Wheaton River Minerals Ltd.

Wheaton River Minerals Ltd.
Goldcorp Inc.

Goldcorp Inc.

March 07, 2005 16:00 ET

Wheaton River Minerals Ltd.: Annual Earnings Increase 146% to US$142 Million and Record Fourth Quarter Earnings of US$56 Million


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: WHEATON RIVER MINERALS LTD.

TSX SYMBOL: WRM
AMEX SYMBOL: WHT

AND GOLDCORP INC.

TSX SYMBOL: G
NYSE SYMBOL: GG

MARCH 7, 2005 - 16:00 ET

Wheaton River Minerals Ltd.: Annual Earnings Increase
146% to US$142 Million and Record Fourth Quarter
Earnings of US$56 Million

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 7, 2005) - Wheaton
River Minerals Ltd. (TSX:WRM)(AMEX:WHT) and Goldcorp Inc.
(TSX:G)(NYSE:GG)

HIGHLIGHTS

- Record net earnings of US$142 million ($0.25 per share) for 2004, an
increase of 146% compared with US$58 million ($0.14 per share) in 2003.

- Fourth quarter net earnings of US$56 million ($0.10 per share), double
2003 earnings of US$28 million ($0.06 per share).

- Silver Wheaton transaction completed in October, 2004, which resulted
in Wheaton holding 65% of a pure silver company having a market
capitalization of approximately US$530 million (Wheaton's share - US$345
million).

- Goldcorp merger successfully completed in February 2005 to create the
world's lowest cost, million ounce gold producer with combined 2005 gold
production expected to exceed 1.1 million ounces of gold at less than
US$60 per ounce.

Wheaton River Minerals Ltd. (Vancouver, British Columbia) is pleased to
report a 146% increase in 2004 net earnings to US$142 million (US$0.25
per share) compared with US$58 million (US$0.14 per share) in 2003.
Operating cash flows for the year were US$208 million, or US$0.37 per
share (2003 - US$127 million, or US$0.31 per share).

During the year, Wheaton sold 606,500 gold equivalent ounces at a total
cash cost of minus US$30 per ounce (net of by-product copper sales).
This compared with sales of 450,100 gold equivalent ounces at a total
cash cost of US$61 per ounce in 2003.

Net earnings for the three months ended December 31, 2004 amounted to
US$56 million (US$0.10 per share), double the 2003 earnings of US$28
million (US$0.06 per share). For the three months, 151,600 gold
equivalent ounces were sold at a total cash cost of minus US$34 per
ounce (net of by-product copper sales), compared with 2003 sales of
156,000 gold equivalent ounces at a total cash cost of minus $39 per
ounce. Operating cash flows for the fourth quarter were US$61 million,
or US$0.11 per share (2003 - US$65 million, or US$0.12 per share).

"Wheaton's operations continue to outperform market expectations on all
metrics," said Ian Telfer,who was recently appointed President and CEO
of Goldcorp. "The combination of Wheaton's exceptional asset base with
Goldcorp's high grade operations creates a new world class gold
producer. Significant organic growth is expected over the next two years
with a further 35% increase in production, due to project commissioning
at Amapari and Los Filos, as well as the expansion of Red Lake Mine. We
are excited about the year ahead and will continue to grow through
acquisition to take Goldcorp production to over 2 million ounces of gold
annually. The combined company has a strong balance sheet with over
US$500 million in cash and gold bullion, and has no debt."

A conference call will be held Tuesday, March 8th at 11:00 am (ET) to
discuss these results. You may join the call by dialing toll free
1-866-902-2211, or (416) 695-6120 for calls from outside of Canada and
the US. The conference call will be recorded and you can listen to a
playback of the call after the event by dialing 1-866-518-1010 or (416)
695-5275. A live and archived audio webcast will be available on the
website at www.wheatonriver.com.

Cautionary Note Regarding Forward Looking Statements

Safe Harbor Statement under the United States Private Securities
Litigation Reform Act of 1995: Except for the statements of historical
fact contained herein, the information presented constitutes
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. Such forward-looking
statements, including but not limited to those with respect to the price
of gold, silver and copper, the timing and amount of estimated future
production, costs of production, reserve determination and reserve
conversion rates involve known and unknown risks, uncertainties and
other factors which may cause the actual results, performance or
achievement of Wheaton to be materially different from any future
results, performance or achievements expressed or implied by such
forward-looking statements. Such factors include, among others, risks
related to the integration of acquisitions, risks related to
international operations, risks related to joint venture operations, the
actual results of current exploration activities, actual results of
current reclamation activities, conclusions of economic evaluations,
changes in project parameters as plans continue to be refined, future
prices of gold, silver and copper, as well as those factors discussed in
the section entitled "General Development of the Business - Risks of the
Business" in Wheaton's Form 40-F dated May 18, 2004 on file with the
Securities and Exchange Commission in Washington, D.C. and Wheaton's
Renewal Annual Information Form dated May 12, 2004 on file with the
securities regulatory authorities in Canada. Although Wheaton has
attempted to identify important factors that could cause actual results
to differ materially, there may be other factors that cause results not
to be as anticipated, estimated or intended. There can be no assurance
that such statements will prove to be accurate as actual results and
future events could differ materially from those anticipated in such
statements. Accordingly, readers should not place undue reliance on
forward-looking statements.




WHEATON RIVER MINERALS LTD.
Management's Discussion & Analysis
Year Ended December 31, 2004

Management's Discussion and Analysis of
Results of Operations and Financial Condition


The following should be read in conjunction with the Company's
consolidated financial statements for the year ended December 31, 2004
and related notes thereto which have been prepared in accordance with
Canadian generally accepted accounting principles. All figures are in
United States dollars unless otherwise noted.

2004 HIGHLIGHTS

- Record net earnings of $142.1 million ($0.25 per share), an increase
of 146% compared with $57.7 million ($0.14 per share) in 2003.

- Operating cash flows of $207.8 million (2003 - $126.7 million).

- Sales of 606,500 gold equivalent ounces and 145.6 million pounds of
copper (2003 - 450,100 gold equivalent ounces and 113.7 million pounds
of copper).

- Total cash costs of minus $30 per gold equivalent ounce (2003 - $61).

- Cash and cash equivalents at December 31, 2004 of $161.1 million (2003
- $151.9 million) and working capital of $165.5 million (2003 - $147.5
million).

- The Company remains unhedged to increases in gold prices, and
debt-free, following repayment of $137.6 million of debt during 2004.

- Silver Wheaton transaction completed in October, 2004, which resulted
in Wheaton holding 65% of a pure silver company having a market
capitalization of approximately $530 million (Wheaton's share - $345
million).

- Entered into an agreement to merge with Goldcorp which was
successfully completed subsequent to year end, creating the world's
lowest cost million ounce gold producer with a market capitalization of
over $4.5 billion.

OVERVIEW

Wheaton River Minerals Ltd. ("Wheaton" or the "Company") is a
growth-oriented precious metals mining company operating in Mexico,
Argentina, Brazil and Australia.

During 2002 Wheaton acquired the Luismin gold/silver mines in Mexico,
followed by the 2003 acquisition of a 37.5% interest in the world-class
Alumbrera gold/copper mine in Argentina and 100% of the Peak gold mine
in Australia. The Company also acquired the Los Filos development
project in Mexico in 2003 and in January, 2004, acquired the Amapari
development project in northern Brazil.

On October 15, 2004, the Company entered into an agreement to sell to
Silver Wheaton Corp. ("Silver Wheaton"), all of the silver produced by
Wheaton's Luismin mining operations in Mexico for upfront consideration
of cash and Silver Wheaton common shares, plus a per ounce cash payment.
As a result, Wheaton currently owns approximately 65% of Silver Wheaton,
a pure silver company having a market capitalization of approximately
$530 million (Wheaton's share - $345 million).

In December 2004, the Company announced it had reached an agreement in
principle to combine with Goldcorp Inc. ("Goldcorp"), owner of the Red
Lake gold mine in Ontario, Canada, through a share exchange take-over
bid where Goldcorp offered one common share of Goldcorp for every four
common shares of Wheaton. On February 10, 2005, Goldcorp shareholders
approved the combination and on February 14, 2005, approximately 69% of
Wheaton common shares were tendered to the Goldcorp offer. As a result,
effective February 15, 2005, Goldcorp will consolidate the operations of
Wheaton. The transaction will be accounted for using the purchase method
with Goldcorp being identified as the acquirer. The remaining shares of
Wheaton not yet tendered will be acquired by Goldcorp by way of a plan
of arrangement which is expected to conclude in mid-April, 2005. As a
result, Wheaton will cease to be a public company and its results will
be consolidated 100% by Goldcorp.



Summarized Annual Financial Results
--------------------------------------------------------------------
2004 2003 2002
--------------------------------------------------------------------
(note 2) (notes 3 & 4) (note 5)

Sales ($000's) $ 419,182 $ 212,633 $ 34,693
-Gold (ounces) 498,300 369,300 59,700
-Silver (ounces) 6,792,300 6,054,200 3,208,900
-Gold equivalent (ounces)
(note 1) 606,500 450,100 106,300
-Copper (thousands of
pounds) 145,585 113,719 -

Net earnings ($000's) $ 142,121 $ 57,659 $ 5,602

Earnings per share
-Basic $ 0.25 $ 0.14 $ 0.04
-Diluted $ 0.22 $ 0.13 $ 0.04

Cash flow from operations
($000's) $ 207,814 $ 126,678 $ 4,361

Average realized price
-Gold ($ per ounce) $ 412 $ 365 $ 326
-Silver ($ per ounce) $ 6.65 $ 4.88 $ 4.55
-Copper ($ per pound) $ 1.36 $ 0.86 $ -

Total cash costs (per
gold equivalent ounce)
(note 6) $ (30) $ 61 $ 182

Cash and cash equivalents
($000's) $ 161,131 $ 151,878 $ 22,936

Total assets ($000's) $1,174,285 $ 891,005 $ 152,098

Long-term debt ($000's) $ - $ 122,423 $ -

Shareholders' equity
($000's) $ 794,163 $ 556,118 $ 108,054

(1) Gold and silver are accounted for as co-products at the Luismin
mines. Silver sales are converted into gold sales using the ratio
of the average gold price to the average silver price for the
period. For the year ended December 31, 2004 the equivalency
ratio was 62 (2003 - 75) ounces of silver equals one ounce of
gold sold.
(2) Includes Silver Wheaton's results from October 15, 2004 onwards.
(3) Includes Peak's results from March 18, 2003 onwards.
(4) Includes, with the exception of sales, 25% of Alumbrera's total
operating results for the period March 18 to June 23, 2003, and
37.5% of the results for the period June 24 to December 31, 2003.
Sales include 37.5% of Alumbrera's total sales for the period
from June 24 to December 31, 2003. Prior to June 24, 2003, the
company used the equity method to account for its 25% investment
in Alumbrera.
(5) Includes Luismin's results from June 19, 2002 onwards.
(6) The calculation of total cash costs per ounce for Peak and
Alumbrera is net of by-product copper sales revenue.


Quarterly Financial Review
--------------------------------------------------------------------
2004
Q1 Q2 Q3 Q4 Total
--------------------------------------------------------------------
(note 2)

Sales ($000's) $ 113,204 $ 89,268 $ 103,251 $113,459 $ 419,182
-Gold (ounces) 129,700 123,000 120,700 124,900 498,300
-Silver (ounces) 1,612,900 1,654,500 1,792,000 1,732,900 6,792,300
-Gold equivalent
(ounces) (note 1) 156,500 148,700 149,700 151,600 606,500
-Copper (thousands
of pounds) 42,880 32,499 36,405 33,801 145,585

Net earnings
($000's) $ 33,671 $ 21,120 $ 31,377 $ 55,953 $ 142,121

Earnings per share
-Basic $ 0.06 $ 0.04 $ 0.05 $ 0.10 $ 0.25
-Diluted $ 0.05 $ 0.03 $ 0.05 $ 0.09 $ 0.22

Cash flow from
operations
($000's) $ 61,848 $ 38,941 $ 46,242 $ 60,783 $ 207,814

Average realized
price
-Gold ($ per
ounce) $ 412 $ 388 $ 402 $ 447 $ 412
-Silver ($ per
ounce) $ 6.78 $ 6.09 $ 6.47 $ 7.28 $ 6.65
-Copper ($ per
pound) $ 1.33 $ 1.22 $ 1.38 $ 1.52 $ 1.36

Total cash costs
($ per gold
equivalent ounce)
(note 5) $ (67)$ 19 $ (37)$ (34)$ (30)
--------------------------------------------------------------------

2003
Q1 Q2 Q3 Q4 Total
--------------------------------------------------------------------
(notes 3 and 4)

Sales ($000's) $ 17,257 $ 28,814 $ 63,142 $ 103,420 $ 212,633
-Gold (ounces) 35,100 92,600 105,400 136,200 369,300
-Silver (ounces) 1,561,900 1,500,500 1,515,900 1,475,900 6,054,200
-Gold equivalent
(ounces) (note 1) 55,600 112,400 126,100 156,000 450,100
-Copper (thousands
of pounds) 3,551 28,139 28,297 53,732 113,719

Net earnings
($000's) $ 4,064 $ 11,088 $ 14,689 $ 27,818 $ 57,659

Earnings per share
-Basic $ 0.02 $ 0.03 $ 0.03 $ 0.06 $ 0.14
-Diluted $ 0.02 $ 0.03 $ 0.03 $ 0.05 $ 0.13

Cash flow from
operations
($000's) $ 9,752 $ 20,990 $ 31,453 $ 64,483 $ 126,678

Average realized
price
-Gold ($ per
ounce) $ 347 $ 353 $ 366 $ 385 $ 365
-Silver ($ per
ounce) $ 4.64 $ 4.61 $ 5.00 $ 5.29 $ 4.88
-Copper ($ per
pound) $ 0.68 $ 0.74 $ 0.81 $ 0.96 $ 0.86

Total cash
costs ($ per
gold equivalent
ounce) (note 5) $ 175 $ 90 $ 98 $ (39)$ 61


(1) Gold and silver are accounted for as co-products at the Luismin
mines. Silver sales are converted into gold sales using the ratio
of the average gold price to the average silver price for the
period.
(2) Includes Silver Wheaton's results from October 15, 2004 onwards.
(3) Includes Peak's results from March 18, 2003 onwards.
(4) Includes, with the exception of sales, 25% of Alumbrera's total
operating results for the period March 18 to June 23, 2003, and
37.5% of the results for the period June 24 to December 31, 2003.
Sales include 37.5% of Alumbrera's total sales for the period
from June 24 to December 31, 2003. Prior to June 24, 2003, the
Company used the equity method to account for its 25% investment
in Alumbrera.
(5) The calculation of total cash costs per ounce for Peak and
Alumbrera is net of by-product copper sales revenue.


