s activities and future financial results, which are made based upon management’s current expectations and beliefs. There can be no assurance that future developments affecting the Company will be those anticipated by management.

FORWARD-LOOKING STATEMENTS

The information in this Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements involve risks and uncertainties, including statements regarding Silverado’s capital needs, business plans and expectations. Such forward-looking statements involve risks and uncertainties regarding the market price of gold, availability of funds, government regulations, common share prices, operating costs, capital costs, outcomes of gold recovery activities and other factors. Forward-looking statements are made, without limitation, in relation to operating plans, property exploration and gold recovery activities, availability of funds, environmental reclamation, operating costs and permit acquisition. Any statements contained herein that are not statements of historical facts may be deemed to be forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as "may", "seek", "should", "expect", "plan", "intend", "anticipate", "believe", "estimate", "predict", "potential" or ”target", the negative of such terms or other comparable terminology. Actual events or results may differ materially. In evaluating these statements, you should consider various factors, including the risks outlined below, and, from time to time, in other reports Silverado files with the Securities Exchange Commission (the “SEC”). These factors may cause actual results to differ materially from any forward-looking statement. Management disclaims any obligation to publicly update these statements, or disclose any difference between its actual results and those reflected in these statements. The information constitutes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Given these uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements.

OVERVIEW

The Company is engaged in the acquisition and exploration of mineral properties in the State of Alaska, through its wholly-owned subsidiary, Silverado Gold Mines Inc., and isin ~~involved with~~ the development of a ~~new environmentally~~liquid ~~friendly~~fuel derived from low-rank coal~~-water~~ ~~fuel (“LRCWF”) technology~~ through its other wholly-owned subsidiary, Silverado Green Fuel, Inc.

The Company has committed over three decades of work to the exploration, development and test mining of gold properties throughout North America. In the mid-1980s, the Company decided to focus its efforts in Alaska. We have extensive experience in geological, geochemical and geophysical exploration techniques. Our mineral holdings are located in the Fairbanks Mining District and in the Koyukuk Mining District, consisting of both lode and placer mining claims. At the present time, the Company’s primary focus is the exploration and development of our Nolan Gold and Antimony Project located 175 miles north of Fairbanks, Alaska. We are also continuing with exploration activities on our Hammond Gold Property, located approximately three miles northeast of our Nolan Property, and on our Eagle Creek Gold and Antimony Property and Ester Dome Gold Project, which are both located in the Fairbanks Mining District.

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~~The~~Our ~~Company~~mineral ~~has~~holdings ~~also~~are ~~been~~located ~~working~~in onthe Fairbanks Mining District and in the ~~development~~Koyukuk Mining District, consisting of ~~LRCWF~~both lode and placer mining claims. At the present time, the Company’s primary focus is the aexploration ~~non-toxic~~and ~~liquid~~development ~~fuel~~of ~~product~~our ~~derived~~Nolan ~~from~~Gold ~~sub-bituminous~~Project and ~~lignite~~our ~~coal.~~Hammond InProject ~~its~~located ~~finished~~175 ~~form~~miles north of Fairbanks, ~~the~~Alaska. ~~fuel~~We ~~would~~are bealso acontinuing ~~non-toxic,~~with exploration ~~non-hazardous~~activities ~~environmentally~~on our Eagle Creek Property and our Ester Dome Project, ~~friendly~~which ~~strategic~~are ~~(liquid)~~both ~~fuel.~~located in the Fairbanks Mining District.

~~Since~~The ~~May~~Company ~~2008,~~has ~~the~~also ~~Mineral~~been ~~Industry~~working ~~Research~~on ~~Laboratory~~the development of low-rank coal-water fuel (“~~MIRL~~Green Fuel”), ~~University~~a ofnon-toxic ~~Alaska~~liquid ~~Fairbanks,~~fuel ~~has~~product ~~been~~derived from ~~conducting~~sub-bituminous ~~research~~and ~~for~~lignite coal. In its finished form, the fuel is a ~~Company~~non-toxic, onnon-hazardous ~~the~~environmentally ~~hydrothermal~~friendly ~~upgrading~~strategic (liquid) fuel. Silverado is seeking financing to enable us to proceed with the construction of a ~~Mississippi~~commercial ~~lignite~~demonstration ~~coal~~facility ~~from~~designed to document the ~~Red~~combustion ~~Hills~~characteristics ~~Mine~~of Green Fuel. ~~This~~A ~~lignite~~successful ~~was~~demonstration ~~the~~project ~~targeted~~could ~~feedstock~~lead ~~for~~to construction of a ~~LRCWF~~commercial ~~Demonstration Project~~production ~~proposed~~facility ~~for~~to manufacture the ~~Red~~low-rank coal-water ~~Hills~~fuel ~~Ecoplex,~~as ~~Ackerman,~~a ~~MS.~~replacement fuel for oil fired boilers and utility generators.

To date, research findings show that the lignite responds well to hydrothermal treatment (HT). HT at 290° C, for a residence time of 20 minutes, produces an upgraded lignite product suitable for LRCWF production, provided acceptable ash levels can be achieved. These HT conditions are essentially the same as those previously used by Silverado during its preliminary design of the demonstration project facilities. MIRL research has also produced valuable grinding circuit design parameters. Overall, MIRL research concludes that the MS lignite’s response to hydrothermal treatment follows a common pattern exhibited by low rank coals previously studied at MIRL since 1989. Future research at MIRL will address lignite ash reduction and ash chemistry, HT modeling, and HT process water and gas composition.

SUMMARY OF MINERAL EXPLORATION PROGRAM AND PLAN OF OPERATION

The Company holds interests in the following four groups of mineral properties in Alaska, U.S.A.:

1) Nolan ~~property~~ Gold Project; 2) Hammond Property (Slisco Bench); 3) Eagle Creek Property; and 4) Ester Dome Property.

~~2) Hammond~~All of these properties are in the exploration stage and have ~~Property~~no ~~(Slisco~~proven ~~Bench);~~reserves as of February 28, 2011, with the exception of the Nolan property, which has a probable reserve but requires a more extensive feasibility study to ascertain if such probable reserve can be classified as a proven reserve.

3The following disclosures incorporate the results of technical reports prepared during 2008 and 2009 by Thomas K. Bundtzen (“Bundtzen”/the “QP”) ~~Eagle~~, a third party independent qualified person and certified professional ~~Creek~~geologist, ~~Property;~~in accordance with the requirements of Canadian National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”). Investors may view the NI 43-101 reports at the Company’s website at www.silverado.com. The NI 43-101 reports provide disclosure regarding Silverado’s Alaska properties in accordance with NI 43-101. U.S. Investors are cautioned that the United States Securities and Exchange Commission does not recognize the terms “indicated resources” and “inferred resources”.

~~4) Ester~~The Nolan Gold Project has been the focus of the Company’s ~~Dome~~exploration ~~Property~~strategy since 2007 and will be the focus again in 2011. Although a lack of sufficient capital did not allow for the permitted 1,000 cubic yard bulk sample under Workman’s Bench in 2010, the Company plans to continue exploration drilling for the purpose of defining additional mineral resources associated with the Solomon Shear Zone.

~~All~~Following ofthe ~~these~~2009 ~~properties~~drill ~~are~~program inat Nolan Creek, the ~~exploration~~Company determined ~~stage~~that ~~and~~a ~~have no~~larger ~~proven~~core ~~reserves~~drilling asrig ofwill ~~August~~be ~~31,~~needed ~~2010,~~in order to move forward with ~~the~~drilling ~~exception~~in of2011. ~~the~~The ~~Nolan~~current Company owned drill rig is limited to ~~property,~~less ~~which~~than ~~has~~500 afeet ~~probable~~of ~~reserve~~drilling. ~~but~~Any ~~requires~~additional adrilling ~~more~~beyond ~~extensive~~the ~~feasibility~~current ~~study~~resource toblocks ~~ascertain~~will ifrequire ~~such~~larger ~~probable~~and ~~reserve~~more ~~can~~powerful bedrills ~~classified~~that ascan adrill ~~proven~~over ~~reserve~~1,000 feet.

The following disclosures incorporate the results of technical reports prepared during 2008 and 2009 by an independent and AIPG Certified Professional Geologist (the “QP”), in accordance with the requirements of Canadian National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”). Investors may view the NI 43-101 reports at the Company’s website at www.silverado.com. The NI 43-101 reports provide disclosure regarding Silverado’s Alaska properties in accordance with NI 43-101. U.S. Investors are cautioned that the United States Securities and Exchange Commission does not recognize the terms “indicated resources” and “inferred resources”.26

~~Based~~During on2010 ~~the~~there ~~completion~~was ofno aadditional ~~preliminary~~drilling ~~feasibility~~within ~~study~~the bycurrent ~~the~~probable ~~QP,~~reserve ~~our~~block ~~Nolan~~at ~~Gold~~Workman’s Bench and ~~Antimony~~therefore ~~Lode~~there ~~Project~~have ~~has~~been ~~disclosed~~no changes anto ~~economically viable~~the probable mineral reserve. ~~The~~which ~~preliminary~~amounts ~~feasibility~~to ~~study~~42,412 ~~entitled~~tons ~~“Update~~grading of28% ~~Mineral~~antimony, ~~Resource~~ and ~~Reserve~~0.408 ~~Estimates~~ounces/ton ~~and~~gold. ~~Preliminary~~Through ~~Feasibility~~the ~~Study~~end of 2008, the Workman’s and Pringle Bench ~~Antimony-Gold~~gold ~~Lode~~and ~~Deposit,~~antimony ~~Nolan~~deposits ~~Creek,~~contained ~~Wiseman~~a ~~B-1~~total ~~Quadrangle,~~inferred resource ~~Koyukuk~~amounting ~~Mining~~to ~~District~~24,077 ~~Northern~~tons ~~Alaska”,~~grading ~~dated~~12.45% ~~January~~antimony ~~1, 2009~~ and ~~amended June~~0.245 1,ounces/ton ~~2009~~gold (~~the~~for both ~~“Technical Report”)~~estimates, ~~concluded~~see ~~that~~January ~~the resource estimates disclosed by the Company on November 17~~1, ~~2008~~2009 ~~could~~NI-43-101 ~~be reclassified as a probable reserve. The~~ Technical Report ~~can~~for ~~also~~Nolan ~~be found at~~Creek ~~the~~which ~~Company’s~~was ~~website~~amended atJune ~~www~~1, 2009).~~silverado.com.~~

