UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 20-F
[	]	REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934
OR
[ X	]	ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended May 31, 2010
OR
[	]	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____________ to _____________
OR
[	]	SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
COMMISSION FILE No. 0001313974

Grandview Gold Inc.
(Exact name of Registrant as specified in its charter)

GRANDVIEW GOLD INC.
(Translation of Registrant's name into English)

Province of Ontario, Canada
(Jurisdiction of incorporation or organization)

360 Bay Street, Suite 500, Toronto, Ontario M5H 2V6, Canada
(Address of principal executive offices)

Paul Sarjeant, T: +1 416 486 3444, F: +1 416 486 9577, 360 Bay Street, Suite 500, Toronto,
Ontario, M5H 2V6, Canada
(Name, Telephone, E-mail and/or Facsimile number and Address of Company Contact Person)

Securities registered or to be registered pursuant to Section 12(b) of the Act:     None

Securities registered or to be registered pursuant to Section 12(g) of the Act:    common shares

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(Title of Class) Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act:

__________________________________None__________________________________

(Title of Class)

Number of outstanding shares of each of the issuer's classes of capital or common stock as of the close of the period covered by the annual report: 72,763,033.

Indicate by check mark if the Registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.

Yes [    ]   No [ X ]

If this report is an annual or transition report, indicate by check mark if the Registrant is not required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.

Yes [    ]   No [ X ]

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes [ X ]    No [    ]

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

Large accelerated filer [    ]           Accelerated filer [     ] Non-accelerated filer [ X ]

Indicate by check mark which basis of accounting the registrant has used to prepare the financial statements included in this filing:

U.S. GAAP [      ]	International Financial Reporting Standards	Other [ X ]
	as issued by the International Accounting  Standards Board  [    ]

If “Other” has been checked in response to the previous question, indicate by check mark which financial statement item the registrant has elected to follow:

Item 17 [ X ]    Item 18 [    ]

If this is an annual report indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes [    ]   No [ X ]

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TABLE OF CONTENTS

FORM 20-F	I
TABLE OF CONTENTS	III
GLOSSARY	V
PART I	1

ITEM 1:	Identity of Directors, Senior Management and Advisors	1
ITEM 2:	Offer Statistics and Expected Timetable	1
ITEM 3:	Key Information	1
A.	Selected Financial Data	1
B.	Capitalization and Indebtedness	2
C.	Reasons For The Offer and Use Of Proceeds	2
D.	Risk Factors	2
ITEM 4:	Information on the Company	10
A.	Unresolved Staff Comments	10
B.	History and Development of the Company	10
C.	Business Overview	13
D.	Organizational Structure	16
E.	Property, Plants and Equipment	16
ITEM 5:	Operating and Financial Review and Prospects	30
A.	Operating Results	36
B.	Liquidity and Capital Resources	38
C.	Research and Development, Patents and Licenses, Etc.	39
D.	Trend Information	39
E.	Off-Balance Sheet Arrangements	39
F.	Tabular Disclosure of Contractual Obligations	39
ITEM 6:	Directors, Senior Management, and Employees	40
A.	Directors and Senior Management	40
B.	Board Practices	45
C.	Employees	46
D.	Share Ownership	46
ITEM 7:	Major Shareholders and Related Party Transactions	47
A.	Major Shareholders	47
B.	Related Party Transactions	48
C.	Interests of Experts and Counsel	48
ITEM 8:	Financial Information	49
A.	Consolidated Statements and Other Financial Information	49
B.	Significant Changes	49
ITEM 9:	The Offering and Listing.	49
A.	Offer and Listing Details	49

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	B.	Plan of Distribution	51
	C.	Markets	51
	D.	Selling Shareholders	51
	E.	Dilution	52
	F.	Expenses of the Issue	52
ITEM 10:		Additional Information	52
	A.	Share Capital	52
	B.	Memorandum and Articles of Association	52
	C.	Material Contracts	52
	D.	Exchange Controls	53
	E.	Taxation	54
	F.	Dividends and Paying Agents	61
	G.	Statements by Experts	61
	H.	Documents on Display	61
	I.	Subsidiary Information	62
ITEM 11:		Quantitative and Qualitative Disclosures about Market Risk	62
ITEM 12:		Description of Securities other than Equity Securities	62
PART II			63
ITEM 13:		Defaults, Dividend Arrearages and Delinquencies	63
ITEM 14:		Material Modifications to the Rights of Security Holders and Use of Proceeds	63
ITEM 15:		Controls and Procedures	63
ITEM 16:		Reserved	64
	A.	Audit Committee Financial Expert	64
	B.	Code of Ethics	64
	C.	Principal Accountant Fees and Services	64
	D.	Exemptions From the Listing Standards for Audit Committees	65
	E.	Purchases of Equity Services by the Issuer and Affiliated Purchasers	65
PART III			66
ITEM 17:		Financial Statements	66
ITEM 18:		Financial Statements	66
	A.	Audited Annual Financial Statements, May 31, 2010	66
	B.	Unaudited Quarterly Financial Statements, August 31, 2010	125
ITEM 19:		Exhibits	157
SIGNATURES			165

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GLOSSARY
Following is a glossary of terms used throughout this Annual Report.
Assay	a precise and accurate analysis of the metal contents in an ore or rock sam
cut-off grade	deemed grade of mineralization, established by reference to economic factors, above which material is considered ore and below which is considered waste.
development stage	includes all companies engaged in the preparation of an established commercially mineable deposit (reserves) for its extraction which are not in the production stage.
dilution	the contamination of ore with barren wall rock; this means that in extracting ore, rock is also extracted, which contains a lesser amount of the mineral than the ore, effectively reducing the grade of the ore.
exploration stage	All companies engaged in the search for mineral deposits (reserves) which are not in either the development or production stage.
feasibility study	a detailed report assessing the feasibility, economics and engineering of placing a mineral deposit into commercial production.
gold deposit	means a mineral deposit mineralized with gold.
Inferred mineral resource	that part of a Mineral Resource for which quantity and grade or quality can be estimated on the basis of geological evidence and reasonably assumed, but not verified, geological and grade continuity. The estimate is based on limited information and sampling gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings, and drill holes.
lode mining	mining of gold bearing rocks, typically in the form of veins or stockworks
mineral resource	a concentration or occurrence of natural, solid, inorganic or fossilized organic material in or on the Earth’s crust in such form and quantity and of such grade or quality that it has reasonable prospects of economic extraction. The location, quantity, grade, geological characteristics and continuity of a Mineral Resource are known, estimated or interpreted from specific geological evidence and knowledge.
ore	a naturally occurring rock or material from which minerals, such as gold, can be extracted at a profit; a determination of whether a mineral deposit contains ore is often made by a feasibility study.
ounce or oz.	a troy ounce or 20 pennyweights or 480 grains or 31.103 grams
patented mining claim	a claim to which a patent has been obtained from the government by compliance with laws relating to such claims.

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prospect	an area prospective for economic minerals based on geological,  geophysical, geochemical and other criteria
Probable (indicated) reserves	Reserves for which quantity and grade and/or quality are computed from information similar to that used for proven (measure) reserves, but the sites for inspection, sampling, and measurement are farther apart or are otherwise less adequately spaced. The degree of assurance, although lower than that for proven (measured) reserves, is high enough to assume continuity between points of observation.
proven (measured) reserves	Reserves for which (a) quantity is computed from dimensions revealed in outcrops, trenches, workings or drill holes; grade and/or quality are computed from the results of detailed sampling and (b) the sites for inspection, sampling and measurement are spaced so closely and the geologic character is so well defined that size, shape, depth and mineral content of reserves are well-established.
reserve	that part of a mineral deposit, which could be economically and legally extracted or produced at the time of the reserve determination. Reserves are customarily stated in terms of "ore" when dealing with metalliferous minerals such as gold or silver
reverse circulation drill	a large machine that produces a continuous chip sample of the rock or material being drilled
shaft	a vertical or inclined tunnel in an underground mine driven downward from surface
Ton	short ton (2,000 pounds).
tonne	metric tonne (2,204.6 pounds).
trenching	The surface excavation of a linear trench to expose mineralization for sampling
unpatented mining claim	mining claims to which a deed from the United States government has not been received, and which are subject to annual assessment work in order to maintain ownership.

For ease of reference, the following conversion factors are provided:

1	mile (mi)	=	1.609 kilometres	2,204 pounds (lbs)	=	1 tonne
1	yard (yd)	=	0.9144 meter (m)	2,000 pounds/1 short ton	=	0.907 tonne
1	acre	=	0.405 hectare (ha)	1 troy ounce	=	31.103 grams

 - vi -

PART I

ITEM 1:  Identity of Directors, Senior Management and Advisors

Not Applicable.

ITEM 2:  Offer Statistics and Expected Timetable

Not Applicable.

ITEM 3:  Key Information

Unless expressed otherwise, all dollar amounts in this Annual Report are expressed in Canadian dollars. The following tables set forth the exchange rates for one Canadian dollar expressed in terms of one U.S. dollar for the fiscal years ended May 31, 2006 through May 31, 2010, and for the period June 1, 2010 through November 30, 2010.

YEAR ENDED
MAY 31	AVERAGE
2006	1.1736
2007	1.1364
2008	1.0142
2009	1.1562
2010	1.0632

MONTH	LOW	HIGH
June 2010	1.0648	1.0138
July 2010	1.0678	1.0256
August 2010	1.0674	1.0108
September 2010	1.0604	1.0216
October 2010	1.0374	0.9986
November 2010	1.0286	0.9980

The exchange rates are based upon the noon buying rate in New York City for cable transfers in foreign currencies as certified for customs purposes by the Federal Reserve Bank of New York.

A. Selected Financial Data

Following is selected financial data of the Company, expressed in Canadian dollars, for the fiscal years ended May 31, 2010 ("2010"), May 31, 2009 ("2009’) and May 31, 2008 ("2008") (all audited), as well as the three month period ended August 31, 2010 ("first quarter 2011") and three month period ended August 31, 2009 ("first quarter 2010") (both unaudited) which were prepared in accordance with Canadian generally accepted accounting principles ("Canadian GAAP"), which differ substantially from United States generally accepted accounting principles "(US GAAP"). Reference is made to Note 15 to the audited financial statements for the period ended May 31, 2010 in Item 15. Differences between Canadian GAAP and US GAAP for a description of the differences between Canadian and United States generally accepted accounting principles, and how these differences would affect the Company’s financial statements.

1

The selected financial data should be read in conjunction with the financial statements and other financial information included elsewhere in the Annual Report.

Selected Financial Data

		Three Months			Three Months			Year Ended			Year Ended			Year Ended May
		Ended August 31,			Ended August 31,			May 31,2010			May 31, 2009			31, 2008(audited)
(CAD$)		2010			2009			(audited)			(audited)
		(unaudited)			(unaudited)
CANADIAN GAAP
Revenue		Nil			Nil			Nil			Nil			Nil
Income (Loss) for the Period	$	(84,258	)	$	(463,040	)	$	(880,403	)	$	(7,887,918	)	$	(3,005,834	)
Basic Earning (Loss) Per Share	$	(0.00	)	$	(0.01	)	$	(0.02	)	$	(0.20	)	$	(0.09	)
Dividends Per Share		Nil			Nil			Nil			Nil			Nil
Period-end Shares		72,763,033			44,652,098			72,763,033			44,652,098			36,288,765
Cash	$	1,226,090		$	324,654		$	1,432,824		$	106,593		$	84,856
Short term investments		Nil			Nil		$	25,037		$	407,493		$	1,011,410
Working Capital	$	1,225,472		$	251,035		$	1,407,869		$	469,609		$	1,168,570
Mineral Properties	$	4,247,910		$	3,566,827		$	4,149,771		$	3,442,793		$	10,282,950
Long-term Debt		Nil			Nil			Nil			Nil			Nil
Capital Stock	$	15,081,883		$	14,430,400		$	15,081,883		$	14,430,400		$	14,202,266
Shareholders’ Equity	$	5,473,382		$	3,817,862		$	5,557,640		$	3,912,402		$	11,541,520
Total Assets	$	5,565,995		$	3,934,256		$	5,660,623		$	3,999,201		$	11,673,136
US GAAP
Net Income (Loss)	$	(181,416	)	$	(545,279	)	$	(1,387,686	)	$	(2,586,978	)	$	(6,157,896	)
Income (Loss) Per Share	$	(0.00	)	$	(0.01	)	$	(0.02	)	$	(0.06	)	$	(0.18	)
Mineral Properties	$	713,454		$	554,575		$	712,101		$	512,906		$	1,921,797
Shareholders’ Equity	$	1,941,857		$	808,539		$	2,123,273		$	985,318		$	3,192,663
Total Assets	$	2,034,468		$	924,933		$	2,226,256		$	1,072,117		$	3,324,279

B. Capitalization and Indebtedness

Not Applicable.

C. Reasons For The Offer and Use Of Proceeds

Not Applicable.

D. Risk Factors

The business of the Company entails significant risks, and an investment in the Company’s Common Shares (the “Shares”) should be considered highly speculative for a variety of reasons. An investment in the Shares should only be undertaken by persons who have sufficient financial resources to enable them to assume such risks. In addition to the usual risks associated with investment in a business, the following is a general description of significant risk factors, which should be considered.

2

We Have No Ongoing Mining Operations, None of our Mineral Properties Contain a Known Commercially Mineable Mineral Deposit, We Have Never Received Any Revenues From Mining Operations, and Our Chances of Reaching the Development Stage on Any of our Properties is Remote. Since our inception, we have never engaged in any mining operations and the Company has not generated any revenues from mining operations. Our activities have been limited to the highly speculative business of acquiring and exploring properties in the hope that commercial quantities of gold will be discovered. At the present time, none of our properties contain a known commercially mineable mineral deposit. We believe that the probability of our reaching the development stage on any of our properties is remote for a number of reasons. The exploration for and development of mineral deposits involves significant risks, which even a combination of careful evaluation, experience and knowledge may not eliminate. While the discovery of an ore body may result in substantial rewards, few properties, which are explored, are ultimately developed into producing mines. Major expenses may be required to locate and establish mineral reserves, to develop metallurgical processes and to construct mining and processing facilities at a particular site. Whether a mineral deposit will be commercially viable depends on a number of factors, including, but not limited to the following: the particular attributes of the deposit, such as size, grade and proximity to infrastructure; metal prices, which are highly cyclical; and government regulations, including regulations relating to prices, taxes, royalties, land tenure, land use, importing and exporting of minerals and environmental protection. Because exploration properties rarely become producing mines, investors must be prepared for the possibility that we will be unsuccessful and that they could lose their entire investment.

In the remote possibility that we place any of our properties into production, of which there can be no assurance, we would face numerous risks associated with mining operations. These risks include adverse environmental conditions, industrial accidents, labor disputes, unusual or unexpected geological conditions, ground or slope failures, cave-ins, changes in the regulatory environment and natural phenomena such as inclement weather conditions, floods and earthquakes, and the inability to maintain the infrastructure for our production activities. Mining and mining exploration is risky, presenting potentially dangerous conditions for workers. Large, heavy equipment and machinery is used and toxic substances are utilized and encountered in exploration, extraction, and processing. Misuse and accidents could result in serious injury and death to personnel. Such events could be caused by numerous factors including faulty equipment, unsafe practices, explosions, fires, natural phenomenon (such as lightening, mudslides, cave-ins, etc.), which may be impossible to avoid and protect against. In the event of any such misuse, accidents or natural disasters, personnel could be injured and killed, and mining operations suspended or terminated. In addition, any future development activities, of which there can be no assurance, would depend, to one degree or another, on adequate infrastructure. Reliable roads, bridges, power sources and water supply are important factors, which affect capital and operating costs. Unusual or infrequent weather phenomena, sabotage, government or other interference in the maintenance or provision of such infrastructure could make it very difficult, it not impossible, to engage in any development activities and force us to incur expenses that we had not planned on spending.

Because We Have No Revenue Producing Operations, We are Dependent Upon Our Ability to Raise Funds In Order to Stay In Business. Since inception, the Company has not generated any revenues from mining operations. As of August 31, 2010, the Company had an accumulated deficit of approximately $20.0 million. With limited cash resources, it will be necessary in the near and over the long term to raise substantial funds from external sources to maintain our interests in our various properties in the United States and Canada, to acquire, explore, and if warranted, develop other mineral properties, participate in other projects and provide sufficient cash to fund operations. There is no assurance that we will be able to raise the funds on acceptable terms, or at all. If we do not raise these funds, we would be unable to pursue our planned business operations and investors could lose their investment. If we are able to raise these funds, it is likely that investors will experience dilution of their interests, which could result in a decrease in the value of their Shares.

3

Title To Our Mining Properties Has Not Been Verified so Such Properties may be Subject to Prior Unregistered Liens, Agreements, Transfers or Claims, and may be Affected by Undetected Defects.

Although the title to the properties in which the Company holds interests were reviewed by or on behalf of us, and title opinions were delivered to us, no assurances can be given that there are no title defects affecting such properties. Our ability to ensure that we have obtained secure claim to individual mineral properties or mining concessions may be severely constrained. The Company has not conducted surveys of the claims in which it holds direct or indirect interests; therefore, the precise area and location of such claims may be in doubt. Accordingly, the properties may be subject to prior unregistered liens, agreements, transfers or claims, including native land claims, and title may be affected by, among other things, undetected defects. In addition, the Company may be unable to operate its properties as permitted or to enforce its rights with respect to its properties.

The Value of our Mineral Properties is Dependent Upon Commodity Prices Which Can Fluctuate Widely. The price of our Shares, our financial results and exploration, development and mining activities may in the future be significantly adversely affected by declines in the price of gold, copper, or other minerals. Gold and other mineral prices fluctuate widely and are affected by numerous factors beyond the Company’s control such as the sale or purchase of such commodities by various central banks and financial institutions, interest rates, exchange rates, inflation or deflation, fluctuation in the value of the United States dollar and foreign currencies, global and regional supply and demand, and the political and economic conditions of major gold or other mineral-producing countries throughout the world. The prices of gold or other minerals have fluctuated widely in recent years, and future serious price declines could cause continued exploration of our properties to be impracticable. Depending on the price of gold or other minerals, in the remote possibility that any of our properties enter commercial production, cash flow from such mining operations may not be sufficient and the Company could be forced to discontinue production and may lose its interest in, or may be forced to sell, some of its properties. Future production from the Company’s mining properties is dependent on gold or other mineral prices that are adequate to make these properties economic.

In addition to adversely affecting the Company’s reserve estimates, its ability to obtain financing, and its financial condition, declining commodity prices can impact operations by requiring a reassessment of the feasibility, and operational requirements, of a particular project. Such a reassessment may be the result of a management decision or may be required under financing arrangements related to a particular project. Even if the project is ultimately determined to be economically viable, the need to conduct such a reassessment may cause substantial delays or may interrupt operations until the reassessment can be completed.