RESULTS OF OPERATIONS
--------------------------------------------------------------------
2004
Silver
Luismin Peak Alumbrera Wheaton Amapari
--------------------------------------------------------------------
(notes 1 (note 2) (note 3) (note 4)
and 4)
Sales
($000's) $ 91,506 $ 63,023 $ 262,054 $ 10,986 $ -
-Gold
(ounces) 132,100 139,700 226,500 - -
-Silver
(ounces) 6,674,500 - - 1,505,100 -
-Gold
equivalent
(ounces)
(note 1) 240,300 139,700 226,500 - -
-Copper
(thousands
of
pounds) - 6,361 139,224 - -

Net
earnings
(loss)
($000's) $ 39,877 $ 18,389 $ 104,551 $ 1,058 $ 268

Average
realized
prices
-Gold
($ per
ounce) $ 410 $ 413 $ 415 $ - $ -
-Silver
($ per
ounce) $ 5.93 $ - $ - $ 7.30 $ -
-Copper
($ per
pound) $ - $ 1.38 $ 1.36 $ - $ -

Total cash
costs
($ per
gold
equivalent
ounce) $ 162 $ 192 $ (371) $ - $ -

--------------------------------------------------------------------
Elimi-
Corporate nation Total
--------------------------------------------------------------------
(note 4)

Sales ($000's) $ (2,977) $ (5,410) $ 419,182
-Gold (ounces) - - 498,300
-Silver
(ounces) - (1,387,300) 6,792,300
-Gold equivalent
(ounces)
(note 1) - - 606,500
-Copper
(thousands of
pounds) - - 145,585

Net
earnings
(loss)
($000's) $ (22,604) $ 582 $ 142,121

Average
realized prices
-Gold ($ per
ounce) $ - $ - $ 412
-Silver ($ per
ounce) $ - $ - $ 6.65
-Copper ($ per
pound) $ - $ - $ 1.36

Total cash
costs($ per
gold equivalent
ounce) $ - $ - $ (30)


--------------------------------------------------------------------
2003
Corp-
Luismin Peak Alumbrera orate Total
--------------------------------------------------------------------
(note 1) (note 2) (note 3)
Sales
($000's) $ 66,251 $ 36,475 $ 109,907 $ - $ 212,633
-Gold
(ounces) 106,300 97,200 165,800 - 369,300
-Silver
(ounces) 6,054,200 - - - 6,054,200
-Gold
equivalent
(ounces)
(note 1) 187,100 97,200 165,800 - 450,100
-Copper
(thousands
of pounds) - 2,964 110,755 - 113,719

Net
earnings
(loss)
($000's) $ 10,802 $ 5,277 $ 43,156 $ (1,576) $ 57,659

Average
realized
prices
-Gold
($ per
ounce) $ 366 $ 365 $ 365 $ - $ 365
-Silver
($ per
ounce) $ 4.88 $ - $ - $ - $ 4.88
-Copper
($ per
pound) $ - $ 0.85 $ 0.86 $ - $ 0.86

Total cash
costs
($ per
Gold
equivalent
ounce) $ 186 $ 250 $ (191) $ - $ 61

(1) Gold and silver are accounted for as co-products at the Luismin
mines. Silver sales are converted into gold sales using the
ratio of the average gold price to the average silver price for
the period. For the year ended December 31, 2004 the equivalency
ratio was 62 (2003 - 75) ounces of silver equals one ounce of
gold sold.
(2) Peak results include the Company's 100% interest from March 18,
2003 onwards. The calculation of total cash costs per ounce of
gold is net of by-product copper sales revenue.
(3) Includes, with the exception of sales, 25% of Alumbrera's total
operating results for the period March 18 to June 23, 2003, and
37.5% of the results for the period June 24, 2003 to December 31,
2004. Sales include 37.5% of Alumbrera's total sales for the
period from June 24, 2003 to December 31, 2004. Prior to June 24,
2003, the Company used the equity method to account for its 25%
investment in Alumbrera. The calculation of total cash costs per
ounce of gold for Alumbrera is net of by-product copper sales
revenue. If copper production were treated as a co-product,
average total cash costs at Alumbrera would be $167 per ounce of
gold (2003 - $137) and $0.50 per pound of copper (2003 - $0.37).
(4) As of October 15, 2004, Luismin commenced selling all of its
silver production to Silver Wheaton at a price of $3.90 per
ounce. For the period October 15 to December 31, 2004, a total
of 1,505,100 ounces were sold by Silver Wheaton of which
1,387,300 ounces were purchased from the Luismin operations.


OPERATIONAL REVIEW

Luismin Mines

The Company acquired the Luismin gold/silver mines during June, 2002 for
a purchase price of $85 million including acquisition costs. In October
2003, pursuant to the purchase agreement, an additional $22.4 million in
contingent consideration was paid by way of the issuance of 11,355,113
of the Company's common shares.



--------------------------------------------------------------------
2004 2003
Q1 Q2 Q3 Q4 Total Total
--------------------------------------------------------------------
(note 2)
Ore
mined
(tonnes) 214,000 198,200 191,800 205,800 809,800 742,400

Ore
milled
(tonnes) 209,800 192,600 187,800 199,900 790,100 724,600

Grade
(grams/
tonne)
-Gold 5.19 5.61 5.95 5.35 5.58 4.79
-Silver 266.00 302.17 326.23 280.28 297.01 289.28

Recovery (%)
-Gold 94 95 95 94 95 97
-Silver 90 89 91 88 90 91

Production
(ounces)
-Gold 32,700 33,300 34,200 32,300 132,500 106,900
-Silver 1,615,500 1,664,400 1,798,700 1,586,900 6,665,500 6,086,300
-Gold
equivalent
(note 1) 59,100 59,600 63,100 58,900 240,700 188,500

Sales
($000
's) $ 23,715 $ 22,709 $ 24,406 $ 20,676 $ 91,506 $ 66,251
-Gold
(ounc-
es) 32,400 33,500 33,400 32,800 132,100 106,300
-Silver
(ounc-
es) 1,612,900 1,654,500 1,792,000 1,615,100 6,674,500 6,054,200
-Gold
equivalent
(ounces)
(note
1) 59,200 59,200 62,400 59,500 240,300 187,100

Net
earnings
($000
's) $ 5,641 $ 4,636 $ 8,611 $ 20,989 $ 39,877 $ 10,802

Average
realized
price
($ per
ounce)
-Gold $ 410 $ 392 $ 402 $ 436 $ 410 $ 366
-Silver $ 6.78 $ 6.09 $ 6.47 $ 4.33 $ 5.93 $ 4.88

Total
cash
costs
($ per
gold
equivalent
ounce) $ 170 $ 159 $ 150 $ 169 $ 162 $ 186


(1) Gold and silver are accounted for as co-products at the Luismin
mines. Silver sales are converted into gold sales using the ratio
of the average gold price to the average silver price for the
period. For the year ended December 31, 2004 the equivalency
ratio was 62 (2003 - 75) ounces of silver equals one ounce of
gold sold.
(2) Sales for the period October 15 to December 31, 2004, include
1,387,300 ounces of silver sold to Silver Wheaton at a price of
$3.90 per ounce, pursuant to a long-term agreement.


Luismin had a record year in 2004, in terms of ore mined, ore milled,
production of gold and silver, and profitability. While strong realized
metal prices contributed significantly, the major underlying reason for
the excellent results was capital investment and process improvements
made by Wheaton since it acquired the Luismin operations in 2002.

Ore mined and milled increased approximately 9%, compared with 2003, as
a result of plant expansion and process improvements over the last two
years. This, combined with improved ore grades mined, resulted in record
2004 production and sales. A total of 240,300 gold-equivalent ounces
were sold during the year, a 28% increase compared with 2003.

Average realized prices for gold and silver increased by 12% and 22%,
respectively, compared with 2003. As a result, sales revenues increased
by 38% over the prior year, to $91.5 million.

Effective October 15, 2004, Wheaton entered into an agreement to sell to
Silver Wheaton, an inactive public company, all of the silver produced
by the Luismin mining operations for a per ounce cash payment of the
lesser of $3.90 and the prevailing market price, subject to adjustment.
As a result, Luismin's average realized silver price for the fourth
quarter was $4.33 per ounce.

Continuous process improvements made since Wheaton acquired the Luismin
operations have resulted in reduced operating costs. As a result,
together with increased grades, total cash costs declined 13% to $162
per gold equivalent ounce in 2004, compared to $186 per ounce in 2003.
Total cash costs in the fourth quarter of 2004 were $169 per
gold-equivalent ounce, a 13% increase over the third quarter, due
primarily to reduced average grades.

Earnings increased 269% to $39.9 million in 2004; compared to $10.8
million in 2003, as a result of the above factors as well as significant
favorable changes in Mexican tax laws which were enacted in the fourth
quarter of 2004. Reductions in the future corporate income tax rates and
the increased availability of certain deductions resulted in a $12.7
million recovery of future taxes in the fourth quarter results. The
Company paid no significant cash taxes in 2004.

Throughout 2004, significant exploration results have been achieved at
the Luismin mines including deep and on-strike extensions of the San
Dimas central block veins and new discoveries, including the Itzel vein
system and the Paula and Nancy veins. At San Martin, Cuerpo 30 has also
proved to be more significant in size than expected, and development has
reached Cuerpo 31, where drill results indicate better than expected
grades. The exploration results have been achieved through a combination
of geophysical surveys, deep diamond drilling and underground
development. Meters of diamond drilling increased 50% over 2003 and
underground development increased by 17%, both contributing factors to
the success of the Luismin operations in 2004.

For 2005, an intensive program of exploration and development will be
carried out throughout the recently discovered veins in San Dimas in
order to convert these additional resources into reserves.

Peak Mine

The Company acquired the Peak gold mine in Australia on March 18, 2003
for a purchase price of $33.9 million including acquisition costs.



--------------------------------------------------------------------
2004 2003
Q1 Q2 Q3 Q4 Total Total
--------------------------------------------------------------------
(note 2)
Ore
mined
(tonnes) 178,300 114,000 144,400 136,700 573,400 839,400

Ore
milled
(tonnes) 170,800 164,600 162,200 165,800 663,400 493,100

Grade
-Gold
(grams/
tonne) 6.44 7.04 7.94 8.23 7.40 6.74
-Copper (%) 0.83 0.55 0.55 0.39 0.58 0.52

Recovery (%)
-Gold 91 89 89 92 90 85
-Copper 82 68 81 84 79 75

Production
-Gold
(ounces) 32,100 32,900 37,100 40,600 142,700 92,300
-Copper
(thou-
sands
of
pounds) 2,579 1,331 1,590 1,195 6,695 3,614

Sales
($000
's) $ 15,307 $ 14,137 $ 14,610 $ 18,969 $ 63,023 $ 36,475
-Gold
(ounces) 33,400 33,000 33,100 40,200 139,700 97,200
-Copper
(thou-
sands
of
pounds) 2,592 1,385 1,492 892 6,361 2,964

Net
earnings
($000's) $ 3,238 $ 3,132 $ 4,563 $ 7,456 $ 18,389 $ 5,277

Average
realized
price
-Gold
($ per
ounce)$ 405 $ 379 $ 400 $ 460 $ 413 $ 365
-Copper
($ per
pound)$ 1.29 $ 1.28 $ 1.29 $ 1.54 $ 1.38 $ 0.85

Total
cash
costs
($ per
ounce)
(note 1) $ 217 $ 172 $ 161 $ 197 $ 192 $ 250

(1) The calculation of total cash costs per ounce of gold is net of
by-product copper sales revenue.
(2) Operating results presented for 2003 are for the nine and a half
months from the date of acquisition, March 18, 2003.


The Peak mine had its best performance since 1997 with gold sales of
139,700 ounces, a 44% increase compared with 2003. In addition, copper
sales increased 115% to 6.4 million pounds in the current year. These
increases, combined with a 13% and 62% respective improvement in average
realized gold and copper prices, pushed earnings 248% higher to $18.4
million in 2004 (2003 - $5.3 million). A combination of improved
recoveries from process improvements at the mill and better grades mined
contributed to the significant improvement in operational performance.

The results presented for 2003 are for the nine and a half months from
the date of acquisition, March 18, 2003, which was very much a
transitional period for the Peak operations. 2003 was the last full year
of open pit, relatively low grade, mining operations at Peak which
contributed significantly to the large tonnage of ore mined, compared
with 2004. Much of the open pit ore mined was stockpiled for processing
in the future. Meanwhile, significant improvements were made in terms of
mine design, overall productivity and operating costs in the underground
operations. These improvements are clearly reflected in the
significantly reduced cash costs in 2004, $192 per ounce (net of
by-product copper sales revenue) as compared with $250 per ounce in
2003. The Peak operation continues to make additional overall
improvements, with the main priority in 2005 to increase mill throughput
by 13% to 750,000 tonnes per annum.

Peak's cash costs in the fourth quarter of 2004 were $197 per ounce, up
from the second and third quarters, primarily as a result of reduced
copper by-product sales credits. Despite these increased cash costs,
Peak's fourth quarter produced net earnings of $7.5 million, its most
successful quarter in several years. The average realized gold price in
the fourth quarter was $460 per ounce, in excess of the London Metal
Exchange average price of $434 per ounce, due primarily to adjustments
received during the quarter relating to concentrate sales of prior
quarters.

The decline to access the New Cobar underground deposit had, by year
end, reached a distance of 533 metres, with unexpected high grade ore
having been intersected adjacent to the old underground workings. An
intensive drilling program has commenced to fully delineate this
material. The planned ore production start from New Cobar remains on
schedule for the beginning of the fourth quarter of 2005.

Alumbrera Mine (Wheaton interest - 37.5%)

The Company acquired a 25% interest in the Alumbrera gold/copper mine in
Argentina on March 18, 2003 and accounted for its interest using the
equity method until June 24, 2003, at which time it increased its
interest in Alumbrera to 37.5%. As a result of the Company's acquisition
of this additional 12.5% interest, the Company has proportionately
consolidated its 37.5% share of the financial statements of Alumbrera
from June 24, 2003 onwards. The total purchase price was $270.5 million
including acquisition costs. The Alumbrera mine is operated by Xstrata
plc, who owns a 50% interest in the mine.



--------------------------------------------------------------------
(Wheaton's
share 2004 2003
only) Q1 Q2 Q3 Q4 Total Total
--------------------------------------------------------------------

Ore
mined
(ton-
nes) 2,836,900 3,113,700 2,935,000 3,182,800 12,068,400 7,122,700

Ore
milled
(ton-
nes) 3,171,400 3,222,200 3,400,600 3,463,400 13,257,600 9,024,300

Grade
-Gold
(grams/
tonne) 0.80 0.64 0.65 0.79 0.72 0.86
-Copper (%) 0.58 0.49 0.54 0.62 0.56 0.67

Recovery (%)
-Gold 77 74 77 80 77 74
-Copper 91 88 89 91 90 89

Production
-Gold
(ounces) 62,800 49,200 55,200 70,500 237,700 183,000
-Copper
(thousands
of
pounds) 36,513 30,194 36,151 43,007 145,865 120,364

Sales
($000's) $ 75,112 $ 53,353 $ 65,049 $ 68,540 $ 262,054 $ 109,907
-Gold
(ounces) 63,900 56,500 54,200 51,900 226,500 165,800
-Copper
(thou-
sands
of
pounds) 40,287 31,114 34,914 32,909 139,224 110,755

Net
earnings
($000's) $ 30,849 $ 16,923 $ 23,996 $ 32,783 $ 104,551 $ 43,156

Average
realized
price
-Gold
($ per
ounce)$ 417 $ 388 $ 405 $ 451 $ 415 $ 365
-Copper
($ per
pound)$ 1.33 $ 1.21 $ 1.38 $ 1.51 $ 1.36 $ 0.86

Total
cash
costs
($ per
ounce)
(note 1) $ (435)$ (218)$ (374)$ (457)$ (371)$ (191)

(1) The calculation of total cash costs per ounce of gold for
Alumbrera is net of by-product copper sales revenue. If copper
production were treated as a co-product, 2004 average total cash
costs at Alumbrera would be $167 per ounce of gold (2003 - $137)
and $0.50 per pound of copper (2003 - $0.37).


Alumbrera milled record tonnes in 2004, primarily as a result of
on-going productivity improvements and the successful commissioning of
the flotation plant expansion early in the year. This also contributed
to increased recoveries, particularly of gold.

Average grades mined were down approximately 16% compared with 2003,
more in line with long-term average grades.

Average realized gold and copper prices were 14% and 58% higher,
respectively, compared to 2003. High copper prices resulted in total
cash costs of minus $371 per ounce of gold, compared with minus $191 per
ounce in 2003.

Alumbrera had an excellent fourth quarter, with high average grades and
excellent recoveries. As a result, production of both gold and copper
was significantly above average. However, as a result of the timing of
sales shipments, approximately 25% of the quarter's production was not
recognised in sales until 2005. Had these shipments been recognised in
2004, as opposed to 2005, Wheat0n's 2004 sales and net earnings would
have been increased by approximately $26 million and $11 million,
respectively.

The Company received $126.5 million in cash distributions from Alumbrera
during 2004, bringing total distributions since Wheaton acquired the
mine in March 2003 to $161.5 million. In May 2004, Alumbrera repaid $58
million (Wheaton's share) of project debt and is now debt-free.

In June 2004, Alumbrera announced a 20% increase in the ore reserves
which has added 2.5 years to the present mine life and ensured
production until mid-2015. This substantial increase in reserves has
added 1.2 million ounces of gold and 770 million pounds of contained
copper, of which Wheaton's share is 37.5%. Further intensive in-pit
resource definition work will continue with the objective of adding
additional ore reserves in the coming year.