28Our plan of operations for the next twelve months are as follows:

Likewise, the 2009 lode exploration program (core drilling) at Nolan did not change the probable mineral reserve estimates, but there was a significant increase in the estimated indicated lode mineral resources at both Workman’s and Pringle Bench1. ~~The~~NOLAN ~~new~~GOLD resource estimates were disclosed to the public on January 7, 2010. Refer to the Silverado 2009 10-K report which can be found on SEDAR and EDGAR for the updated Nolan Gold and Antimony Project resource estimates. The mineral resource estimates for the Nolan Gold and Antimony project are also listed on the Company website at www.silverado.com, under NEWS – Released on January 7, 2010.PROJECT

~~Overall~~The ~~mineral~~Company ~~exploration~~owns ~~performance~~a ~~during~~100 ~~the~~percent ~~nine~~interest ~~month~~in numerous mining ~~period~~claims ~~ended~~on ~~August~~the 31Nolan Creek Project. As of February 28, ~~2010~~2011, ~~and~~the ~~management~~Company’s ~~plan~~Nolan Gold Project consist of ~~operations~~204 ~~for~~unpatented, ~~each~~federal placer mining claims covering ~~property~~approximately 4,080 acres in three non-contiguous groups, and 407 unpatented federal lode mining claims covering approximately 8,140 acres in one large contiguous group. Many of the 407 lode mining claims are ~~discussed~~superimposed ~~below~~over the placer mining claims. There has been no legal survey on any of the claims.

1The majority of the properties comprising our Nolan Gold Project are adjacent to or within the Nolan Creek Valley, located approximately 8 miles northwest of the small town of Wiseman, and 175 air miles north of Fairbanks, Alaska in the southern foothills of the Brooks Range. ~~NOLAN~~Centrally located ~~GOLD~~in ~~AND~~the ~~ANTIMONY~~historic ~~PROPERTY~~Koyukuk Mining District, Nolan Creek is a southerly flowing tributary to Wiseman Creek which flows southeasterly into the Middle Fork of the Koyukuk River. The Nolan Gold Project is accessible by the Elliott and the James Dalton Highways, about 280 road miles north of Fairbanks Alaska. An all weather road connects the Nolan Creek Camp with the James Dalton Highway and is suitable year-round for semi-tractors loaded with fuel and equipment. Air transportation is available by several commercial carriers from Fairbanks to the 4,500 ft long, state maintained Coldfoot Airport. The community of Coldfoot Alaska is about 15 miles south-southeast of Nolan, and has Alaska’s northernmost gas station, grocery, and public lodging. Coldfoot also has a weather station provided by the Alaska State Weather Service, and a post office.

The Company owns a 100 percent interest in numerous mining claims on the Nolan Creek Project. As of August 31, 2010, the Company’s Nolan Gold Project consist of 204 unpatented, federal placer mining claims covering approximately 4,080 acres in three non-contiguous groups, and 407 unpatented federal lode mining claims covering approximately 8,140 acres in one large contiguous group. Many of the 407 lode mining claims are superimposed over the placer mining claims.

The majority of the properties comprising our Nolan Gold Project are adjacent to or within the Nolan Creek Valley, located approximately 8 miles northwest of the small town of Wiseman, and 175 air miles north of Fairbanks, Alaska in the southern foothills of the Brooks Range. Centrally located in the historic Koyukuk Mining District, Nolan Creek is a southerly flowing tributary to Wiseman Creek which flows southeasterly into the Middle Fork of the Koyukuk River. An all weather road connects the Nolan Creek Camp with the Dalton Highway and is suitable year-round for semi-tractors loaded with fuel and equipment. Air transportation is available by several commercial carriers from Fairbanks to the 4,500 ft long, state maintained Coldfoot Airport. The community of Coldfoot Alaska is about 15 miles south-southeast of Nolan, and has Alaska’s northernmost gas station, grocery, and public lodging.

All of the Nolan Gold Project properties are on federal land and located within the Wiseman B-1 Quadrangle. All of the mineral claims, with the exception noted below, are in the SE ¼, Township 31 North, Range 12 West, the NE ¼, Township 30 North, Range 12 West, and SW ¼, Township 31 North, Range 11 West, Fairbanks Meridian.

In addition to the Nolan Creek properties, Silverado also has two smaller placer claim groups on Clara Creek and Marion Creek, located 1.5 and 3 miles north respectively of the town of Coldfoot, Alaska, situated near the James Dalton Highway.

Under Silverado’s ownership since 1982, a total of 23,153 ounces of placer gold was recovered from channel and bench deposits in the Nolan Valley through 2006. The largest nugget recovered to date weighed 41.35 ounces and was valued at US$16,000 by weight. It sold for US$50,000. Most nuggets recovered at Nolan Valley are suitable for jewelry.

~~Placer~~Based ~~deposits~~on ata ~~Nolan~~preliminary ~~Creek~~feasibility ~~can~~analysis beof ~~found~~January in1, ~~frozen gravel~~2009, ~~beds~~as ~~(ancient~~amended ~~channel~~June ~~deposits)~~1, ~~some~~2009, ofwe ~~which~~have ~~can~~economically beviable ~~mined~~reserves ~~year~~on ~~round.~~our ~~Test~~properties ~~mining~~that ~~can~~comprise ~~be carried out by underground methods during~~ the ~~coldest~~Nolan ~~winter months~~Gold Project, ~~and~~subject byto ~~surface~~a ~~methods~~final ~~most~~feasibility ~~of the year~~study. ~~In the summer months when the~~We ~~gravel~~plan ~~has~~to ~~thawed,~~carry ~~snow~~out ~~melt~~activities ~~water~~on isthe ~~available~~Nolan ~~for~~Gold ~~gold recovery by hydraulic sluicing~~Project. The ~~sluicing~~objective ~~process~~of ~~uses~~the activities ~~only~~on ~~gravity~~the ~~and~~Nolan ~~water~~Gold ~~within~~Project ~~a closed circuit, ensuring that there~~ is ~~zero discharge~~ to ~~the environment.~~complete ~~Lands~~permitting, ~~disturbed~~drill, byand continue ~~mining~~underground ~~are~~development ~~fully~~and ~~reclaimed.~~bulk ~~The~~sampling ~~Company operates under 11 combined federal~~ and ~~state permits~~processing.

2927

The ~~Company~~primary ~~currently~~plan isof inoperations afor ~~transitional~~the ~~phase~~Company ~~between~~is the ~~exploration~~advancement ~~and~~of ~~development~~the onNolan ~~this~~Project ~~property.~~toward ~~The~~the ~~preliminary~~development ~~hardrock feasibility~~stage ~~study, effective January 1, 2009~~ and ~~amended~~depending on obtaining ~~June~~sufficient 1financing, ~~2009~~management ~~to reflect~~will ~~additional~~pursue ~~data, supported~~ a ~~probable~~responsible ~~mineral~~timeline that ~~reserve~~will ofmeet ~~antimony~~the ~~and gold~~needs ~~underlying~~of the ~~southwestern~~Project ~~portion~~and of the ~~Solomon~~budget. ~~Shear~~The ~~Zone,~~procurement ~~an area~~of ~~referred~~supplies toand byequipment for the ~~Company~~construction asof ~~Workman’s~~a ~~Bench.~~pilot ~~The~~mill ~~study~~at byNolan ~~the~~for ~~Company’s QP~~the ~~concluded~~processing ~~that~~of ~~the~~a ~~Nolan~~1,000 ~~Gold~~cubic ~~and~~yard ~~Antimony~~sample ~~Project~~is inimportant to the ~~Workman’s~~advancement ~~Bench~~of ~~area~~the ~~are economically viable~~operation. ~~The~~Depending ~~results~~on ofavailable capital, the ~~January~~procurement ~~2009~~of ~~preliminary~~supplies ~~feasibility~~for the ~~study~~pilot ~~and~~mill ~~the~~could ~~reserve~~stall ~~estimates~~the ~~are~~bulk ~~disclosed~~sample program in which case the Company’s ~~Annual~~will continue ~~Report~~with ~~on Form~~the ~~10-KSB~~drilling ~~filed~~program and other exploration activities on ~~March~~the ~~16,~~Nolan Creek ~~2009~~Property and focus on the ~~Company’s~~increase ~~website: www~~in mineral resources.~~silverado.com.~~

The ~~measured~~plan ~~reserve~~of ~~estimates~~operation onfor ~~Workman’s Bench, on which~~ the ~~pre-feasibility~~ ~~study~~Nolan ~~was~~Gold ~~based,~~Project ~~did~~for ~~not change in~~ the ~~amended June 1, 2009~~2011 ~~Technical~~fiscal ~~Report.~~year ~~Also,~~is the ~~current~~advancement ~~probable~~toward ~~reserves~~the atdevelopment ~~Workman’s~~and ~~Bench~~mining ~~did~~stage ~~not~~of our ~~change~~Nolan ~~following~~Gold ~~the~~and ~~2009~~Antimony ~~exploration~~Project, ~~program~~especially atalong the ~~Nolan~~southwestern ~~Creek~~end ~~property.~~of the ~~The~~Solomon ~~current~~Shear ~~mineral~~Zone ~~resource~~in ~~estimates from~~ the Workman’s Bench ~~and Pringle~~Area. ~~Bench~~The ~~lode prospects were determined by the~~ Company QPis ~~following~~in ~~the~~a transitional ~~2009~~phase ~~drill~~between ~~program,~~exploration and ~~the~~development. ~~estimates~~The ~~were~~recent ~~disclosed~~preliminary tofeasibility study ~~the~~effective ~~public on~~ January 71, 2009., ~~Resources~~amended ~~were~~June ~~increased~~1, ~~substantially after the~~ 2009, ~~drilling~~supported ~~and~~a ~~January~~mineral 7,reserve ~~2010~~of ~~report~~antimony ~~analysis.~~and ~~Investors~~gold ~~need~~underlying tothe besouthwestern ~~cautioned~~portion ~~that~~of the ~~new resource~~Solomon ~~estimates~~Shear ~~are~~Zone, ~~not~~an ~~reserves~~area ~~and~~referred ~~have~~to ~~not~~by ~~been~~the ~~subjected~~Company toas ~~enough~~Workman’s ~~relevant~~Bench. The 2008 ~~testing~~feasibility tostudy ~~demonstrate~~by ~~economic~~Thomas ~~viability~~K. ~~The~~Bundtzen ~~current~~(“Bundtzen” ~~resource estimates~~or ~~for~~“QP”) ~~the~~concluded that the Nolan Gold and Antimony Project ~~are~~in ~~listed~~the ~~below:~~Workman’s Bench area is economically viable.