We Are Not Engaged in Mining Operations; In the Event We Engage in Mining Operations in the Future, We Would Face Substantial Regulation Which Would be Very Costly to Comply With. We are not engaged in any mining operations at the present time and there can be no assurance we will ever engage in any mining operations in the future. All of our current activities are exploratory in nature. If our exploration activities uncover a commercially mineable mineral deposit, of which there can be no assurance, we plan to take the necessary steps to commence mining operations. Mining operations in the United States and Canada are subject to federal, provincial, state and local laws relating to the protection of the environment, including laws regulating the removal of natural resources from the ground and the discharge of materials into the environment. Mining operations are also subject to federal, provincial and local laws, which seek to maintain health and safety standards by regulating the design and use of mining methods and equipment. Various permits from government bodies are required for mining operations to be conducted; no assurance can be given that such permits will be received. No assurance can be given that environmental standards imposed by federal, provincial or local authorities will not be changed with material adverse effect on the Company's activities. Moreover, compliance with such laws may cause substantial delays and require capital outlays in excess of those anticipated, thus causing an adverse effect on the Company. Additionally, the Company may be subject to liability for pollution or other environmental damage, which it may elect not to insure against due to prohibitive premium costs and other reasons.

4

Exchange Rate and Interest Rate Fluctuations May Increase the Company’s Costs. Exchange rate fluctuations may affect the costs that the Company incurs in its exploration activities. Gold and other minerals are generally sold in U.S. dollars. Since the Company principally raises funds in Canadian dollars, and the Company’s costs are incurred principally in US dollars, the appreciation of the U.S dollar against the Canadian dollar can increase the cost of gold and other mineral exploration and production in Canadian dollar terms.

In the event interest rates rise, liabilities of the Company tied to interest rates may rise, increasing the Company’s borrowing and operating costs. Additionally, a general rise in interest rates could adversely affect the Company’s ability to secure equity financing.

There is a Risk that we will be Unable to Compete for Mineral Properties, Investment Funds and Technical Expertise. Significant and increasing competition exists for the limited number of gold and other precious metal acquisition opportunities available in North, South and Central America and elsewhere in the world. As a result of this competition, some of which is with large, established mining companies with substantially greater financial and technical resources than us, we may be unable to acquire additional attractive precious metal mining properties on terms we consider acceptable. Moreover, this competition makes it more difficult for us to attract and retain mining experts, and to secure financing for our operations. Accordingly, there can be no assurance that our exploration and acquisition programs will be successful or result in any commercial mining operations.

We Do Not Have Insurance; We Will Not Be Able to Insure Against All Possible Risks. The Company’s business is subject to a number of risks and hazards generally, including adverse environmental conditions, industrial accidents, labour disputes, unusual or unexpected geological conditions, ground or slope failures, cave-ins, changes in the regulatory environment and natural phenomena such as inclement weather conditions, floods and earthquakes. Such occurrences could result in damage to mineral properties or production facilities, personal injury or death, environmental damage to the Company’s properties or the properties of others, delays, monetary losses and possible legal liability. If any such catastrophic event occurs, investors could lose their entire investment. Although the Company intends to obtain insurance to protect against certain risks in such amounts as it considers to be reasonable, it does not have any insurance at the present time. If and when insurance is obtained, of which there can be no assurance, the insurance will not cover all the potential risks associated with a mining Company’s operations. Moreover, the Company may also be unable to maintain insurance to cover these risks at economically feasible premiums. Insurance coverage may not continue to be available or may not be adequate to cover any resulting liability. Moreover, insurance against risks such as environmental pollution or other hazards as a result of exploration and production is not generally available to the Company or to other companies in the mining industry on acceptable terms. The Company might also become subject to liability for pollution or other hazards which may not be insured against or which the Company may elect not to insure against because of premium costs or other reasons. Losses from these events may cause the Company to incur significant costs that could have a material adverse effect upon its financial performance and results of operations. Should a catastrophic event arise, investors could lose their entire investment.

5

Adverse Government Policies and Environmental Risks Could Harm Our Business; The Amount of Capital Necessary to Meet All Environmental Regulations Associated with Our Exploration Programs Could Be In An Amount Great Enough to Force the Company to Cease Operations. Reference is made to “Item 4. Information on the Company. B. Business Overview.” for a discussion of the regulatory issues facing the Company. The current and anticipated future operations of the Company, including further exploration activities require permits from various U.S. and Canadian governmental authorities. Such operations are subject to various laws governing land use, the protection of the environment, production, exports, taxes, labour standards, occupational health, waste disposal, toxic substances, mine safety and other matters. We may not be able to obtain all necessary licenses and permits required to carry out exploration at, and developments of, our projects. Unfavourable amendments to current laws, regulations and permits governing operations and activities of resource exploration companies, or more stringent implementation thereof, could have a materially adverse impact on the Company and cause increases in capital expenditures which could result in a cessation of operations by the Company.

Failure to comply with applicable laws, regulations and permitting requirements may result in enforcement actions there under, including orders issued by regulatory or judicial authorities causing operations to cease or be curtailed, and may include corrective measures requiring capital expenditures, installation of additional equipment or remedial actions. Parties engaged in resource exploration may be required to compensate those suffering loss or damage by reason of the mining activities and may have civil or criminal fines or penalties imposed for violation of applicable laws or regulations. Large increases in capital expenditures resulting from any of the above factors could force the Company to cease operations.

The Adoption of New Laws Imposing Royalties on U.S. Government Lands Could Make it Uneconomic to Place the Company’s United States Properties into Production. On November 1, 2007 the United States House of Representatives passed the Hardrock Mining and Reclamation Act which, if enacted into law, would impose royalties of 4% of gross revenues on existing hard-rock operations and 8% of gross revenues on new operations. Additionally, this legislation also would impose new environmental controls on hard-rock mining, establish a cleanup fund for abandoned mines, and ban cheap sales of public lands for mining, all of which would have an unknown financial impact on the Company’s business. Presently, there are no U.S. government royalties on production from properties on government lands. The profitability of a gold mining operation depends upon the price that can be obtained from the sale of the gold, and the cost of production. The price of gold is very volatile, making it difficult to accurately predict future revenues. The imposition of either a 4% or 8% royalty would greatly increase the cost of production, as would the imposition of additional costs to comply with the new environmental requirements. The addition of these additional costs could render some projects that were previously profitable, unprofitable. For producing mines this could mean the suspension of mining operations. For new mines not in production these additional costs could render such projects uneconomic.

6

The enactment of this legislation, or parts of it, or even the possibility of its enactment in the future, into law would have a substantial adverse effect on our ability to conduct our business. This is because of the uncertainty of the economic viability of a project it would cause and well as the uncertainty and concern over unquantifiable future costs, which must now be considered. This, in turn, could likely increase our cost of capital, and have a chilling effect on our projects on federal lands.

Management May Be Subject to Conflicts of Interest Due to Affiliations with Other Resource Companies. Because some of our directors and officers have private mining interests and also serve as officers and/or directors of other public mining companies, their personal interests are continually in conflict with the interests of the Company. Situations will arise where these persons are presented with mining opportunities, which may be desirable for the Company, as well as other companies in which they have an interest, to pursue. There can be no assurance that the Company will be able to pursue such opportunities because of our officers and directors’ conflicts. In addition to competition for suitable mining opportunities, the Company competes with these other companies for investment capital, and technical resources, including consulting geologists, metallurgists, engineers and others. Similarly, there can be no assurance that the Company will be able to obtain necessary investment capital and technical resources because of our officers and directors’ conflicts. Such conflict of interests are permitted under Canadian regulations and will continue to subject the Company to the continuing risk that it may be unable to acquire certain mining opportunities, investment capital and the necessary technical resources because of competing personal interests of some of our officers and directors.

Our Management May Not Be Subject to U.S. Legal Process Making it Very Difficult for Investors to Sue in the United States. The enforcement by investors of civil liabilities under the United States federal securities laws may be adversely affected by the fact that all of our officers and directors are neither citizens nor residents of the United States. There can be no assurance that (a) U.S. stockholders will be able to effect service of process within the United States upon such persons, (b) U.S. stockholders will be able to enforce, in United States courts, judgments against such persons obtained in such courts predicated upon the civil liability provisions of United States federal securities laws, (c) appropriate foreign courts would enforce judgments of United States courts obtained in actions against such persons predicated upon the civil liability provisions of the federal securities laws, and (d) the appropriate foreign courts would enforce, in original actions, liabilities against such persons predicated solely upon the United States federal securities laws.

However, U.S. laws would generally be enforced by a Canadian court provided that those laws are not contrary to Canadian public policy, are not foreign penal laws or laws that deal with taxation or the taking of property by a foreign government and provided that they are in compliance with applicable Canadian legislation regarding the limitation of actions. Also, a Canadian court would generally recognize a judgment obtained in a U.S. Court except, for example:

(a)     Where the U.S. court, where the judgment was rendered, had no jurisdiction according to applicable Canadian law;

7

(b)     The judgment was subject to ordinary remedy (appeal, judicial review and any other judicial proceeding which renders the judgment not final, conclusive or enforceable under the laws of the applicable state) or not final, conclusive or enforceable under the laws of the applicable state;

(c)     The judgment was obtained by fraud or in any manner contrary to natural justice or rendered in contravention of fundamental principles of procedure;

(d)     A dispute between the same parties, based on the same subject matter has given rise to a judgment rendered in a Canadian court or has been decided in a third country and the judgment meets the necessary conditions for recognition in a Canadian court;

(e)     The outcome of the judgment of the U.S. court was inconsistent with Canadian public policy;

(f)     The judgment enforces obligations arising from foreign penal laws or laws that deal with taxation or the taking of property by a foreign government; or

(g)     There has not been compliance with applicable Canadian law dealing with the limitation of actions.

Gold Prices are Volatile and Could Decline in which case Our Properties May Not be Economically Viable. Gold prices fluctuate so that there is no assurance, even if substantial quantities of gold are discovered, that our properties will, in the future, prove to be economically viable. The prices of precious and base metals fluctuate on a daily basis and have experienced volatile and significant price movements over short periods of time. Prices are affected by numerous factors beyond our control, including international economic and political trends, expectations of inflation, currency exchange fluctuations (specifically, the U.S. dollar relative to other currencies), interest rates, central bank transactions, world supply for precious and base metals, international investments, monetary systems, and global or regional consumption patterns (such as the development of gold coin programs), speculative activities and increased worldwide production due to improved mining and production methods. The effect of these factors cannot be accurately predicted, and the combination of these factors may result in us not receiving adequate returns on invested capital or the investments retaining their respective values. There is no assurance that the price of gold (and of other precious and base metals) will be high enough so that our properties, assuming that we ever discover substantial quantities of gold, could be mined at a profit.

There is a Risk that Our Rights to Conduct Mining Explorations and Operations Could be Challenged by Third Parties Claiming Rights to Our Properties. We do not insure against third party actions claiming rights to explore and mine our properties. Accordingly, in the event that such a claim is made against us or our properties, our activities could be adversely affected. The costs of defending our title could be very time consuming and expensive with no guarantee that we would win. If such a claim is made, it may become difficult or impossible to either continue operations, if any, on the property being challenged and secure investment funds.

Our Stock is a Penny Stock which Imposes Significant Restrictions on Broker-Dealers Recommending the Stock For Purchase. Securities and Exchange Commission (SEC) regulations define "penny stock" to include common stock that has a market price of less than $5.00 per share, subject to certain exceptions. These regulations include the following requirements: broker-dealers must deliver, prior to the transaction, a disclosure schedule prepared by the SEC relating to the penny stock market; broker-dealers must disclose the commissions payable to the broker-dealer and its registered representative; broker-dealers must disclose current quotations for the securities; if a broker-dealer is the sole market-maker, the broker-dealer must disclose this fact and the broker-dealers presumed control over the market; and a broker-dealer must furnish its customers with monthly statements disclosing recent price information for all penny stocks held in the customer s account and information on the limited market in penny stocks. Additional sales practice requirements are imposed on broker-dealers who sell penny stocks to persons other than established customers and accredited investors. For these types of transactions, the broker-dealer must make a special suitability determination for the purchaser and must have received the purchaser’s written consent to the transaction prior to sale. If our Shares become subject to these penny stock rules these disclosure requirements may have the effect of reducing the level of trading activity in the secondary market for the Shares, if such trading market should ever develop, of which there can be no assurance. Accordingly, this may result in a lack of liquidity in the Shares and investors may be unable to sell their Shares at prices considered reasonable by them.

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Our Stock Price Could be Volatile Causing Investors to Suffer Significant Losses If the Shares are Depressed or Illiquid when an Investor Desires to Sell his Shares. The market price of a publicly-traded stock, especially that of a mining exploration Company such as ours, is affected by many variables in addition to those directly related to exploration successes or failures. Such factors include the general condition of markets for mining exploration stocks, the strength of the economy generally, the availability of alternative investments, and the breadth of the public market for the stock. The market price of our Shares on the Toronto Stock Exchange in Canada has been, and is likely to continue to be, volatile. Therefore, investors could suffer significant losses if our Shares are depressed or illiquid when an investor desires to sell Shares.

We Do Not Plan to Pay Any Dividends in the Foreseeable Future. The Company has never paid a dividend and it is unlikely that the Company will declare or pay a dividend until warranted based upon the factors outlined below. The declaration, amount and date of distribution of any dividends in the future will be decided by the Board of Directors from time-to-time, based upon, and subject to, the Company’s earnings, financial requirements and other conditions prevailing at the time.

In the Event Mr. Paul Sarjeant, our President and Chief Executive Officer Leaves the Company, Grandview would be Adversely Affected. In the event that Mr. Paul Sarjeant, our President and Chief Executive Officer, ceases to be employed by the Company, we would be materially and adversely affected. We are heavily dependent upon him. In the event his employment ceases, there is no assurance that a suitable replacement could be employed. The Company has no key-man life insurance with any of its senior officers or directors.

Future Sales of Common Shares by Existing Shareholders Could Cause the Price of our Shares to Decline. Sales of a large number of our Shares in the public markets, or the potential for such sales, could decrease the trading price of the Shares and could impair the Company’s ability to raise capital through future sales of Shares. The Company has previously issued Shares at effective prices per share, which are lower than what the Company’s Shares currently trade. Accordingly, certain shareholders of the Company have an investment profit in the Shares that they may seek to liquidate. These sales of our Shares could cause the price of our Shares to decline.

Dilution Through Exercise of Employee/Director/Consultant Options Could Adversely Affect Grandview Stockholders Through the Dilution of their Interests. Because the success of the Company is highly dependent upon its employees, the Company has granted to some or all of its Directors, consultants, and sole employee options to purchase common-voting shares as non-cash incentives. To the extent that significant numbers of such options may be exercised, the interests of the other stockholders of the Company may be diluted.

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If Grandview is Characterized as a Passive Foreign Investment Company, its U.S. Shareholders may Suffer Adverse Tax Consequences. As more fully described below in “Item 10.E.4 –United States Taxation” if for any taxable year our passive income, or our assets which produce (or are held for the production of) passive income, exceed specified levels, we may be characterized as a passive foreign investment company for U.S. federal income tax purposes. This characterization could result in adverse U.S. tax consequences, including higher tax rates, to our U.S. shareholders. The issues relating to passive foreign companies are very complex and unfamiliar to most people. U.S. shareholders should consult with their own U.S. tax advisors with respect to the U.S. tax consequences of investing in our Shares.

As a "foreign private issuer”, Grandview is Exempt from the Section 14 Proxy Rules and Section 16 of the Securities Exchange Act of 1934, Possibly Resulting in Shareholders Having Less Complete and Timely Data. The submission of proxy and annual meeting of shareholder information (prepared to Canadian standards) on Form 6-K may result in shareholders having less complete and timely data. The exemption from Section 16 rules regarding sales of common-voting shares by insiders may result in shareholders having less data than would be provided for United States issuers, not exempt from such statues.

Foreign Operations. At present, a portion of the operations of Grandview are located in Peru, as a result, the operation of the Corporation is exposed to various levels of political, economical and other risks and uncertainties associated with operating in foreign jurisdiction. These risks and uncertainties include, but are not limited to, currency exchange rates; price controls, import or export controls, currency remittance, high rates of inflation; labour unrest; renegotiation or nullification of existing concessions, licenses, permits and contracts, changes in taxation policies, restrictions on foreign exchanges; changing political condition, currency controls; and governmental regulations that may require the awarding of contracts of 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 attitudes in Peru or other countries in which Grandview conducts business may adversely affect the operations of the Corporation. The Corporation may become subject to local political unrest that could have debilitating impact on operations, and at its extreme, could result in damage and injury to personnel and site infrastructure.

Failure to comply with applicable laws and regulations may result in enforcement actions and include corrective measures requiring capital expenditures, installing of additional equipment or remedial actions. Parties engaged in mining operations may be required to compensate those suffering loss or damage by reason of mining activities and may have civil or criminal fines or penalties imposed for violations of applicable laws or regulations.

ITEM 4:     Information on the Company

A. Unresolved Staff Comments

None.

B. History and Development of the Company

Grandview Gold Inc. (the “Company” or “Grandview”) was originally incorporated under the Corporation Act of Ontario on November 23, 1945 as Loisan Red Lake Gold Mines Limited. Grandview was primarily engaged in the mineral exploration and resource sector until April 27, 1987, when trading of the Company’s securities was ceased by the Ontario Securities Commission, and the Company remained primarily inactive until November 1998. At that time, the Company decided to invest in the common shares of Navitrak International, a company involved in high-technology products involving global positioning systems (GPS). During the next three years, Grandview found this initiative to be unfavorable and spent the period between November 2001 and November 2003 reevaluating the prospects of re-entering the mineral exploration and mining sector.

Articles of Amendment were filed in the Province Ontario effective November 6, 1979, changing the name to Grandview Energy Resources Incorporated. On September 22, 1983, further Article of Amendment were filed to change the Company’s name to Consolidated Grandview Inc.

Consolidated Grandview Inc. (the predecessor of Grandview Gold Inc.) was issued a temporary cease trade order by the Ontario Securities Commission on April 16, 1987, which was subsequently extended by a Cease Trade Order (CTO) issued by the OSC on April 29, 1987. The CTO was issued because the Company failed to file financial statements in accordance with the required timing deadlines. At the time of the CTO, the common shares of the Company were quoted on the Over-the-Counter Automated Quotation System, a predecessor of the Canadian Dealer Network (“CDN”). Subsequent to the CTO, the Company remained more or less inactive until 2003.

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During 1998, the Company shifted its business focus from mineral exploration to operating as a merchant bank with a business plan to acquire significant equity in high technology companies with prospects for exceptional growth. At the time, the Company’s management team was better suited toward this type of initiative. In November 1998 an initial investment was carried out with Navitrak International Corporation (“Navitrak”), a public company whose common shares were quoted on the Canadian Dealing Network (“CDN”).