Alumbrera's effective tax rate for 2004 was 26%, compared to the
statutory tax rate of 30%, due to a recovery of future taxes in the
fourth quarter of approximately $6 million relating to foreign exchange
deductions and other permanent differences. During 2004, Alumbrera
commenced accruing cash taxes payable, which will be due in May, 2005.
Wheaton's share at December 31, 2004 amounted to $45.4 million.



Silver Wheaton Corp. (Wheaton interest - 65%)
--------------------------------------------------------------------
2004
Q1 Q2 Q3 Q4 Total
--------------------------------------------------------------------
Silver purchased (ounces)
-Luismin - - - 1,387,300 1,387,300
-Zinkgruvan - - - 240,500 240,500
-Total - - - 1,627,800 1,627,800

Sales ($000's) $- $- $- $ 10,986 $ 10,986

Silver sold (ounces)
-Luismin - - - 1,387,300 1,387,300
-Zinkgruvan - - - 117,800 117,800
- Total - - - 1,505,100 1,505,100

Net earnings
($000's) $- $- $- $ 1,058 $ 1,058

Average
realized silver
price ($ per
ounce) $- $- $- $ 7.30 $ 7.30

TOTAL CASH
COSTS ($ PER
OUNCE) $- $- $- $ 3.90 $ 3.90


On October 15, 2004, Wheaton entered into an agreement to sell to Silver
Wheaton, an inactive public company, all of the silver produced by
Wheaton's Luismin mining operations in Mexico for upfront consideration
of $36.7 million (Cdn$46 million) in cash and 540 million
(pre-consolidation) Silver Wheaton common shares, plus a per ounce cash
payment of the lesser of $3.90 and the prevailing market price of
delivered silver, subject to adjustment (the "Luismin Transaction").

The Luismin Transaction resulted in the acquisition of control by
Wheaton of Silver Wheaton. As a result, Wheaton has consolidated Silver
Wheaton's results of operations from the date of acquisition, and the
cost of the Luismin silver contract has been recorded by Silver Wheaton
at Wheaton's carrying value of the Luismin silver properties, plus
acquisition costs of $430,000. Upon consolidation, this resulted in a
dilution gain of $34,857,000 which has been deferred and is being
amortized over the sale of silver under the Luismin Transaction.

On December 8, 2004, Silver Wheaton entered into an agreement to
purchase all of the silver produced by Lundin Mining Corporation's
Zinkgruvan mine in Sweden for a payment of $50 million in cash, 30
million (pre-consolidation) Silver Wheaton common shares and 30 million
Silver Wheaton common share purchase warrants. In addition, a per ounce
cash payment of the lesser of $3.90 and the prevailing market price,
subject to adjustment, is due upon delivery of silver (the "Zinkgruvan
Transaction"). In connection with the Zinkgruvan Transaction, Silver
Wheaton raised gross proceeds of $51 million from a private placement of
81 million subscription receipt units. Wheaton did not participate in
this private placement.

Following the Zinkgruvan Transaction and the related financing,
Wheaton's interest in Silver Wheaton was diluted from approximately 75%
to 65%, resulting in a dilution gain of $41,612,000 which has been
deferred and is being amortized over the sale of silver under the
Luismin Transaction.

Pursuant to the Luismin and Zinkgruvan Transactions, in 2004 Silver
Wheaton purchased 1,627,800 ounces of silver at a total cash cost of
$3.90 per ounce, and sold 1,505,100 ounces of silver at an average price
of $7.30 per ounce. Both of the Luismin and Zinkgruvan mines are
low-cost producers, with estimated mine lives in excess of 20 years.

REVIEW OF DEVELOPMENT PROJECTS

Amapari Project

Progress on the construction of the Amapari project has exceeded
expectations, with the project on budget and ahead of schedule. Project
construction manning numbers now approximate 1,350 personnel, however
they will reduce considerably for commissioning and operation. Project
commissioning is now targeted for the start of the third quarter 2005,
some three months earlier than originally planned.

The project access road has been completed, thus eliminating the use of
the longer, less efficient, exploration access road. The bulk earth
moving and civil works have all been completed. Plastic liners have been
laid over the first of four heap leach pads, all the process water ponds
and the emergency storm pond. Most of the significant concrete pours
have also been completed to allow for the erection of the physical
infrastructure including the large crusher installation. Steel erection
is well underway including the structures for the three crushers,
conveyors, agglomeration plant, lime and cement feed systems, and leach
pad boom stacker.

The crushers have been delivered to site with installation to occur
immediately. The process plant construction has substantially progressed
including process buildings, tankage, refinery and reagent storage
facilities. The leach pad reclaimer equipment has also been delivered to
site with erection just commencing.

Pit pre-stripping is well underway with 50% of the owner mining fleet
working in the first open pit. Pit excavations are now down 20 metres
with about 40,000 tonnes of ore presently stockpiled. Haul road
construction has been completed up to the primary crusher area from the
first open pit, and also the crossing of a major creek to another larger
open pit that is scheduled for mining in the medium term.

In December 2004, exploration drilling commenced on the Vila De Meio
trend immediately south of the existing planned pits. Exploration
activity is also expected to commence early in 2005 on the Urucum East
prospect adjacent to the northern open pit site and the Timbo prospect
along the main project access road.

Capital expenditures in 2004 were $36.6 million, in line with the
budget, with a further $20.4 million committed to be spent in 2005.

Los Filos Project

The Los Filos project in Mexico continues to progress well, with
production projected to commence in early 2006.

During 2004 almost 18,000 metres of core drilling were completed,
primarily to provide metallurgical samples, improve geotechnical
information, increase resource confidence, and for condemnation in areas
where mineralization was not closed off by previous drilling. The
metallurgical testing program has been completed with results related to
recoveries expected to be better than previously disclosed.

Following encouraging exploration results, several design adjustments to
the general scope of the project have been made and the delivery of the
Los Filos Feasibility Study is expected in the next few weeks.

Environmental activities are well advanced and the initial sustainable
development program has been completed.

Approximately 75% of the heavy mining equipment fleet has been purchased
and commitments for the acquisition of additional equipment have been
made. Capital expenditures in 2004 were $10.9 million, in line with the
budget, with a further $35.0 million committed for future development
over the next year.



Corporate
(in thousands) 2004 2003 2002
--------------------------------------------------------------------
Sales $ (2,977) - -
--------------------------------------------------------------------
General and
administrative expenses (7,772) $ (4,838) $ (2,430)
Interest and finance fees (3,453) (2,089) (405)
Gain on sale of
marketable securities 1,991 2,095 3,593
Corporate transaction
costs (6,934) - -
Share option expense (1,755) (467) (199)
Foreign exchange gain 607 4,775
Other expenses (3,888) (628) (105)
--------------------------------------------------------------------
(21,204) (1,152) 454
--------------------------------------------------------------------
(Loss) earnings before
income taxes (24,181) (1,152) 454
Income tax recovery
(expense) 1,577 (424) 158
--------------------------------------------------------------------
Corporate net (loss)
earnings $(22,604) $ (1,576) $ 612
--------------------------------------------------------------------
--------------------------------------------------------------------


Charges against sales relate to a gold-indexed interest rate swap
transaction and the amortization of the cost of gold puts acquired by
the Company in 2003, in connection with a loan facility.

General and administrative expenses increased in 2004, compared with
2003, reflecting an increased level of corporate activity and the
strengthening of the Canadian dollar.

Interest and finance fees reflect interest incurred on a long-term debt
facility, which was repaid in September, 2004. In addition, the Company
entered into a $300 million acquisition facility in August 2004 which
has yet to be drawn upon, but which incurs a 1% standby fee on any
undrawn amount.

Corporate transaction costs include $2.3 million associated with the
merger of Wheaton and Goldcorp completed in February 2005, $3.5 million
with respect to the failed attempt to merge with IAMGold in early 2004,
and $1.1 million to successfully defend the unsolicited takeover bid for
Wheaton by Coeur d'Alene Mines Corporation.

No significant cash taxes were paid in 2004.

Non GAAP measures - total cash cost per gold equivalent ounce calculation

The Company reports total cash costs on a sales basis. In the gold
mining industry, this is a common performance measure but does not have
any standardized meaning. The following table provides a reconciliation
of total cash costs per ounce to the financial statements:



(in thousands, except per
ounce amounts) 2004 2003 2002
--------------------------------------------------------------------
Cost of sales per
financial statements 150,571 $ 91,954 $ 19,355
Alumbrera equity
adjustment (Note 1) - (5,628) -
Treatment and refining
charges 28,299 15,302 -
Non-cash adjustments (2,878) (2,226) -
By-product copper sales (201,362) (75,743) -
Royalties 7,338 3,712 -
--------------------------------------------------------------------
$(18,032) $ 27,371 $19,355
--------------------------------------------------------------------
Divided by gold
equivalent ounces sold 606,500 450,100 106,300

Total cash cost per ounce $(30) $61 $ 182

(1) Total cash costs are calculated as if the Company's initial
acquisition of a 25% interest in Alumbrera had been accounted for
on a proportionately consolidated basis. The consolidated
financial statements however present the initial 25% interest
using the equity method until the Company increased its interest
to 37.5% on June 24, 2003, and thereafter accounted for its
interest on a proportionately consolidated basis.


LIQUIDITY AND CAPITAL RESOURCES

At December 31, 2004 the Company had cash and cash equivalents of $161.1
million (2003 - $151.9 million) and working capital of $165.5 million
(2003 - $147.5 million). In the opinion of management, the working
capital at December 31, 2004, together with cash flows from operations,
are sufficient to support the Company's normal operating requirements on
an ongoing basis.

Total assets increased to $1,174.3 million at December 31, 2004 from
$891.0 million at December 31, 2003. The increase resulted primarily
from the acquisition of the Amapari gold development project for $114.6
million and the acquisition by Silver Wheaton of the Zinkgruvan silver
contract for $77.9 million.

In January 2004, Wheaton acquired the Amapari gold development project
for total consideration of $114.6 million including acquisition costs.
Of the purchase price, $25.0 million was paid in cash, the remainder by
way of 33 million common shares and 21.5 million Series "B" common share
purchase warrants.

In connection with the Luismin and Zinkgruvan Transactions, Silver
Wheaton raised net proceeds of $98.1 million by issuing a combination of
shares and warrants to third parties.

During 2004, Wheaton generated cash flows from operations of $207.8
million, compared with $126.7 million during 2003.

In August 2004, the Company entered into a $300 million acquisition
facility which is available to finance up to three separate
acquisitions. The facility is available until November 24, 2005, and
amounts drawn down are required to be refinanced or repaid by February
24, 2006. Net proceeds from any debt refinancing or equity issue (not
undertaken in connection with an acquisition) together with the net
proceeds from significant asset sales, will be applied to repay amounts
outstanding under the facility. Security will be granted under the
facility only over acquired assets, together with guarantees by any
subsidiaries of Wheaton which acquire such assets. Amounts drawn down
under the facility will bear interest at LIBOR plus 2.25% per annum,
increasing to LIBOR plus 4.5% per annum over the term of the facility. A
1% standby fee will be incurred on any undrawn amounts. Debt issue costs
of $7.2 million have been deferred and are amortized to earnings over
the term of the debt facility. A further $1.1 million of debt issue
costs will be payable upon the first draw down under this facility.

During the year, the Company acquired marketable securities for $32.8
million and disposed of marketable securities for proceeds of $34.2
million, realizing a gain on sale of $2.0 million.

The Company invested a total of $90.6 million in property, plant and
equipment in 2004, including expenditures of $36.6 million at Amapari,
$10.9 million at Los Filos, $23.2 million at Luismin, $11.7 million at
Peak and $8.1 million at Alumbrera.

During 2004, the Company received cash distributions totalling $126.5
million from Alumbrera (2003 - $35.1 million). Alumbrera commenced
accruing cash taxes payable during the year, which will be due in May,
2005. Wheaton's share at December 31, 2004 amounted to $45.4 million.

A total of 5.6 million share purchase options and warrants were
exercised in 2004 for total proceeds of $5.8 million. As of March 4,
2005, there were 573,501,038 common shares of the Company issued and
outstanding. In addition, at the same date, the Company has 20,916,497
share purchase options outstanding under its share option plan and
175,104,283 share purchase warrants outstanding.

During the year, Wheaton repaid a total of $137.6 million of debt (2003
- $54.9 million) and now remains debt free.

During 2003, the Company acquired a 37.5% interest in Alumbrera and 100%
of the Peak gold mine for total consideration of $304.4 million
including acquisition costs. Of the 37.5% interest in Alumbrera an
initial 25% interest and the 100% interest in Peak was acquired in
March, 2003 for cash consideration of $180.3 million and $33.9 million,
respectively. A subsequent acquisition of 12.5% of Alumbrera was made in
June, 2003, for consideration of $90.2 million, and was satisfied by the
payment of $65 million in cash and a promissory note for $25 million.
The cash payment was funded by a $75 million loan facility consisting of
a $50 million term loan and a $25 million revolving working capital
facility, which was subsequently amended to a $75 million revolving
working capital facility in June 2004. Debt issue costs of $5.5 million
have been deferred and are amortized to earnings over the original term
of the debt.

Also, during 2003, Wheaton acquired a 100% interest in the Los Filos
gold development project, together with a 21.2% interest in the El Limon
gold project for total cash consideration of $89.5 million.

During 2003, the Company issued 85.7 million common shares and 42.9
million common share purchase warrants in three separate equity
financings for net proceeds of $347.8 million, which were used primarily
to fund the acquisitions.

Derivative instruments

The Company has employed metal, interest rate and Canadian dollar
forward and option contracts to manage exposure to fluctuations in metal
prices and foreign currency exchange rates. In 2003, in conjunction with
debt financing, the Company acquired put options to sell gold at a price
of $300 per ounce during the period from January 2004 to June 2008. At
December 31, 2004, the Company held put options to sell 525,000 ounces
of gold and the fair value of these options was $280,000. During 2003,
the Company also entered into a gold-indexed interest rate swap
transaction which has a fair value at December 31, 2004 of minus
$1,111,000.

Contractual obligations

Commitments exist at Luismin, Peak, Alumbrera and Amapari for capital
expenditures in 2005 of $59.1 million. The Company rents premises and
leases equipment under operating leases that expire over the next nine
years. Operating lease expense in 2004 was $2.1 million (2003 $2.2
million; 2002 - $0.9 million). Following is a schedule of future minimum
rental and lease payments required:



(in thousands)
-----------------------------------------------
2005 $2,259
2006 1,296
2007 905
2008 595
2009 525
-----------------------------------------------
5,580
Thereafter 1,084
-----------------------------------------------
Total minimum payments required $6,664
-----------------------------------------------
-----------------------------------------------


Related party transactions

In 2001, the Company entered into a financial advisory agreement with
Endeavour Financial Corporation ("Endeavour"), a corporation which until
July 2004 had two directors in common. Under the terms of this
agreement, which can be cancelled on 30 days notice, Endeavour provides
financial advisory services to the Company and is entitled to a monthly
fee of $10,000 and a success fee to be negotiated based on the value of
any acquisitions, dispositions and financings. During 2004, Endeavour
was paid consulting and financial advisory fees of $1.7 million (2003 -
$2.3 million; 2002 - $1.5 million), primarily related to services
provided in securing the Company's $300 million acquisition facility. A
further fee of $1.1 million is payable to Endeavour upon the first draw
down under this facility and $5 million was paid upon the successful
completion of the merger with Goldcorp on February 14, 2005.

RISKS AND UNCERTAINTIES

The main risks that can affect the profitability of the Company include
changes in metal prices, currency fluctuations, government regulation,
foreign operations and environmental.

Metal prices

Profitability of the Company depends on metal prices for gold, silver
and copper. A 10% change in the gold, silver or copper prices would
impact 2005 budgeted net earnings by approximately 15%, 4% or 13%,
respectively.

Gold, silver and copper prices are affected by numerous factors such as
the sale or purchase of gold and silver by various central banks and
financial institutions, interest rates, exchange rates, inflation or
deflation, fluctuations in the value of the US dollar and foreign
currencies, global and regional supply and demand, and the political and
economic conditions of major gold, silver and copper-producing countries
throughout the world.