~~General~~Our ~~Note~~plan ~~Regarding~~of ~~Estimates~~operations for the next three years involves collecting a 1,000 cu yd bulk sample of the stibnite-gold vein material from the mineralized zones referred to as the ‘A’ Zone and possibly ‘B’ and West Zones. The bulk sample will be for larger scale milling and processing tests, and a more accurate mineralogical determination of the gold, especially what the Company has termed ‘nugget effect’ of the gold found in the massive stibnite veins. The Company believes that the grade of gold will increase upon the extraction of the larger scale bulk sample due to the ‘nugget effect’ which is not represented during the drilling effort. The successful extraction of a 1,000 cu yd sample will give a better indication of the special and physical relationships between the gold and the antimony. The bulk sample is also necessary for additional verification of the purity of the antimony content in the stibnite and whether or not at depth there is a potential for zonation of increased deleterious metals that could contaminate the antimony ore.

The ~~following~~plan ~~information~~of ~~should~~operations befor ~~considered~~2011 involves the continuation of a variety of characterization studies in ~~connection~~preparation for the development stage and ~~with~~for permitting requirements necessary for the future production of the antimony-gold deposit underlying the Workman’s Bench. These studies include but are not limited to additional hydrologic studies proximal to our ~~estimates~~planned underground ~~below~~workings, ~~which~~as wewell ~~are~~as ~~disclosing~~environmental inbaseline ~~accordance~~studies ~~with~~of ~~applicable~~the flora and ~~SEC~~fauna ~~standards~~and the baseline chemical and ~~regulations:~~physical parameters of the creek water, and acid-base accounting (ABA) studies of the ore-hosting rock determining an appropriate, effective and safe disposal of acid mine waste rock.

~~Assumed~~Much ~~Prices~~of the work planned for 2011 is seasonal dependent. During the summer months we plan to use our diamond core drill for infill drilling for additional reserve estimates and structural interpretation. We plan to drill a minimum of US20 $1shallow (200 to 500 ft) NQ diamond core drill holes,~~100/oz~~ ~~for~~as ~~gold~~well 30 deeper holes (> 500 ft) into the Solomon Shear Zone. Also, many of the formerly mentioned characterization studies will be continued through the summer months. Depending on available capital, the Company plans the procurement of necessary facility and USsystem $4upgrades, as well as the acquisition of necessary equipment and the construction of a pilot mill facility.~~00/lb~~ Currently we have a fully functioning all season enclosed 23 man camp with three functioning offices with computers and internet access. The camp has a STW treatment plant for sewage ~~antimony~~and graywater treatment. The camp site also has a large mechanics shop for working on heavy equipment such as backhoes and bulldozers. The camp also has multiple ADEC approved containments with tanks capable of storing 30,000 gallons of diesel fuel, and a peripheral explosives storage area.

Process Recovery Rates of 85% for antimony and 90% for gold (as provided by Hazen Research from work done on an underground bulk sample from the D tunnel of the Workman’s Bench A vein and using gravity and water recovery systems only). 28

~~Estimated~~During ~~Operating~~the ~~Costs~~late fall of US2011, ~~$375/ton~~we plan to open our portal and begin the excavation of a decline to begin the extraction of the bulk sample. We plan to extract the majority of vein material from the ‘A’ Zone since more than 70% of the current reserve is in this zone. We plan to use a cut-and-fill stoping method. Once a stope is driven, ~~based~~the vein structure will be shot off the rib at an estimated width of 2 feet and mucked out for storage and processing at the surface. Waste rock will be temporarily stored on ~~operation~~lined pads along the left limit Bench of aNolan 92Creek ~~ton~~Valley, an area used previously by the Company for ~~per~~seasonal ~~day~~storage ~~underground~~of ~~mine~~bulk samples.

ACurrently, ~~cutoff~~the ~~grade~~Company’s ofengineers 4%and ~~antimony~~geologists ~~was~~have ~~used in our analysis. A 4%~~designed ~~cutoff~~the ~~grade~~subsurface ~~should~~routes befor ~~regarded~~an asaccess 4%decline ~~antimony~~and ~~equivalent.~~egress Noroutes ~~cutoff~~for ~~grade~~the ~~was~~extraction ~~used~~of ~~for~~the ~~gold~~bulk sample material, as ~~antimony~~well ~~was~~as ~~the~~located ~~primary~~sites ~~commodity~~for ~~being~~temporary ~~examined,~~tailings storage and ~~none~~additional ~~of the~~layout ~~resource~~sites ~~polygons~~and ~~contained~~mill ~~less than 0~~design.05 ~~oz/ton gold.~~

~~Total~~Readers ~~Probable~~and ~~Lode~~investors ~~Mineral~~are ~~Reserves,~~cautioned ~~Nolan~~that ~~Creek~~much ~~Area~~of the work ~~effective~~planned ~~January,~~in 12011 ~~2009~~is contingent upon available funding and the success and speed of the permitting process.

~~Cautionary~~Our ~~Note~~exploration plans are to ~~Investors~~further ~~concerning~~define ~~estimates~~lode gold and antimony resources.. The program includes drilling and trenching, as well as the review of geological and geophysical data. Our proposed drilling program for ~~Probable~~2011 ~~Reserve~~will be aimed at lode gold and antimony exploration. Lode drilling will focus on Pringle Bench, Workman’s Bench and the Hillside along the Solomon’s Shear trend, and is designed to provide a better three dimensional understanding of the mineralized sections of the structure and how it is related to the placer gold deposits of the Nolan Creek area.

~~Readers~~We ~~are~~have ~~cautioned~~been ~~that~~working on interpreting the ~~following~~geology ~~estimates~~of ~~are~~the ~~under~~Nolan ~~the~~area ~~category~~since of1979, awhen ~~probable~~we ~~reserve~~first acquired the project. Our latest and ~~they~~most extensive ~~are~~exploration ~~not~~program abegan ~~proven~~in ~~reserve,~~early ~~which~~2007 and was directed at improving ~~requires~~our aplacer ~~higher~~deposit ~~degree~~definition and discovering potential lode sources of ~~feasibility~~the placer ~~study~~gold. ~~These~~Our ~~values~~exploration ~~are~~geologists ~~based~~and ~~off~~mining ofengineers ahave worked to move ~~preliminary~~this ~~feasibility~~objective ~~study,~~forward. ~~which~~Our isexploration ~~not~~efforts have included the ~~same~~analysis asof geophysical adata, ~~legal~~geochemical ~~feasibility~~sampling results, Company records and analysis ~~study~~provided by government mineral investigation efforts and publications as well as the trenching and exploration drilling of target areas.

~~Silverado’s~~If ~~Probable~~we ~~Lode~~can ~~Mineral~~raise ~~Reserves~~the necessary capital, we plan to spend up to $10,000,000 in the next twelve months in carrying out our exploration, permitting and development activities for the Nolan ~~Creek~~Gold ~~Area~~Project. Of this amount, $3,600,000 is projected for lode drilling on the Solomon Shear Zone. The actual amount that we spend on exploration will depend on the actual amount of funds that we have available for exploration. We are presently seeking to obtain sufficient financing to enable us to proceed with these plans

Reserve Category	Cut-Off Grade (% Sb)	Quantity (tons)	Grade (% Sb)	Metal (ton Sb)	Grade (oz/ton Au)	Metal (oz Au)
Probable	4.0	42,412	28.00	11,880	0.408	17,300

Notes:

-- The effective date of these resources is January 1, 2009 -- Rounding may result in some discrepancies. -- No processing recovery factors have been applied to these resource figures. -- The unit ton refers to short tons. -- Cut-off grade is 4.0% Sb ‘equivalent’, which the combined values of gold plus antimony expressed in terms of antimony alone. -- Effective date of the estimate is January 1. 2009. The 2009 drill program was not involved with the current reserve block and as such did not affect the grade or tonnage listed.

Total Indicated Lode Mineral Resources, Nolan Creek Area effective January 7, 2010

Cautionary Note to U.S. Investors concerning estimates of Indicated Resources

The following table uses the term ‘indicated resources’. Silverado advises U.S. investors that while this term is recognized and required by Canadian regulations (under National Instrument 43-101 Standards of Disclosure for Mineral Projects), the U.S. Securities and Exchange Commission does not recognize this term. U.S. investors are cautioned not to assume that any part or all of mineral deposits in these categories will ever be converted into reserves.

The following table summarizes the indicated mineral resources for the Workman’s Bench gold and antimony deposit as a result of the 2009 investigation. The 2009 exploration program focused on the ‘A Zone’ in an area vertically above the current mineral reserve block and was not previously drilled or investigated prior to 2009. The effective date of these resources is January 7, 2010.