On November 2, 2000, the cease trade order referenced above was lifted and on February 4, 2003 the cease trade order was re-issued for late filing of financial statements. During this same period, the Company determined that the initiative to invest in high technology companies was unfavourable, as much of the technology industry became mired in a well-documented ‘tech burst’ that bottomed out in late 2001. As such, the Company decided to re-instate the original business mandate and build a team focussed on mineral exploration and development.

During 2003, the Company attracted a new management team including a new board of directors and prepared to seek out a viable exploration property beyond its existing patented mining claims located in the Red Lake Mining Area of northwestern Ontario. The Company also addressed all outstanding financial matters and prepared to submit a request to the OSC to lift the existing cease trade order.

The cease trade order was lifted on May 6, 2004 and subsequently, on July 6, 2004, the Company filed Articles of Amendment changing its corporate name to Grandview Gold Inc.

The Company’s executive office is located at:

330 Bay Street, Suite 820
Toronto, Ontario, M5H 2S8
Canada

Its registered and records office is located at Suite 500, 360 Bay Street, Toronto, Ontario, Canada. Its telephone number is (416) 486-3444.

The Company has financed its operations through the financings listed in the table shown below.

Table No. 1: Financings

Date of Offering	Nature of Issuance	Number of Shares		Capital Raised
July 22, 2004	Private Placement (1)	120,000	$	120,000
August 23, 2004	Private Placement (1)	150,000	$	150,000
September 30, 2004	Private Placement (1)	175,000	$	175,000
December 23, 2004	Private Placement (2)	1,005,000	$	1,005,000
August 31, 2005	Private Placement (3)	2,099,104	$	2,623,880
September 15, 2005	Private Placement (3)	590,320	$	737,900

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Date of Offering	Nature of Issuance	Number of Shares		Capital Raised
October 19, 2005	Private Placement (3)	400,000	$	500,000
March 27, 2006	Private Placement (4)	3,985,974	$	4,384,571
December 28, 2006	Private Placement (5)	2,399,998	$	1,559,999
March 16, 2007	Private Placement (6)	3,250,000	$	1,462,500
July 6, 2007	Private Placement (7)	8,714,000	$	3,485,600
December 21, 2007	Private Placement (8)	1,917,000	$	1,114,850
December 28, 2008	Private Placement (9)	538,000	$	349,700
December 9, 2009	Private Placement (10)	26,666,667	$	2,000,000

Notes:
(1) Units sold as 1 common share for $1.00/share. No commissions were paid.

(2) Each unit consisted of 1 common share and ½ share purchase warrant. The units were sold for $1.00/unit. Each whole share purchase warrant is convertible to one common share at an exercise price of $1.50 until December 23, 2005. Commission was paid in the form of 100,000 warrants exercisable at $1.15 until December 23, 2005.

(3) A total placement, raising $3,861,780 was completed in three closings in August, September and October of 2005. The 3 tranches were made up of two different unit offerings. 1,469,424 units were sold for $1.25/unit, each unit comprised of one common share and ½ share purchase warrant, each whole purchase warrant exercisable at an exercise price of $1.75/warrant for up to 12 months. The remainder of the placement was made up of 1,620,000 Flow Through units sold at $1.25/unit. Commission was paid at 8% of the gross proceeds and 308,942 warrants exercisable at $1.25 for 12 months.

(4) Units comprised of one common share and one half warrant exercisable into one additional common share at an exercise price of $1.75 per share. The units were sold at a price of $1.10 per unit, raising gross proceeds of $4,384,571.

(5) Units comprised of flow-through Units and one-half warrant exercisable into one Share at a price of $1.40 per Share.

(6) Units comprised of one common share and one half warrant exercisable into one additional common share at an exercise price of $0.65 per Share. The units were sold at a price of $0.45 per unit, raising gross proceeds of $1,462,500.

(7) Units comprised of one common share and one half warrant exercisable into one additional common share at an exercise price of $0.65 per Share. The units were sold at a price of $0.40 per unit, raising gross proceeds of $3,485,600.

(8) Units comprised of common share and one half warrant exercisable into one additional common share at an exercise price of $0.70 per units, raising $721,600. These shares were sold at a price of $0.55, raising gross proceeds of $721,600. In addition, 605,000 flow-through share at a purchase price of $0.65 per share for gross proceeds of $393,250. Total proceeds raised totalled $1,114,850.

(9) Units comprised of a total of 538,000 flow-through shares at a purchase price of $0.65 for gross proceeds of $349,700.

(10) Units comprised of one common share and one warrant exercisable into one additional common share at an exercise price of $0.12 per share. The units were sold at a price of $0.075 per unit, raising gross proceeds of $2,000,000.00 The Company does not have an agent in the United States.

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Capital Expenditures

The table below shows historical capital expenditures incurred before write-downs:

Fiscal Year		Expenditures
Fiscal 2001	$	0
Fiscal 2002	$	0
Fiscal 2003	$	0
Fiscal 2004	$	562
Fiscal 2005	$	407,899
Fiscal 2006	$	2,556,530
Fiscal 2007	$	3,447,602
Fiscal 2008	$	3,506,343
Fiscal 2009	$	620,297
Fiscal 2010	$	706,978

C. Business Overview¹

General

The Company is engaged in the exploration and, if warranted, development of mineral properties in Canada and Peru. The Company is an exploration stage company and is not currently engaged in any mining operations, and there can be no assurance it will ever engage in mining operations. To date, its only mining interests are (i) a 67% interest in the Dixie Lake Property, located in the Red Lake Mining District, Ontario, Canada (“Dixie Lake”) (ii) a 100% interest in eight mining claims in the Red Lake Mining District, Ontario, Canada (the “Loisan Property”), (iii) a 100% interest in 12 unpatented claims and 2 patented claims located in the Red Lake Mining District, Ontario, Canada (the “Sanshaw-Bonanza Property”), (iv) a 100% interest in three mining claims, one patented claim and one mineral lease located in Manitoba, Canada (the “Bissett Gold Camp Claims”), (v) a 100% interest in 16 unpatented mining claims in the Long Lake-Cat Lake area of southeastern Manitoba, covering approximately 3,187 hectares (the “GVG Property”), (vi) a 100% interest in four unpatented mining claims in the Rice Belt in southeastern Manitoba, covering 351 hectares (the “Angelina Property”), (vii) a 100% interest in 14 unpatented mining claims in the Banksian Lake area of southeastern Manitoba, covering approximately 2,824 hectares (the “Banksian Property”), and (vii) an option to acquire up to a 100% interest in two mineral claims covering 400 hectares (“Giulianita Property”) near Suyo District, Ayabaca Province, Piura Department, Peru.

^{_______________
1}See Glossary on pages iii-iv for terms used throughout this Annual Report.

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During the year to date, the Company determined to let lapse its option to acquire a 50% interest in the GEM Property near Rice Lake.

As of May 26, 2009 the Corporation announce that it had ceased all operations at the Pony Creek/Elliot Dome project in Nevada and returned the project to Mill City Gold Inc. pursuant to the underlying agreements.

On July 15, 2009 the Corporation announced the signing of a Binding Memorandum of Understanding through its wholly-owned subsidiary Recuperación Realzada S.A.C., with a private Peruvian Group which grants a two-stage option (the "Option") to acquire up to a 100% interest in a 400 hectare property located in the Suyo District, Ayabaca Province, Piura Department, Peru.

The Company is concentrating most of its resources on exploration the Giulianita Project in the Piura Department, Peru, exploring for and evaluating other potentially economic small-scale mining opportunities In Peru.

There is no known commercially mineable mineral deposit on any of these properties, and there can be no assurance that a commercially mineable mineral deposit exists on any of these properties.

Our business is highly speculative. We are exploring for base and precious metals. Ore is rock containing particles of a particular mineral (and possibly other minerals which can be recovered and sold), which rock can be legally extracted, and then processed to recover the minerals, which can be sold at a profit.

Although mineral exploration is a time consuming and expensive process with no assurance of success, the process is straightforward. First, we acquire the rights to enable us to explore for, and if warranted, extract and remove ore so that it can be refined and sold on the open market to dealers. Second, we explore for precious and base metals by examining the soil, rocks on the surface, and by drilling into the ground to retrieve underground rock samples, which can then be analyzed. This work is undertaken in staged programs, with each successive stage built upon the information gained in prior stages.

If exploration programs discover what appears to be an area, which may be able to be profitably mined, we will focus our activities on determining whether that is feasible, while at the same time continuing the exploratory activities to further delineate the location and size of this potential ore body.

Things that will be analyzed by us in making a determination of whether we have a deposit, which can be feasibly mined at a profit, include:

(a)	the amount of mineralization, which has been established, and the likelihood of increasing the size of the mineralized deposit through additional drilling;
(b)	the expected mining dilution;
(c)	the expected recovery rates in processing;
(d)	the cost of mining the deposit;

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(e)	the cost of processing the ore to separate the gold from the host rocks, including refining the precious or base metals;
(f)	the costs to construct, maintain, and operate mining and processing activities;
(g)	other costs associated with operations including permit and reclamation costs upon cessation of operations;
(h)	the costs of capital;
(i)	the costs involved in acquiring and maintaining the property; and
(j)	the price of the precious or base minerals. For example, the price of one ounce of gold for the years 2000-2006 ranged from a low of $271 U.S. in 2001, to a high of $725.00 in 2006. At November 30, 2010, the closing price of gold was $1,387.20 U.S. per ounce.2 Our analysis will rely upon the estimates the plans of geologists mining engineers, metallurgists and others.

If we determine that we have a feasible mining project, we will consider pursuing alternative courses of action, including:

(a)	placing the property into production ourselves;
(b)	entering into a joint venture with larger mining company to mine the deposit; or
(c)	seeking to sell the deposit or the Company to third parties.

There can be no assurance, that we will discover any precious or base metals, establish the feasibility of mining a deposit, or, if warranted, develop a property to production and maintain production activities, either alone or as a joint venture participant. Furthermore, there can be no assurance that we would be able to sell either the deposit or the Company on acceptable terms, or at all, enter into such a joint venture on acceptable terms, or be able to place a property into production ourselves. If we do enter actual mining operations, which is unlikely in the near future, our operations will be subject to various factors and risks generally affecting the mining industry, many of which are beyond our control. These include the price of precious or base metals declining, the possibility that a change in laws respecting the environment could make operations unfeasible, or our ability to conduct mining operations could be adversely affected by government regulation. Reference is made to Item 3D. Key Information: Risk Factors.

Prior to commencing any exploration activities in any of the Province of Manitoba, or the Province of Ontario, Canada or Peru the Company or the party intending to carry out a work program on a mineral property is required to apply to the appropriate local government agencies for a number of permits or licenses related to mineral exploration activities. These permits or licenses may include water and surface use permits, occupation permits, fire permits, and timber permits. Prior to being issued the various permits or licenses, the applicant must file a detailed work plan with the applicable government agency. Permits are issued on the basis of the work plan submitted and approved by the governing agency. Additional work on a given mineral property or a significant change in the nature of the work to be completed would require an amendment to the original permit or license.

^{________________
2} Source: Kitco: New York Close, Spot Gold

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As part of the permit or licensing requirements, the applicant may be required to post an environmental reclamation bond in respect to the work to be carried out on the mineral property. The amount of such bond is determined by the amount and nature of the work proposed by the applicant. The amount of a bond may also be increased with increased levels of development on the property.

The Company has or will make application to the appropriate agencies for permits and licenses relating to those properties upon which the Company intends to carry out work during the 2009 and 2010 exploration seasons. For those mineral properties in which the Company has an interest but is not the operator of the work programs, application for the required permits and licenses and the posting of the reclamation bonds will be made by the party entitled to carry out exploration work on the property. The Company believes that it is currently in compliance with all applicable environmental laws and regulations in the Provinces of Manitoba and Ontario, Canada and in Peru.

D. Organizational Structure

The Corporation has a wholly owned subsidiary incorporated pursuant to the laws of Nevada on July 16, 2008, under the name Grandview Gold (USA) Inc. Grandview Gold (USA) Inc. was incorporated to hold the Corporation's interest in its Nevada property. As of May 22, 2009 the Corporation announced the termination of it’s Nevada operations and no interest exist within the subsidiary.

On July 26, 2009 the Corporation created a wholly owned subsidiary pursuant to the laws of Peru under the name Recuperacion Realzada S.A.C. with the intent to hold the Corporation’s Peruvian interests.

E. Property, Plants and Equipment

General

The Company is engaged in the exploration and, if warranted, development of mineral properties in Canada and Peru. The Company is an exploration stage company and is not currently engaged in any mining operations, and there can be no assurance it will ever engage in mining operations. To date, its only mining interests are (i) a 67% interest in the Dixie Lake Property, located in the Red Lake Mining District, Ontario, Canada (“Dixie Lake”) (ii) a 100% interest in eight mining claims in the Red Lake Mining District, Ontario, Canada (the “Loisan Property”), (iii) a 100% interest in 12 unpatented claims and 2 patented claims located in the Red Lake Mining District, Ontario, Canada (the “Sanshaw-Bonanza Property”), (iv) a 100% interest in three mining claims, one patented claim and one mineral lease located in Manitoba, Canada (the “Bissett Gold Camp Claims”), (v) a 100% interest in 16 unpatented mining claims in the Long Lake-Cat Lake area of southeastern Manitoba, covering approximately 3,187 hectares (the “GVG Property”), (vi) a 100% interest in four unpatented mining claims in the Rice Belt in southeastern Manitoba, covering 351 hectares (the “Angelina Property”), (vii) a 100% interest in 14 unpatented mining claims in the Banksian Lake area of southeastern Manitoba, covering approximately 2,824 hectares (the “Banksian Property”), and (vii) an option to acquire up to a 100% interest in two mineral claims covering 400 hectares (“Giulianita Property”) near Suyo District, Ayabaca Province, Piura Department, Peru.

During the year to date, the Company determined to let lapse its option to acquire a 50% interest in the GEM Property near Rice Lake.

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As of May 26, 2009 the Corporation announce that it had ceased all operations at the Pony Creek/Elliot Dome project in Nevada and returned the project to Mill City Gold Inc. pursuant to the underlying agreements

On July 15, 2009 the Corporation announced the signing of a Binding Memorandum of Understanding through its wholly-owned subsidiary Recuperación Realzada S.A.C., with a private Peruvian Group which grants a two-stage option (the "Option") to acquire up to a 100% interest in a 400 hectare property located in the Suyo District, Ayabaca Province, Piura Department, Peru.

There can be no assurance that a commercially mineable mineral deposit exists on any of these properties.

Dixie Lake Property, Red Lake Mining Division, Ontario

The Company has acquired a 67% interest in 49 unpatented mineral claims located in the Red Lake Mining Division, Ontario (the “Dixie Lake Property”). Originally, the Company acquired the option pursuant to an agreement dated August 26, 2005 (“Option Agreement”) with Fronteer Development Group Inc. (“Fronteer”). To acquire a 51% the Company was required (i) to incur exploration expenditures on the Dixie Lake Property of at least $300,000 on or before July 11, 2006, which it did, and (ii) make the following cash payments to Mr. Perry English (“English”), the individual who in 2002 originally granted Fronteer an option to acquire the Dixie Lake Property: (a) $10,000 on signing the Option Agreement, which it did (b) $25,000 on or before July 11, 2006, which it did, and (iii) $40,000 on or before July 11, 2007 (which it did). There is no known commercially mineable mineral deposit on the Dixie Lake Property.

Background

In December 2002, English granted Fronteer an option to acquire a 100% interest in the Dixie Lake Property. The amount of consideration Fronteer had to pay English to exercise the option depended upon whether the property was deemed to be a “Property of Merit,” as defined under Canadian regulations. Property of Merit means a property that would qualify as a sufficiently advanced property for purposes of Fronteer’s listing on the TSX Venture Exchange in Canada.

Once the Dixie Lake Property was deemed to be a Property of Merit, Fronteer could exercise the option by (i) paying English a total of $80,000 in staged payments covering four years from December 2002, and (ii) issuing English a total of 200,000 shares of its common stock within 36 months of December 2002. If the Dixie Lake Property was not deemed to be a Property of Merit, Fronteer could exercise the option by (i) paying English a total of $80,000 in staged payments over four years from the date the TSX Venture Exchange notified Fronteer that the Dixie Lake Property did not qualify as a Property of Merit, and (ii) issuing English a total of 190,000 shares of its common stock within 48 months of being notified that the property did not qualify as a Property of Merit. The Dixie Lake Property was deemed to be a Property of Merit on July 11, 2003, allowing Fronteer to become listed on the TSX.

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In the event the Dixie Lake Property goes into commercial production, of which there can be no assurance, English will be entitled to a Net Smelter Return royalty of 2%, which can be reduced to a 1% Net Smelter Return by the payment to English of $1,000,000.

In connection with its acquisition of the option on the Dixie Lake Property, the Company issued 160,000 Shares to McKeena Gold Inc., a Canadian corporation, as a finder’s fee.

On September 22, 2003 Fronteer entered into an agreement with Alberta Star Development Corp. (“Alberta Star”) pursuant to which Fronteer granted Alberta Star an option to acquire a 50% interest in the Dixie Lake Property. Through November 30, 2004 Alberta Star reported that it had (i) spent approximately $1,517,000 on exploration of the Dixie Lake Property, (ii) paid Fronteer $35,000, and (iii) issued Fronteer 150,000 shares of its common stock. On July 10, 2005 Alberta Star notified Fronteer that it would not be proceeding with the Dixie Lake Property. Alberta Star has not disclosed its reason for declining its option.

Grandview Gold – Fronteer Option Agreement

Under the terms of the Option Agreement with Fronteer the Company had the right to acquire a 51% interest in the Dixie Lake Property by (i) incurring $300,000 in exploration expenditures by July 11, 2006, which it completed, and (ii) paying English a total of $75,000 by July 11, 2007 and by Fronteer fulfilling its remaining obligations to (i) issue to English 20,000 of it shares upon the signing of the Option Agreement with the Company, and (ii) issuing to English 20,000 shares of its common stock by July 11, 2006, which it did. In the summer of 2007 the Company presented to Fronteer a detailed accounting of the $1,711,000 U.S. it had spent on exploration of the property. Fronteer has informed the Company that it had fulfilled its obligations under the Option Agreement and that the Company had earned a 51% interest in the Dixie Lake Property. Fronteer also advised the Company that it would be reducing its 49% participating interest in the property, to a 33% participating interest, thereby increasing the Company’s interest to 67%.

At the time the Company earned its interest, the Company and Fronteer were deemed to have formed a joint venture for the further exploration and, if warranted, of which there can be no assurance, the development of the property.

The Company is the operator of the exploration programs on the Dixie Lake Property and it is the Company’s responsibility to prepare a proposed exploration program and budget.

The Company’s interest in the joint venture is 67% and Fronteer’s is 33%. Accordingly, the Company will be responsible for providing 67% of all exploration funds and Fronteer’s funding obligations will be 33%.

If either the Company or Fronteer elects not to contribute their full amount under a proposed exploration program, such party’s interest in the joint venture will be reduced proportionately, according to a formula set forth in the Option Agreement. If either party’s participating interest falls below 10%, then that party’s interest will automatically be converted into a 10% net profit royalty.