Currency fluctuations

Exchange rate fluctuations may affect the costs that the Company incurs
in its operations. Gold, silver and copper are sold in US dollars and
the Company's costs are incurred principally in US dollars, Canadian
dollars, Mexican pesos, Argentine pesos, Australian dollars and
Brazilian reals. The appreciation of non-US dollar currencies against
the US dollar can increase the cost of gold, silver and copper
production in US dollar terms. From time to time, the Company transacts
currency hedging to reduce the risk associated with currency
fluctuations. There is no assurance that its hedging strategies will be
successful. Currency hedging may require margin activities. Sudden
fluctuations in currencies could result in margin calls that could have
an adverse effect on the Company's financial position.

A 10% change in foreign exchange rates would have an approximate 9%
impact on 2005 budgeted net earnings.

Government regulation

The mining, processing, development and mineral exploration activities
of the Company are subject to various laws governing prospecting,
development, production, taxes, labour standards and occupational
health, mine safety, toxic substances, land use, water use, land claims
of local people and other matters. No assurance can be given that new
rules and regulations will not be enacted or that existing rules and
regulations will not be applied in a manner which could increase the
cost of operations.

Foreign operations

The majority of the Company's operations are currently conducted in
Mexico, Argentina, Australia and Brazil, and as such the Company's
operations are exposed to various levels of political, economic and
other risks and uncertainties. These risks and uncertainties vary from
country to country and include, but are not limited to, terrorism;
hostage taking; military repression; extreme fluctuations in currency
exchange rates; high rates of inflation; labour unrest; the risks of war
or civil unrest; expropriation and nationalization; renegotiation or
nullification of existing concessions, licenses, permits and contracts;
illegal mining; changes in taxation policies; restrictions on foreign
exchange and repatriation; and changing political conditions, currency
controls and governmental regulations that favour or require the
awarding of contracts to local contractors or require foreign
contractors to employ citizens of, or purchase supplies from, a
particular jurisdiction.

Changes, if any, in mining or investment policies or shifts in political
attitude in Mexico, Argentina, Australia and Brazil could adversely
affect the Company's operations or profitability. Operations may be
affected in varying degrees by government regulations with respect to,
but not limited to, restrictions on production, price controls, export
controls, currency remittance, income taxes, expropriation of property,
foreign investment, maintenance of claims, environmental legislation,
land use, land claims of local people, water use and mine safety.

Failure to comply strictly with applicable laws, regulations and local
practices relating to mineral right applications and tenure, could
result in loss, reduction or expropriation of entitlements, or the
imposition of additional local or foreign parties as joint venture
partners with carried or other interests.

The occurrence of these various factors and uncertainties cannot be
accurately predicted and could have an adverse effect on the Company's
operations or profitability.

Environmental

All phases of the Company's operations are subject to environmental
regulation in the various jurisdictions in which it operates. These
regulations mandate, among other things, the maintenance of air and
water quality standards and land reclamation. They also set forth
limitations on the generation, transportation, storage and disposal of
solid and hazardous waste. Environmental legislation is evolving in a
manner which will require stricter standards and enforcement, increased
fines and penalties for non-compliance, more stringent environmental
assessments of proposed projects and a heightened degree of
responsibility for companies and their officers, directors and
employees. There is no assurance that future changes in environmental
regulation, if any, will not adversely affect the Company's operations.

Government approvals and permits are currently, and may in the future
be, required in connection with the Company's operations. To the extent
such approvals are required and not obtained, the Company could be
curtailed or prohibited from continuing its mining operations or from
proceeding with planned exploration or development of mineral properties.

The mining and milling facilities at the San Dimas and San Martin mines
are in compliance with Mexican environmental standards but are not in
compliance with World Bank Group/International Finance Corporation
("IFC") environmental and social guidelines. The tailings impoundments
at these units are being remediated in accordance with best practice.

The tailings impoundment at the recently acquired Nukay mine is not in
compliance with Mexican environmental standards. Luismin is in the
process of evaluating the facility to determine the best course of
action for bringing the tailings facility into compliance with both
Mexican and World Bank Group/IFC environmental guidelines. Luismin is
also in the process of bringing all of its mine sites into compliance
with World Bank Group/IFC environmental and social guidelines.

CRITICAL ACCOUNTING ESTIMATES

The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amount of assets and liabilities
and disclosure of contingent liabilities at the date of the financial
statements, and the reported amounts of revenues and expenditures during
the reporting period. Management has identified property, plant and
equipment and provision for reclamation and closure as the main
estimates for the following discussion. Note 2 of the Company's
consolidated financial statements describes all of the significant
accounting policies.

Property, plant and equipment

Property, plant and equipment are the most significant assets of the
Company, representing $754.8 million at December 31, 2004. This amount
represents the capitalized expenditures related to the acquisition,
exploration and development of mineral deposits. Construction costs on
development projects are capitalized until the mine is substantially
complete and ready for production. The Company estimates its reserves
and resources and the economic life of its mines and utilizes this
information to calculate depletion and amortization expense. Depletion
of mine properties is charged on a unit-of-production basis over proven
and probable reserves and a portion of resources expected to be
converted to reserves. Depreciation of plant and equipment is calculated
using the straight-line method, based on estimated useful lives, over
three to forty years.

Provision for reclamation and closure

Reclamation and closure costs have been estimated based on the Company's
interpretation of current regulatory requirements, however changes in
regulatory requirements and new information may result in revisions to
estimates. The Company recognizes the fair value of liabilities for
reclamation and closure costs in the period in which they are incurred.
A corresponding increase to the carrying amount of the related assets is
generally recorded and depreciated over the life of the asset.

The Company estimates that its discounted and undiscounted reclamation
and closure liability will be $19,229,000 and $31,915,000, respectively.

CHANGES IN ACCOUNTING POLICIES

Stock-based compensation and other stock-based payments

Effective January 1, 2004, the Company adopted the amended
recommendations of the CICA Handbook Section 3870, "Stock-based
Compensation and Other Stock-based Payments". Under the amended
standards of this Section, the fair value of all stock-based awards
granted are estimated using the Black-Scholes model and are recorded in
operations over their vesting periods. The compensation cost related to
share purchase options granted after January 1, 2004 is recorded in
operations. As a result, 2004 opening retained earnings was reduced by
$16.8 million, share purchase options (a separate component of
shareholders' equity) increased by $14.9 million, share capital
increased by $1.9 million and contributed surplus increased by $0.1
million.

Stock-based compensation expense is determined using an option pricing
model assuming no dividends are to be paid, a weighted average
volatility of the Company's share price of 50% (2003 - 60%; 2002 - 70%),
an annual risk free interest rate of 3% (2003 - 4%; 2002 - 5%) and
expected lives of three years (2003 - three years; 2002 - five years).
The total compensation expense recognized in the statement of operations
for share purchase options granted in 2004 amounted to $6,801,000 (2003
- $0.5 million; 2002 - $0.2 million). Had the same basis been applied to
share purchase options granted in 2003 and 2002 as it was in 2004, total
compensation expense recognized in the statement of operations for 2003
and 2002 would have been $15.9 million and $0.9 million, respectively.

OUTLOOK

Construction of the Amapari project in Brazil is expected to be
completed with the commencement of operations by early in the third
quarter of 2005, well in advance of the original schedule. The Los Filos
project in Mexico continues to progress well, with production expected
to commence in early 2006. Environmental activities are well advanced
and the initial sustainable development program has been completed.

Capital expenditures planned in 2005 approximate $152 million, of which
$40 million will be incurred at Amapari, $94 million at Luismin ($68
million relating to Los Filos and $26 million to San Dimas and San
Martin), and $18 million at Peak.

In 2005, Wheaton expects to produce 675,000 gold equivalent ounces at a
total cash cost of less than $50 per gold equivalent ounce. By 2006,
with the Los Filos and Amapari projects in operation, overall production
will increase to over 950,000 gold equivalent ounces at a total cash
cost of less than $100 per gold equivalent ounce.

In December 2004, the Company announced it had reached an agreement in
principle to combine with Goldcorp through a share exchange take-over
bid whereby Goldcorp offered one common share of Goldcorp for every four
common shares of Wheaton. On February 10, 2005, Goldcorp shareholders
approved the combination and on February 14, 2005, approximately 69% of
Wheaton common shares were tendered to the Goldcorp offer. As a result,
effective February 15, 2005, Goldcorp will consolidate the operations of
Wheaton. The combination will create one of the world's lowest cost,
million ounce gold producers. 2005 gold production of the combined
company is expected to exceed 1.1 million ounces of gold at a total cash
cost of less than $60 per ounce. By 2007, gold production is expected to
grow to 1.5 million ounces with commencement of operation at Los Filos
and Amapari and the expansion of the Red Lake Mine shaft. The combined
company will have a strong balance sheet with over $500 million in cash
and gold bullion, and no debt.

March 4, 2005

Additional information relating to the Company, including its Annual
Information Form, is available on SEDAR at www.sedar.com.

This Management's Discussion & Analysis contains certain forward-looking
statements. All statements, other than statements of historical fact,
included herein, including without limitation, statements regarding
future plans and objectives of the Company are forward-looking
statements that involve various risks and uncertainties. There can be no
assurance that such statements will prove accurate, and actual results
and future events could differ materially from those anticipated in such
statements. Important factors that could cause actual results to differ
materially from the Company's expectations are disclosed in Company
documents filed from time to time with the Toronto Stock Exchange and
other regulatory authorities.



Consolidated Statements of Operations
Years Ended December 31
(US dollars and shares in thousands, except per share amounts)

Note 2004 2003 2002
--------------------------------------------------------------------
Sales $ 419,182 $ 212,633 $ 34,693
--------------------------------------------------------------------
Cost of sales 150,571 91,954 19,355
Depreciation and depletion 47,498 32,393 3,028
Royalties 7,338 3,712 28
--------------------------------------------------------------------
205,407 128,059 22,411
--------------------------------------------------------------------
Earnings from mining operations 213,775 84,574 12,282
--------------------------------------------------------------------
Expenses and other income
General and administrative 12,975 9,654 6,329
Interest and finance fees 5,871 4,318 487
Exploration 3,494 1,875 2,126
Depreciation and amortization 4,228 1,778 108
Corporate transaction costs 5 6,934 - -
Other expense (income) 6 2,301 (8,430) (4,823)
--------------------------------------------------------------------
35,803 9,195 4,227
--------------------------------------------------------------------
Earnings before the following 177,972 75,379 8,055
Equity in earnings of Minera
Alumbrera Ltd. 4(c) - 7,324 -
--------------------------------------------------------------------
Earnings before income taxes
and non-controlling interest 177,972 82,703 8,055
Income tax expense 7 35,144 25,044 2,453
Non-controlling interest 16 707 - -
--------------------------------------------------------------------
Net earnings $ 142,121 $ 57,659 $ 5,602
--------------------------------------------------------------------
--------------------------------------------------------------------

Earnings per share 17(d)
Basic $ 0.25 $ 0.14 $ 0.04
--------------------------------------------------------------------
--------------------------------------------------------------------
Diluted $ 0.22 $ 0.13 $ 0.04
--------------------------------------------------------------------
--------------------------------------------------------------------

Weighted-average number of
shares outstanding 17(d)
Basic 568,442 412,035 137,327
--------------------------------------------------------------------
--------------------------------------------------------------------
Diluted 651,216 439,214 143,227
--------------------------------------------------------------------
--------------------------------------------------------------------

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

Consolidated Balance Sheets
At December 31
(US dollars and shares in thousands)

Note 2004 2003
-----------------------------------------------------------
Assets
Current
Cash and cash equivalents $ 161,131 $ 51,878
Appropriated cash - 8,840
Marketable securities 8 3,200 1,142
Accounts receivable 46,994 31,824
Income tax receivable 2,774 -
Inventories 9 31,554 26,809
Other 8,940 4,287
-----------------------------------------------------------
254,593 224,780
Property, plant and equipment 10 754,836 583,911
Stockpiled ore 9 58,820 60,736
Future income taxes 7 9,667 7,211
Silver contract 3 77,708 -
Other 11 18,661 14,367
-----------------------------------------------------------
$1,174,285 $ 891,005
-----------------------------------------------------------
-----------------------------------------------------------
Liabilities
Current
Accounts payable and accrued
liabilities 12 $ 41,323 $ 31,402
Income taxes payable 45,786 1,062
Current portion of long-term
debt 13 - 41,000
Other 2,001 3,832
-----------------------------------------------------------
89,110 77,296
Long-term debt 13 - 81,423
Future income taxes 7 118,918 133,881
Deferred revenue 3 75,894 -
Provision for reclamation and
closure 14 19,229 19,604
Future employee benefits and
other 15 22,450 22,683
-----------------------------------------------------------
325,601 334,887
-----------------------------------------------------------
Non-controlling interest 16 54,521 -
-----------------------------------------------------------
Shareholders' Equity
Share purchase options 17 15,630 877
Contributed surplus 704 600
Share purchase warrants 16,660 -
Share capital 17
Common shares: Authorized -
unlimited shares, no par
value;
Issued and outstanding -
572,247 (December 31,
2003 - 533,697) 586,345 505,090
Retained earnings 174,824 49,551
-----------------------------------------------------------
794,163 556,118
-----------------------------------------------------------
$1,174,285 $ 891,005
-----------------------------------------------------------
-----------------------------------------------------------
Commitments (note 20)
Subsequent events (note 22)

Ian Telfer, Director Douglas Holtby, Director

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

Consolidated Statements of Shareholders' Equity
Years Ended December 31
(US dollars, shares and warrants in thousands)

Share Purchase
Common Shares Warrants
Shares Amount Warrants Amount
--------------------------------------------------------------------
At January 1, 2002 56,601 $ 25,999 13,000 $ 3,110
Special warrants issued - - 110,000 82,068
Special warrants exercised 119,910 85,178 (119,910) (85,178)
Warrants issued on exercise
of special warrants - - 64,910 -
Share options exercised 1,355 411 - -
Warrants exercised 3,450 2,010 (3,450) -
Shares issued on acquisition
of Luismin SA de CV 9,084 6,805 - -
Share issue costs, net of tax - (5,251) - -
Fair value of share purchase options
issued to non-employees - - - -
Net earnings - - - -
--------------------------------------------------------------------
At December 31, 2002 190,400 115,152 64,550 -
Share options exercised 6,621 5,431 - -
Warrants exercised 9,602 5,192 (9,602) -
Shares and warrants issued 327,074 402,266 100,360 -
Share issue costs, net of
tax - (22,951) - -
Fair value of share purchase options
issued to non-employees - - - -
Net earnings - - - -
--------------------------------------------------------------------
At December 31, 2003 533,697 505,090 155,308 -
Cumulative effect of change
in accounting policy (note
2 (t)) - 1,883 - -
Share options exercised 5,074 6,961 -
Warrants exercised 476 672 (476) -
Shares and warrants issued on
acquisition of Amapari (note
4 (a)) 33,000 71,885 21,516 16,660
Share issue costs, net of tax - (146) - -
Fair value of share purchase options
issued - - - -
Net earnings - - - -
--------------------------------------------------------------------
At December 31, 2004 572,247 $586,345 176,348 $ 16,660
--------------------------------------------------------------------
--------------------------------------------------------------------
Shareholders' Equity (note 17)

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


Consolidated Statements of Shareholders' Equity
Years Ended December 31
(US dollars, shares and warrants in thousands)

Share Contr- Retained
Purchase ibuted Earnings
Options Surplus (Deficit) Total
--------------------------------------------------------------------
At January 1, 2002 $ 317 $600 $(13,710) $ 16,316
Special warrants issued - - - 82,068
Special warrants exercised - - - -
Warrants issued on exercise
of special warrants - - - -
Share options exercised - - - 411
Warrants exercised - - - 2,010
Shares issued on acquisition
of Luismin SA de CV - - - 6,805
Share issue costs, net of
tax - - - (5,251)
Fair value of share purchase options
issued to non-employees 93 - - 93
Net earnings - - 5,602 5,602
--------------------------------------------------------------------
At December 31, 2002 410 600 (8,108) 108,054
Share options exercised - - - 5,431
Warrants exercised - - - 5,192
Shares and warrants issued - - - 402,266
Share issue costs, net of tax - - - (22,951)
Fair value of share purchase options
issued to non-employees 467 - - 467
Net earnings - - 57,659 57,659
--------------------------------------------------------------------
At December 31, 2003 877 600 49,551 556,118
Cumulative effect of change
in accounting policy (note
2 (t)) 14,861 104 (16,848) -
Share options exercised (1,863) - 5,098
Warrants exercised - 672
Shares and warrants issued
on acquisition of Amapari
(note 4 (a)) - - - 88,545
Share issue costs, net of
tax - - - (146)
Fair value of share purchase options
issued 1,755 - 1,755
Net earnings - - 142,121 142,121
--------------------------------------------------------------------
At December 31, 2004 $15,630 $704 $174,824 $794,163
--------------------------------------------------------------------
--------------------------------------------------------------------
Shareholders' Equity (note 17)