Silverado’s Indicated Lode Mineral Resources, Nolan Creek Property

Resource Category	Vein-Fault Ore Zone	Cut-off (% Sb)	Quantity (short tons)	Grade (% Sb)	Metal (ton Sb)	Grade (oz/ton Au)	Metal (oz Au)
Indicated	A Zone	4.0	11,394	20.00	2,278.4	0.244	2,777.0
Indicated	B Zone	4.0	645	20.51	132.3	0.099	64.1
Indicated	A and B Combined	4.0	12,039	20.02	2,410.7	0.236	2,841.1

Notes:

Mineral Resources which are not mineral reserves do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues.

Rounding may result in some discrepancies.

No processing recovery factors have been applied to these resource figures.

The unit ton refers to short tons.

Cut-off grade is 4.0% Sb ‘equivalent’, which refers to the combined values of gold plus antimony expressed in terms of antimony alone.

Mineral Resources that are not mineral reserves do not have demonstrated economic viability.

Total Inferred Lode Mineral Resources, Nolan Creek Area effective January 7, 2010

Cautionary Note to U.S. Investors concerning estimates of Inferred Resources

The following table uses the term ‘inferred resources’. Silverado advises U.S. investors that while this term is recognized and required by Canadian regulations (under National Instrument 43-101 Standards of Disclosure for Mineral Projects), the U.S. Securities and Exchange Commission does not recognize this term. U.S. investors are cautioned not to assume that any part or all of mineral deposits in these categories will ever be converted into reserves.

The following table summarizes the inferred mineral resources for the gold and antimony deposit, effective January 7, 2010.

Resource Category	Deposit	Cut-off (% Sb)	Quantity (short tons)	Grade (% Sb)	Metal (ton Sb)	Grade (oz/ton Au)	Metal (oz Au)
Inferred	Pringle	4.0	12,817	19.61	2,513.8	0.499	6,390.4
Inferred	Workman’s	4.0	21,389	12.11	2,590.6	0.272	5,816.6
Inferred	Pringle + Workman’s	4.0	34,206	14.92	5,104.4	0.357	12,207.0

Notes:

Rounding may result in some discrepancies.

No processing recovery factors have been applied to these resource figures.

The unit ton refers to short tons.

Cut-off grade is 4.0% Sb ‘equivalent’, which refers to the combined values of gold plus antimony expressed in terms of antimony alone.

Mineral Resources that are not mineral reserves do not have demonstrated economic viability.

Plan of Operations:

The plan of operations for the Nolan Gold Project for the remainder of the 2010 fiscal year is the advancement toward the development and mining stage of our Nolan Gold and Antimony Project, especially along the southwestern end of the Solomon Shear Zone in the Workman’s Bench, Pringle and Hillside Areas. The Company is in a transitional phase between exploration and development. The recent preliminary feasibility study effective January 1, 2009, supported a mineral reserve of antimony and gold underlying the southwestern portion of the Solomon Shear Zone, an area referred to by the Company as Workman’s Bench. The 2008 feasibility study by Bundtzen (QP) concluded that the Nolan Gold and Antimony Project in the Workman’s Bench area is economically viable.

Our plan of operations involves collecting a 1,000 cu yd bulk sample of the stibnite-gold vein material from the mineralized zones referred to as the ‘A’ Zone and possibly ‘B’ and West Zones. The bulk sample will be for larger scale milling and processing tests, and a more accurate mineralogical determination of the gold, especially what the Company has termed ‘nugget effect’ of the gold found in the massive stibnite veins. The Company believes that the grade of gold will increase upon the extraction of the larger scale bulk sample due to the ‘nugget effect’ which is not represented during the drilling effort. The successful extraction of a 1,000 cu yd sample will give a better indication of the special and physical relationships between the gold and the antimony. The bulk sample is also necessary for additional verification of the purity of the antimony content in the stibnite and whether or not at depth the current exceptional purity is sustainable.

Also, the plan of operations for 2010 involves performing a variety of characterization studies in preparation for the development stage and for permitting requirements necessary for the future production of the antimony-gold deposit underlying the Workman’s Bench. These studies include but are not limited to additional hydrologic studies proximal to our planned underground workings, environmental baseline studies of the flora and fauna and the baseline chemical and physical parameters of the creek water, and acid-base accounting (ABA) studies of the ore-hosting rock determining an appropriate, effective and safe disposal of acid mine waste rock.

Much of the work planned for 2010 is season-dependent. During the next 3 months we plan to perform maintenance and upgrades to our diamond core drill rig as well as other mechanized equipment which is kept on site at Nolan Creek. Also, additional drill core samples from previous drilling campaigns will be selected for geochemical analyses for in-fill purposes. The samples will be collected from the areas between the previously determined A and B and West zones. The Company does not plan to sample between the B and C zones. Sampling the intermediate areas is in response to the increase in gold prices and the Company wants to make a determination of a possible bulk minable resource which would require geochemical assays across broader zones

Depending on available capital, we plan the procurement of necessary facility and system upgrades, as well as the acquisition of necessary equipment and the construction of a 500 ton per day mill facility. Currently we have a fully functioning all-season enclosed 26 man camp with three functioning offices with computers and internet access. The camp has a STW treatment plant for sewage and graywater treatment. The camp site also has a large mechanics shop for working on heavy equipment such as backhoes and bulldozers. The camp also has multiple ADEC approved containments with tanks capable of storing 30,000 gallons of diesel fuel, and a peripheral explosives storage area.

In response to the studies last fall and this spring of core drilled in 2009 on Pringle Bench disclosing continual antimony and more significantly the discovery in drill core of high grade drill core assays (+1 to +6 oz gold/ton) along with the continued encountering of wide sections of quartz carbonate stock work veins surrounding the main vein with widths of up to 60 feet showing native gold and stibnite (antimony sulfide); the Company has determined it could accomplish its metallurgical work on both the Pringle and SW Workman’s Bench areas by taking a split of the large HQ2 diamond drill core and creating bulk samples from select zones as identified by geologic core logging and the work performed on these bulk samples would suffice for metallurgical information rather than samples taken directly from underground. This is possible due largely to the continuity of the mineralized vein from one hole to another and to the competency of the country rock around the main vein and between veins in the area of the mineralized quartz carbonate stockwork. 71 of 71 drill holes encountered the ore vein over a continuous strike length of 3,500 feet by a depth of 500 feet.

Readers and investors need to take caution, in that much of the work planned in 2010 is contingent upon available funding and the success and speed of the permitting process.

Since the Project is advancing into the development stage, exploration drilling will not be conducted in the Fortress area which is part of a gold bearing east-west trending deformation zone.

Company and contract geologists along with the Company QP have confirmed that the gold and antimony mineralized zones correlate with the surface geochemistry and geophysical data that extends northeast past Pringle Bench along the strike through an area referred to as the Hillside Lode Prospect. The Company has stated previously that the Hillside Area was thought to be the source of the placer gold mined from the gravel benches located along the left limit of Nolan Creek between Smith and Archibald Creeks. The Hillside Lode Prospect is located uphill of the gold-rich gravel benches mined by Silverado as recent as 2006.

The Company has been and will continue aggressively seeking permits and also compiling various studies by numerous contractors to meet application requirements for ongoing permits. In order for the project to advance to the development stage at Nolan, the permitting process involves various characterization studies. Some of these studies are seasonally dependent and some require time periods that can delay the permitting process. The baseline water quality sampling which began in June of 2008, was halted due to freezing temperatures during October of 2008, and was continued in early June of 2009. The last baseline water sample for 2009 was collected in late September, and the sampling was continued in 2010 and will again cease in October of 2010.

On May 14, 2010 the United States Army Corps of Engineers issued a five year permit from that date. The permit allows the Company to conduct Hard Rock Exploration to include diamond core drilling at the Nolan Creek Mine.

The access road into the Nolan Creek camp as well as the 26 man camp facility received construction upgrades in 2009 in preparation for the 1,000 cubic yard bulk ore sample that the Company has been permitted to sample. Essential to the bulk sample program and future development is the environmental baseline and characterization studies that include Acid Rock Drainage studies also known as acid-base accounting, as well as the water quality baseline sampling. Samples of the ore and wall rock gangue from various core intercepts and also wall rock from the ‘A’ zone were submitted by the QP to analytical labs for determination of acid generating potential. The Company’s QP has directed a third party engineering firm to conduct various geotechnical studies of the wall rock and ore rock.

The Company, as per the QP, is still seeking a calcareous rock unit that is accessible for extraction on the Nolan property. Permits for the extraction of the calcareous rock will not be applied for until the Company has verified that such a rock unit is accessible. The extraction of a calcareous rock could be used as a buffering liner for temporary storage of waste rock that may have acid generating potential.

During the next three months, Silverado will continue to implement the recommendations of the preliminary feasibility study that was completed by the Company QP, Thomas K. Bundtzen. The QP will determine additional resource estimates and these estimates will be disclosed to the public as soon as they are completed by the QP. The QP will also oversee geotechnical studies as well as the acid rock characterization study. The Company will continue upgrades to the infrastructure at Nolan. The company plans to construct additional access trails for drilling into the Hillside Zone and will perform additional surveying for planning and design purposes. The Company will continue with aggressive permitting and will seek additional capital needed for the procurement of a 500 ton per day mill and equipment that will be used during the extraction and processing of the permitted 1,000 cubic yard bulk sample of gold and antimony ore, as well as on-going ore processing.

During the next three months, Silverado plans to initiate lode development in the Workman’s Bench area as follows:

1. Continued aggressive permitting. 2. Prepare for the 2011 diamond core drill program which will utilize a minimum of two mobile drill rigs. Depending on access to the more remote drill sites, the Company plans on drilling a minimum of 30,000 feet of NQ2 or larger diameter core from the Solomon Shear Zone at Nolan. 3. Baseline characterization studies for permitting purposes. 4. Acid and Base Accounting (ABA) for potential acid drainage issues. 5. Procurement of equipment and infrastructure upgrades needed for the underground extraction of a 1,000 cubic yard bulk sample. 6. Development of additional road infrastructure along the northern extension of the Solomon Shear Zone (Hillside Prospect) that has not been drilled by a diamond core drill to date. 7. Prepare for a possible underground extraction of a bulk sample of antimony and gold ore for additional processing studies and assays.