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Property Description and Location

The Dixie Lake Property is located in Northwestern Ontario approximately 24 kilometers from the town of Red Lake. The property covers approximately 1,790 hectares and consists of 49 claims, in the Red Lake Mining Division. Management believes that all of the claims are in good standing. It is believed that neither Fronteer nor English owns the surface rights to the claims and that in order to retain the mineral rights, assessment work must be submitted. In order to maintain its interests in the claims a total of approximately $46,000 must be spent over the next four years.

Accessibility, Climate, Local Resources, and Infrastructure

The property is located approximately 24 kilometers southeast of the town of Red Lake Ontario, directly east of Dixie Lake, between Dixie Lake and Rice Lake, south of Highway 105. The property straddles Dixie Creek.

Access to the property is via Highway 105, then four kilometers to the southwest along Tucyk Road. Several old logging roads from Tucyk Road provide direct access to much of the property. The main power lines to Red Lake are located one kilometer north of the property. The town of Red Lake is a well- established mining center where supplies, support services and experienced mining personnel are readily available.

The area’s climate ranges from -40 degrees Celsius in the winter to 40 degrees Celsius in the summer. The annual precipitation averages 634 millimeters, with approximately 455 millimeters falling as rain in the summer, and the remainder falling as snow in the winter.

Geology

Limited bedrock on the property makes comprehensive geological mapping very difficult. Accordingly, most of the property is poorly mapped. Bedrock is exposed mainly along Dixie Creek and on several low hills in the area. Due to the adverse field conditions on the property, including the prevalence of deep silts and clay deposits, Management believes it is unrealistic to learn more about the area’s lithological make-up from geological mapping.

The Dixie Lake Property lies within a regional east-west trending belt of metavolvanic and metasedimentary rocks which are bounded by intrusive batholiths. The property is dominated by a central package of higher magnetic response, which is comprised of mafic volcanic flows and tuffs with intercalated iron formation, argillite, and local felsic volcanics. Magnetic patterns reflect the underlying formations: analysis of the central area indicates the presence of iron and pyrrhotitic argillite, while analysis of other areas show a lower magnetic response. There is no known commercially mineable mineral deposit on the Dixie Lake Property.

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History

According to various reports Management of the Company has reviewed, there has been much exploration in the general area of the Dixie Lake Property going back to the 1940s. Numerous companies have conducted drilling, geophysical surveys, trenching, sampling, prospecting, geological mapping, and related exploration activities in areas near the Dixie Lake Property. However, it is unclear from these reports what work was done on the claims comprising the Dixie Lake Property, and what work was done on claims in the general, surrounding area. Management does not believe that any gold has ever been recovered from any claims on the Dixie Lake Property and there is no known commercially mineable mineral deposit on the property.

Alberta Star conducted exploration on the Dixie Lake Property from 2003 through 2004 pursuant to its option agreement with Fronteer. Alberta Star has publicly reported that it drilled 22 holes over a total of 6,594 meters, completed a ground magnetometer survey, and collected soil samples for analysis. Alberta Star has disclosed that its exploration encountered some gold mineralization, in small amounts. However, no feasibility study has been conducted on the property and there is no known commercially mineable mineral deposit on the Dixie Lake Property.

Previous Exploration Programs

In 2005, the Company completed a 16-hole drilling program, covering 2,765 feet, at a cost of $425,000, on the Dixie Lake Property. The drilling encountered gold mineralization so the Company retained SRK Consulting to review the work that was completed and to recommend an exploration program for 2006. Following the work conducted by SRK, the Company revised its exploration program.

For the Spring 2006 drill program a total of five drill holes, covering 1,030 meters was completed. Although initial plans called for a larger drill program, because of difficulties resulting from the timing of the program and associated difficulties with the spring run-off, certain targets could not be drilled. In addition, access across Dixie Creek to the some of the planned targets was hampered by ground conditions and the close of the only bridge crossing permitting access to the property. Finally, the Company concluded for environmental reasons the drilling should be suspended until early summer.

The Company completed two drilling campaigns between the summer of 2007 and the winter 2008 on the Dixie Lake property. The summer 2007 program consisted of 18 diamond drill holes totalling 4,561.5 meters on selected targets including the 88-4 Zone, 88-4 West, Main Zone and MMI East Zone based on recommendations from previous work programs. The results of that work indicate continuity of previously identified mineralization in the Main Zone, 88-4 and 88-4 West Zone at depth or along strike. Grades remained at historical levels. Drilling also made a significant discovery of a new zone of quartz veining with high grade mineralization and abundant visible gold, subsequently named the New South Zone (“NS Zone”). Based on these results, the Company carried out a brief two hole (575 meter) drill program in early January 2008 to follow up on the first pass results.

Previously unrecognized lode gold style mineralization was encountered in the New South (NS) Zone. Overall, six diamond drill holes were drilled into the NS zone subsequent to the discovery, with four drill holes intersecting significant gold mineralization (DC-10-07, DC-15-07, DC-18-07, and DL-08-01R (see chart below). The Company is currently evaluating additional drilling to fully constrain the geometry of the lode gold bearing quartz veins.

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Hole Number	Azimuth	Dip	From (m)	To (m)	Length (m)	Grade (g/t Au)
DC-10-07	090o	-60o	181.83	182.30	0.47	163.75
			200.62	203.48	2.86	22.90
Incl			202.12	203.12	1.00	61.97
DC -15-07	070o	-55o	176.60	182.95	6.35	4.28
Incl			176.60	178.30	1.70	11.30
DC-18-07	070o	-55o	156.83	158.17	1.34	7.04
DC-08-1R	090o	-60o	127.60	129.80	2.20	18.26

Drilling of the 88-04 Zone (1.57 g/t Au over 13.13 meters and 2.43 g/t Au over 4.0 meters) indicated the one continues to be open to depth and along strike to the east. Additional results from holes DC-01-07 (9.25 g/t Au and 6.02 g/t over 1 meter widths) and DC-04-07 (3.55 g/t Au over 3.0 meters) are encouraging as they continue to demonstrate the mineralizing potential of the Dixie Lake property.

During fiscal 2009 the Dixie Lake project saw limited geological work due to work commitments on other projects and limited funding. Work centered primarily on report writing with respect to the 2009 winter drilling program and further geological interpretation and computer modeling. Gemcom was contracted to consolidate all drilling data and model mineralised zones at both the 88-04 Zone and limited information on the NS Zone. That modeling was used as the basis for an exploration program to be carried our in the summer of 2009 on the Property.

2010 Exploration Program

June 2009 the Company completed a diamond drill program of 6 NQ drill holes for a total of 1556.8 metres. The holes were designed to test mineralisation intersected from previous drilling, specifically, extensions to & infill of, the 88-4 Zone, continuity between the 88-4 Zone & the 88-4 extension, & the high grade quartz veining, South of the 88-4 Zone. Gemcom software modelling of the drill database produced additional drill targets based on previous anomalous gold intersections tied to the known geology.

Highest assays from this latest drilling were returned from intercepts of the ‘High Grade Zone’, with 0.476 oz. Au/t over 0.5 metres, & 4.79 g/t Au over 1 metre, & 3.52 g/t Au over 1.5 metres, within the 88-04 zone. Intercepts from the 88-4 area are hosted by a sulphidic, silicic quartz veined chert-argillite between mafic volcanic sequences.

The gold appears to be confined by a zone of variably moderate to high strain, at or proximal to several mesoscale fold hinges, with higher grade gold confined to specific as yet poorly defined steeply plunging discrete smaller scale high strain sub-sets.

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There is no known commercially mineable mineral deposit on the Dixie Lake Property.

Loisan Property, Red Lake, Ontario, Canada

The Company currently holds a 100% interest in eight mining claims covering approximately 60 hectares in the Red Lake Area, District of Kenora, in northwestern Ontario (the “Loisan Property”). The Red Lake area currently hosts two high-grade, world-class gold mines, Goldcorp’s Red Lake Mine and Placer Dome’s Campbell Gold Mine, each located approximately 25 kilometers from the Company’s claims. However, there can be no assurance a commercially mineable mineral deposit exists on the Red Lake Property.

There are no requirements by the Company to make additional payments or filings to keep these claims in good standing as they are held under patents.

Accessibility, Climate, Local Resources, Infrastructure and Physiography

The Red Lake area is serviced by paved provincial highway 105 from the Trans Canada highway. The property is covered by relatively thin glacial debris. Much of the claims have waterfront access to Red Lake. A paved road, Sandy Point Road, transects many of the claims. Electric power and telephone lines also cross the property. Several year-round homes are located on surface rights of some of the claims.

There are no parks or developments other then several year-round homes are located on surface rights of some of the claims. The property can be easily accessed by boat, ski-doo, motor vehicle, or float plane.

The climate is typical mid-latitude continental. Field operations on most of the property are possible year round.

Exploration and Development

To date, the Company has not carried out any exploration or development on the Loisan Property and we have no definitive plans for future work at this time.

Sanshaw-Bonanza Property, Red Lake, Ontario, Canada

The Company has acquired an option to acquire a 60% interest in ten unpatented and two patented mining claims, located near Red Lake, Ontario. The Company acquired its option pursuant to an Option Agreement with EMCO Corporation SA (“EMCO”) dated October 30, 2006, amended June 18, 2007. In order to earn its interest the Company is required to (i) incur exploration expenditures of at least $500,000 by August 31, 2008, (ii) issue EMCO a total of 215,000 of its Shares, and (iii) issue EMCO warrants to acquire 200,000 Shares, at an exercise price of $1.40 per Share, expiring February 7, 2010. At such time as the Company earns the 60% interest in the property, the Company and EMCO will be deemed to have formed a joint venture, on terms to be negotiated that will include:

(a) The initial participating interests in the joint venture will be 60% for the Company and 40% for EMCO, subject to adjustment if a party’s contribution to the joint venture is less than its participating interest; and

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(b) if either party’s participating interest falls below 10%, then that party’s interest will be converted into a 3% Net Smelter Royalty.

April 28, 2010 the Company announced that it had acquired the remaining 40% interest in the Property from EMCO Corporation S.A. (“EMCO”) and had acquired two additional patented claims and two additional unpatented claims from Perry English (“English”) to complete the current property package. To acquire the remaining 40% interest agreement in the property and eliminate any NSR due EMCO under the previous Grandview paid EMCO $25,000 in cash and issued 50,000 common shares. Grandview also acquired from English two additional unpatented mining claims and two patented mining claims contiguous to the Bonanza Property for aggregate consideration of $60,000 cash and issuing 500,000 common shares. Concurrently the Company also purchased 75% of the outstanding 1.5% NSR due English on the property.

Property Description and Location

The property consists of 12 unpatented and 2 patented claims, located on Red Lake, approximately 1.5 kilometers north of the town of Red Lake, Ontario. Much of the property area is overlain by Red Lake, with the exception of two claims on Whitehorse Island. Access to the area during summer month is most easily accomplished via boat and in the winter months via ice roads from the town of Red Lake.

Accessibility, Climate, Local Resources, Infrastructure and Physiography

The region is covered with a variable layer of poorly documented till and associated fluvioglacial and lacustrine sediments, in the order of 0 to 15 meters in thickness. Outcrop percentage overall is less than 1%. On Whitehorse Island, there is negligible outcrop, though a few scattered exposures of Dome Stock intrusive rock have been cursorily mapped by previous workers.

Topographically, the area is characterized as low rolling relief, with moderate drainage on thin to medium thickness glacial and fluvioglacial deposits. Elevations range from about 350 to 400 meters above sea-level.

Nearly all of the original vegetation has either been logged off or burnt.

Red Lake is located at the terminus of Highway 105, some 175 kilometers North of Kenora, and reached via the Trans Canada Highway. The Municipality of Red Lake is serviced by regular flights from Winnipeg and Thunder Bay, seven days a week.

History

Exploration was conducted in the mid-late 1930s and to 1948. Drilling on the property intersected visible gold in quartz veined, strongly silicic granodiorite/granite contact zone separating the Howey Stock from intermediate volcanic rocks of the Ball assemblage. A shaft was sunk and underground development was carried out on 2 levels with minor bulk sampling providing the above-mentioned resource.

During this period, further drilling underground and on Red Lake failed to prove up additional grade and tons and significant exploration was not resumed until the 1970s, when Bonanza Red Lake Explorations drilled additional holes on the Lake to trace previous known mineralized trends, this part of a feasibility study to include consideration of dewatering the shaft.

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From 1987 to 1989 Pure Gold Resources and Noramco resumed exploration with a large drill program, effectively replicating old drilling, outlined a 300 meter wide, 125 m deep, 125 meter long mineralized system with a calculated resource of 300,000 tons grading 0.08 oz per ton of gold. Other drilling on a smaller scale returned generally disappointing results as efforts were made to drill deeper targets along strike.

Various operators have completed numerous geophysical surveys and that data has been compiled with other relevant data for future use.

Regional Geology

The Sanshaw-Bonanza property is located within the Uchi Subprovince of the Archean Province, northwestern Ontario. The region is typically sub-divided into four major subprovinces, specifically the Uchi which contains the Red Lake and Confederation Lake greenstone belts, the South adjacent, predominantly metasedimentary and igneous intrusive English River Subprovince, and the North adjacent Berens River Subprovince. The Sanshaw-Bonanza property lies within the Red Lake greenstone belt that hosts the world-class gold deposits now held by Goldcorp Inc.

Mining Operations

Exploration and Development

Previous to fiscal 2008, the Company has not carried out any exploration or development on the Sanshaw-Bonanza Property. The Company believes that in the past exploration has been conducted by other companies, although the scope of such work is not known. Although management believes that previous exploration on the property by other companies encountered some mineralization, the Company does not believe it can rely upon the previous results since it is unfamiliar with the methodology used and other details of the exploration.

The Company has reviewed the historical exploration data and has completed a preliminary geological model to help understand gold mineralization and identify controls on mineralization.

In fiscal 2008, the Company completed a five (5) hole diamond drill program totalling 1,087 meters. The drill program targeted geophysical and structural targets beneath the waters of Red Lake and thus drilling was carried out during the winter months in early 2008 when sufficient ice thickness was present.

Three holes targeted what is believed to be the southwest extension of a structural corridor from the Goldcorp/Premier Gold Bonanza property immediately adjacent to the Company’s property. The drilling contractor had difficulties reaching bedrock and coring and after several attempts the holes were abandoned. The drill was pulled back to a land based setup and two holes were successfully drilled on the margin of the historic Orlac Deposit. Gold bearing mineralization was encountered in holes BS-08-03 and BS-08-04 in proximity to a granite-volcanoclastic contact zone. The following tables summarizes these results:

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Hole Number	From (m)	To (m)	Length (m)	Grade (g/tonne Au)
PC-08-03	295.7	298.7	3.0	2.41
Incl	296.7	297.7	1.0	3.50
PC-08-04	298.4	302.9	4.5	2.03

Bissett Gold Camp, Manitoba

The Company acquired its interest in the Bissett Gold Camp on April 1, 2005. The property consists of three mining claims, one patented claim and one mineral lease l. The 5 claims are located in the central area of the Bissett Gold Camp situated near the Manitoba/Ontario provincial border and approximately 240 kilometres northeast of Winnipeg. While the Company hopes to find gold on this property, there is no known commercially mineable mineral deposit on this property, and there can be no assurance that a commercially mineable mineral deposit exists on this property.

Agreement with Wildcat Exploration Ltd.

On April 1, 2005, the Company entered into a purchase and sale agreement (the “Agreement”) with Wildcat Exploration Ltd. (“Wildcat”), for 11 mineral dispositions (the “Property”) totalling 234 hectares on claims within Bissett Gold Camp, located in the Province of Manitoba, Canada. The purchase price for the property was $100,000 and 70,000 Shares. Refer to Item 19: Exhibits 3.6 Agreement for Purchase and Sale Among Grandview Gold Inc. and Wildcat Exploration Ltd. dated effective April 1, 2005.

Property Description and Location The Bissett Gold Camp is located on the Rice Lake greenstone belt, near the Manitoba/Ontario border and approximately 240 kilometers northeast of Winnipeg, and approximately 90 kilometers west of the Company’s Red Lake property interests.

Accessibility, Climate, Local Resources, and Infrastructure

The area was covered by the most recent continental glaciers, which scoured the property and exposed many rock outcrops throughout the property. The vegetation is deciduous: birch, poplar mixed with tamarack, spruce and jack pine.

The access to the property is by driving a car or truck along Provincial Highway 304 and simply parking anywhere along the side of the road. The mining town of Bissett is located less than 10 kilometers from nine of the eleven mining claims.

The weather, climate and seasons should not significantly affect the length of the operating season on this property because the terrain is flat and all-weather-road accessible.

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The Packsack Claim, has an existing mine shaft, though records of previous production are not available. A modern mill at the nearby San Antonio Gold mine (Sangold Inc.) is currently operating and would be a suitable mill if any small scale, economic deposit we developed on the property.

At this time, the property does not contain a known commercially mineral deposit.

Geology

The property is located in the Rice Lake greenstone belt, a region in south-eastern Manitoba known as the Superior Province. The Superior Province is a terrain of large granitic masses separated by greenstone belts, which consists of rocks and volcanic of sedimentary origin. Rice Lake is an Archean lode gold mining area.

History of Exploration on the Bissett Gold Camp

The property contains two patented mining claims, namely the Clappelou and Packsack claims. Gold mineralization on the Packsack claim was first discovered and explored in 1919 and subsequently held by Packsack Mines Limited during the period 1934-1937. Significant gold mineralization was discovered; a mining lease was obtained and a shaft was sunk down to the 525-foot level. Additional mine shafts were sunk and gold mineralization was discovered on Claims # W46039 and W46040.

Exploration Program

The Company has conducted very little field work on the property, but a geological compilation of historic information of the Rice Lake Greenstone Belt included the are underlying this property. Further work will be carried out as warranted in the future.

There is no known commercially mineable mineral deposit on this property and there can be no assurance that a commercially mineable mineral deposit exists on this property.

The Company is required to make certain payments to complete the transfer of mining claims, and to keep the claims in good standing.

GVG Property, Manitoba

The Company has a 100% interest in 16 unpatented mining claims in the Long Lake-Cat Lake area of southeastern Manitoba, covering approximately 3,187

In the fall of 2005, the Company undertook to stake unpatented mining claims in the Long Lake–Cat Lake area of south-eastern Manitoba, near the town of Bissett where San Gold Company is currently producing gold. The property is approximately 3,975 hectares in area, and is believed to cover similar geology that hosts the Red Lake Mine, Campbell Mine, and Madsen Mine, in Red Lake, Ontario, located less then 100 kilometers to the east of the GVG Property

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Location and Access

The GVG Property is located approximately 30 km southeast of the Rice Lake Gold Mine, Bissett, Manitoba (formerly the San Antonio Mine) operated by San Gold Corporation. The Rice Lake Greenstone Belt accounts for nearly two million ounces of past gold production, most coming from the San Antonio Mine. Access to the property from the north is aided by highway #304 and from the south out of Lac de Bonnett via highway #314. Most of the project area is only accessible by traversing and limited tertiary roads.