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


Consolidated Statements of Cash Flows
Years Ended December 31
(US dollars in thousands)

Note 2004 2003 2002
--------------------------------------------------------------------
Operating Activities
Net earnings $ 142,121 $ 57,659 $ 5,602
Reclamation expenditures (1,050) (1,854) (685)
Defined benefit pension plan
contributions (1,715) (463) -
Cash distribution from Minera
Alumbrera Ltd. - 12,610 -
Items not affecting cash
Depreciation, depletion
and amortization 51,726 34,171 3,136
Accretion expense on
provision for reclamation 621 793 47
Amortization of deferred
revenue (575) - -
Gain on sale of marketable
securities 6 (1,991) (2,095) (3,593)
Future employee benefits 2,007 924 380
Future income taxes 7 (12,308) 24,281 2,606
Share purchase options 6 6,801 467 199
Non-controlling interest 16 707 - -
Equity in earnings of Minera
Alumbrera Ltd. - (7,324) -
Other (1,365) 920 (1,090)
Change in non-cash working
capital 18 22,835 6,589 (2,241)
--------------------------------------------------------------------
Cash generated by
operating activities 207,814 126,678 4,361
--------------------------------------------------------------------
Financing Activities
Long-term debt - 75,000 -
Repayment of long-term debt (137,623) (54,919) -
Common shares issued 17 5,770 390,522 2,421
Common share and special
warrant issue costs (146) (25,551) (5,251)
Shares issued by subsidiary
to non-controlling interest 98,057 - -
Debt issue costs 13(a),(b) (8,459) (4,242) -
Deferred gold put options - (5,786) -
Special warrants issued - - 82,068
--------------------------------------------------------------------
Cash (applied to)
generated by financing
activities (42,401) 375,024 79,238
--------------------------------------------------------------------
Investing Activities
Proceeds on sale of
marketable securities 34,243 4,013 6,169
Purchases of marketable
securities (32,812) - -
Property, plant and equipment (90,646) (29,010) (5,214)
Acquisitions, net of cash
acquired 18 (25,785) (347,766) (76,886)
Silver contracts purchased 3 (50,000) - -
Appropriated cash 8,840 - -
Short-term money market
instruments - - 13,013
Other - 3 520
--------------------------------------------------------------------
Cash applied to investing
activities (156,160) (372,760) (62,398)
--------------------------------------------------------------------
Increase in cash and cash
equivalents 9,253 128,942 21,201
Cash and cash equivalents,
beginning of year 151,878 22,936 1,735
--------------------------------------------------------------------
Cash and cash equivalents,
end of year $ 161,131 $ 151,878 $ 22,936
--------------------------------------------------------------------
--------------------------------------------------------------------
Supplemental cash flow
information 18

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


Notes to the Consolidated Financial Statements
Years Ended December 31 2004, 2003 and 2002
(US dollars)


1. DESCRIPTION OF BUSINESS AND NATURE OF OPERATIONS

Wheaton River Minerals Ltd. (the "Company") is engaged in gold mining
and related activities including exploration, extraction, processing,
refining and reclamation. The Company has mining operations in Mexico,
Argentina and Australia, project development activities in Mexico and
Brazil, and on-going exploration activities in Mexico, Australia and
Brazil. During 2002 it also carried on exploration activities in Canada.
During 2004, the Company completed the reclamation of the Golden Bear
Mine in Canada, which ceased commercial production in 2001.

On March 18, 2003 the Company acquired the Peak Mine in Australia and a
25% indirect interest in the Alumbrera Mine in Argentina (note 4 (c)).
On June 24, 2003 the Company acquired an additional 12.5% indirect
interest in the Alumbrera Mine (note 4 (c)). On October 31, 2003, the
Company acquired the Los Filos gold project, together with a 21.2%
interest (of which 14% is a carried interest) in the El Limon gold
project, both located in Mexico (note 4 (b)).

On January 9, 2004, the Company acquired the Amapari gold project in
northern Brazil (note 4 (a)).

On October 15, 2004, the Company acquired a 75% interest in Silver
Wheaton Corp. ("Silver Wheaton"), formerly Chap Mercantile Inc, pursuant
to an agreement to sell 100% of the silver produced from the Company's
Mexican operations to Silver Wheaton (note 3). Subsequently, the
Company's interest in Silver Wheaton was diluted to 65%.

On February 14, 2005, the Company successfully completed a business
combination with Goldcorp Inc. ("Goldcorp") (note 22).

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(a) Canadian generally accepted accounting principles

These consolidated financial statements have been prepared in accordance
with Canadian generally accepted accounting principles ("GAAP").

(b) Basis of presentation

These consolidated financial statements include the accounts of the
Company and its subsidiaries. Principal subsidiaries and investments at
December 31, 2004 are listed below:



Operations and
Development
Ownership Projects
Subsidiary Location Interest Status Owned
--------------------------------------------------------------------
Luismin SA de
CV ("Luismin") Mexico 100% Consolidated San Dimas, San
Martin and Nukay
mines and Los
Filos development
project

Peak Gold
Mines Pty
Ltd. ("Peak") Australia 100% Consolidated Peak mine

Mineraçao
Pedra Branco
do Amapari Ltd.
a ("Amapari") Brazil 100% Consolidated Amapari
development
project

Minera
Alumbrera Ltd.
("Alumbrera") Argentina 37.5% Proportionately Alumbrera
consolidated mine

Silver
Wheaton Corp.
("Silver
Wheaton") Canada 65% Consolidated Silver purchase
contracts in
Mexico and Sweden


(c) Investment in Minera Alumbrera Ltd.

On March 18, 2003 the Company acquired a 25% indirect interest in
Alumbrera which was accounted for using the equity method and the
Company's share of earnings of Alumbrera have been included in the
earnings of the Company since that date.

On June 24, 2003 the Company acquired an additional 12.5% indirect
interest in Alumbrera. As a result of this acquisition and acquisition
of control of an intermediate holding company, the Company now has joint
control over Alumbrera through certain matters requiring unanimous
consent in the shareholders' agreement and, therefore, the Company has
proportionately consolidated its 37.5% share of the financial statements
of Alumbrera from June 24, 2003 onwards. On this basis, the Company
records its 37.5% share of the assets, liabilities, revenues and
expenses of Alumbrera in these consolidated financial statements.

(d) Use of estimates

The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amount of assets and liabilities
and disclosure of contingent liabilities at the date of the financial
statements, and the reported amounts of revenues and expenditures during
the reporting period. Significant areas where management's judgment is
applied are asset valuations, depreciation and depletion, income taxes,
employee future benefits, contingent liabilities and provision for
reclamation. Actual results could differ from those reported.

(e) Foreign currency translation

The Company's functional and reporting currency is the United States
dollar. Foreign currency monetary assets and liabilities are translated
into United States dollars at the exchange rates prevailing at the
balance sheet date. Non-monetary assets denominated in foreign
currencies are translated using the rate of exchange at the transaction
date. Foreign currency transactions are translated at the United States
dollar rate prevailing on the transaction dates. Foreign exchange gains
and losses are included in the determination of earnings.

(f) Financial instruments

The carrying values of cash and cash equivalents, appropriated cash,
marketable securities, accounts receivable, accounts payable and accrued
liabilities and long-term debt approximate their fair values.

The Company has employed metal, interest rate and Canadian dollar
forward and option contracts to manage exposure to fluctuations in metal
prices and foreign currency exchange rates. Hedging gains or losses are
recognized in sales when the hedged production is sold.

(g) Revenue recognition

Revenue from the sale of metals is recognized in the accounts when title
and risk passes to the buyer, collection is reasonably assured and the
price is reasonably determinable. Revenue from the sale of metals may be
subject to adjustment upon final settlement of estimated metal prices,
weights and assays. Adjustments to revenue for metal prices are recorded
monthly and other adjustments are recorded on final settlement. Refining
and treatment charges are netted against revenue.

(h) Exploration and development expenditures

Significant property acquisition costs are capitalized. Exploration and
development expenditures are expensed until a positive economic analysis
has been completed that indicates the property is economically feasible.
Capitalized costs are written down to their estimated recoverable amount
if the properties are determined to be uneconomic or are placed for sale.

(i) Income and resource taxes

The provision for income and resource taxes is based on the liability
method. Future taxes arise from the recognition of the tax consequences
of temporary differences by applying enacted or substantively enacted
tax rates applicable to future years to differences between the
financial statement carrying amounts and the tax bases of certain assets
and liabilities. The Company records a valuation allowance against any
portion of those future income tax assets that it believes will, more
likely than not, fail to be realized.

(j) Earnings per share

Earnings per share calculations are based on the weighted average number
of common shares and common share equivalents issued and outstanding
during the year. Diluted earnings per share are calculated using the
treasury method, which requires the calculation of diluted earnings per
share by assuming that outstanding share purchase options and warrants,
with exercise prices that exceed the average market price of the common
shares for the year, are exercised and the proceeds are used to
repurchase shares of the Company at the average market price of the
common shares for the period.

(k) Cash and cash equivalents

Cash and cash equivalents include cash, and those short-term money
market instruments that are readily convertible to cash with an original
term of less than 91 days.

(l) Short-term money market instruments

Short-term money market instruments are those which are due within one
year but have an original term of greater than 90 days.

(m) Marketable securities

Marketable securities are carried at the lower of cost and market value
on a portfolio basis.

(n) Inventories

Product inventory is valued at the lower of average cost and net
realizable value. Inventories of supplies are valued at the lower of
average cost and replacement cost net of a provision for obsolescence.
Inventories at December 31, 2004 included an obsolescence provision of
$1,261,000 (2003 - $993,000).

(o) Property, plant and equipment

Property, plant and equipment are recorded at cost. Significant costs
related to property acquisitions including undeveloped mineral interests
are capitalized until the viability of the mineral interest is
determined. When it has been established that a mineral deposit is
commercially mineable and a decision has been made to prepare a mining
plan (which occurs upon completion of a positive economic analysis of
the mineral deposit), the development costs subsequently incurred are
capitalized. Construction costs on development projects are capitalized
until the mine is substantially complete and ready for productive use.
Major development expenditures incurred to expose the ore, increase
production or extend the life of an existing mine are capitalized.
Capitalized costs are written down to their estimated recoverable amount
if the properties are determined to be uneconomic or are placed for sale.

Interest and finance costs relating to the construction of plant and
equipment are capitalized prior to the commencement of commercial
production of a new mine.

Depletion of mine properties is charged on a unit-of-production basis
over proven and probable reserves and a portion of resources expected to
be converted to reserves. Depreciation of plant and equipment is
calculated using the straight-line method, based on estimated useful
lives, over three to forty years.

Evaluations of the carrying values of each operation and development
property are undertaken in each reporting period to determine if
estimated undiscounted future net cash flows are less than the carrying
value. Estimated undiscounted future net cash flows are calculated using
estimated production sales prices and operating costs, capital costs and
reclamation and closure costs. If it is determined that the future net
cash flows from an operation or development property are less than the
carrying value then a write-down is recorded with a charge to operations.

(p) Silver contract

Contracts for which settlement is called for in silver are recorded at
cost. These assets are depreciated on a unit-of-sale basis over the
estimated recoverable reserves and resources at the mine corresponding
to the specific contract.

Evaluations of the carrying values of each contract are undertaken in
each reporting period to determine if estimated undiscounted future net
cash flows are less than the carrying value. Estimated undiscounted
future net cash flows are calculated using estimated production, sales
prices and purchase costs. If it is determined that the future net cash
flows from an operation are less than the carrying value then a
write-down is recorded with a charge to operations.

(q) Deferred revenue and non-controlling interest

Non-controlling interest exists on less than wholly-owned subsidiaries
of the Company and represents the outside interest's share of the
carrying values of the subsidiaries. When the subsidiary company issues
its own shares to outside interests, a dilution gain or loss arises as a
result of the difference between the Company's share of the proceeds and
the underlying equity of the shares involved. Dilution gains that do not
represent the culmination of earnings are deferred and recognized as
revenue on a systematic basis.

(r) Provision for reclamation and closure

On January 1, 2003 the Company adopted the standard of the CICA
Handbook, "Asset Retirement Obligations", which requires that the fair
value of liabilities for asset retirement obligations be recognized in
the period in which they are incurred. A corresponding increase to the
carrying amount of the related assets is generally recorded and
depreciated over the life of the asset. The amount of the liability is
subject to re-measurement at each reporting period. This differs from
the prior practice that involved accruing for the estimated reclamation
and closure liability through charges to income on a unit-of-production
basis over the estimated life of the mine. The effect of the change had
no material impact on the Company's consolidated financial statements.

Reclamation and closure costs have been estimated based on the Company's
interpretation of current regulatory requirements. The fair value of the
estimated reclamation and closure expenses for Luismin, Los Filos, Peak,
Alumbrera and Amapari were recorded as a liability on acquisition. Fair
value was determined as the discounted future cash expenditures.

(s) Future employee benefits

Seniority premiums, to which some employees are entitled upon
termination of employment after 15 years of service, as well as the
obligations under the Company's non-contributory retirement plan for
employees, are recognized as expenses of the years in which the services
are rendered. This is completed through contributions to an irrevocable
trust fund and the establishment of accruals, based on actuarial studies
made by independent actuaries.

(t) Stock-based compensation

Effective January 1, 2004, the Company adopted the amended
recommendations of the CICA Handbook Section 3870, "Stock-based
Compensation and Other Stock-based Payments". Under the amended
standards of this Section, the fair value of all stock-based awards
granted are estimated using the Black-Scholes model and are recorded in
operations over their vesting periods. The compensation cost related to
share purchase options granted after January 1, 2004 is recorded in
operations.

Previously, the Company provided note disclosure of pro forma net
earnings and pro forma earnings per share as if the fair value based
method had been used to account for share purchase options granted to
employees, directors and officers after January 1, 2002. The amended
recommendations have been applied retroactively from January 1, 2002
without restatement of prior periods. As a result, as of January 1,
2004, retained earnings decreased by $16,848,000, share purchase options
(a separate component of shareholders' equity) increased by $14,861,000,
share capital increased by $1,883,000 and contributed surplus increased
by $104,000.

The total compensation expense recognized in the statement of operations
for share purchase options granted in 2004 amounted to $6,801,000. Had
the same basis been applied to share purchase options granted in 2003
and 2002, net earnings would have been as follows:



(in thousands, except
per share amounts) 2003 2002
--------------------------------------------------------------------
Net earnings $ 57,659 $ 5,602
Additional compensation expense (15,925) (923)
--------------------------------------------------------------------
Pro forma net earnings $ 41,734 $ 4,679
--------------------------------------------------------------------
--------------------------------------------------------------------
Pro forma basic and diluted
earnings per share $ 0.10 $ 0.03
--------------------------------------------------------------------
--------------------------------------------------------------------


Stock-based compensation expense is determined using an option pricing
model assuming no dividends are to be paid, a weighted average
volatility of the Company's share price of 50% (2003 - 60%; 2002 - 70%),
an annual risk free interest rate of 3% (2003 - 4%; 2002 - 5%) and
expected lives of three years (2003 - three years; 2002 - five years).

(u) Comparative amounts

Certain comparative amounts have been reclassified to conform to
presentation in the current year.