We will be seeking to raise up to approximately $50,000,000 to continue our exploration and permitting, while continuing and beginning mining development activities on the Nolan Gold Project. The actual amount that we spend on these projects will depend on the actual amount of funds that we are able to raise. We are presently seeking to obtain sufficient financing to enable us to proceed with these plans. The full expenditure of $50,000,000 is expected to place the operation in profitable continuous production with a 500 ton per day mill and a 200 ton per day mine advancing to 500 ton per day by year three.

2. HAMMOND PROPERTY

Our Hammond property is located approximately 8 miles north of Wiseman, and 175 air miles north of Fairbanks, Alaska in the foothills of the Brooks Range in an area known as the Koyukuk Mining District. The Hammond property is located approximately three miles northeast of the Nolan Gold Project.

34The Company leases 24 federal placer mining claims and 36 federal lode mining claims from Alaska Mining Company, Inc. (“Alminco”). As of February 28, 2011, we were in arrears of required mineral property claims and option payments of $570,000 and therefore our rights to the property were adversely affected. We are currently re-negotiating the terms and conditions of the Alminco agreement with Alminco. Alminco has confirmed that our mineral claims and options are in good standing on the understanding we will use our best efforts to pay the minimum royalty payments, including the payments that are in arrears, when business conditions permit; however there is no assurance that we will be able to successfully renegotiate the terms and conditions of the Alminco agreement.

~~The Hammond property is accessible by the Trans-Alaska Pipeline road about 280 road miles north of Fairbanks, Alaska. An all-weather 4x4 road connects Hammond to the pipeline road.~~ 29

The Company leases 24 federal placer mining claims and 36 federal lode mining claims from Alaska Mining Company, Inc. (“Alminco”). Alminco has confirmed that our mineral claims and options are in good standing on the understanding we will use our best efforts to pay the minimum royalty payments, including the payments that are in arrears for the past four years, when business conditions permit.

The encouraging drill results to date, the potential of extending the Slisco Channel to the southeast plus the possibility of discovering gold bearing tributary channels, make this a prospect for additional discoveries. This project will require additional funding. Even if funding is acquired, there is no assurance that a commercial gold bearing placer deposit will be developed. Even if a gold bearing deposit is developed, additional funding will be required to mine the deposit, and until a feasibility study is completed, there is no assurance that the deposit will be profitable to mine.

3. EAGLE CREEK PROPERTY

The Eagle Creek property is comprised of 77 Alaska state mineral claims. All claims are contiguous and are located in the Fairbanks North Star Borough. The total area of the claims equals approximately 3080 acres and all claims are valid. There has been no legal survey on the claims. Ownership of the claims is in the name of Silverado Gold Mines Inc. There is an "option to purchase" agreement with Arley Taylor (i.e., now with his descendants), to purchase a 100% interest in the property for $400,000, of which $38,000 remains to be paid. The amount of $5,000 per year is required to be paid to keep the agreement in good standing ~~and applies to the buyout price~~. The original option agreement with Arley Taylor was acquired through an agreement with S. Tan who assigned the agreement to us in consideration of 15% royalty from production (15% of net operating profits after payback of costs). We have continued to make option payments on the Eagle Creek property based on the agreement, and as a result, all of our mineral claims and options are in good standing.

~~The~~During ~~Eagle~~2011, ~~Creek~~we ~~property~~plan isto ~~accessed~~move byforward ~~the~~with ~~Steese~~an ~~Highway, 10~~exploration ~~miles~~program ~~north~~which ofwill ~~Fairbanks,~~include ~~Alaska~~both totrenching ~~Fox,~~and ~~Alaska,~~diamond ~~then~~core ~~traveling~~drilling. ~~along the Elliot~~The ~~highway~~majority 6of ~~miles~~the ~~north~~permits torequired ~~Murphy~~for ~~Dome~~the ~~Road,~~proposed ~~then~~exploration ~~west~~program ~~along~~have ~~Murphy Dome Road~~been ~~about~~approved. 5If ~~miles~~funding topermits, the ~~property.~~Company ~~The~~will ~~Number~~design ~~One~~a ~~Vein~~drilling onprogram ~~this~~to further ~~property~~investigate ~~was~~ the ~~lode quartz~~ gold ~~structure~~mineralization ~~that~~associated ~~was~~with ~~historically~~the ~~mined~~mineralized structures ~~commercially~~known ~~for~~as ~~antimony~~vein-faults.

~~Historically,~~A ~~Eagle~~commercially ~~Creek~~viable ~~was~~economic ~~Alaska’s~~mineral ~~second~~deposit ~~largest~~has ~~antimony~~not been ~~producer.~~defined Inon the ~~late 1980s~~property, ~~Silverado built a 100 ton per day (TPD) gravity plant~~ and ~~processed~~there ~~the~~is ~~old~~no ~~mine~~assurance ~~dumps,~~that ~~successfully~~a ~~selling~~commercially ~~all antimony~~viable ~~produced.~~economic Inmineral ~~addition~~deposit toexists ~~the high-grade gold bearing quartz veins found~~ on ~~Silverado’s~~ ~~large~~the ~~Eagle Creek~~ property,. ~~the~~Any ~~Company,~~proposed ~~in 2006, identified what~~exploration ~~appeared~~program tothat beincludes adrilling ~~gold mineralized pluton which~~ is adependent ~~granitic or igneous rock located~~ on ~~the~~available ~~claims~~capital ~~above~~and ~~the~~there ~~placer~~is ~~gold~~no assurance ~~Treasure~~that ~~Creek portion of~~ the ~~property.~~ ~~This~~Company ~~may~~will ~~lead~~be able to ~~the~~initiate ~~development~~such of a ~~bulk mineable gold deposit, and may make ideal feedstock for the Kinross Fort Knox mill nearby~~program.

Annual assessment work will be carried out on the property to keep the mining claims in good standing. Assessment work will be focused on numerous mineralized targets which includes both gold-bearing mineralized intrusive rock similar to the Fort Knox deposit operated by Kinross as well gold and antimony mineralized vein-faults such as the Scrafford vein-fault (Number One Vein) which was mined numerous times by different companies for over half a century. If funding permits, the Company will design a drilling program to further investigate the gold and by-product mineral distribution of the intrusive and the Number One and Number Two Vein systems.

No funding has been advocated for the 2010 work plan. Whereas historic commercially viable mining took place on the Number One (or "Scrafford") Vein, and whereas Silverado has successfully drilled and hit significant widths of high-grade or massive stibnite (antimony sulfide) and significant widths with good gold grades, it has nonetheless yet to complete a definitive drilling program sufficient to indicate reserves, and therefore there is no assurance that a commercially viable economic mineral deposit exists on the property.

4. ESTER DOME PROPERTY

The Ester Dome property is comprised of 52 state mineral claims and 1 unpatented federal mineral claim. The claims are not all contiguous in that there are 5 separate blocks of claims. Silverado Gold Mines Inc. is the registered owner of all claims. The total area of all claims equals approximately 2.5 square miles and all claims are valid. There has been no legal survey on the claims. There are three separate agreements covering these 53 claims on the Ester Dome property.

~~Access~~During 2011, we plan to move forward with the ~~property~~closure of the Grant Mill Tailings Pond. This pond is ~~provided~~filled byto ~~the~~capacity, ~~paved~~and ~~Ester~~will ~~Dome~~be ~~road~~capped and decommissioned after a ~~well-maintained~~final ~~gravel~~approval ~~road.~~of ~~The~~the ~~main~~tailings ~~line~~pond ofclosure ~~the~~plan is received from State of Alaska ~~Railroad~~regulatory ~~passes~~agencies. A meaningful exploration byprogram ~~the~~may ~~west~~be ~~perimeter~~completed ofduring the ~~property~~summer ~~and~~months ato ~~high~~explore ~~capacity~~for ~~electrical~~and ~~line~~identify ~~carrying~~small ~~power~~high-grade togold ~~the~~anomalies ~~Fort~~as ~~Knox~~well ~~mill~~as ~~passes~~larger ~~300~~low-grade ~~feet~~gold ~~below~~anomalies. Completing the ~~Grant~~2011 ~~Mill~~exploration work plan will be contingent on ~~the~~available ~~property~~funding.

~~Reclamation~~LOW-RANK ~~work~~COAL-WATER toFUEL ~~complete~~PROJECT the closure of the Grant Mill Tailings Pond is in the permitting stages. The earthwork construction required to close the tailings pond requires permits issued by the Alaska Department of Environmental Conservation. The Company has commissioned a third party environmental and engineering firm to assist with the permitting process. A cost analysis of the tailings pond closure is under review by the Company and by a third party environmental and geotechnical engineering firm. The pond is filled to capacity, and will be capped and decommissioned after final approval of the tailings pond closure plan is received from State of Alaska regulatory agencies. There was limited field work on the property during the summer of 2010, which consisted of small scale surveys and minor geologic assessment studies and data compilation

~~Due~~Silverado tois ~~the~~currently ~~current~~having ~~price~~a ~~of gold~~$150,000 ~~the~~study ~~Company~~conducted ison ~~considering~~the ~~whether~~chemical toand ~~increase~~physical ~~exploration~~characteristics ~~efforts~~of onMississippi ~~the~~Red ~~property.~~Hills ~~Currently,~~Lignite ~~however,~~Coal ~~the~~at ~~Company is primarily focused on~~ the ~~continued~~Mineral ~~exploration~~Industry ~~and~~Research ~~future~~Laboratory ~~development of~~at the ~~Nolan~~University ~~Gold~~of Alaska (Fairbanks) and ~~Antimony~~expects ~~Project~~results in ~~northern Alaska~~2011.