Geological Setting

The Rice Lake Belt covers the western extent of the Uchi geologic terrain. In fact, the Rice Lake greenstone belt, in Manitoba, together with the Red Lake, Bee Lake, and Pickle Lake greenstone belts, in Ontario, form the Uchi subprovince. The Uchi terrain consists mainly of volcanic rocks that formed in an ancient ocean as well as intrusive and sedimentary rocks. These rocks are home to the important Balmer formation, which is the host to the world class gold deposits discovered at Red Lake 80 km to the east and further east at the Pickle Lake Gold Camp.

Historical Work

Most historical work in the project area occurred between the late 1950’s and mid 1970’s. There was a pause activity until the mid 1980’s when exploration activity in the area picked up for approximately 5 years. Recent exploration work commenced around 2003 and has stayed relatively quiet to this point.

In 2005 the Company completed an airborne geophysical survey over the property. In 2007 and 2008 a grass roots style prospecting and mapping program was over the property area. A number of anomalous gold occurrences were identified and sampled. Results were not sufficient to warrant more work, but the Company was able to apply assessment credits to hold ground for a number of years, The company plans to evaluate further the area in conjunction with other project in the Rice Lake Greenstone Belt.

Mining Operations

To date, the Company has not carried out any mining or exploration activities on the GVG Property

Angelina Property, Manitoba

The Company has acquired a 100% interest in four unpatented mining claims, covering 351 hectares in the Rice Lake belt in southeastern Manitoba. To acquire its interest the Company issued McKeena Gold Inc. warrants to purchase 100,000 shares at an exercise price of $0.70 per Share, expiring February 28, 2008.

Property Description and Location

The property is located approximately 25 km southeast of the town of Bissett in southeastern Manitoba within an area commonly referred to as the Rice Lake Greenstone Belt. The Rice Lake Greenstone belt accounts for nearly two million ounces of past gold production. Most historical production has come from the Rice Lake Gold Mine (formerly the San Antonio Gold Mine) in Bissett, Manitoba.

History of Exploration

Management believes the Angelina property was first staked in 1925. Several shear zones and high-grade visible gold were discovered on the property in 1927 and there has been sporadic exploration over the years. During 2003 and 2004 Gossan Resources Ltd. (“Gossan”) conducted a program of surface mapping and diamond drilling, which included 10 shallow diamond drill holes. Recent mapping and compilation data produced by P. Fulton - Regula for Gossan in 2003 indicated gold results from chip samples over multiple shear zones. Individual grab samples of vein quartz indicated gold mineralization. Gold mineralization was found along NNW trending shear zones within a structurally complex assemblage of basalts, metasediment, gabbro and tuffs.

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Geological Setting

Geologically the Angelina Claim Block is comprised of basalts, metasediments, gabbro, pyroclastic tuffs and breccias and feldspathic dykes. This assemblage has been isoclinaly folded and boudinaged, sheared parallel to fold axes, faulted to offset the shear zones and thrust in a south westerly direction. Gold mineralization was found along shear zones striking in a NNW direction and dipping from 50 to 80 degrees to the ENE, containing quartz and carbonate veins and stringers. Historically gold mineralization has been found on six parallel shear zones. Although higher assays have been recorded in the past, up to 261 g/t in a grab sample, the highest assays found by Gossan Resources included 0.53 oz/t over 3.7m and 0.26oz/t over 7.92m in drill core. Historically a seventh mineralized shear zone was identified at depth in diamond drill hole E-88-03, a zone of 0.3oz/t Au over 6’.

2007 Exploration Program

In the summer of 2007 the Company’s initial exploration consisted of obtaining eight surface samples over an area of approximately 450 meters by 150 meters. Two of the samples showed visible gold and a third sample assayed indicated the presence of some gold mineralization. Based on results of the summer sampling program the Company initiated a limited 7 diamond drill hole program (1,193 m) was completed on three targeted zones; the Discovery Shear, the Contact Zone and the Beaver Pond Vein.

Four drill holes tested a 350 meter extension of the Discovery Shear zone to the west where surface sampling had encounter grab samples of 15.2 g/t, 16.5 g/t and 10.8 g/t. Visually the shear zone appeared to improve with depth, only two holes returned significant gold values. Best results were from holes AN-07-01 which intersected 2.08 g/t over 0.50 meters at a depth of 77.5 meters, and hole AN-07-04 which intersected 2.13 g/t over 1.50 meters at a drill hole depth of 85.25 meters.

Two diamond drill holes tested a +50 meter thick zone of moderately veined, sericite-ankerite alteration zone north of the Discovery Zone. The best result was in hole AN-07-06 which intersected 1.40 g/t over 1.50 meters at a drill hole depth of 50 meters.

The final hole of the program was designed to test a quartz-ankerite vein at depth previous drilled by Gossan Resources. No significant assays were returned.

To date, the Company has not received any definitive results of the drilling. The Company will plan any future exploration depending upon the results of the current drilling program.

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Banksian Property, Manitoba

The Company has acquired a 100% interest in 14 unpatented mining claims, covering 2,824 hectares in the Rice Lake belt in southeastern Manitoba. To acquire its interest the Company issued McKeena Gold Inc. warrants to purchase 250,000 shares at an exercise price of $0.70 per Share, expiring February 28, 2008.

Property Description and Location

The Banksian Property is located approximately 30 km southeast of the Rice Lake Gold Mine, Bissett, Manitoba (formerly the San Antonio Mine) operated by San Gold Corporation. The Rice Lake Greenstone Belt accounts for nearly two million ounces of past gold production, most coming from the San Antonio Mine. Access to the property from the north is aided by highway #304 and from the south out of Lac de Bonnett via highway #314. Most of the project area is only accessible by traversing and limited tertiary roads.

History

Most historical work in the project area occurred between the late 1950s and mid 1970s. There was a pause activity until the mid 1980’s when exploration activity in the area picked up for approximately 5 years. Recent exploration work commenced around 2003 and has stayed relatively quiet to this point.

In March 2007, the Company acquired 100% interest in the claims from McKeena Gold who had staked the ground in the prior year. The Company flew an airborne geophysical survey over the project area in conjunction with other projects in the Rice Lake Belt in 2006. At this time the Company has begun acquiring historical assessment reports and completed a 7 week prospecting program over the area. As of the writing of this document the results of the program have not been compiled. Future exploration work will hinge on any positive results of the compilation program and prospecting results.

Geological Setting

The Rice Lake Belt covers the western extent of the Uchi geologic terrain. In fact, the Rice Lake greenstone belt, in Manitoba, together with the Red Lake, Bee Lake, and Pickle Lake greenstone belts, in Ontario, form the Uchi subprovince. The Uchi terrain consists mainly of volcanic rocks that formed in an ancient ocean as well as intrusive and sedimentary rocks. These rocks are home to the important Balmer formation, which is the host to the world class gold deposits discovered at Red Lake 80 km to the east and further east at the Pickle Lake Gold Camp. Rocks in the Rice Lake Gold Belt are similar in age to those at Red Lake. Gold mineralization is present in both older rocks in the northern part of the Belt and younger rocks in the southern part of the belt. The San Antonio mine, which has contributed over 80% of the gold production from the belt to date, is hosted in the younger southern package of rocks. Limited production has been obtained from deposits in the northern part of the Belt.

Recent Work

In the fall of 2005, the Company contracted Firefly Aviation to conduct a fixed wing airborne magnetic survey covering the Banksian Property. Results have been received and are being integrated with the Company’s model and regional data with the intent to have follow up ground work, including prospecting and mapping, in the future.

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In 2005 the Company completed an airborne geophysical survey over the property. In 2007 and 2008 a grass roots style prospecting and mapping program was over the property area. A number of anomalous gold occurrences were identified and sampled. Results were not sufficient to warrant more work, but the Company was able to apply assessment credits to hold ground for a number of years, The company plans to evaluate further the area in conjunction with other project in the Rice Lake Greenstone Belt.

Gem Property, Manitoba

Due to limited exploration results on the Gem Property the Company decided to no longer pursue further work on the property and subsequently relinquished any interest in the property.

Pony Creek/Elliott Dome Property, Elko County, Nevada

As of May 26, 2009 the Corporation announce that it had ceased all operations at the Pony Creek/Elliot Dome project in Nevada and returned the project to Mill City Gold Inc. pursuant to the underlying agreements. The reader is directed to the 2009 20-F report for previous disclosure on this project.

ITEM 5: Operating and Financial Review and Prospects

The following is a discussion of the results of operations of the Company for the fiscal years ended May 31, 2010, 2009 and 2008 and the three month periods ended August 31, 2010 and August 31, 2009, and should be read in conjunction with the audited and unaudited financial statements of the Company for such periods, together with the accompanying notes, included elsewhere in this Annual Report. Unless indicated otherwise, all references herein are to Canadian dollars. Please see Item 3. Key Information for exchange rate information for the Canadian dollar.

The Company’s financial statements were prepared in accordance with accounting principals generally accepted in Canada (“Canadian GAAP”). Unless otherwise stated, all amounts discussed herein are denominated in Canadian dollars. Please see Item 3. Key Information for exchange rate information for the Canadian dollar. A summary of the differences in Canadian GAAP and those generally accepted in the United States (“US GAAP”) which affects the Company is contained in contained Note 15 to the audited financial statements for 2010 and Note 13 to the financial statements for the first quarter ended August 31, 2010.

In addition to historical information, the following discussion contains certain forward-looking statements within the meaning of applicable Canadian securities legislation. All statements, other than statements of historical facts, included herein that address activities, events or developments that the Company expects or anticipates will or may occur in the near future, including future business strategy, goals, exploration programs or other such matters are forward-looking statements. When used in this discussion, the words “estimate”, “plan”, “anticipate”, “expect”, “intend”, “believe” and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements of the Company to be materially different from future results expressed or implied by such forward-looking statements. Such factors include, among others, risks related to joint venture operations, actual results of current or planned exploration activities, changes in project parameters as plans continue to be refined, unavailability of financing, fluctuations in precious metal prices and other such factors, including those discussed in “Risk Factors” and elsewhere in this Annual Report. Accordingly, the reader should not place undue reliance on forward-looking statements by the Company. Statements speak only as of the date on which they are made.

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Overview

Grandview is a mineral exploration company focused on the acquisition and exploration of gold and other precious metal properties in the United States and Canada. At the present time none of the Company’s properties contain a known commercially mineable mineral deposit.

The Company is engaged in the exploration and, if warranted, development of mineral properties in Canada and Peru. The Company is an exploration stage company and is not currently engaged in any mining operations, and there can be no assurance it will ever engage in mining operations. To date, its only mining interests are (i) a 67% interest in the Dixie Lake Property, located in the Red Lake Mining District, Ontario, Canada (“Dixie Lake”) (ii) a 100% interest in eight mining claims in the Red Lake Mining District, Ontario, Canada (the “Loisan Property”), (iii) a 100% interest in 12 unpatented claims and 2 patented claims located in the Red Lake Mining District, Ontario, Canada (the “Sanshaw-Bonanza Property”), (iv) a 100% interest in three mining claims, one patented claim and one mineral lease located in Manitoba, Canada (the “Bissett Gold Camp Claims”), (v) a 100% interest in 16 unpatented mining claims in the Long Lake-Cat Lake area of southeastern Manitoba, covering approximately 3,187 hectares (the “GVG Property”), (vi) a 100% interest in four unpatented mining claims in the Rice Belt in southeastern Manitoba, covering 351 hectares (the “Angelina Property”), (vii) a 100% interest in 14 unpatented mining claims in the Banksian Lake area of southeastern Manitoba, covering approximately 2,824 hectares (the “Banksian Property”), and (vii) an option to acquire up to a 100% interest in two mineral claims covering 400 hectares (“Giulianita Property”) near Suyo District, Ayabaca Province, Piura Department, Peru.

During the year to date, the Company determined to let lapse its option to acquire a 50% interest in the GEM Property near Rice Lake.

As of May 26, 2009 the Corporation announce that it had ceased all operations at the Pony Creek/Elliot Dome project in Nevada and returned the project to Mill City Gold Inc. pursuant to the underlying agreements.

On July 15, 2009 the Corporation announced the signing of a Binding Memorandum of Understanding through its wholly-owned subsidiary Recuperación Realzada S.A.C., with a private Peruvian Group which grants a two-stage option (the "Option") to acquire up to a 100% interest in a 400 hectare property located in the Suyo District, Ayabaca Province, Piura Department, Peru (the “Giulianita Property”).

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There is no known commercially mineable mineral deposit on any of these properties, and there can be no assurance that a commercially mineable mineral deposit exists on any of these properties.

Giulianita Property, Peru

The Company, through its subsidiary Recuperacion, has an option to acquire 100% of the Giulianita property in Ayabaca Province, Piura Department, Peru, through a two-stage option. The option provides the Company with a right to earn an 80% interest in the Giulianita property by: (i) making a cash payment of $20,000 US dollars upon signing the agreement, which the Company has done, and by incurring $1.4 million in exploration and development expenditures; and (ii) issuing o total of two million common shares of the Company over a three-year period.

The remaining 20% may be acquired by making an additional payment of $300,000 US dollars and issuing a further 250,000 common shares of the Company prior to the third anniversary date of the agreement. Efforts focused on negotiations with various communities for surface access rights to the project area and working with local community groups, government groups and consulting engineering groups in advance of surface exploration work.

During fiscal 2010, the Company spent $275,804 on preliminary exploration and fieldwork and property acquisition costs, compared with $Nil for both 2009 and 2008. Cumulative exploration and acquisition costs incurred from the inception of the exploration stage to August 31, 2010 were $372,590.

Red Lake Properties – Loisan, Dixie Lake and Sanshaw-Bonanza in Ontario, Canada

Grandview has a 100% interest in eight mining claims, covering approximately 60 hectares, located in Red Lake, Ontario, Canada (the “Loisan Property”). Grandview has an option to acquire a 51% interest in the Dixie Lake Property, located in the Red Lake Mining District, Ontario, Canada (the “Dixie Lake Property”). Grandview may earn this interest by incurring exploration expenditures of $300,000, which it has, make payments totaling $75,000 to the underlying property vendor and by issuing 160,000 shares of the Company at $1.25 per share (for a total value of $200,000) to a third party as a finder’s fee. As of the date of this report Grandview has earned a 67% interest in the property by making completing the terms of the original agreement and making additional exploration expenditures on the property.

Grandview has an option to acquire a 60% interest in ten (10) unpatented claims located at Red Lake, Ontario (the “Sanshaw-Bonanza Property”). Grandview earned this interest by completing the required work and payments as defined in an amended agreement with EMCO Corporation SA (“EMCO”). Those terms were; incurring $500,000 in resource exploration and development expenditures and by issuing 100,000 common shares of the Company in addition to the 55,000 shares already issued to EMCO (155,000 common shares were issued and valued at $57,000 up to August 31, 2007) and also by issuing 200,000 warrants at an exercise price of $1.40 per share (which expire 36 months from the date of issuance).

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Grandview had previously completed expenditure requirements to earn a 60% interest in the Property as per an option agreement with EMCO dated February 7, 2007. To acquire the remaining 40% interest in the Property, the Company paid EMCO $25,000 CAD in cash and issued 50,000 common shares in its capital. Also, the Company expanded the Property parcel by acquiring two unpatented claims and two patented claims from Perry English (“English”) for aggregate consideration of $60,000 CAD in cash and the issuance of 500,000 common shares in its capital. Concurrently, the Company also purchased 75% of the outstanding 1.5% NSR on the Property from English for $25,000 CAD cash. Cumulative expenditures related to the Transaction totalled $110,000 CAD cash and 550,000 common shares of the Company.

Exploration costs of $431,174 were incurred during 2010. Exploration costs of $166,822 and $1,744,811 respectively were incurred during 2009 and 2008 on the Red Lake Properties. Cumulative exploration costs incurred from the inception of the exploration stage to August 31, 2010 are $3,875,320.

Rice Lake Properties – Bissett, GVG, Angelina and Banksian in Manitoba, Canada

Grandview owns a 100% interest in five (5) mining interests, located in Manitoba, Canada (the “Bissett Gold Camp Claims”). Grandview has a 100% interest in sixteen (16) unpatented mining claims in the Long Lake–Cat Lake area of southeastern Manitoba, covering approximately 3,187 hectares (the “GVG Property”). Grandview has a 100% interest in four (4) unpatented mining claims covering 351 hectares in the Rice Lake belt in southeastern Manitoba (the “Angelina Property”). Grandview has a 100% interest in fourteen (14) unpatented mining claims in the Banksian Lake area of southeastern Manitoba, covering 2,824 hectares (the “Banksian Property”).

At the end of fiscal 2009, the Company wrote off the total accumulated capitalized exploration expenditures incurred on these properties of $1,557,112 (2010: $Nil, 2008: $Nil).

Pony Creek / Elliot Dome Properties in the State of Nevada

In May 2009 the Company announced that it had ceased all operations at the Pony Creek/Elliot Dome project in Nevada and returned the project to Mill City Gold Inc. pursuant to the underlying agreements.

At the end of fiscal 2009, and as a result of cessation of operations at the Pony Creek/Elliot Dome during 2009, the Company wrote off the total accumulated capitalized exploration expenditures incurred on these properties of $5,903,342 (2010: $Nil, 2008: $Nil).

Private Placements

On July 22, 2004, the Company completed a private placement offering of up to 120,000 common shares at the subscription price of $1.00 per common share, for total gross proceeds of $120,000. The proceeds from the offering were used by the Company to fund its general working capital and exploration programs at the Pony Creek / Elliott Dome Property, Nevada. For additional information, please see the Company's press releases dated August 25, 2004, and the associated material change report dated August 26, 2004.

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On August 23, 2004, the Company completed a private placement offering of up to 150,000 common shares at the subscription price of $1.00 per common share for total gross proceeds of $150,000. The proceeds from the offering were used by the Company to fund its exploration programs at the Pony Creek Elliott Dome Property, Nevada. For additional information, please see the Company's press releases dated August 25, 2004, and the associated material change report dated August 26, 2004.

On September 30, 2004, the Company completed a private placement offering of up to 175,000 common shares at the subscription price of $1.00 per common share for total gross proceeds of $175,000. The proceeds from the offering were used by the Company to fund its general working capital requirements. For additional information, please see the Company's press releases dated October 4, 2004, and the associated material change report dated October 4, 2004.

On December 23, 2004, the Company completed a private placement offering of up to 1,005,000 units, with each such unit being comprised of one common share and one half of one purchase warrant where each whole purchase warrant is exercisable into one additional common share upon payment of $1.50, at the subscription price of $1.00 per unit for total gross proceeds of $1,005,000. The proceeds from the offering were used by the Company to fund its exploration programs at the Pony Creek / Elliott Dome Property, Nevada and general working capital. For additional information, please see the Company's press releases dated December 23, 2004, and the associated material change reports dated December 23, 2004.