3. SILVER WHEATON CORP.

On October 15, 2004, the Company entered into an agreement to sell to
Silver Wheaton, an inactive public company, all of the silver produced
by Wheaton's Luismin mining operations in Mexico for upfront
consideration of $36.7 million (Cdn$46 million) in cash and 540 million
(pre-consolidation) Silver Wheaton common shares, plus a per ounce cash
payment of the lesser of $3.90 and the prevailing market price of
delivered silver, subject to adjustment (the "Luismin Transaction").

The Luismin Transaction resulted in the acquisition of control by
Wheaton of Silver Wheaton. As a result, Wheaton has consolidated Silver
Wheaton's results of operations from the date of acquisition, and the
cost of the Luismin silver contract has been recorded by Silver Wheaton
at Wheaton's carrying value of the Luismin silver properties, plus
acquisition costs of $430,000. Upon consolidation, this resulted in a
dilution gain of $34,857,000 which has been deferred and is being
amortized on a unit-of-sale basis under the Luismin Transaction.

On December 8, 2004, Silver Wheaton entered into an agreement to
purchase all of the silver produced by Lundin Mining Corporation's
Zinkgruvan mine in Sweden for a payment of $50 million in cash, 30
million (pre-consolidation) Silver Wheaton common shares and 30 million
Silver Wheaton common share purchase warrants. In addition, a per ounce
cash payment of the lesser of $3.90 and the prevailing market price,
subject to adjustment, is due (the "Zinkgruvan Transaction"). The
Zinkgruvan mine is expected to produce approximately two million ounces
of silver annually for a minimum of 20 years. The allocation of the
purchase price is as follows:



(in thousands)
Purchase price: (a)
Cash $ 50,000
Silver Wheaton common shares and warrants 27,866
Acquisition costs 53
--------------------------------------------------------------
$ 77,919
--------------------------------------------------------------
--------------------------------------------------------------
(a) As of December 31, 2004, $211,000 has been amortized to
operations such that the net book value of the silver
contract at December 31, 2004 is $77,708,000.


In connection with the Zinkgruvan Transaction, Silver Wheaton raised
gross proceeds of $51 million from a private placement of 81 million
subscription receipt units. Wheaton did not participate in this private
placement.

Following the Zinkgruvan Transaction and the related financing,
Wheaton's interest in Silver Wheaton was diluted from approximately 75%
to 65%, resulting in a dilution gain of $41,612,000 which has been
deferred and is being amortized on a unit-of-sale basis under the
Luismin Transaction.



(in thousands)
Deferred revenue:
At January 1, 2004 $ -
Dilution gain arising from Luismin Transaction 34,857
Dilution gain arising from Zinkgruvan Transaction 41,612
Deferred revenue recognized in the year (575)
--------------------------------------------------------------
At December 31, 2004 $ 75,894
--------------------------------------------------------------
--------------------------------------------------------------


4. ACQUISITIONS

(a) Amapari gold development project

On January 9, 2004 the Company acquired a 100% interest in the Amapari
gold development project in Brazil for total consideration of
$114,649,000 including acquisition costs. Of the purchase price,
$25,000,000 was paid in cash and $88,545,000 by way of 33 million
Wheaton common shares and 21.5 million Series "B" common share purchase
warrants.

The acquisition of Amapari has been accounted for using the purchase
method. The allocation of the purchase price is summarized in the table
below.



(in thousands)
Purchase price:
Cash paid $ 25,000
Shares and share purchase warrants issued 88,545
Acquisition costs 1,104
--------------------------------------------------------------
$114,649
--------------------------------------------------------------
--------------------------------------------------------------
Net assets acquired:
Cash $ 319
Non-cash working capital (2,368)
Property, plant and equipment 131,898
Debt acquired (15,200)
--------------------------------------------------------------
$114,649
--------------------------------------------------------------
--------------------------------------------------------------


Project debt of $15,200,000 due to Anglogold Brazil Ltda., assumed in
connection with the acquisition, was repaid in June 2004 out of cash on
hand.

(b) Los Filos and El Limon gold development projects

On October 31, 2003, the Company acquired a 100% interest in the Los
Filos gold development project, together with a 21.2% interest (of which
14% is a carried interest) in the El Limon gold project from Teck
Cominco Limited and Miranda Mining Corporation. Both projects are
located in Mexico. The purchase price was $89,486,000 including
acquisition costs. The acquisition has been accounted for using the
purchase method and the allocation of the purchase price is summarized
in the table below.



(in thousands)
Purchase price:
Cash paid $ 87,020
Acquisition costs 2,466
--------------------------------------------------------------
$ 89,486
--------------------------------------------------------------
--------------------------------------------------------------
Net assets acquired:
Cash $ 263
Property, plant and equipment 137,780
Future income tax assets 922
Non-cash working capital (1,080)
Provision for reclamation and closure (1,000)
Future income tax and deferred profit
sharing liabilities (47,399)
--------------------------------------------------------------
$ 89,486
--------------------------------------------------------------
--------------------------------------------------------------


(c) Minera Alumbrera Ltd. and Peak Gold Mines Pty Ltd.

On March 18, 2003 the Company acquired a 25% indirect interest in
Alumbrera and a 100% interest in Peak from Rio Tinto Ltd. ("Rio Tinto").
The acquisition of the 25% interest in Alumbrera was through
intermediate holding companies with assets relating solely to the
investment in Alumbrera. The purchase price for Alumbrera and Peak
totaled $214,227,000 including acquisition costs. Alumbrera and Peak
operate gold and copper mines located in Argentina and Australia,
respectively.

On June 24, 2003 the Company acquired an additional 12.5% indirect
interest in Alumbrera from Rio Algom Ltd. ("Rio Algom", a subsidiary of
BHP Billiton Ltd. ) for a purchase price of $90,156,000 including
acquisition costs. This purchase price was satisfied by a cash payment
of $65,000,000, a promissory note due to Rio Algom in the amount of
$25,000,000 (note 13(c)) and acquisition costs paid of $156,000. As a
result of the acquisition of an additional 12.5% indirect interest in
Alumbrera and acquisition of control of an intermediate holding company,
the Company obtained joint control over Alumbrera through certain
matters requiring unanimous consent in the shareholders' agreement.

(i) Minera Alumbrera Ltd.

The acquisition of the 37.5% interest in Alumbrera has been accounted
for using the purchase method and the results of Alumbrera have been
included in the earnings of the Company as follows: 25% interest on an
equity basis from date of acquisition, March 18, 2003, to June 23, 2003
and 37.5% interest on a proportionate consolidation basis from June 24,
2003 onwards. The total purchase price was $270,459,000 including
acquisition costs. The allocation of the purchase price as at June 24,
2003 is summarized in the table below.



(in thousands)
Purchase price:
Acquisition of 25% interest,
effective March 18, 2003
Cash paid $180,000
Acquisition costs 303
Equity in earnings - March 18 - June 23, 2003 7,324
Cash distribution received (11,210)
--------------------------------------------------------------
176,417
Acquisition of additional 12.5% interest,
effective June 24, 2003
Cash paid 65,000
Promissory note 25,000
Acquisition costs 156
Cash distribution received (1,400)
--------------------------------------------------------------
$265,173
--------------------------------------------------------------
--------------------------------------------------------------
Net assets acquired:
Cash $ 21,103
Appropriated cash 8,763
Non-cash working capital 36,835
Property, plant and equipment 269,409
Other 58,376
Provision for reclamation and closure (4,918)
Future income tax liabilities (47,053)
Long-term debt (77,342)
--------------------------------------------------------------
$265,173
--------------------------------------------------------------
--------------------------------------------------------------


(ii) Peak Gold Mines Pty Ltd.

The acquisition of 100% of Peak has been accounted for using the
purchase method and the results of Peak's operations have been included
in the Company's results of operations from March 18, 2003. The
allocation of the purchase price is summarized in the table below.



Purchase Price Allocation
Previously
(in thousands) Reported Adjustments Final
--------------------------------------------------------------------
Purchase price:
Cash paid $ 33,583 $ - $ 33,583
Acquisition costs 341 - 341
--------------------------------------------------------------------
$ 33,924 $ - $ 33,924
--------------------------------------------------------------------
--------------------------------------------------------------------
Net assets acquired:
Cash $ (263) $ - $ (263)
Non-cash working capital 4,791 (917) 3,874
Property, plant and equipment 34,219 (4,194) 30,025
Future income tax assets - 5,111 5,111
Other non-current assets 422 - 422
Provision for reclamation and
closure (4,145) - (4,145)
Other non-current liabilities (1,100) - (1,100)
--------------------------------------------------------------------
$ 33,924 $ - $ 33,924
--------------------------------------------------------------------
--------------------------------------------------------------------


During the year ended December 31, 2004, Rio Tinto filed certain 2003
tax returns which included the results of Peak up until the date of
acquisition by Wheaton. As a result, the tax balances of Peak as at the
acquisition date, March 18, 2003, were restated and the purchase price
allocation has been amended to reflect these changes.

(d) Luismin SA de CV

On June 19, 2002 the Company acquired all of the outstanding shares of
Luismin. Under the purchase agreement, the Company acquired Luismin for
$55,160,000 in cash and 9,084,090 common shares of the Company. The
Company also advanced $19,840,000 to Luismin to repay its outstanding
bank debt. The Company incurred acquisition costs of $3,266,000. As part
of the purchase consideration, a contingent payment of 11,355,113 of the
Company's common shares was due if the price of silver averaged $5 or
more per ounce over a period of 60 consecutive trading days prior to
June 19, 2004. On September 29, 2003, this condition was satisfied and
the additional shares were issued in October 2003. As a result, the
carrying value of property, plant and equipment was increased by
$32,893,000, future income tax liability was increased by $10,526,000
and share capital was increased by $22,367,000, the fair value of the
shares on September 29, 2003.

This acquisition has been accounted for using the purchase method and
results from Luismin's operations have been included in the Company's
results of operations from June 19, 2002. The allocation of the purchase
price is summarized in the table below:



(in thousands)
Purchase price:
Cash $ 55,160
Cash advanced to repay Luismin bank debt 19,840
Shares issued 29,172
Acquisition costs 3,266
--------------------------------------------------------------
$107,438
--------------------------------------------------------------
--------------------------------------------------------------
Net assets acquired:
Cash $ 1,380
Non-cash working capital (1,888)
Property, plant and equipment 145,696
Provision for reclamation and closure (9,072)
Future employee benefits (7,504)
Future income tax assets 6,500
Future income tax liabilities (27,674)
--------------------------------------------------------------
$107,438
--------------------------------------------------------------
--------------------------------------------------------------


5. CORPORATE TRANSACTION COSTS

On March 30, 2004, Wheaton and IAMGold Corporation ("IAMGold") announced
that their boards of directors had unanimously agreed to combine the
companies, subject to shareholder approvals and certain other
conditions. On July 6, 2004, IAMGold did not receive the necessary
shareholder approvals to effect the proposed combination and Wheaton
terminated the agreement to combine with IAMGold. As a result, the
Company has written off $3,486,000 of related costs.

During May 2004, Coeur d'Alene Mines Corporation ("Coeur") launched an
unsolicited takeover bid for Wheaton and on September 28, 2004, Coeur
announced they had failed to garner enough support to pursue their bid.
Costs incurred to successfully reject this bid amounted to $1,160,000,
which have been written off.

On December 6, 2004, Wheaton announced it had reached an agreement in
principle to combine with Goldcorp through a share exchange take-over
bid (note 22). On February 14, 2005, the combination was substantially
completed when 69% of Wheaton common shares were tendered to the
Goldcorp offer. As at December 31, 2004, $2,288,000 had been incurred to
successfully effect the merger, which has been written off in these
financial statements.

6. OTHER (EXPENSE) INCOME



(in thousands) 2004 2003 2002
--------------------------------------------------------------------
Interest income $ 2,966 $ 1,591 $ 480
Gain on sale of marketable
securities 1,991 2,095 3,593
Foreign exchange gain (loss) 2,449 6,774 (71)
Share purchase option expense (6,801) (467) (199)
Accretion expense on provision
for reclamation (621) (793) (47)
Other (2,285) (770) 1,067
--------------------------------------------------------------------
$ (2,301) $ 8,430 $ 4,823
--------------------------------------------------------------------
--------------------------------------------------------------------


7. INCOME TAXES

(in thousands) 2004 2003 2002
--------------------------------------------------------------------
Current income tax expense
(recovery) $ 45,514 $ 763 $ (153)
Future income tax (recovery)
expense (10,370) 24,281 2,606
--------------------------------------------------------------------
$ 35,144 $ 25,044 $ 2,453
--------------------------------------------------------------------
--------------------------------------------------------------------


Income tax expense differs from the amount that would result from
applying the Canadian federal and provincial income tax rates to
earnings before income taxes. These differences result from the
following items:

(in thousands) 2004 2003 2002
--------------------------------------------------------------------
Earnings before income taxes $177,972 $ 82,703 $ 8,055
Canadian federal and provincial
income tax rates 35.6% 37.6% 39.6%
--------------------------------------------------------------------
Income tax expense based on above
rates 63,394 31,113 3,190
Increase (decrease) in income
taxes due to:
Lower statutory tax rates on
earnings of foreign subsidiaries (6,573) (4,941) (578)
Changes to Mexican tax
regulations including reduction
in future corporate income tax
rates (12,719) - -
Foreign exchange differentials on
foreign currency monetary items
and other permanent differences (8,616) - -
Non-deductible expenditures 1,830 1,196 -
Tax included in equity earnings
of Minera Alumbrera Ltd. - (3,139) -
Valuation allowance - 508 -
Resource and other taxes - - (153)
Other (2,172) 307 (6)
--------------------------------------------------------------------
$ 35,144 $ 25,044 $ 2,453
--------------------------------------------------------------------
--------------------------------------------------------------------


At December 31, 2004, the Company had non-capital losses available for
tax purposes in Canada of $32,205,000 (2003 - $15,210,000) that expire
from 2007 to 2011 and $15,493,000 (2003 - $33,490,000) that expire from
2005 to 2014 in foreign jurisdictions. At December 31, 2004, the Company
had capital losses in Canada in the amount of $40,685,000 (2003 -
$11,014,000) to be carried forward indefinitely and applied to future
capital gains.

The components of future income taxes are as follows:



(in thousands) 2004 2003
--------------------------------------------------------------------
Future income tax assets
Non-capital losses $ 10,445 $ 13,985
Deductible temporary differences
and other 24,581 14,948
--------------------------------------------------------------------
Value of future income tax assets 35,026 28,933
Recoverable asset taxes 1,529 953
Valuation allowance (2,115) (4,411)
--------------------------------------------------------------------
Future income tax assets 34,440 25,475
Future income tax liabilities
Total taxable temporary differences (143,691) (152,145)
--------------------------------------------------------------------
Future income tax liabilities, net $ (109,251) $ (126,670)
--------------------------------------------------------------------

Presented on the Consolidated
Balance Sheets as:
Future income tax assets $ 9,667 $ 7,211
Future income tax liabilities (118,918) (133,881)
--------------------------------------------------------------------
Future income tax liabilities, net $ (109,251) $ (126,670)
--------------------------------------------------------------------
--------------------------------------------------------------------


8. MARKETABLE SECURITIES

(in thousands) 2004 2003
--------------------------------------------------------------------
Marketable securities at market values $ 6,061 $ 1,702
--------------------------------------------------------------------
--------------------------------------------------------------------


9. INVENTORIES

(in thousands) 2004 2003
--------------------------------------------------------------------
Supplies inventory $ 10,145 $ 10,083
Stockpiled ore 62,847 62,174
Work in process 3,823 2,891
Finished goods 13,559 12,397
--------------------------------------------------------------------
90,374 87,545
Less: non-current stockpiled ore 58,820 60,736
--------------------------------------------------------------------
$ 31,554 $ 26,809
--------------------------------------------------------------------
--------------------------------------------------------------------


Non-current stockpiled ore is primarily comprised of lower grade ore at
Alumbrera, which will be processed later in the mine life. This
inventory is valued at the lower of cost and net realizable value.