Results of the tests as well as capital availability and an increase in oil prices would all have to be present and sufficient for Silverado Green Fuel Inc. to reconsider construction of its Green Fuel project.

LIQUIDITY AND CAPITAL RESOURCES

Our current ratio (current assets divided by current liabilities) as of ~~August~~February 3128, ~~2010~~2011 was 0.0508 as compared to 0.3716 as of November 30, ~~2009~~2010. This ratio is commonly used as a measure of a company’s liquidity. We look at actual dollars in analyzing our liquidity. Since the Company’s cash inflow has been generated mainly from sales of shares of the Company’s common stock, gold sale proceeds earned during the exploration stage, debentures and loans, it will be very difficult for the Company to meet the current and anticipated obligations without raising additional capital. If we are not able to raise adequate capital and to do so in a timely manner, we will not be able to fully implement our business plan or sustain ongoing operations.

As of ~~August~~February 3128, ~~2010~~2011, the Company had a working capital deficit of $2,~~323~~016,000 as compared to a working capital deficit of $12,~~272~~022,000 as of November 30, ~~2009~~2010. The Company had $1741,~~655~~216 cash on hand as of ~~August~~February 3128, ~~2010~~ 2011 as compared to no$66,267 cash ~~and cash equivalents~~ on hand as of November 30, ~~2009~~2010. The Company’s total assets for such periods were $2,~~548~~279,000 (November 30, ~~2009~~2010: $32,~~145~~484,000) and the total current assets were $~~110~~186,000 (November 30, ~~2009~~2010: $~~745~~389,000).

As of ~~August~~February 3128, ~~2010~~2011, the Company’s current assets consist of of $1741,~~655~~216 (November 30, ~~2009~~2010: $~~Nil~~66,267) in cash, $6,316 (November 30, ~~2009~~2010: $6,316) in gold inventory and $86138,~~457~~138 (November 30, ~~2009~~2010: $~~738~~316,~~473~~393) in prepaid and other receivables. Included in prepaid and other receivables were non-cash ~~prepaid~~ prepaid consulting and other fees of $5495,~~710~~105 (November 30, ~~2009~~2010: $~~716~~271,~~865~~193) paid ~~through~~ through issuances of the Company’s common stock under the Company’s equity ~~compensation~~ compensation plans. ~~The majority of the Company’s assets are long-term or non-cash in nature and thus considered being of lower liquidity.~~

The ~~Company’s~~majority ~~mineral rights were valued at $1,578,000 as~~ of ~~August~~ ~~31,~~the ~~2010~~Company’s asassets ~~compared~~are tolong-term ~~$1,399,000 as of November 30, 2009, an increase of $179,000~~ or ~~13%. The increase in the value of our mineral rights this past~~non-cash ~~nine months is directly attributable to $94,000~~ in ~~claim~~nature ~~fees payment, $5,000 in royalty payment~~ and ~~$80,000~~thus inconsidered anbeing ~~accrued royalty payment. The net book value~~ of ~~our~~lower ~~fixed assets was $860,000 as of August 31, 2010 as compared to $1,002,000 as of November 30, 2009, a decrease of approximately $142,000 or 14%~~liquidity. ~~The decrease in the net book value of our fixed assets was due to depreciation.~~

36The Company’s mineral rights have a carrying value at $1,622,000 as of February 28, 2011 as compared to $1,600,000 as of November 30, 2010, an increase of $22,000 or 1%. The increase in the value of our mineral rights this past three months is directly attributable to $22,000 in an accrued royalty payment. The net book value of our fixed assets was $471,000 as of February 28, 2011 as compared to $494,000 as of November 30, 2010, a decrease of approximately $23,000 or 5%. The decrease in the net book value of our fixed assets was due to depreciation.

The current liabilities as of ~~August~~February 3128, ~~2010~~2011 totaled $2,~~434~~201,000 as compared to $2,~~017~~411,000 as of November 30, ~~2009~~2010, ana ~~increase~~decrease of approximately $~~417~~210,000 or 219%. Included in current liabilities are $~~947~~666,000 (November 30, ~~2009~~2010: $1872,~~064,~~000) due to related parties, ~~$1,164,000~~which ~~(November~~has ~~30,~~been classified ~~2009:~~as ~~$883,000)~~operating ofactivities ~~accounts~~in ~~payable~~the ~~and~~Company’s ~~accrued~~cash ~~liabilities~~flow statements, and $~~269~~895,000 (November 30, ~~2009~~2010: $70916,000) of ~~convertible~~accounts ~~debt~~payable ~~instruments~~and accrued liabilities.

The Company has not yet generated revenues since recommencement of the exploration stage on December 1, 2001 and our cash was primarily generated from the sale of our securities. During the ~~nine~~fiscal ~~months~~quarter ended ~~August~~ 31February 28, ~~2010~~2011, the Company raised $~~426~~432,000 of net proceeds through completed ~~private~~ private placements, ~~received~~of which $3378,~~250~~000 ~~through~~was received from uncompleted private placement subscriptions ~~and~~ ~~$201,000~~in ~~through~~fiscal ~~warrants~~year ~~exercise~~ended November 30, 2010. The Company also received $~~251~~108,~~000~~947 ~~of net proceeds~~ through ~~the~~warrants ~~sale~~exercise, of ~~convertible~~which ~~debentures and~~ $50104,~~000~~453 ~~through~~is included in common stock subscribed. During the ~~sale~~fiscal ofyear aended ~~promissory note.~~November In30, ~~addition~~2010, the Company’s ~~related~~raised ~~parties~~$594,000 ~~made~~of ~~loans~~net asproceeds ~~needed~~through tocompleted ~~the Company~~private ~~during~~placements ~~the~~of which ~~nine~~$100,000 ~~months~~was ~~ended~~received ~~August~~from ~~31,~~uncompleted ~~2010~~private ~~when~~placement ~~the~~subscriptions ~~Company’s~~in ~~cash-flow~~the ~~was~~fiscal ~~constrained~~year ended November 30, 2009.

During the ~~fiscal~~three ~~year~~months ended ~~November~~February 3028, ~~2009~~2011, the Company ~~raised~~incurred $222,~~047,~~000 of(2010: ~~net proceeds through completed private placements and received~~ $~~100~~80,000) ~~through~~on ~~uncompleted~~mineral ~~private~~rights ~~placement~~and ~~subscriptions. In addition, the Company received~~ $~~237~~95,000 as(2010: ~~a result of used mining equipment disposals and~~ $5286,000) on ~~as a result of gold inventory sales during~~ the ~~fiscal~~mineral ~~year ended~~exploration ~~November~~and ~~30,~~drilling ~~2009~~program.

~~During the nine months ended August~~ 31, 2010, the Company spent $367,000 (2009: $654,000) on the mineral exploration program. In addition, the Company has spent $2,592,000 (2009: $3,764,000) on other operating activities. The Company has been reviewing its budgets for its current business needs and its further exploration and early stage production at its Nolan Creek property in Alaska. Our plan of mining operations in Alaska anticipates that we will need to raise and expend approximately $10,000,000. We will also need to raise and spend approximately $3,000,000 on general and administrative costs.

In addition, the Company has incurred $1,405,000 (2010: $1,032,000) on other operating activities. The Company has been reviewing its budgets for its current business needs and its further exploration and early stage production at its Nolan Creek property in Alaska. Our plan of mining operations in Alaska anticipates that we will need to raise and expend approximately $10,560,000 during fiscal year 2011. We will also need to raise and spend approximately $3,000,000 on general and administrative costs during fiscal year 2011.

The Company is currently seeking capital to place the Nolan mine into the development and production phase.

The Company expects to continue to be funded primarily from equity financings and will continue the current process of seeking to arrange financing of those operational budgets, exploration and near term production to meet the requirements of the work program. The ability of the Company to complete the exploration and development of its mineral properties is dependent on the Company’s ability to obtain the necessary financing. There is no assurance that we will be able to raise the financing necessary to enable us to implement our business plan.

SEGMENT INFORMATION

The Company operates in one reportable segment, located in United States, being the acquisition and exploration of mineral properties. The Company’s development of low-rank coal-water fuel, located in United States, is in its initial stages and is not a reportable segment. Segmented information has been compiled based on the geographic regions that the Company and its subsidiaries registered and performed exploration and administration activities. A summary of financial information by geographical areas is as follows:

Assets by geographical segment as of the fiscal quarter ended August 31, 2010 and the fiscal year ended November 30, 2009 is as follows:

		Canada		United States		Total
As of February 28, 2011
Mineral properties and rights		-		1,621,692		1,621,692
Property and equipment		7,544		463,704		471,248
	$	7,544	$	2,085,396	$	2,092,940

As of November 30, 2010
Mineral properties and rights		-		1,600,442		1,600,442
Property and equipment		7,676		486,740		494,416
	$	7,676	$	2,087,182	$	2,094,858

For the Three Months Ended February 28, 2011
Total net loss and comprehensive loss	$	1,463,982	$	139,128	$	1,603,110

For the Three Months Ended February 28, 2010
Total net loss and comprehensive loss	$	961,305	$	175,018	$	1,136,323

37RESULTS OF OPERATIONS – Three Months Ended February 28, 2011 and 2010

As of August 31, 2010		Canada		United States		Total
Current assets	$	85,737	$	24,691	$	110,428
Mineral rights		-		1,577,681		1,577,681
Property, plant and equipment, net		350,157		509,681		859,838
Total assets, as of August 31, 2010	$	435,894	$	2,112,053	$	2,547,947
As of November 30, 2009		Canada		United States		Total
Current assets	$	720,088	$	24,701	$	744,789
Mineral rights		-		1,398,601		1,398,601
Property, plant and equipment, net		423,121		578,888		1,002,009
Total assets, as of November 30, 2009	$	1,143,209	$	2,002,190	$	3,145,399
Loss by geographical segment for the nine months ended August 31, 2010 and 2009 is as follows:
For the Nine Months Ended August 31, 2010		Canada		United States		Total
Total comprehensive loss	$	2,492,085	$	505,829	$	2,997,914
For the Nine Months Ended August 31, 2009		Canada		United States		Total
Total comprehensive loss	$	4,332,202	$	1,031,644	$	5,363,846

The Company has not generated revenues since recommencement of the exploration stage from December 1, 2001 to February 28, 2011. For the three months ended February 28, 2011, we reported a net loss of $1,603,000, or $0.00 per share, compared to a net loss of $1,136,000, or $0.00 per share for the same period ended February 28, 2010, an increase of approximately 41%.