On August 31, 2005, September 15, 2005 and October 19, 2005, Grandview completed a private placement offering in three tranches resulting in the placement of a total of 1,389,424 units, with each such unit being comprised of one common share and one half of one purchase warrant, where each whole purchase warrant is exercisable into one additional common share upon payment of $1.75, at the subscription price of $1.25 per unit and 1,620,000 flow through common shares at $1.25 per flow through common share for total gross proceeds of $3,761,780. The proceeds from the offering were used by Grandview to fund its exploration programs on its Canadian and US properties and for general working capital.

On March 27, 2006, Grandview completed a private placement offering of 3,985,974 units, with each such unit being comprised of one common share and one half of one purchase warrant where each whole purchase warrant is exercisable into one additional common share upon payment of $1.75, at the subscription price of $1.10 per unit for total gross proceeds of $4,384,571. The proceeds from the offering were used by Grandview to fund its exploration programs on its Canadian and US properties and for general working capital.

The Company raised gross proceeds of $1,559,999 by way of a non-brokered private placement concluded on December 28, 2006. The private placement consisted of 2,399,998 flow-through units at a price of $0.65 per unit. Each unit consists of one flow-through common share of the Company and one-half of one non-flow-through share purchase warrant. Each whole warrant is exercisable at a price of $1.40 for a period of 24 months from closing to acquire one common share of the Company. The Company paid a finder’s fee of 8 percent of the gross proceeds raised under the private placement and issued finder’s options to acquire non-flow-through Units of the Company at a price of $0.65 per unit for a period of 24 months from closing. The proceeds from the Unit offering are being used to fund the Company’s Canadian gold exploration programs at the Rocky Ridge Property in Manitoba, the Rice Lake Properties in Manitoba and the Red Lake Properties in Ontario.

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On March 16, 2007, the Company completed a private placement offering of 3,250,000 units, with each such unit being comprised of one common share and one half of one purchase warrant where each whole purchase warrant is exercisable into one additional common share upon payment of $0.65, at the subscription price of $0.45 per unit for total gross proceeds of $1,462,500.00. The proceeds from the offering are being used by the Company to fund its exploration programs on its Canadian and US properties and for general working capital.

On July 6, 2007, the Company completed a private placement offering of 8,589,000 units, at the subscription price of $0.40 per unit for total gross proceeds of $3,435,600. Each unit was comprised of one common share and one half of one purchase warrant with each whole purchase warrant exercisable into one additional common share upon payment of $0.65 until July 9, 2007. The proceeds from the offering are being used by the Company to fund its exploration programs on its Canadian and US properties and for general working capital. At the same time, the Company closed a non-brokered placement on the same terms for additional proceeds of $50,000 on the sale of a further 125,000 units. In connection with the brokered placement, Grandview paid a cash fee to an Agent of 8% of the gross proceeds raised under the brokered placement and also issued broker warrants to acquire 8% of the total number of units issued under the brokered placement at a price of $0.40 per unit for a period of 24 months from closing. In addition, Grandview also paid a cash work fee of $7,500 for certain services of the Agent.

In connection with this offering, the Company secured the consent of its shareholders at a special meeting, which occurred on May 17, 2007. A special meeting was required to be called in order to approve this placement under TSX policies as the total number of common shares issuable thereunder exceeded 25% of the then issued and outstanding capital of the Company.

On December 21, 2007, the Company completed a private placement offering of 1,312,000 units, with each such unit being comprised of one common share and one half of one purchase warrant where each whole purchase warrant is exercisable into one additional common share upon payment of $0.70, at the subscription price of $0.55 per unit and 605,000 flow through common shares at $0.65 per flow through common share for total gross proceeds of $1,114,850. The proceeds from the offering are being used by the Company to fund its exploration programs on its Canadian and US properties and for general working capital. The private placement was brokered by Bolder Investment Partners, Inc.

On December 28, 2007, the Company completed a non-brokered private placement resulting in the issuance by the Company of a total of 538,000 flow through common shares at a price of $0.65 per flow through common share for gross proceeds of $349,700. The proceeds from the offering are being used by the Company to fund its exploration program on its Canadian properties.

On December 5, 2008, the Company closed a brokered private placement with Sandfire Securities Inc. The Offering resulted in the issuance of 8,333,333 flow-through common shares to the MineralFields Group at a purchase price of $0.05 per share for gross proceeds of $416,666. The securities issued pursuant to Offering were subject to a four (4) month statutory hold commencing from the date of issuance. In connection with the Offering, Grandview paid a cash fee of 8% of the gross proceeds raised ($33,333) under the offering and also issued broker warrants to acquire 666,666 Common Shares at a price of $0.05 per common chare for a period of 24 months after closing.

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On December 8, 2009, Grandview completed a private placement with Centerpoint Resources Inc. consisting of 20 million units at a price of $0.075 per unit for aggregate proceeds to Grandview of $1,500,000. Each Unit consists of one common share and one common share purchase warrant with each whole warrant entitling the holder to acquire one further common share at a price of $0.12, expiring 24 months from the date of issue. In addition, Grandview completed a concurrent non-brokered financing resulting in the issuance of an additional 6,666,665 units for proceeds of $500,000.00, some of which units were acquired by directors and officers of the Company.

A. Operating Results

For the past three years the Company’s activities have concentrated on acquiring interests in mining properties in Canada and the United States, and exploring these mining properties and the mining properties in which it may earn an interest, as described above. The Company also successfully listed its Shares for public trading in Canada and on the OTC Bulletin Board in the United States. During this time, no revenues were realized. The Company has funded operations during the period through the sale of its Shares.

Year ended May 31, 2010 compared with years ended May 31, 2009 and May 31, 2008

Grandview incurred a net loss of $880,403 for 2010, compared with $7,887,918 for 2009 and $3,005,834 for 2008. The loss recorded during fiscal 2009 compared with 2010 and 2008 is attributable to write-off of capitalized development costs related to the Company’s Rice Lake and Pony Creek/Elliot Dome properties during 2009 of $1,557,112 and $5,903,342 respectively.

Cash flows used in operating activities of $396,559 for 2010 compares with $349,009 for 2009 and $1,560,453 for 2008. The level of corporate and operational activity was more significant during 2008, while 2009 and 2010 has seen low levels of exploration fieldwork and other corporate activities.

Grandview’s working capital on May31, 2010 was $1,407,869, compared with $469,609 on May 31, 2009. The cash and short-term investment balance on May 31, 2010 was $1,432,824 and $25,037 respectively, compared with cash and short-term investments on May 31, 2009 of $106,593 and $407,493 respectively.

The Company does not earn any revenue from its exploration and development activities and continues to incur net losses. The Company secured additional financing for aggregate proceeds to the Company’s treasury of $2 million. The Company will utilize these proceeds for developing its Giulianita project, its Canadian projects, specifically Red Lake, and for other corporate purposes.

333,333 warrants were exercised during 2010, for proceeds of $16,667.

6,053,480 warrants expired during the 2010, resulting in a charge to contributed surplus of $1,173,138.

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As a result of its private placement transaction completed on December 8, 2009, the Company issued 26,666,665 common shares of the Company and 26,666,665 full warrants.

4,250,000 stock options were issued during 2010. The estimated fair market value of these options, and expensed during 2010, was $449,491.

On January 7, 2010, the Company issued 360,937 common shares at a price of $0.08 to settle a debt of $28,875 in respect of services rendered by a consultant to the Company.

On January 20, 2010, the Company issued 200,000 common shares to Miguel Saldana related to the Guilianita Project in Peru.

On April 28, 2010, the Company issued 550,000 shares to EMCO Corporation S.A. to acquire the remaining 40% interest in its Sanshaw-Bonanza properties (see “Activities during fiscal 2010 above”).

The Company does not earn any revenue from its exploration and development activities. While Grandview is dependant on the success of financing initiatives, management intends to strictly control all expenses and focus on creating value for shareholders by exploring and developing high-grade gold properties which it believes are to be the most promising.

The Company expects that the cash and cash equivalents as at August27, 2010 will be sufficient to pay for the continued exploration and overhead expense for the next 12 months. Depending upon future events, the rate of expenditures and other general and administrative costs could increase or decrease.

Three months ended August 31, 2010 compared with three months ended August 31, 2009

Grandview incurred a net loss of $84,258 for the first quarter 2011, compared with $463,040 for the first quarter 2010. The increase in net loss for the first quarter 2011 compared with the corresponding period last year is predominantly attributable to share-based payment expense of $368,500 incurred during the first quarter 2010.

Cash flows used in operating activities for the first quarter 2011 of $108,595 compares with $65,398 for the first quarter 2010. The reason for the variance is attributable predominantly to diminished operational activities at the Giulianita Project during the comparative quarter.

The following tables set out financial performance highlights for the past eight quarters.

		First			Fourth			Third			Second
		Quarter			Quarter			Quarter			Quarter
		Aug. 31,			May. 31,			Feb. 28,			Nov. 30,
		2010			2010			2010			2009
Revenue	$	0		$	0		$	0		$	0
Expenses		84,321			135,455			174,465			107,809
Net loss		(84,258	)		(106,941	)		(202,743	)		(107,679	)
Net loss per share		(0.00	)		(0.00	)		(0.00	)		(0.00	)
Cash flows provided by / (used in) operating activities		(108,595	)		(76,904	)		(373,500	)		119,243
Cash and cash equivalents & short-term investments, end of period		1,251,189			1,457,861			1,754,330			232,744
Assets		5,565,995			5,660,623			5,698,180			4,093,313

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		First			Fourth			Third			Second
		Quarter			Quarter			Quarter			Quarter
		Aug. 31,			May 31,			Feb. 28,			Nov. 30,
		2009			2009			2009			2008
Revenue	$	0		$	0		$	0		$	0
Expenses		460,325			74,970			243,077			98,801
Net income (loss)		(463,040	)		(6,063,504	)		(1,589,709	)		(96,316	)
Net income (loss) per share		(0.01	)		(0.16	)		(0.04	)		(0.00	)
Cash flows used in operating activities		(65,398	)		(70,034	)		(112,647	)		125,485	)
Cash and cash equivalents & short-term investments, end of period		324,654			514,086			694,958			479,071
Assets		3,934,256			3,999,201			10,094,150			11,369,813

Off-Balance-Sheet Arrangements

There are no off-balance sheet arrangements.

B. Liquidity and Capital Resources

Grandview’s working capital on August 31, 2010 was $1,225,472 compared with $1,407,869 on May 31, 2010. The cash and short-term investment balance on August 31, 2010 was $1,226,090 and $25,099 respectively, compared with cash and short-term investments on May 31, 2010 of $1,432,824 and $25,037 respectively.

The Company does not earn any revenue from its exploration and development activities. While Grandview is dependant on the success of financing initiatives, management intends to strictly control all expenses and focus on creating value for shareholders by exploring and developing high-grade gold properties which it believes are to be the most promising.

The Company expects that the cash and cash equivalents as at August 31, 2010 will be sufficient to pay for the continued exploration and overhead expense for the next 12 months. Depending upon future events, the rate of expenditures and other general and administrative costs could increase or decrease.

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Since all of the Company’s interests are only at the exploration stage, the Company has no sources of revenue other than interest earned on its cash. The primary source of funding for the Company is the issue of equity capital.

The Company’s capital requirements in the future will be largely dependant upon the success of its various exploration programs. Until such time as a feasibility study is completed and a production decision is made with regard to one of the Company’s properties, it is expected that the only available source of future capital will be through the issuance of additional equity shares. The availability of equity capital, and the price at which additional equity could be issued, is dependent upon the success of the Company’s exploration activities, and upon the state of the capital markets generally. See Item 3D. Key Information: Risk Factors.

C. Research and Development, Patents and Licenses, Etc.

During the last three fiscal years, the Company has not engaged in any research and development activities. Its activities have been focused on (i) raising funds through the sales of its Shares in various private placements, (ii) acquiring property interests in the United States and Canada, and (iii) conducting exploration activities on those properties.

D. Trend Information

Not applicable.

E. Off-Balance Sheet Arrangements

The Company is not engaged in any off-balance sheet arrangements.

F. Tabular Disclosure of Contractual Obligations

Payments Due by Period
Payments Required to Maintain Property Interests		Total		Less than One Year		1-3 Years		3-5 Years		More than Five Years
Option Payments Due re Giulianita Project	$	20,000 US next 5 years	$	20,000 US (1)	$	0	$	0	$	0
Required Exploration Expenditures on Giulianita Project	$	1,450,000 US	$	150,000 CAD	$	1,300,000 CAD	$	0	$	0
Total	$	20,000 US	$	20,000 US	$	1,300,000 CAD	$	0	$	0
	$	1,450,000 CAD	$	150,000 CAD

Note:
1. Paid on singing; no further cash payments due to property owners.

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Reference is made to Item 4D. Information on the Company: Property, Plant and Equipment for a discussion of the above payment obligations.

ITEM 6: Directors, Senior Management, and Employees

A. Directors and Senior Management

			Date of First
Name			Election or
	Title	Date of Birth	Appointment
Paul Sarjeant	President and CEO	May 29,1960	November 1, 2006
Michael Hitch	Chairman of the Board of Directors	November 16,1962	November 8, 2005
Richard Brown	Director	March 25,1958	March 26, 2004
Dr. Peter Born	Director	April 28,1953	June 7, 2007
Ernest Cleave	Chief Financial Officer	October 2, 1969	January 6, 2006
R. Ian Mitchell	Corporate Secretary	October 25,1977	November 7, 2005
Ken Hight	Director	October 9,1948	May 12, 2008
Jack Austin	Director	March 2,1932	December 8, 2009
Ted Nunn	Director	December 12, 1948	December 8, 2009

A brief education and relevant work history of our Directors and Management follows:

Paul Sarjeant, President, CEO

Mr. Sarjeant holds a B.Sc Honours, Geological Sciences, graduating from Queen's University in 1983. Mr. Sarjeant began his career with Echo Bay Mines Ltd as a project geologist working on projects in the NWT, Archean greenstone belts, Lupin Mine peripheral project, and skarn properties in BC and Ecuador. He ascended to Senior Geologist, International Exploration Group, responsible for project evaluation outside of North America, including precious and base metals projects in South America, East Africa, South East Asia, Russia, Mongolia, Australia, New Zealand and Europe. From 1993 until 1996, he was President and CEO of Auric Resources - a precious metals exploration company focused on Peru. From 1999 until his October, 2006 appointment to the office of President and CEO of Grandview Gold, Paul operated a securities business focused on strategic planning and investment analysis were he earned his CFP designation, as a certified financial planner Mr Sarjeant is also a member in good standing with the Association of Engineers and Geoscientists of British Columbia.

Michael Hitch, Chairman of the Board of Directors

Mr. Hitch is currently an Associate Professor at the Norman B. Keevil Institute of Mining Engineering, University of British Columbia, Vancouver British Columbia, Canada. Previously he was the Chief Operating Officer and Managing Director of Golden China Management. Golden China Management provides management services to Golden China Resources Corporation, a Toronto-based, Chinese company listed on the TSX-V. Golden China’s business focuses on exploration and development, operations/production and merchant banking within the rapidly developing precious metal mining industry in the Peoples’ Republic of China. During the past five years Mr. Hitch has held positions as a mining analyst for Clarus Securities Inc. and Octagon Capital Corporation, as well as Vice President Corporate Development of Ivanhoe Mines Ltd.

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Richard Brown, Director

Mr. Brown has been a partner with Osprey Capital (a private investment banking firm based in Toronto, Canada) since November 2001. Mr. Brown brings to the Company experience in public company administration, as he was previously chief financial officer of Navitrak International Company, a publicly traded company. Mr. Brown was responsible for all financial aspects of Navitrak, including raising over $6 million in equity, the negotiation of bank facilities, acquisitions and the development of their business strategy. Prior to Navitrak, Mr. Brown spent ten years with the Bank of Nova Scotia and Scotia Capital Markets in New York, acting as Vice President from 1992-1997. During this time he worked as a corporate lending officer and head of investment grade fixed income origination, focusing primarily on Canadian issuers accessing the U.S. capital markets. Mr. Brown holds a Masters degree in finance from the Daniels School of Business at the University of Denver and a BA in Economics from the University of Guelph. Mr. Brown currently spends a minimum of 12 hours per week on the affairs of the Company. Mr. Brown also holds the position of Director on the Boards of: Phoenician Holdings Corp. and Navitrak International Corp.

Dr. Peter Born, Director

Dr. Born is a senior geologist with over 30 years of experience exploring and evaluating mining properties for senior and junior Canadian and United States resource companies. Dr. Born has been awarded on three occasions Canada’s National Science and Engineering Research Council PostGraduate Scholarship. He is currently working from his Ottawa-based consulting firm for Canadian and United States resource companies.

Ernest Cleave, Chief Financial Officer

Mr. Cleave is a senior mining professional and has worked in the capacity of Chief Financial Officer for various listed companies.

R. Ian Mitchell, Corporate Secretary

Mr. Mitchell is an associate with the law firm WeirFoulds LLP, counsel to the Company, and his practice has focused on securities law and corporate finance. Mr. Mitchell holds a Bachelors degree (Honours) in Commerce from Queen’s University as well as an L.L.B. from Dalhousie University.

Ken Hight, Director

Mr. Hight is known in the capital markets in North America and abroad for his 35 years experience, most recently as the CEO of Liquidnet Canada, a USA-based institutional marketplace. From 2005 through early 2008, Mr. Hight served as Executive Vice President Capital Markets of E*Trade, New York, responsible for global equity trading and market making. He was responsible for the management of the Company's Institutional equity business, including market making, global institutional brokerage, electronic trading products (DMA), wholesale execution and the securities lending operations. Prior to E*Trade Ken served as (founding) CEO and President of ITG Canada Inc, responsible for the implementation of competitive products and services, and charged with establishing the subsidiary in the Canadian market. Concurrently he was a member of the Executive Committee of Investment Technology Group, Inc. New York. Before joining ITG, Mr. Hight spent seven years with TD Securities where he served as Deputy Chair, responsible for Global Institutional Equities and as a member of the Executive Committee. In addition, he held several senior management positions with TD Bank in Australia, Canada and the United States. He is currently President & CEO of Portage Minerals Inc.

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Jack Austin, Director

The Hon. Jack Austin, P.C, Q.C. is a graduate in law from the University of British Columbia and Harvard Law School. He practised law in Vancouver for nearly 20 years specializing in natural resource law, securities and finance. In public life he served for four years as Deputy Minister of Energy, Mines and Resources in Ottawa, one and a half years as Chief of Staff to Prime Minister Trudeau, Cabinet Minister in the Trudeau government (1981-1984), and in the Martin government (2003-2006). Mr. Austin served as a Senator representing British Columbia from 1975 to 2007. Currently he is Senior Advisor-International to Stern Partners Inc. a private investment group, a director of two public companies, and President of Centerpoint Resources Inc. of Vancouver, a private company owned by Canadian and Chinese investors in the natural resources sector.

