Total assets were $87,956,013 as at June 30, 2010 compared to $92,134,278 as at December 31, 2009.

Cash and cash equivalents decreased $7,241,607 from $7,647,023 at December 31, 2009 to $405,416 at June 30, 2010.

Liabilities totalled $27,885,081 as at June 30, 2010 compared to $27,394,645 as at December 31, 2009 an increase of $490,436. Currency changes on the US dollar denominated long-term debt produced an increase in the Canadian dollar equivalent of $226,012 over the six month period. Customer advances increased $1,260,096 during the period and the Company paid $1,165,800 against the Mineral concession liability.

Shareholders’ equity totalled $60,070,932 as at June 30, 2010 compared with a balance of $64,739,633 at the end of 2009. The change reflects the operating loss for the period reduced by the stock based compensation component as it is offset by a charge to contributed surplus.

As at June 30, 2010 ECU Silver had 307,286,733 shares outstanding, 15,840,000 options outstanding granted under its stock purchase plan at a weighted average exercise price of $1.82 each, and 50,960,426 warrants outstanding at a weighted average exercise price of $0.92 each

Working Capital and Cash Flows

At June 30, 2010 the Company had a working capital deficit of $17,078,011 compared to $2,093,703 at December 31, 2009. The change of $14,984,308 reflects mainly an increase of $9,034,094 in the current portion of long-term debt and a decrease in cash of $7,241,607. Principal repayment on the Company’s long term debt commences November 2010.

During the quarter the Company used cash of $1,424,811 in operations compared to $1,199,067 in the same period in the prior year for an increase of $225,744.

The Company is focused on improving the cash flows that it generates from its mining and milling operations. It currently does not plan to recommence exploration activity until optimization of those operations has been completed. The Company has not completed an economic study related to the treatment of its oxide resource through the Plant and therefore cannot provide any assurances that its operation will be economic.