~~RESULTS OF OPERATIONS – Nine months ended August 31, 2010 and 2009~~32

The ~~Company~~major ~~has~~decreases ~~not~~in ~~generated~~three ~~revenues~~months ~~since~~ended ~~recommencement~~February ~~of the~~28, ~~exploration~~2011, ~~stage~~as compared ~~from~~to ~~December~~the 1,same ~~2001~~period toin ~~August 31~~2010, ~~2010.~~were ~~For~~ the ~~nine~~Company’s legal and other ~~months~~professional ~~ended~~fees ~~August~~by 31$163, ~~2010~~000, weand ~~reported~~reporting aand ~~net~~investor ~~loss~~relations ofexpenses by $228,~~981,~~000,. orThese ~~$0.002 per~~decreases ~~share,~~were ~~compared~~mainly due to acash ~~net~~limitations ~~loss~~and the development of ~~$5,364,000,~~a orrestructuring ~~$0.004~~plan ~~per~~that ~~share for~~ the ~~same~~ ~~period~~Company ~~ended~~is ~~August~~working ~~31,~~on ~~2009,~~to afund ~~decrease~~its ofexploration and ~~approximately~~development ~~44%~~activities.

The major ~~decreases~~increases included in ~~nine~~the ~~months~~net loss for three months ended ~~August~~February 3128, ~~2010~~2011, as compared to the same period in ~~2009~~2010, were ~~the Company’s consulting fees by~~increases of $178,~~086,~~000, ~~exploration~~in ~~expenses~~accounting byand auditing fees, $~~307~~479,000, ~~management~~in ~~services~~consulting fees, by $~~484~~56,000, in ~~reporting~~office expenses, and ~~investor relations by~~ $~~104~~82,000 ~~and~~in ~~transfer~~accretion ~~agent~~of ~~and filing~~discount ~~fees~~on byconvertible ~~$37,000~~and promissory debentures. ~~These~~Such ~~decreases~~increases were mainly due to ~~cash~~increased ~~limitations and~~funding during the ~~development~~period offor aequity ~~restructuring~~and ~~plan~~convertible ~~that~~debt financings and the Company’s efforts isrelating ~~working on~~ to ~~fund its~~restructuring, ~~exploration~~development and ~~development activities~~expansion.

The major increases included in the net loss for nine months ended August 31, 2010, as compared to the same period in 2009, were increases of $269,000 for financing fees, $52,000 for legal and other professional fees and $70,000 for interest expenses. Such increases were mainly due to cash constraints and the increased legal and other profession requirements related to the Company’s efforts on restructuring, equity financing, development and expansion.

During the nine months ended August 31, 2009, the Company wrote off $261,000 of convertible debentures and accrued interest. Also, the Company wrote off $600,000 of payables due to the related party, Tri-Con Mining Inc. and issued 100,000,000 shares of the Company’s common stock to an investor, valued at $960,000, as payment of a commitment fee for an Equity Line of Credit Agreement entered on May 6, 2009. These transactions are due to cash constraints and the increased requirements related to the Company’s efforts on equity financing.

RESULTS OF OPERATIONS – Three months ended August 31, 2010 and 2009

The Company has not generated revenues since recommencement of the exploration stage from December 1, 2001 to August 31, 2010. For the three months ended August 31, 2010, we reported a net loss of $852,000, compared to a net loss of $1,010,000 for the same period ended August 31, 2009, a decrease of approximately 16%.

The major decreases in three months ended August 31, 2010, as compared to the same period in 2009, were the Company’s exploration expenses by $287,000, management service fees by $122,000, consulting fees by $297,000, and reporting and investor relations by $66,000. These decreases were mainly due to cash limitations and the development of a restructuring plan that the Company is working on to fund its exploration and development activities.

The major increases included in the net loss for three months ended August 31, 2010, as compared to the same period in 2009, were increases of $268,000 of financing expenses and $20,000 accrued interests on convertible and promissory debentures. Such increases were mainly due to the increased requirements related to the Company’s efforts on equity financing.

RELATED PARTY TRANSACTIONS

The details of related party transactions are disclosed in footnote 10 of the Company’s interim unaudited consolidated financial statements for the fiscal quarter ended ~~August~~February 3128, ~~2010~~2011 (Item 1, above).

CRITICAL ACCOUNTING POLICIES

The details of our critical accounting policies are disclosed in footnote 2 of the Company’s interim unaudited consolidated financial statements for the fiscal quarter ended ~~August~~February 3128, ~~2010~~2011 (Item 1, above).

OFF-BALANCE SHEET ARRANGEMENTS

~~During~~We ~~the quarter ended August 31, we~~ have not entered into any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures, or capital resources, and that would be considered material to investors.

~~INFLATION~~33

The amounts presented in the financial statements do not provide for the effect of inflation on our operations or financial position. The net operating losses shown would be greater than reported if the effects of inflation were reflected either by charging operations with amounts that represent replacement costs or by using other inflation adjustments.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

As a smaller reporting company, Silverado is not required to provide the information required by this Item.

ITEM 4. CONTROLS AND PROCEDURES

The Company’s management is responsible for establishing and maintaining adequate internal control over financial reporting. As required by Rule 13a-15 under the Securities Exchange Act of 1934 (the “Exchange Act”), we carried out an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures and our internal control over financial reporting as of ~~August~~February 3128, ~~2010~~2011. This evaluation was carried out under the supervision and with the participation of our Chief Executive Officer Garry L. Anselmo and our Chief Financial Officer Donald Balletto. Based upon that evaluation, it was concluded that our disclosure controls and procedures and our internal control over financial reporting are effective to ensure, among other things, that the information required to be disclosed by us in the reports that we file or submit under the Exchange Act is accumulated, recorded, processed, communicated, and reported within the time periods specified by the rules and forms of the Securities and Exchange Commission.

The term “internal control over financial reporting” is defined as a process designed by, or under the supervision of, our principal executive and principal financial officers, or persons performing similar functions, and effected by our board of directors, management and other personnel, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles and includes those policies and procedures that:

	a)	Pertain to the maintenance of records that in reasonable detail accurately and fairly reflect our transactions and dispositions of assets;

	b)	Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures are being made only in accordance with authorizations of our management and directors; and

	c)	Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of our assets that could have a material effect on our financial statements.

During the ~~nine~~three months ended ~~August~~February 3128, ~~2010~~2011, there were no changes that had a material effect on, or are reasonably likely to affect, our internal control over financial reporting.

It should be noted that an internal control system, however well designed and operated, can provide only reasonable, and not absolute, assurance that the objectives of the controls system are met. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within a company have been detected. In addition, this evaluation was made in light of the fact the Company has no operation revenues and limited cash on hand.

4034

PART II

OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

The Company is not a party to, and its property is not the subject of, any material pending legal proceeding, in either case other than ordinary routine litigation incidental to the business. The Company also is not aware of any proceeding that a governmental authority is contemplating.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

~~The~~On December 15, 2010, the Company ~~has~~completed ~~not~~the ~~sold~~sale ~~any~~and ~~unregistered~~issuance ~~securities~~of ~~during~~11,446,887 shares ~~the~~of ~~period~~its ~~covered~~restricted bycommon ~~this~~stock ~~report~~under ~~other~~Rule ~~than~~506 ~~those~~of ~~previously~~Regulation ~~reported~~D onof the Act to one accredited investor following such investor’s conversion of a convertible ~~Current~~promissory ~~Report~~note. onThe ~~Form~~per ~~8-K~~share ~~filed~~conversion ~~with~~price ~~the~~of ~~Securities~~such ~~and~~shares ~~Exchange~~was US ~~Commission~~$0.002184, resulting in a conversion price of US $25,000.

On December 20, 2010, the Company entered into one Regulation D Subscription Agreement pursuant to which it sold and issued an aggregate of 25,000,000 shares under Rule 506 of Regulation D of the Act to one accredited investor for the aggregate purchase price of US $100,000.

On January 4, 2011, the Company entered into one Regulation D Subscription Agreement pursuant to which it sold and issued an aggregate of 25,000,000 shares under Rule 506 of Regulation D of the Act to one accredited investor for the aggregate purchase price of US $100,000.

On January 5, 2011, the Company completed the sale and issuance of 11,904,762 shares of its restricted common stock under Rule 506 of Regulation D of the Act to one accredited investor following such investor’s conversion of a convertible promissory note. The per share conversion price of such shares was US $0.0021, resulting in a conversion price of US $25,000.

On January 7, 2011, the Company completed the sale and issuance of 500,000 shares of its restricted common stock under Rule 506 of Regulation D of the Act to one accredited investor following such investor’s exercise of common stock purchase warrants. The per share exercise price of such shares was US $0.00233, resulting in a purchase price of US $1,165.

On January 12, 2011, the Company completed the sale and issuance of 1,428,572 shares of its restricted common stock under Rule 506 of Regulation D of the Act to one accredited investor following such investor’s exercise of common stock purchase warrants. The per share exercise price of such shares was US $0.00233, resulting in a purchase price of US $3,328.

On January 13, 2011, the Company completed the sale and issuance of 11,904,762 shares of its restricted common stock under Rule 506 of Regulation D of the Act to one accredited investor following such investor’s conversion of a convertible promissory note. The per share conversion price of such shares was US $0.0021, resulting in a conversion price of US $25,000.