Ted Nunn, P.Geo., Director

Mr. Nunn has been associated with the mining industry for 41 years primarily working in project engineering and management for mine operating companies. Twenty of these years were experienced in the coal and industrial mineral industries for: Kaiser Resources, An Tai Bao Surface Coal Mine (China), Greymouth Coal (New Zealand), and Crystal Graphite Corporation (Canada & China). His metal mining experience included Cominco (four operations), Lornex Mining Corp., Echo Bay Mines, and Granduc Operating Company. His experience includes exploration, geological engineering, civil/structural engineering, mine engineering, contract management, financial analyses, governmental affairs, and project/construction management in both open pit and underground mining environments. Mr. Nunn is a Registered Professional Engineer in British Columbia graduating in Mining Engineering from Queen’s University in 1975. Mr. Nunn is presently Vice President – Technical Services for Centerpoint Resources Inc., President of Centershield Gold Mines Inc., and a Director for Anglo Swiss Resources Inc.

Compensation

The compensation for the Company’s executive officers for the fiscal years ended May 31, 2010 and May 31, 2009 is as set out below:

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		Annual Compensation			Long Term Compensation
					Securities	Restricted
Name and Principal				Other Annual	Under	Shares or	All Other
Position	Fiscal	Salary	Bonus	Compensation	Options	Restricted	Compensation
	Year	($)	($)	($)	Granted	Share	($)
					(#)	Units (#)
Paul Sarjeant President,	2010	150,000	Nil	Nil	Nil	Nil	10,000
CEO and Director(1)	2009	150,010	Nil	Nil	Nil	Nil	94,000
	2008	150,000	Nil	24,000	650,000	Nil	Nil
Ernest Cleave	2010	36,000	Nil	Nil	Nil	Nil	Nil
Chief Financial Officer(2)	2009	51,794	Nil	Nil	Nil	Nil	Nil
	2008	76,974	Nil	Nil	225,000	Nil	Nil

Notes:

1.	Mr. Sarjeant became the President, CEO and Director of the Company on November 7, 2006.
2.	Ernest Cleave was retained to act as Chief Financial Officer of the Company on January 6, 2006.

Long-Term Incentive, Retirement and Pension Plans

The Company does not have a long-term incentive plan or pension plan and does not provide retirement benefits to its employees.

No Termination Agreements for Executive Officers and Directors

The Company has no plans or arrangements that would result in the compensation of an executive officer or director in the event such person’s employment is terminated, as a result of either resignation, retirement, change of control, or change of responsibilities following a change in control.

Stock Option Plan

On March 26, 2004 the Company’s shareholders approved the establishment of a Stock Option Plan (the “Plan”) for the purpose of providing incentives to directors, officers, employees and consultants of the Company. At the Company’s Annual and Special Meeting of Shareholders held on November 30, 2006 the Company’s shareholders approved certain changes to the Company’s Stock Option Plan. As amended on November 30, 2006, the maximum number of Shares reserved for issue under the Plan cannot exceed 20% of the issued and outstanding Shares from time to time. The total number of Shares, which may be reserved for issuance in any 12-month period is subject to the following limitations:

a)   the number of Shares reserved for issuance pursuant to options granted to insiders cannot exceed 20% of the Company's issued and outstanding Shares;

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b)   the grant to insiders, within any twelve-month period, of Options reserving for issuance a number of Shares cannot exceed in the aggregate 10% of the Company's issued and outstanding Shares; c) the grant to any one individual, options reserving for issuance a number of Shares cannot exceed in the aggregate 5% of the Company's issued and outstanding Shares; d) the grant to all persons engaged by the Company to provide Investor Relations Activities, of options reserving for issuance a number of Shares cannot exceed in the aggregate 1% of the Company's outstanding number of listed securities; e) the grant to any one consultant of options reserving for issuance a number of Shares cannot exceed in the aggregate 2% of the Company's issued and outstanding Shares.

The purpose of the Plan is to attract, retain and motivate directors, officers, employees and other service providers by providing them with the opportunity, through share options, to acquire a proprietary interest in the Company. The options are non-assignable and may be granted for a term not exceeding five years.

The Plan is currently administered by the Board of Directors (the “administrator”). Options may be granted to purchase Shares on such terms that the administrator of the Plan may determine within the limitations of the Plan and subject to the rules of applicable regulatory authorities. In determining the number of optioned Shares that may be granted to each optionee, consideration will be given to the optionee’s present and potential contribution to the success of the Company and to any applicable regulatory requirements.

Options may be granted under the Plan only to directors, officers, employees and other service providers subject to the rules and regulations of applicable regulatory authorities and any Canadian stock exchange upon which the Shares may be listed or may trade from time to time. The number of Shares reserved for issue to any one person pursuant to the Plan may not exceed 5% of the issued and outstanding Shares at the date of such grant.

The exercise price for options granted under the Plan may not be less than the “fair market value” of the Shares at the time of grant as determined by the administrator of the Plan but the TSX (or any other applicable stock exchange) for the ten trading days prior to the date of grant. Options are non-assignable and are exercisable for a period of up to five years from the date the option is granted (or up to ten years from the date of grant if permitted by applicable stock exchanges), subject to earlier termination after certain events such as the optionee’s cessation of service to the Company or death.

Incentive Stock Options Granted

There were no individual grants of options to purchase or acquire Shares to the Company’s executive officers during the financial year ended May 31, 2010. The total outstanding stock options granted to executive officers as at May 31, 2010 is shown in the table below.

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	Securities
	Under		Market Value of
	Options	Exercise or	Securities Underlying
	Granted	Base Price	Options on the Date of
Name	(#)	($/Security)	Grant ($/Security)	Expiration Date
Paul Sarjeant	600,000	$0.68	$0.67 (1)	27-Sep-12
	650,000	$0.15	$0.12 (2)	23-June-15
Ernest Cleave	250,000	$0.68	$0.67 (1)	27-Sep-12
	225,000	$0.15	$0.12 (2)	23-June-15

Notes:

(1)	Closing price on the Toronto Stock Exchange on September 27, 2007.
(2)	Closing price on the Toronto Stock Exchange on June 23, 2009.

B. Board Practices

Each director is currently serving a one (1) year term, renewable at the annual shareholder meeting.

None of the Company’s directors have any service contracts for serving as directors.

The Company has an Audit Committee, which recommends to the full Board of Directors the engagement of the independent auditors of the Company and reviews with the independent auditors the scope and results of the Company’s audits, the Company’s internal accounting controls, and the professional services furnished by the independent auditors to the Company. The Audit Committee meets as required to review the annual and quarterly financial statements, matters relating to the securities commissions, investments and transactions that could adversely affect the Company’s well-being and management's recommendations regarding share issues of the Company. The Audit Committee also establishes and monitors procedures to reduce conflicts of interest and for reviewing audit and financial matters. Through meetings with external auditors and senior management, the Audit Committee discusses, among other things, the effectiveness of the internal control procedures established for the Company. At all times, at least one (1) audit committee member possesses accounting or related financial expertise, while the remaining members are, at minimum, possessed of significant experience in analyzing the financial condition of corporations. The Board of Directors has adopted a charter for the audit committee which sets out the responsibilities of the committee and provides guidance to committee members as to their duties which charter is set forth as an Exhibit 5B. See Item 19. Exhibits. The Audit Committee of the Company currently consists of three (3) members: D. Richard Brown (Chairman), Jack Austin and Peter Born.

In addition, the Company has a compensation committee. The Compensation Committee reviews compensation practices and management succession and approves the remuneration of the Company's senior executives, including the Chief Executive Officer. The Compensation Committee reviews matters such as compensation philosophy and remuneration policy, Board retainer fees, performance objectives, evaluation of the performance of the Chief Executive Officer, proposed stock option or share purchase plans, bonuses. The Compensation Committee also monitors the integrity of management through periodic meetings with the Chief Executive Officer. The members of the Compensation Committee are Messrs Ken Hight (Chairman), Ted Nunn, and Michael Hitch.

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C. Employees

As of the date hereof, the Company no full time employees. The Company has consulting contracts with 3 individuals for various technical and executive services. These consultants are as follows: i) Doublewood Consulting (Paul Sarjeant) for senior executive duties relating to overall guidance and management of the company, ii) Treswell Renewable Energy Corporation (Michael Hitch) to provide consulting services as operational consultant for the Company’s Giulianita Project and other potential project in South America, and iii) Ernest Cleave who acts as Chief Financial Officer for the Company.

D. Share Ownership

The following table outlines shows the common shareholdings of the Directors and Senior Management, as at August 31, 2010.

Table No. 2: Shareholdings of Directors and Senior Management (at August 31, 2010)

	Amount and
	Nature of
Name of Beneficial	Beneficial	Percent of
Owner	Ownership(1)	Class
Paul Sarjeant	133,333	0.18%
Michael Hitch	66,666	0.09%
Richard Brown	105,000	0.14%
Peter Born	133,333	0.18%
Ernest Cleave	Nil	Nil
R. Ian Mitchell	Nil	Nil
Ken Hight	133,333	0.18%
Jack Austin	600,000	0.82%
Ted Nunn	Nil	nil

Notes:

1. These amounts do not reflect the Shares, which can be acquired pursuant to the exercise of stock options by Messrs. Sarjeant, Hitch, Brown, Born, Cleave, Hight, Austin and Nunn (see Stock Option Table below).

The following table sets forth the Company’s outstanding stock options as at September 30, 2010.

Table No. 3: Stock Options Outstanding (at August 31, 2010)

		Exercise
	Number of	Price
Name	Shares	$	Expiration Date
Ian Grant	150,000	1.80	03-Apr-11
Joel Strickland	100,000	1.80	03-Apr-11
Peter Born	150,000	0.68	27-Sep-12

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		Exercise
	Number of	Price
Name	Shares	$	Expiration Date
Richard Brown	200,000	0.68	27-Sept-12
Ernest Cleave	250,000	0.68	27-Sep-12
Ian Grant	150,000	0.68	27-Sept-12
Michael Hitch	225,000	0.68	27-Sep-12
Laura Neubert	250,000	0.68	27-Sep-12
Paul Sarjeant	600,000	0.68	27-Sep-12
Peter Born	450,000	0.15	23-June-14
Richard Brown	450,000	0.15	23-June-14
Ernest Cleave	225,000	0.15	23-June-14
Ken Hight	450,000	0.15	23-June-14
Michael Hitch	450,000	0.15	23-June-14
Paul Sarjeant	650,000	0.15	23-June-14
Jack Austin	450,000	0.15	9-Dec-14
Ted Nunn	450,000	0.15	9-Dec-14

ITEM 7: Major Shareholders and Related Party Transactions

A. Major Shareholders

 On December 8, 2009, the Company closed a private placement purchase agreement with Centerpoint Resources Inc. (“Centerpoint”), resulting in aggregate proceeds to the Company treasury of $1.5 million, to fund the exploration and development of the Giulianita project in Peru, and for the purpose of maintaining Canadian operations. The purchase agreement represents an investment by Centerpoint in Grandview, comprised of a private placement financing consisting of 20 million units (a "Unit") at a price of $0.075 per unit for aggregate proceeds to Grandview of $1,500,000. Each unit consists of one common share and one common share purchase warrant, with each whole warrant entitling the holder to acquire one further common share at a price of $0.12, expiring 24 months from the date of issue.

As a result of this transaction, Centerpoint currently holds 20,000,000 common shares of the Company, representing 27.49% of the current issued and outstanding common shares of the Company.

Centerpoint is a privately held British Columbia corporation which invests in natural resource properties and also makes investments in companies, public and private, which operate in the natural resource sector.

At August 31, 2010, the Company had 101 U.S. holders of record, holding 767,053 common shares, which represented 1.05% of the Company’s outstanding Shares. At such date, there were no arrangements, the operation of which could result in a change of control. All shareholders have the same voting rights with respect to the Shares.

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B. Related Party Transactions

Not applicable.

Services Agreement

The Company entered into a consulting services agreement (the " Services Agreement") with Paul Sarjeant and his duly registered sole proprietorship whereby Mr. Sarjeant agreed to serve as the Company’s Chief Executive Officer. Under the terms of the Services Agreement, the Company agreed to pay Mr. Sarjeant CDN $12,500 per month in exchange for management, leadership and strategic business development services. The Services Agreement had a three year term ending October 27, 2009. The contract was extend an additional two years, terminating October 2011.

Consulting Services Agreement

The Company entered into a consulting services agreement (the "Consulting Services Agreement") with Michael Hitch whereby Mr. Hitch agreed to serve as the Company’s Chief Executive Officer. Under the terms of the Consulting services Agreement, the Company agreed to pay Mr. Hitch CDN $6,250 per month in exchange for management, leadership and strategic business development services. The Consulting Services Agreement had a three month term ending September 12, 2006. Although Mr. Hitch is no longer serving as Chief Executive Officer, he continues to provide consulting services to the Company and the contract has been extended to December 31, 2007, with a further option for renewal until December 31, 2008. The Consulting Agreement was renewed in December 2007 for a further one year term but the payments under the Consulting Contract were reduced to CDN $5,000 per month. As of December 31, 2008 the consulting contract with Mr. Hitch was mutually terminated. The Company entered into a subsequent consulting services contract with Treswell Renewable Energy Corporation (“Treswell”) on April 1, 2010, through which Treswell has agreed to provide the services of Dr. Michael Hitch as an operational consultant to various projects the Company undertakes. The agreement has a one year term ending April 30, 2011 and can be renewed for one additional year upon agreement.

July 21, 2009, the Company entered into a consulting agreement with Mr. Miguel Angel Saldana Mujica to provide consulting services as they apply to the exploration, development and ancillary matters in connection with the Giulianita Project in Peru. Mr. Saldana receives compensation for his services of $US7,500 per month. The term of the contract is for a minimum one year, to a maximum of three years at the discretion of the Company based on certain accomplishments.

C. Interests of Experts and Counsel

Not applicable.

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ITEM 8: Financial Information

A. Consolidated Statements and Other Financial Information

Reference is made to Item 15. Financial Statements for the financial statements included in this Annual Report.

There are no legal proceedings of a material nature pending against the Company, or its subsidiaries. The Company is unaware of any legal proceedings known to be contemplated by any governmental authorities.

The Company has never paid a dividend and it is unlikely that the Company will declare or pay a dividend until warranted.

B. Significant Changes

Subsequent to August 31, 2010, there have been no significant changes in the Company’s financial condition.

ITEM 9: The Offering and Listing.

A. Offer and Listing Details

The Company’s Shares are currently listed for trading on the TSX (Toronto Stock Exchange) under the trading symbol "GVX” and in the United States on the OTC Bulletin Board under the symbol “GVGDF”. Prior to April, 2006, the Company’s Shares were listed and posted for trading on the CNQ.

Following is information on the trading history of the Company’s Shares:

The low and high market prices for the Shares, on a quarterly basis, since June 1, 2006, on the TSX Exchange and CNQ are as follows:

TSX Exchange and CNQ
MONTH AND YEAR	LOW ($)	HIGH ($)
June 1, 2006 – August 31, 2006(1)	0.78	1.25
September 1, 2006 – November 30, 2006(1)	0.64	1.12
December 1, 2006 – February 28, 2007	0.36	0.73
March 1, 2007 – May 31, 2007	0.39	0.64
June 1, 2007 – August 31, 2007	0.35	0.57
September 1, 2007 – November 28, 2007	0.28	1.40

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TSX Exchange and CNQ
MONTH AND YEAR	LOW ($)	HIGH ($)
December 1, 2007 - February 28, 2008	0.43	0.70
March 1, 2008 - May 31, 2008	0.23	0.50
June 1, 2008 - August 31, 2008	0.17	0.30
September 1, 2008 – November 30, 2008	0.04	0.23
December 1, 2008 - February 28, 2009	0.035	0.14
March 1, 2009 – May 31, 2009	0.07	0.12
June 1, 2009 – August 31, 2009	0.055	0.14
September 1, 2009 – November 30, 2009	0.075	0.13
December 1, 2009 - February 28, 2010	0.105	0.13
March 1, 2010 – May 31, 2010	0.80	0.10
June 1, 2010 – August 31, 2010	0.05	0.085
September 1, 2010 – November 30, 2010	0.06	0.095

Notes:

1. Trading on the CNQ

The Company’s Shares commenced traded on the OTC Bulletin Board on February 23, 2006. The low and high market prices for the Shares, on a quarterly basis, in U.S. dollars, on the OTC Bulletin Board, since February 23, 2006, are as follows:

OTC Bulletin Board
MONTH AND YEAR	LOW ($)	HIGH ($)
February 23, 2006 – February 28, 2006	1.095	1.250
March 1, 2006 – May 31, 2006	0.600	1.600
June 1, 2006 – August 31, 2006	0.600	1.050
September 1, 2006 – November 30, 2006	0.521	0.892
December 1, 2006- February 28, 2007	0.335	0.900
March 1, 2007 – May 31, 2007	0.363	1.010
June 1, 2007- August 31, 2007	0.290	0.473
September 1, 2007 – November 28, 2007	0.420	1.027
December 1, 2007 - February 28, 2008	0.431	0.72
March 1, 2008 - May 31, 2008	0.231	0.599
June 1, 2008 - August 31, 2008	0.101	0.359
September 1, 2008 – November 30, 2008	0.031	0.209
December 1, 2008 - February 28, 2009	0.033	0.148
March 1, 2009 – May 31, 2009	0.06	0.095
June 1, 2009 – August 31, 2009	0.0655	0.149
September 1, 2009 – November 30, 2009	0.07	0.148
December 1, 2008 - February 28, 2010	0.062	0.139
March 1, 2010 – May 31, 2010	0.065	0.098

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OTC Bulletin Board
MONTH AND YEAR	LOW ($)	HIGH ($)
June 1, 2010 – August 31, 2010	0.042	0.081
September 1, 2010 – November 30, 2010	0.048	0.093

The low and high market prices for the Shares on the TSX Exchange for the period June, 2010 to November, 2010, in Canadian dollars, are as follows:

TSX EXCHANGE
DATE	LOW ($)	HIGH ($)
June 2010	0.055	0.135
July 2010	0.08	0.11
August 2010	0.08	0.105
September 2010	0.06	0.095
October 2010	0.07	0.95
November 2010	0.07	0.90

The low and high market prices for the Shares on the OTC Bulletin Board for the period June, 2010 to November, 2010, in U.S. dollars, are as follows:

OTC BULLETIN BOARD
DATE	LOW ($)	HIGH ($)
June 2010	0.05	0.081
July 2010	0.043	0.06
August 2010	0.042	0.07
September 2010	0.048	0.088
October 2010	0.068	0.093
November 2010	0.053	0.093

The closing prices of the Shares on the TSX on August 31, 2010 and the OTC Bulletin Board were $0.06 Canadian. and 0.054 U.S., respectively.