10. PROPERTY, PLANT AND EQUIPMENT



2004
Accumulated
(in thousands) Cost Depletion Net
-------------------------------------------------------------------
Mineral properties
Luismin mines, Mexico $134,265 $(12,899) $121,366
Peak mine, Australia 30,411 (5,849) 24,562
Alumbrera mine, Argentina 27,142 (7,374) 19,768
-------------------------------------------------------------------
191,818 (26,122) 165,696
-------------------------------------------------------------------
Plant and equipment
Luismin mines, Mexico 50,808 (6,316) 44,492
Peak mine, Australia 20,579 (5,500) 15,079
Alumbrera mine, Argentina 254,627 (45,634) 208,993
Corporate, Canada 596 (324) 272
-------------------------------------------------------------------
326,610 (57,774) 268,836
-------------------------------------------------------------------
Properties under development
Amapari, Brazil 168,521 - 168,521
Los Filos, Mexico 104,654 - 104,654
El Limon, Mexico 42,294 - 42,294
Other, Mexico 4,835 - 4,835
-------------------------------------------------------------------
320,304 - 320,304
-------------------------------------------------------------------
$838,732 $(83,896) $754,836
-------------------------------------------------------------------
-------------------------------------------------------------------


2003
Accumulated
(in thousands) Cost Depletion Net
-------------------------------------------------------------------
Mineral properties
Luismin mines, Mexico $120,736 $(6,070) $114,666
Peak mine, Australia 25,672 (2,518) 23,154
Alumbrera mine, Argentina 27,142 (2,091) 25,051
-------------------------------------------------------------------
173,550 (10,679) 162,871
-------------------------------------------------------------------
Plant and equipment
Luismin mines, Mexico 42,519 (3,334) 39,185
Peak mine, Australia 17,726 (1,736) 15,990
Alumbrera mine, Argentina 246,559 (20,553) 226,006
Corporate, Canada 456 (261) 195
-------------------------------------------------------------------
307,260 (25,884) 281,376
-------------------------------------------------------------------
Properties under development
Amapari, Brazil 145 - 145
Los Filos, Mexico 93,691 - 93,691
El Limon, Mexico 42,161 - 42,161
Other, Mexico 3,667 - 3,667
-------------------------------------------------------------------
139,664 - 139,664
-------------------------------------------------------------------
$620,474 $(36,563) $583,911
-------------------------------------------------------------------
-------------------------------------------------------------------


In 2003 the Company sold the La Guitarra Mine in Mexico to Genco
Resources Ltd. ("Genco") for shares and cash totaling $5,000,000.
Consideration received on closing was 1,380,315 shares of Genco with a
fair value of $1,000,000 and a promissory note for $4,000,000 to be
repaid over eight years in cash or equivalent shares of $500,000 per
annum. Due to uncertainty surrounding the collectibility of the
promissory note, the repayment of the note will be recorded in
operations when received.

During 2004 the Company received an additional 790,427 shares and sold
617,315 shares for net proceeds of $435,000.

11. OTHER NON-CURRENT ASSETS



(in thousands) 2004 2003
--------------------------------------------------------------------
Deferred gold put options (note 13 (b)) $ 4,339 $ 5,786
Deferred debt issue
costs (note 13 (a), (b)) 8,931 3,497
Royalty advances 4,293 3,123
Other 1,098 1,961
--------------------------------------------------------------------
$ 18,661 $ 14,367
--------------------------------------------------------------------
--------------------------------------------------------------------


12. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES

(in thousands) 2004 2003
--------------------------------------------------------------------
Accounts payable trade $ 28,344 $ 15,198
Accrued liabilities 4,114 6,709
Accrued employee benefits 4,791 2,814
Customer payment in advance - 3,396
Other 4,074 3,285
--------------------------------------------------------------------
$ 41,323 $ 31,402
--------------------------------------------------------------------
--------------------------------------------------------------------


13. LONG-TERM DEBT

(in thousands) 2004 2003
--------------------------------------------------------------------
Corporate debt
Acquisition facility (a) $ - $ -
Revolving working capital facility (b) - -
Term loan (b) - 45,000
--------------------------------------------------------------------
Total bank indebtedness - 45,000
Promissory note (c) - 19,443
--------------------------------------------------------------------
- 64,443
Non-recourse project debt
Alumbrera (Wheaton's 37.5% share) (d) - 57,980
--------------------------------------------------------------------
- 122,423
Less: current portion - 41,000
--------------------------------------------------------------------
$ - $ 81,423
--------------------------------------------------------------------
--------------------------------------------------------------------


(a) In August 2004, the Company entered into a $300 million acquisition
facility which is available to finance up to three separate
acquisitions. The facility is available until November 24, 2005, and
amounts drawn down are required to be refinanced or repaid by February
24, 2006. Net proceeds from any debt refinancing or equity issue (not
undertaken in connection with an acquisition) together with the net
proceeds from significant asset sales, will be applied to repay amounts
outstanding under the facility. Security will be granted under the
facility only over acquired assets, together with guarantees by any
subsidiaries of Wheaton which acquire such assets. Amounts drawn down
under the facility will bear interest at LIBOR plus 2.25% per annum,
increasing to LIBOR plus 4.5% per annum over the term of the facility.
Undrawn amounts are subject to a 1% per annum commitment fee.

Debt issue costs of $7,182,000 have been deferred and are amortized to
earnings over the term of the debt facility. An amount of $1,730,000 has
been amortized to December 31, 2004. A further $1,125,000 of debt issue
costs will be payable upon the first draw down under this facility (note
19).

(b) During 2003 the Company entered into a $75,000,000 loan facility
which consisted of a $50,000,000 term loan bearing interest at LIBOR
plus 2.75% and a $25,000,000 revolving working capital facility bearing
interest at LIBOR plus 3%. During 2004, the Company amended the facility
such that the full $75,000,000 is a revolving working capital facility.
The amended facility bears interest at LIBOR plus 1.625% to 2.25%
depending on covenant ratios, has no net repayment terms, and matures in
June 2007. Undrawn amounts are subject to a 0.65% per annum commitment
fee. During 2004, the Company repaid the outstanding amount out of cash
on hand, but the facility remains available.

Under the terms of the loan agreement, during 2003 the Company acquired
options to sell 700,000 ounces of gold at a price of $300 per ounce
during the period January 2004 to June 2008. The cost of $5,786,000 was
deferred and is amortized against sales as the options expire or are
exercised. An amount of $1,447,000 has been amortized to December 31,
2004 (December 31, 2003 - $nil). The fair value of the 525,024 ounces of
unexpired put options at December 31, 2004 was $280,000 (December 31,
2003 - 700,000 ounces with a fair value of $2,030,000). During 2003, the
Company entered into a gold-indexed interest rate swap transaction which
had a fair value at December 31, 2004, of minus $1,111,000. The facility
is secured by corporate guarantees of Luismin and Amapari.

Debt issue costs of $5,519,000 have been deferred and are amortized to
earnings over the term of the debt. An amount of $2,040,000 has been
amortized to December 31, 2004 (December 31, 2003 - $745,000).

(c) The promissory note was due to Rio Algom, and had a maturity date of
May 30, 2005. During 2004, the Company repaid the outstanding amount out
of cash on hand.

(d) The Alumbrera project debt was incurred in 1997 to finance the
construction and operation of the Alumbrera Mine. During 2004 Alumbrera
repaid the outstanding debt out of cash on hand.

(e) Project debt of $15,200,000 due to Anglogold Brazil Ltd. a, assumed
in connection with the acquisition, was repaid in June 2004 out of cash
on hand (note 4 (a)).

(f) The Company has an Aus$5,000,000 ($3,895,000), unsecured, revolving
working capital facility for its Peak mine operations of which $nil was
drawn down at December 31, 2004. The loan bears interest related to the
Australian Treasury Bill rate plus 1.5% per annum.

14. PROVISION FOR RECLAMATION AND CLOSURE



(in thousands)
At January 1, 2003 $ 11,271
Reclamation expenditures (1,854)
Accretion expense 793
Amounts acquired 10,063
Disposition of liability (830)
Other 161
--------------------------------------------------------------
At December 31, 2003 $ 19,604
Reclamation expenditures (1,050)
Accretion expense 621
Other 54
--------------------------------------------------------------
At December 31, 2004 $ 19,229
--------------------------------------------------------------
--------------------------------------------------------------


The total undiscounted amount of estimated cash flows required to settle
the obligations is $31,915,000 (2003 - $29,030,000), which has been
discounted using discount rates ranging from 5-7%. Certain obligations
at Luismin amounting to $5,657,000 will be paid over the next two years
and will be funded from operating cash flows. The remainder of the
obligations are not expected to be paid within the foreseeable future
and will be funded from operating cash flows at the time.

During 2004, the Company completed the reclamation of the Golden Bear
Mine and subsequent to December 31, 2004 entered into a memorandum of
understanding toward divestiture of the Golden Bear mining claims and
road.

15. FUTURE EMPLOYEE BENEFITS AND OTHER



(in thousands) 2004 2003
--------------------------------------------------------------------
Defined benefit pension plan (a) $ 1,761 $ 2,796
Deferred employee profit sharing (b) 18,814 17,398
Other 1,875 2,489
--------------------------------------------------------------------
$ 22,450 $ 22,683
--------------------------------------------------------------------
--------------------------------------------------------------------


(a) The Company has a defined benefit pension plan for certain
Mexican employees. Information on this plan is as follows:

(in thousands) 2004 2003 2002
--------------------------------------------------------------------
Change in plan assets
Fair value of plan assets,
beginning of year $ 673 $ 228 $ -
Increase due to acquisition of
Luismin - - 180
Actual return on plan assets (32) 16 70
Benefits paid (610) - (14)
Contributions 1,715 463 -
Foreign exchange rate changes 5 (34) (8)
--------------------------------------------------------------------
Fair value of plan assets, end of
year $ 1,751 $ 673 $ 228
--------------------------------------------------------------------
--------------------------------------------------------------------
Projected benefit obligation
Benefit obligations, beginning of
year $ 4,104 $ 3,147 $ -
Increase due to acquisition of
Luismin - - 3,029
Service cost 310 259 149
Benefits paid (610) - (14)
Interest cost 329 244 135
Foreign exchange rate changes (6) (257) (123)
Plan amendment/past service cost 275 649 -
Actuarial loss (gain) 142 62 (29)
--------------------------------------------------------------------
Benefit obligations, end of year $ 4,544 $ 4,104 $ 3,147
--------------------------------------------------------------------
--------------------------------------------------------------------
Excess of projected benefit
obligation over plan assets $ 2,793 $ 3,431 $ 2,919
Unamortized past service costs (613) (649) -
Unamortized net actuarial (loss)
gain (366) 14 89
Unamortized transitional
obligation (53) - -
--------------------------------------------------------------------
Accrued net pension liability $ 1,761 $ 2,796 $ 3,008
--------------------------------------------------------------------
--------------------------------------------------------------------
Employee future benefits expense
Service cost $ 310 $ 259 $ 149
Interest cost 329 244 135
Expected return on assets (72) (25) (8)
Amortization of past service
amount 39 - -
--------------------------------------------------------------------
Net expense $ 606 $ 478 $ 276
--------------------------------------------------------------------
--------------------------------------------------------------------
Significant assumptions used
Discount rate 9% 9% 9%
Expected long-term rate of return
on plan assets 9% 9% 9%
Rate of compensation increase 6% 6% 6%
Estimated average remaining
service life 12 years 12 years 11 years


The Company's contributions have been made in accordance with actuarial
valuation reports for funding purposes which have been prepared as at
December 31, 2004, 2003 and 2002. The next valuation report for funding
purposes must be as of a date no later than December 31, 2005.

The weighted average asset allocations of the Company's defined benefit
pension plan for certain Mexican employees at December 31, by asset
category are as follows:



Asset Category 2004 2003
--------------------------------------------------------------------
Debt securities 94% 80%
Equity securities 6% 20%
--------------------------------------------------------------------
Total 100% 100%
--------------------------------------------------------------------
--------------------------------------------------------------------


(b) Mexico deferred profit sharing

Under Mexican tax laws, the Company is required to remit 10% of taxable
income to employees as statutory profit sharing. The provision for
deferred profit sharing is based on the liability method. Deferred
profit sharing liabilities arise from the recognition of the differences
between the financial statement carrying amounts and the tax bases of
certain assets and liabilities.

(c) The Company has a defined contribution pension plan for certain
Australian employees. The current service cost for 2004 was $846,000
(2003 - $552,000; 2002 - $nil).

16. NON-CONTROLLING INTEREST

Non-controlling interest arose as a result of the Silver Wheaton
transaction (note 3). The details of non-controlling interest are as
follows:



(in thousands)
Balance, beginning of year $ -
Arising upon acquisition of
Silver Wheaton, October 15, 2004 19,472
Increase on issuance of shares of subsidiary 34,342
Share of earnings 707
--------------------------------------------------------------
Balance, end of year $ 54,521
--------------------------------------------------------------
--------------------------------------------------------------


17. SHAREHOLDERS' EQUITY

(a) Shares issued

In May 2002, the Company completed a private placement to finance the
Luismin purchase whereby 110 million special warrants were issued at a
price of Cdn$1.15 per special warrant for total proceeds of $82,068,000.
Each special warrant entitled the holder to acquire, without further
payment, one common share of the Company and one-half of one common
share purchase warrant. Each whole common share purchase warrant
entitles the holder to acquire one common share of the Company at a
price of Cdn$1.65 per share for a period of five years following the
closing. The special warrants were subsequently converted to shares and
share purchase warrants during 2002.

In February 2003, the Company issued and sold 230 million subscription
receipts at Cdn$1.45 per subscription receipt by way of a private
placement for gross proceeds of $217,952,000 (Cdn$333,500,000) less
agents' commissions and expenses of $15,934,000. Each subscription
receipt was subsequently converted into one common share and one-quarter
of one common share purchase warrant, where one whole share purchase
warrant entitles the holder to purchase one common share at a price of
Cdn$1.65 before May 30, 2007. The proceeds from this private placement
were used to finance the acquisition of a 25% indirect interest in
Alumbrera and 100% of Peak.

In August 2003 the Company issued and sold 47,619,049 units at Cdn$2.10
per unit for gross proceeds of $72,457,000 (Cdn$100,000,000) less
agents' commissions and expenses of $4,514,000. Each unit was
subsequently converted into one common share and one half of one Series
"B" common share purchase warrant, where one whole share purchase
warrant entitles the holder to purchase one common share at a price of
Cdn$3.10 before August 25, 2008.

In October 2003 the Company issued and sold 38.1 million units of the
Company at Cdn$3.15 per unit for gross proceeds of $89,490,000
(Cdn$120,015,000) less agent's commissions and expenses of approximately
$5,103,000. Each unit was subsequently converted into one common share
and one half of one Series "B" common share purchase warrant, where one
whole share purchase warrant entitles the holder to purchase one common
share at a price of Cdn$3.10 before August 25, 2008.

In October 2003, 11,355,113 of the Company's common shares were issued
as further consideration for Luismin (note 4 (d)).

In January 2004, the Company issued 33 million common shares and 21.5
million Series "B" common share purchase warrants, in part, as payment
for the acquisition of the Amapari gold development project in Brazil
(note 4 (a)).

(b) Warrants

A summary of the Company's warrants at December 31, 2004, 2003, and 2002
and the changes for the years ending on those dates is presented below:



Weighted
Average
Warrants Exercise
Outstanding Price (Cdn$)
---------------------------------------------------------------
At January 1, 2002 3,090,000 $0.91
Issued on exercise of
special warrants 64,909,997 1.51
Exercised (3,450,000) 0.89
---------------------------------------------------------------
At December 31, 2002 64,549,997 1.52
Issued in connection with
issuance of shares 100,359,522 2.27
Exercised (9,601,400) 0.76
---------------------------------------------------------------
At December 31, 2003 155,308,119 2.05
Issued in connection with
acquisition of Amapari 21,516,000 3.10
Exercised (476,336) 1.85
---------------------------------------------------------------
At December 31, 2004 176,347,783 $2.18
---------------------------------------------------------------
---------------------------------------------------------------


The following table summarizes information about the warrants
outstanding at December 31, 2004:

Warrants Exercise
Expiry Date Outstanding Price (Cdn$)
---------------------------------------------------------------
May 30, 2007 112,051,609 $1.65
August 25, 2008 64,296,174 3.10
---------------------------------------------------------------
176,347,783 $2.18
---------------------------------------------------------------
---------------------------------------------------------------


(c) Share purchase options

The Company has established a share purchase option plan whereby the
Company's directors may from time to time grant options to directors,
employees or consultants. The maximum term of any option may be ten
years, but generally options are granted for five years or less. The
exercise price of an option is not less than the closing price on the
Toronto Stock Exchange on the last trading day preceding the grant date.
At December 31, 2004 there were 627,566 (2003 - 2,057,566) options
available for grant under the plan.