The Company completed the foregoing transactions in reliance upon the exemption from registration provided by Regulation D of the Act and the rules thereunder insofar as: (i) each of the investors was accredited within the meaning of Rule 501(a); (ii) the securities sold and issued were restricted by the Company in accordance with Rule 502(d); (iii) there were no more than 35 non-accredited investors in all of the transactions completed by the Company under Rule 506 within the six months preceding or following any of the transactions disclosed herein; (iv) the Company satisfied the information requirements set forth in Rule 502(b); and (v) none of the offers and sales were effected through any general solicitation or general advertising within the meaning of Rule 502(c).

The Company did not pay any commissions to third parties in connection with the foregoing transactions.

The Company has not sold any unregistered securities during the period covered by this report other than those reported herein or previously reported on a Current Report on Form 8-K filed with the Securities and Exchange Commission.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

The Company is not currently in material default of indebtedness that exceeds 5% of the total assets of the Company and its consolidated subsidiaries.

ITEM 4. ~~SUBMISSION~~[REMOVED OFAND ~~MATTERS TO A VOTE OF SECURITY HOLDERS~~RESERVED]

Not applicable.

ITEM 5. OTHER INFORMATION

None.

4135

ITEM 6. EXHIBITS

Number	Description of Exhibit
3.1	Articles of Incorporation of the Company (1)
3.2	Amendment to Articles of Incorporation of the Company (2)
3.3	Altered Memorandum of the Company (3)
3.4	Amendment to Articles of Incorporation of the Company (7)
4.1	Share certificate representing common shares of the capital of the Company (1)
10.1	Agreement for Conditional Purchase and Sale of Mining Property between the Company and Roger C. Burggraf dated October 6, 1978 – Grant Mine Property (1)
10.2	Agreement for Conditional Purchase and Sale of Mining Property between the Company and Paul Barelka, Donald May and Mark Thoennes dated May 12, 1979 – St. Paul Property (1)
10.3	Lease of Mining Claims with Option to Purchase between the Company and Alaska Mining Company, Inc. dated February 3, 1995 – Hammond Property (4)
10.4	Change of Control Agreement between the Company and Garry L. Anselmo dated May, 1995(6)
10.5	Amendment to Change of Control Agreement between the Company and Garry L. Anselmo (6)
10.6	Operating Agreement between the Company and Tri-Con Mining Ltd. Dated January 1, 1997 (5)
10.7	Operating Agreement between the Company and Tri-Con Mining Inc. dated January 1, 1997 (6)
10.8	Operating Agreement between the Company and Tri-Con Mining Alaska Inc. dated January 1, 1997 (6)
10.9	Form of Warrant Exercise Agreement between the Company and certain of the selling security holders (8)
10.10	Form of Delay Agreement between the Company and certain of the Selling Shareholders (8)
10.11	~~Shared~~2006 ~~Well~~Stock ~~Agreement~~Option ~~between~~Plan ~~the Company and Sukakpak, Inc., dated May 17, 2007~~ (10)
10.12	~~Lease~~2006-II ~~Agreement~~Stock ~~between~~Option ~~the~~Plan ~~Company and TA Properties~~ (~~Canada) Ltd., dated March 30, 2007 (~~11)
10.13	~~Indemnity~~2007 ~~Agreements~~Stock ~~between~~Option ~~the~~Plan ~~Company and Garry L. Anselmo, Stuart C. McCulloch, and James F. Dixon, each dated October 27, 2008~~ (12)
10.14	~~Indemnity~~Shared ~~Agreements~~Well Agreement between the Company and ~~Garry L. Anselmo~~Sukakpak, ~~Stuart C~~Inc. ~~McCulloch~~, ~~Donald G. Balletto, Robert M. Dynes and John Mackay, each~~ dated ~~December~~May 2317, ~~2009~~2007 (1314)
10.15	~~2009~~2007-1 Equity Compensation Plan (1413)
10.16	~~2009-II~~Lease ~~Equity~~Agreement ~~Compensation~~between ~~Plan~~the Company and TA Properties (Canada) Ltd., dated March 30, 2007 (15)
10.17	~~Equity~~Indemnity ~~Line of Credit~~ Agreements between the Company and ~~Ashborne~~Garry ~~Finance~~L. ~~Ltd~~Anselmo, Stuart C. McCulloch, and James F. Dixon, each dated October 27, 2008 (16)
10.18	~~Consulting~~Indemnity Agreements between the Company and ~~1315781~~Garry ~~Ontario~~L. ~~Inc~~Anselmo, Stuart C. McCulloch, Donald G. Balletto, Robert M. Dynes and John Mackay, each dated December 23, 2009 (17)
10.19	~~Note~~2009 ~~Purchase~~Equity ~~Agreement~~Compensation ~~between~~Plan ~~the Company and St. George Investments, LLC.~~ (18)
10.20	2009-~~III~~II Equity Compensation Plan (19)
10.21	~~2010-I~~ Equity ~~Compensation~~Line ~~Plan~~of Credit Agreement between the Company and Ashborne Finance Ltd.(20)
10.22	Consulting Agreement between the Company and 1315781 Ontario Inc. (21)
10.23	Note Purchase Agreement between the Company and St. George Investments, LLC. (22)
10.24	2009-III Equity Compensation Plan (23)
10.25	2010-I Equity Compensation Plan(24)
10.26	2010-II Equity Compensation Plan(25)
14.1	Code of Ethics (9)
31.1 *	Certification of Principal Executive Officer pursuant to Section 302 of the Sarbanes- Oxley Act of 2002
31.2 *	Certification of Principal Financial Officer pursuant to Section 302 of the Sarbanes- Oxley Act of 2002
32.1 *	Certification of Principal Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2 *	Certification of Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

(1)	Filed as an exhibit to the Company’s Registration Statement on Form 10 filed initially on May 11, 1984, as amended.
(2)	Filed as an exhibit to the Company’s Quarterly Report on Form 10-Q filed on July 15, 1997.
(3)	Filed as an exhibit to the Company’s Current Report on Form 8-K filed on September 11, 2002.
(4)	Filed as an exhibit to the Company’s Annual Report on Form 10-K for the fiscal year ended November 30, 1995.
(5)	Filed as an exhibit to the Company’s Annual Report on Form 10-K for the fiscal year ended November 30, 1996.
(6)	Filed as an exhibit to the Company’s Annual Report on Form 10-KSB for the fiscal year ended November 30, 2002.
(7)	Filed as an exhibit to the Company’s Current Report on Form 8-K filed on June 13, 2003.
(8)	Filed as an exhibit to the Company’s Registration Statement on Form SB-2 filed on May 19, 2004.

4236

(7)	Filed as an exhibit to the Company’s Current Report on Form 8-K filed on June 13, 2003.
(8)	Filed as an exhibit to the Company’s Registration Statement on Form SB-2 filed on May 19, 2004.
(9)	Filed as an exhibit to the Company’s Quarterly Report on Form 10-QSB filed on July 15, 2004.
(10)	Filed as an exhibit to the Company’s ~~Annual~~Registration ~~Report~~Statement on Form 10S-~~KSB~~8 ~~for~~filed ~~the~~on ~~fiscal~~April ~~year ended November 30~~11, ~~2007~~2006.
(11)	Filed as an exhibit to the Company’s ~~Quarterly~~Registration ~~Report~~Statement on Form 10S-~~QSB~~8 filed on ~~July~~March 1531, ~~2008~~2006.
(12)	Filed as ~~exhibits~~an exhibit to the Company’s ~~Current~~Registration ~~Report~~Statement on Form 8S-K8 filed on ~~October~~February 2920, ~~2008~~2007.
(13)	Filed as ~~exhibits~~an exhibit to the Company’s ~~Current~~Registration ~~Report~~Statement on Form 8S-K8 filed on ~~December~~September 237, ~~2009~~2007.
(14)	Filed as an exhibit to the Company’s ~~Registration~~Annual ~~Statement~~Report on Form S10-8KSB ~~filed~~for onthe ~~January~~fiscal 29year ended November 30, ~~2009~~2007.
(15)	Filed as an exhibit to the Company’s ~~Registration~~Quarterly ~~Statement~~Report on Form S10-8QSB filed on ~~June~~July 115, ~~2009~~2008.
(16)	Filed as anexhibits ~~exhibit~~ to the Company’s Current Report on Form 8-K filed on ~~May~~October 1229, ~~2009~~2008.
(17)	Filed as anexhibits ~~exhibit~~ to the Company’s ~~Quarterly~~Current Report on Form 108-QK filed on ~~October~~December 1523, 2009.
(18)	Filed as an exhibit to the Company’s ~~Current~~Registration ~~Report~~Statement on Form 8S-K8 filed on January 2829, ~~2010~~2009.
(19)	Filed as an exhibit to the Company’s Registration Statement on Form S-8 filed on ~~December~~June 161, 2009.
(20)	Filed as an exhibit to the Company’s ~~Registration~~Current ~~Statement~~Report on Form S-8-K filed on ~~June~~May 912, ~~2010~~2009.
(21)	Filed as an exhibit to the Company’s Quarterly Report on Form 10-Q filed on October 15, 2009.
(22)	Filed as an exhibit to the Company’s Current Report on Form 8-K filed on January 28, 2010.
(23)	Filed as an exhibit to the Company’s Registration Statement on Form S-8 filed on December 16, 2009.
(24)	Filed as an exhibit to the Company’s Registration Statement on Form S-8 filed on June 9, 2010.
(25)	Filed as an exhibit to the Company’s Registration Statement on Form S-8 filed on December 2, 2010.

*	Filed herewith.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	SILVERADO GOLD MINES LTD.
DATE: October 14, 2010	/s/ Garry L. Anselmo
DATE: April 14, 2011	/s/ Garry L. Anselmo
	Garry L. Anselmo
	President, Chief Executive Officer (Principal
	Executive Officer)
DATE: October 14, 2010	/s/ Donald Balletto
DATE: April 14, 2011	/s/ Donald Balletto
	Donald Balletto
	Chief Financial Officer
	(Principal Financial Officer)

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