The following is a discussion of the operating results and financial position of Silverado Gold Mines Ltd. ("Silverado" or the "Company") for the fiscal year ended November 30, 2010. It should be read in conjunction with the Company's audited consolidated financial statements and footnotes for the fiscal year ended November 30, 2010.

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

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