A summary of the Company's options at December 31, 2004, 2003 and 2002
and the changes for the years ending on those dates is presented below:



Weighted
Average
Options Exercise
Outstanding Price (Cdn$)
---------------------------------------------------------------
At January 1, 2002 6,118,514 $0.52
Granted 3,646,000 1.16
Exercised (1,355,224) 0.53
Expired (20,400) 0.29
Forfeited (130,000) 1.08
---------------------------------------------------------------
At December 31, 2002 8,258,890 0.79
Granted 22,965,000 2.20
Exercised (6,620,694) 1.09
Forfeited (132,333) 1.24
---------------------------------------------------------------
At December 31, 2003 24,470,863 2.03
Granted 1,430,000 3.77
Exercised (5,074,366) 1.27
---------------------------------------------------------------
At December 31, 2004 20,826,497 $2.34
---------------------------------------------------------------
---------------------------------------------------------------


The following table summarizes information about the options
outstanding at December 31, 2004:

Weighted Weighted
Average Average
Options Exercise Remaining
Outstanding Price Contractual
Exercise Prices (Cdn$) and Exercisable (Cdn$) Life
--------------------------------------------------------------------
$0.57 970,000 $0.57 1.4 years
$1.15 to $1.92 9,791,497 1.50 2.8 years
$3.25 to $3.92 10,065,000 3.32 3.9 years
--------------------------------------------------------------------
20,826,497 $2.34 3.3 years
--------------------------------------------------------------------
--------------------------------------------------------------------


Share purchase options with a fair value of $1,755,000 were granted in
2004 (2003 - $467,000; 2002 - $93,000). The compensation expense of
$6,801,000 (2003 - $467,000; 2002 - $199,000) is charged to operations
over the vesting period. Included in 2004 compensation expense is
$5,046,000 related to the fair value of share purchase options granted
by Silver Wheaton, a public company and subsidiary of the Company, which
was determined using an option pricing model assuming no dividends are
to be paid, a weighted average volatility of Silver Wheaton's share
price of 40%, an annual risk free interest rate of 3.0% and expected
lives of three years.

The following table summarizes information about options granted during
2004:



Share Purchase Exercise
Options Price
Date Granted Expiry Date Granted (Cdn$)
------------------------------------------------------
February 2004 February 2009 675,000 $3.70
March 2004 March 2008 150,000 3.92
June 2004 June 2009 80,000 3.88
September 2004 September 2009 250,000 3.83
December 2004 December 2009 275,000 3.75
------------------------------------------------------
1,430,000
------------------------------------------------------
------------------------------------------------------


(d) Earnings per share

The following table sets forth the computation of diluted earnings
per share:

(in thousands, except
per share amounts) 2004 2003 2002
--------------------------------------------------------------------
Earnings available to common
shareholders $142,121 $ 57,659 $ 5,602
--------------------------------------------------------------------
Divided by:
Weighted average shares
outstanding 568,442 412,035 137,327
Effect of dilutive securities:
Share purchase options and
warrants 82,774 27,179 5,900
--------------------------------------------------------------------
Diluted weighted average shares
outstanding 651,216 439,214 143,227
--------------------------------------------------------------------
--------------------------------------------------------------------
Basic earnings per share $ 0.25 $ 0.14 $ 0.04
--------------------------------------------------------------------
--------------------------------------------------------------------
Diluted earnings per share $ 0.22 $ 0.13 $ 0.04
--------------------------------------------------------------------
--------------------------------------------------------------------


The following table identifies the number of share purchase options and
warrants excluded from the computation of diluted earnings per share
because the exercise prices exceeded the average fair market price of
the common shares for the year, and therefore were not dilutive:



(in thousands) 2004 2003 2002
---------------------------------------------------------------
Share purchase options 480 8,870 3,180
Share purchase warrants - 42,847 55,000


18. SUPPLEMENTAL CASH FLOW INFORMATION

(in thousands) Note 2004 2003 2002
--------------------------------------------------------------------
Change in non-cash
working capital
Accounts receivable $ (15,118) $ 12,235 $ (516)
Income taxes receivable (2,774) - -
Product inventory
and stockpiled ore (2,767) (8,220) 501
Supplies inventory (62) (1,524) 130
Accounts payable and
accrued liabilities 8,856 4,282 (2,098)
Income taxes payable 44,724 370 38
Other (10,024) (554) (296)
--------------------------------------------------------------------
$ 22,835 $ 6,589 $ (2,241)
--------------------------------------------------------------------
--------------------------------------------------------------------

Acquisitions, net of
cash acquired
Amapari 4 (a) $ (25,785) $ - $ -
Los Filos and El Limon
gold projects 4 (b) - (89,223) -
Alumbrera 4 (C) - (224,356) -
Peak 4 (C) - (34,187) -
Luismin 4 (d) - - (76,886)
--------------------------------------------------------------------
$ (25,785) $ (347,766) $ (76,886)
--------------------------------------------------------------------
--------------------------------------------------------------------

Non-cash financing and
investing activities
Shares and warrants
issued on acquisition
of Amapari 4 (a) $ 88,545 $ - $ -
Promissory note issued 13 (C) - 25,000 -
Shares issued on
acquisition of Luismin 4 (d) - 22,367 6,805
Shares issued on
conversion of
special warrants 17 - - 85,178
Marketable securities
received on sale of
property, plant and
equipment 760 1,263 207
Operating activities
included the following
cash payments
Interest paid $ 5,737 $ 4,357 $ 120
Income taxes paid 1,765 489 227


19. RELATED PARTY TRANSACTIONS

In 2001, the Company entered into a financial advisory agreement with
Endeavour Financial Corporation ("Endeavour"), a corporation which until
July 2004 had two directors in common. Under the terms of this
agreement, which can be cancelled on 30 days notice, Endeavour provides
financial advisory services to the Company and is entitled to a monthly
fee of $10,000 and a success fee to be negotiated based on the value of
any acquisitions, dispositions and financings. During 2004, Endeavour
was paid consulting and financial advisory fees of $1,658,000 (2003 -
$2,288,000; 2002 - $1,512,000), primarily related to services provided
in securing the Company's $300 million acquisition facility. A further
fee of $1,125,000 is payable to Endeavour upon the first draw down under
this facility. In addition, Endeavour will receive $5 million for
services related to the merger with Goldcorp (note 22).

20. COMMITMENTS

Commitments exist at Luismin, Peak, Alumbrera and Amapari for capital
expenditures in 2005 of $59,111,000. The Company rents premises and
leases equipment under operating leases that expire over the next nine
years. Operating lease expense in 2004 was $2,070,000 (2003 -
$2,154,000; 2002 - $880,000). Following is a schedule of future minimum
rental and lease payments required:



(in thousands)
2005 $ 2,259
2006 1,296
2007 905
2008 595
2009 525
--------------------------------------------------------------
5,580
Thereafter 1,084
--------------------------------------------------------------
Total minimum payments required $ 6,664
--------------------------------------------------------------
--------------------------------------------------------------


21. SEGMENTED INFORMATION

The Company's reportable operating and geographical segments are
summarized in the table below. Information pertaining to Luismin, Los
Filos and El Limon is reported as one segment, being "Mexico".



Consolidated Statements of Operations
2004
--------------------------------------------------------------------
(in thousands) Mexico Australia Argentina Brazil
Sales $ 91,506 $ 63,023 $262,054 $ -
--------------------------------------------------------------------
Cost of sales 39,500 30,092 80,519 -
Depreciation
and depletion 9,811 7,108 30,364 -
Royalties - 1,995 5,343 -
--------------------------------------------------------------------
49,311 39,195 116,226 -
--------------------------------------------------------------------
Earnings from
mining
operations 42,195 23,828 145,828 -
--------------------------------------------------------------------
General and
administrative
expenses (4,814) - - -
Interest and
finance fees (329) (158) (1,931) -
Other
(expenses)
income (1,261) (999) (2,821) 268
--------------------------------------------------------------------
Earnings
before income
taxes 35,791 22,671 141,076 268
Income tax
(expense)
recovery 4,086 (4,282) (36,525) -
Non-controlling
interest - - - -
--------------------------------------------------------------------
Net earnings $39,877 $18,389 $104,551 $ 268
--------------------------------------------------------------------
--------------------------------------------------------------------


Silver
Wheaton Corporate Elimination Total
--------------------------------------------------------------------
Sales $ 10,986 $ (2,977) $ (5,410) $419,182
--------------------------------------------------------------------
Cost of sales 5,870 - (5,410) 150,571
Depreciation
and depletion 797 - (582) 47,498
Royalties - - - 7,338
--------------------------------------------------------------------
- 6,667 (5,992) 205,407
--------------------------------------------------------------------
Earnings from
mining
operations 4,319 $(2,977) 582 213,775
--------------------------------------------------------------------
General and
administrative
expenses (389) (7,772) - (12,975)
Interest and
finance fees - (3,453) - (5,871)
Other
(expenses)
income (2,165) (9,979) - (16,957)
--------------------------------------------------------------------
Earnings
before income
taxes 1,765 (24,181) 582 177,972
Income tax
(expense)
recovery - 1,577 - (35,144)
Non-controlling
interest (707) - - (707)
--------------------------------------------------------------------
Net earnings $ 1,058 $ (22,604) 582 $142,121
--------------------------------------------------------------------
--------------------------------------------------------------------


Consolidated Statements of Operations
2003
--------------------------------------------------------------------
(in thousands) Mexico Australia Argentina Corporate Total
--------------------------------------------------------------------
Sales $ 66,251 $ 36,475 $109,907 $ - $212,633
--------------------------------------------------------------------
Cost of
sales 34,422 24,301 33,231 - 91,954
Depreciation
and
depletion 6,242 4,254 21,897 - 32,393
Royalties 26 1,002 2,684 - 3,712
--------------------------------------------------------------------
40,690 29,557 57,812 - 128,059
--------------------------------------------------------------------
Earnings
from
mining
operations 25,561 6,918 52,095 - 84,574
--------------------------------------------------------------------
General
and
administrative
expenses (4,816) - - (4,838) (9,654)
Interest
and
finance
fees (264) (46) (1,919) (2,089) (4,318)
Other
(expenses)
income (1,898) (112) 1,012 5,775 4,777
Equity in
earnings
of Minera
Alumbrera
Ltd. - - - 7,324 7,324
--------------------------------------------------------------------
Earnings
before
income
taxes 18,583 6,760 51,188 6,172 82,703
Income tax
expense (7,781) (1,483) (15,356) (424) (25,044)
--------------------------------------------------------------------
Net
earnings $ 10,802 $ 5,277 $ 35,832 $ 5,748 $ 57,659
--------------------------------------------------------------------
--------------------------------------------------------------------


Consolidated Statements of Operations 2002
--------------------------------------------------------------------
(in thousands) Mexico Corporate Total
--------------------------------------------------------------------
Sales $ 34,693 $ - $ 34,693
--------------------------------------------------------------------
Cost of sales 19,355 - 19,355
Depreciation and depletion 3,028 - 3,028
Royalties 28 - 28
--------------------------------------------------------------------
22,411 - 22,411
--------------------------------------------------------------------
Earnings from mining operations 12,282 - 12,282
--------------------------------------------------------------------
General and administrative expenses (3,899) (2,430) (6,329)
Interest and finance fees (82) (405) (487)
Other (expenses) income (700) 3,289 2,589
--------------------------------------------------------------------
Earnings before income taxes 7,601 454 8,055
Income tax (expense) recovery (2,611) 158 (2,453)
--------------------------------------------------------------------
Net earnings $4,990 $612 $5,602
--------------------------------------------------------------------
--------------------------------------------------------------------


Consolidated Balance Sheets 2004
--------------------------------------------------------------------
(in thousands) Mexico Australia Argentina Brazil
Cash and cash
equivalents $ 24,631 $ 901 $ 31,974 $ 1,498
Other current
assets 12,918 17,925 58,346 80
Property, plant and
equipment 317,641 39,641 228,761 168,521
Other non-current
assets 3,697 6,459 59,512 19
--------------------------------------------------------------------
$358,887 $ 64,926 $378,593 $ 170,118
--------------------------------------------------------------------
--------------------------------------------------------------------

Current liabilities $ 14,921 $ 5,997 $ 62,931 $ 592
Other non-current
liabilities 94,170 6,333 59,624 -
Inter-company
balances 194,127 28,930 108,331 169,258
Non-controlling
interest - - - -
Shareholders'
equity 55,669 23,666 147,707 268
--------------------------------------------------------------------
$358,887 $ 64,926 $378,593 $ 170,118
--------------------------------------------------------------------
--------------------------------------------------------------------
Capital asset
expenditures $ 34,082 $ 11,733 $ 8,068 $ 36,623
--------------------------------------------------------------------
--------------------------------------------------------------------


Silver
(in thousands) Wheaton Corporate Total
--------------------------------------------------------------------
Cash and cash
equivalents $ 19,989 $ 82,138 $ 161,131
Other current
assets 690 3,503 93,462
Property, plant and
equipment - 272 754,836
Other non-current
assets 77,763 17,406 164,856
--------------------------------------------------------------------
$ 98,442 $103,319 $1,174,285
--------------------------------------------------------------------
--------------------------------------------------------------------

Current liabilities $ 1,521 $ 3,148 $ 89,110
Other non-current
liabilities - 76,364 236,491
Inter-company
balances 41,342 (541,988) -
Non-controlling
interest 54,521 - 54,521
Shareholders'
equity 1,058 565,795 794,163
--------------------------------------------------------------------
$ 98,442 $103,319 $1,174,285
--------------------------------------------------------------------
--------------------------------------------------------------------
Capital asset
expenditures $ - $ 140 $ 90,646
--------------------------------------------------------------------
--------------------------------------------------------------------


Consolidated Balance Sheets 2003
--------------------------------------------------------------------
(in thousands) Mexico Australia Argentina Corporate Total
--------------------------------------------------------------------
Cash and
cash
equivalents $ 7,762 $ 521 $ 56,054 $ 87,541 $151,878
Other
current
assets 9,520 5,666 56,420 1,296 72,902
Property,
plant and
equipment 293,370 39,144 251,057 340 583,911
Other
non-current
assets 4,619 6,098 59,170 12,427 82,314
--------------------------------------------------------------------
$315,271 $ 51,429 $422,701 $101,604 $891,005
--------------------------------------------------------------------
--------------------------------------------------------------------

Current
liabilities
other than
long-term
debt $ 10,932 $ 5,418 $ 18,345 $ 1,601 $ 36,296
Long-term
debt - - 57,980 64,443 122,423
Other
non-current
liabilities 99,240 7,767 67,847 1,314 176,168
Inter-company
balances 189,307 32,967 235,373 (457,647) -
Shareholders'
equity 15,792 5,277 43,156 491,893 556,118
--------------------------------------------------------------------
$315,271 $ 51,429 $422,701 $101,604 $891,005
--------------------------------------------------------------------
--------------------------------------------------------------------
Capital
asset
expenditures $ 15,780 $ 9,653 $ 3,411 $ 166 $ 29,010
--------------------------------------------------------------------
--------------------------------------------------------------------


22. SUBSEQUENT EVENTS

On December 6, 2004, the Company announced it had reached an agreement
in principle to combine with Goldcorp through a share exchange take-over
bid whereby Goldcorp would offer one common share of Goldcorp for every
four common shares of Wheaton.

On February 10, 2005, Goldcorp shareholders approved the combination and
on February 14, 2005, approximately 69% of Wheaton common shares were
tendered to the Goldcorp offer. As a result, effective February 15,
2005, Goldcorp will consolidate the operations of Wheaton. The
transaction will be accounted for using the purchase method with
Goldcorp being identified as the acquirer. The remaining shares of
Wheaton not yet tendered will be acquired by Goldcorp by way of a plan
of arrangement which is expected to conclude in mid-April, 2005. As a
result, Wheaton will cease to be a public company and its results will
be consolidated 100% by Goldcorp.

-30-

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