B. Plan of Distribution

Not applicable.

C. Markets

See A. above

D. Selling Shareholders

Not applicable.

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E. Dilution

Not applicable.

F. Expenses of the Issue

Not applicable.

ITEM 10: Additional Information

A. Share Capital

Not applicable.

B. Memorandum and Articles of Association

Reference is made to Amendment No. 2, to Registration Statement on Form 20-F, filed with the Securities and Exchange Commission on November 15, 2005.

C. Material Contracts

The following material contracts have been entered into by the Company within the past three years: 1. Following the termination of its Management Services Agreement with Ray Pecoskie in June 2006, the Company entered into a consulting services agreement (the "Consulting Services Agreement") with Michael Hitch whereby Mr. Hitch agreed to serve as the Corporation's Chief Executive Officer. Under the terms of the Consulting services Agreement, the Corporation agreed to pay Mr. Hitch $6,250 Can. per month in exchange for management, leadership and strategic business development services. The Consulting Services Agreement had a three month term and expired on September 12, 2006. Although Mr. Hitch is no longer serving as the Company’s Chief Executive, he continues to provide consulting services. Accordingly, the Consulting Services Agreement has been extended to December 31, 2007, with a further option to extend the agreement to December 31, 2008. The Consulting Services Agreement was mutually terminated as of December 31, 2008. On April 1, 2010 the Company entered into a consulting services agreement with Treswell Renewable Energy Corp., (“Tresewell”) whereby Treswell will provide the services of Dr. M. Hitch to the Company for a one year term at a cost of $5,000 per month. Dr. Hitch will provide services as an operational consultant on the exploration and development of the Company’s Giulianita project in Peru.

2. The Company entered into a consulting agreement dated November 15, 2005 with Ernest M. Cleave, pursuant to which Mr. Cleave was appointed the Company’s Chief Financial Officer. Under this agreement Mr. Cleave receives $36,000 per year. The contract has been extended annually and is currently still in place. Mr. Cleave has also been granted stock options with other members of the executive team and directors.

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3. On October 1, 2007 the Company entered into a consulting agreement with Consensus Communication Inc. (“Consensus”) where Consensus has agreed to provide the services of Laura Neubert to provide investor relation services to the Company for a period of five years. Consensus receives $5,000 per month for services rendered. In addition Laura Neubert received 250,000 non-transferable options at an exercise price of $0.68, good for a term of five years. Subsequently the remuneration was reduced to $2,500 per month for the remainder of the agreement.

4. On October 31, 2006 the Company entered into a consulting agreement with Paul Sarjeant pursuant to which Mr. Sarjeant agreed to serve as the Company’s president and chief executive officer. Mr. Sarjeant’s contract has a three year term, expiring on October 27, 2009. As of October 31, the Company entered into a new two year contract with Mr. Sarjeant to serve as the Company’s president and chief executive officer. See Item 6B. Directors, Senior Management and Employees –Compensation.

5. On May 1, 2008 the Company entered into a consulting agreement with Antediluvial Consulting Inc. (“Antediluviial”) whereby Antediluvial will provide the services of Mr. Toby Hughes, P.Geo. to act as Vice President Exploration to the Company for a period of two years. The agreement was mutually terminated April 30, 2010.

6. On July 21, 2010 the Company entered into a consulting agreement with Mr. Miguel Angel Saldana Mujica (“Saldana”) to act as General Manger of the Companies Peruvian subsidiary Recuperacion Realzada S.A.C. (“Recuperacion”). The agreement has a one year term and can be extended an additional two years on mutual agreement of the parties. Under the agreement Saldana receives a monthly fee of US$7,500.00

D. Exchange Controls

There are no laws, governmental decrees or regulations in Canada that restrict the export or import of capital or which affect the remittance of dividends, interest or other payments to non-resident holders of our shares, other than withholding tax requirements. Reference is made to Item 10E. Taxation.

There are no limitations under the laws of Canada or the Province of Ontario, or in our constituting documents, with respect to the right of non-resident or foreign owners to hold or vote Shares other than those imposed by the Investment Canada Act.

The Investment Canada Act is a federal Canadian statute which regulates the acquisition of control of existing Canadian businesses and the establishment of new Canadian businesses by an individual, a government or entity that is a "non-Canadian" as that term is defined in the Investment Canada Act.

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Management of the Company believes that it is not currently a "non-Canadian" for purposes of the Investment Canada Act. If the Company were to become a "non-Canadian" in the future, acquisitions of control of Canadian businesses by the Company would become subject to the Investment Canada Act. Generally, the direct acquisition by a "non-Canadian" of an existing Canadian business with gross assets of $5,000,000 or more is reviewable under the Investment Canada Act, with thresholds of $223 million and $237 million for transactions closing in 2003 and 2004, respectively, for "WTO investors" as defined under the Investment Canada Act. If the Company were to become a “non-Canadian” in the future, Management believes the Company would likely become a “non-Canadian” which is a “WTO investor.” Generally, indirect acquisitions of existing Canadian businesses (with gross assets over certain threshold levels) are reviewable under the Investment Canada Act, except in situations involving “WTO investors” where indirect acquisitions are generally not reviewable. In transactions involving Canadian businesses engaged in the production of uranium, providing financial services, providing transportation services or which are cultural businesses, the benefit of the higher “WTO investor” thresholds do not apply.

Acquisitions of businesses related to Canada's cultural heritage or national identity (regardless of the value of assets involved) may also be reviewable under the Investment Canada Act. In addition, investments to establish new, unrelated businesses are not generally reviewable. An investment to establish a new business that is related to the non-Canadian's existing business in Canada is not notifiable under the Investment Canada Act unless such investment relates to Canada's cultural heritage or national identity.

Investments which are reviewable under the Investment Canada Act are reviewed by the Minister, designated as being responsible for the administration of the Investment Canada Act. Reviewable investments, generally, may not be implemented prior to the Minister’s determining that the investment is likely to be of "net benefit to Canada" based on the criteria set out in the Investment Canada Act. Generally investments by non-Canadians consisting of the acquisition of control of Canadian businesses which acquisitions are otherwise non-reviewable or the establishment of new Canadian businesses require that a notice be given under the Investment Canada Act in the prescribed form and manner.

Any proposed take-over of the Company by a “non-Canadian” would likely be subject only to the simple “notification” requirements of the Investment Canada Act as in all likelihood that non-Canadian would be a “WTO investor” for purposes of the Investment Canada Act. Generally, a “WTO investor” is an individual, other than a Canadian, who is a national of a country that is a member of the World Trade Organization. In the case of a person that is not an individual, a WTO investor is a person that generally, is ultimately controlled by individuals, other than Canadians, who are nationals of a WTO member. Currently there are 134 countries that are members of the WTO, including virtually all countries of the Western world. The Company would have to have an asset base of at least before the “reviewable” transaction provisions of the Investment Canada Act became relevant for consideration by a third party non-Canadian acquirer, which is not a WTO investor.

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E. Taxation

Certain Canadian Federal Income Tax Consequences – General

The following is a brief summary of the principal Canadian federal income tax consequences generally applicable to a person who holds common shares of the Company and who, at all relevant times for the purposes of the Income Tax Act (Canada) (the "Canadian Tax Act") and the Canada - United States Tax Convention, 1980, as amended (the "US Treaty"),

• is or is deemed to be a resident solely of the United States,

• holds the common shares as capital property and as beneficial owner,

• does not and is not deemed to use or hold the common shares in or in the course of a business carried on in Canada, and

• does not carry on an insurance business in Canada and elsewhere, (a "US Holder")

This summary is based on the facts set forth in this Form 20-F, the current provisions of the US Treaty, the Canadian Tax Act and regulations thereunder, and our understanding of the current published administrative and assessing policies and practices of the Canada Revenue Agency (the "CRA"), and takes into account all specific proposals to amend the Canadian Tax Act (the "Proposed Amendments") publicly announced by or on behalf of the Minister of Finance (Canada) prior to the date hereof. It is assumed that all such amendments will be enacted as currently proposed, and that there will be no other change to any relevant law or administrative or assessing policy or practice, although no assurances can be given in this respect. Except as otherwise expressly set out herein, this summary also does not take into account any provincial, territorial or non-Canadian income tax law, the implications of which may differ from the Canadian federal income tax considerations.

On September 21, 2007, the Minister of Finance (Canada) and the United States Secretary of the Treasury signed the fifth protocol to the US Treaty (the "Protocol") which includes amendments to many of the provision of the US Treaty, including significant amendments to the limitation on benefits provision. The Protocol will enter into force once it is ratified by both the Canadian and United States governments (or on January 1, 2008, if it is ratified in 2007) and will have effect in respect of withholding taxes, after the first day of the second month that begins after the date on which the Protocol enters into force. US Holders are urged to consult their own tax advisors to determine the impact of the Protocol and their entitlement to relief under the US Treaty based on their particular circumstances.

The following discussion is not intended to be, nor should it be construed to be, legal or tax advice to any holder or prospective holder of the Company's shares and no opinion or representation with respect to the Canadian federal income tax consequences to any such holder or prospective holder is made. Accordingly, holders and prospective holders of the Company's shares should consult with their own tax advisors about the federal, provincial, local and non-Canadian tax consequences of purchasing, owning and disposing of the Company's shares.

Dividends

Dividends paid or credited or deemed to be paid or credited to a US Holder by the Company will be subject to Canadian withholding tax at the rate of 15% of the gross amount of the dividend (or 5% in the case of a US Holder that is a corporation beneficially owning at least 10% of the Company's "voting stock" within the meaning of the US Treaty). Dividends may be exempt from withholding tax in the case of some US Holders such as qualifying tax exempt entities.

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Disposition of Common Shares

A US Holder who realizes a capital gain on the actual or deemed disposition of a common share will not be subject to Canadian federal income tax under the Canadian Tax Act in respect of the capital gain unless such common share constitutes "taxable Canadian property" to the US Holder for purposes of the Canadian Tax Act and the US Holder is not exempt from Canadian federal income tax on such gain pursuant to the terms of the US Treaty.

Generally, a common share owned by US Holder will not be taxable Canadian property of the US Holder at a particular time provided that, at that time,

• the common shares of the Company are listed on the TSX,

• neither the US Holder nor persons with whom the US Holder does not deal at arm's length alone or in any combination has owned 25% or more of the shares of any class or series of shares in the capital of the Company at any time in the previous five years, and

• the common share was not acquired in a transaction, a result of which it was deemed to be taxable Canadian property of the US Holder.

A US Holder that realizes a capital gain on the disposition of common shares that do qualify as taxable Canadian property will, nevertheless, generally be exempt from Canadian federal income tax thereon by virtue of the US Treaty unless:

• more than 50% of the value of the common shares is derived from real property (within the meaning of the US Treaty) that is located in Canada,

• the US Holder (i) was a resident of Canada at any time during the 10 years immediately preceding the disposition and for a total of 20 months during any period of 20 consecutive years preceding the disposition, and (ii) owned the common share when the US Holder ceased to be a resident of Canada.

A US Holder who is subject to Canadian federal income tax in respect of a disposition of a common share will realize a capital gain (or capital loss) equal to the amount by which the US Holder's proceeds of disposition, less reasonable costs of disposition, exceed (or are exceeded by) the adjusted cost base of the common share to the US Holder. In these circumstances, a US Holder who realizes a capital gain or capital loss in a taxation year will be required to include one half of the capital gain ( the taxable capital gain) in income for Canadian federal income tax purposes, and may deduct one half of the capital loss (the allowable capital loss) against taxable capital gains incurred in respect of dispositions of taxable Canadian property, subject to and accordance with the provisions of the Canadian Tax Act and the US Treaty.

United States Taxation

The following is a general summary of certain United States federal income tax consequences, under current law, generally applicable to a U.S. Holder (as defined below). This summary does not address all potentially relevant U.S. federal income tax matters and it does not address consequences to persons subject to special provisions of U.S. federal income tax law, such as those described below as excluded from the definition of a U.S. Holder. United States alternative minimum tax considerations are not addressed in this summary. In addition, this summary does not cover any state, local or foreign tax consequences, nor any U.S. federal gift, estate or generation-skipping transfer tax consequences. (Certain, but not all, foreign tax consequences are described above under “Taxation - Certain Canadian Federal Income Tax Consequences - General.”)

56

The following summary is based upon the Internal Revenue Code of 1986, as amended (the “Code”), Treasury Regulations, published Internal Revenue Service (“IRS”) rulings, published administrative positions of the IRS, and court decisions that are currently applicable, any of which could be materially and adversely changed, possibly on a retroactive basis, at any time including, without limitation, United States rates of taxation. This summary does not consider the potential effects, both adverse and beneficial, of any recently proposed legislation which, if enacted, could be applied, possibly on a retroactive basis, at any time. No rulings have been or will be sought from the IRS with respect to any of the U.S. federal income tax issues discussed in this summary, and no assurance can be given that the IRS will not successfully challenge any tax positions described herein.

This summary is for general information only and it is not intended to be, nor should it be construed to be, legal or tax advice to any holder or prospective holder of common shares and no opinion or representation with respect to the United States federal income tax consequences to any such holder or prospective holder is made. Accordingly, holders and prospective holders of common shares should consult their own tax advisors about the federal (income and non-income), state, local, and foreign tax consequences of purchasing, owning and disposing of common shares of the Company.

CIRCULAR 230 DISCLOSURE

ANY TAX STATEMENT MADE HEREIN REGARDING ANY U.S. FEDERAL TAX IS NOT INTENDED OR WRITTEN TO BE USED, AND CANNOT BE USED, BY ANY TAXPAYER FOR PURPOSES OF AVOIDING ANY PENALTIES. ANY SUCH STATEMENT HEREIN IS WRITTEN IN CONNECTION WITH THE MARKETING OR PROMOTION OF THE TRANSACTION TO WHICH THE STATEMENT RELATES. EACH TAXPAYER SHOULD SEEK ADVICE BASED ON THE TAXPAYER’S PARTICULAR CIRCUMSTANCES FROM AN INDEPENDENT TAX ADVISOR.

U.S. Holders

As used herein, a “U.S. Holder” means a Holder of our shares who is: (1) a citizen or individual resident (as defined under United States tax laws) of the United States; (2) a corporation created or organized in or under the laws of the United States or of any political subdivision thereof; (3) an estate the income of which is taxable in the United States irrespective of source; or (4) a trust if (a) a court within the United States is able to exercise primary supervision over the trust’s administration and one or more United States persons have the authority to control all of its substantial decisions or (b) the trust was in existence on August 20, 1996 and has properly elected to continue to be treated as a United States person.

This summary does not address the United States tax consequences to, and the term “U.S. Holder” does not include, persons subject to special provisions of United States federal income tax law, including, but not limited to, tax-exempt organizations, qualified retirement plans, individual retirement accounts and other tax-deferred accounts, financial institutions, insurance companies, real estate investment trusts, regulated investment companies, broker-dealers, non-resident alien individuals, U.S. tax expatriates, persons or entities that have a “functional currency” other than the U.S. dollar, persons who common our shares as part of a straddle, hedging or a conversion transaction, and persons who acquire their common shares as compensation for services. This summary is limited to U.S. Holders who own common shares as capital assets and who hold common shares directly (e.g., not through an intermediary entity such as a corporation, partnership, limited liability company, or trust).

57

Distributions on our Shares

Subject to the discussion below regarding passive foreign investment companies (“PFICs”) and controlled foreign corporations (“CFCs”), U.S. Holders receiving dividend distributions (including constructive dividends) with respect to the common shares are required to include in gross income for United States federal income tax purposes the gross amount of such distributions to the extent that the Company has current or accumulated earnings and profits as defined under U.S. federal tax law, without reduction for any Canadian income tax withheld from such distributions. Such Canadian tax withheld may be credited, subject to certain limitations, against the U.S. Holder’s United States federal income tax liability or, alternatively, may be deducted in computing the U.S. Holder’s United States federal taxable income by those who itemize deductions. (See more detailed discussion at “Foreign Tax Credit” below). To the extent that distributions exceed the Company’s current or accumulated earnings and profits, they will be treated first as a return of capital up to the U.S. Holder's adjusted basis in the shares and thereafter as gain from the sale or exchange of the shares. Preferential tax rates for “long-term“ net capital gains (e.g. gains realized on capital assets owned more than one year)are applicable under current law to a U.S. Holder that is an individual, estate or trust. There are currently no preferential tax rates for long-term capital gains for a U.S. Holder that is a corporation.

With effect from January 1, 2003 through December 31, 2010, the United States reduced the maximum tax rate on certain qualifying dividend distributions to 15%. In order for dividends paid by foreign corporations to qualify for the reduced rates, (1) the foreign corporation must meet certain requirements, including that it not be classified as a PFIC for United States federal income tax purposes in either the taxable year of the distribution or the preceding taxable year, and (2) the U.S. Holder must meet the required holding period. In order to meet the required holding period, the U.S. Holder must hold the common shares for more than 60 days during the 121-day period beginning 60 days before the ex-dividend date.

Dividends paid on the common shares will generally not be eligible for the dividends received deduction provided to corporations receiving dividends from certain United States corporations.

In the case of a dividend paid in a foreign currency that is not converted by the recipient into U.S. dollars on the date of receipt, a U.S. Holder will have a tax basis in the foreign currency equal to its U.S. dollar value on the date of receipt. Generally, any gain or loss recognized upon a subsequent sale or other disposition of the foreign currency, including the exchange for U.S. dollars, will be ordinary income or loss.

58

Disposition of Common Shares

Subject to the PFIC and CFC discussions below, a U.S. Holder will recognize a gain or loss upon the sale of the common shares equal to the difference, if any, between (i) the amount of cash plus the fair market value of any property received, and (ii) the U.S. Holder’s adjusted tax basis in the common shares. This gain or loss will be a capital gain or loss if the common shares are a capital asset in the hands of the U.S. Holder, and will be a short-term or long-term capital gain or loss depending upon the holding period of the U.S. Holder. Preferential tax rates for long-term capital gains are applicable to a U.S. Holder which is an individual, estate or trust, under current law. There are currently no preferential tax rates for long-term capital gains for a U.S. Holder which is a corporation.

Gains and losses are netted and combined according to special rules in arriving at the overall capital gain or loss for a particular tax year. Deductions for net capital losses are subject to significant limitations.

Foreign Tax Credit

A U.S. Holder who pays (or has withheld from distributions) Canadian income tax with respect to the ownership or disposition of the common shares may be entitled, at the option of the U.S. Holder, to either a deduction or a tax credit for such foreign tax paid or withheld. Generally, it will be more advantageous to claim a credit because a credit reduces United States federal income taxes on a dollar-for-dollar basis, while a deduction merely reduces the taxpayer’s income subject to tax. This election is made on a year-by-year basis and applies to all foreign taxes paid by (or withheld from) the U.S. Holder during that year. There are significant and complex limitations that apply to the credit, among which is the general limitation that the credit cannot exceed the proportionate share of the U.S. Holder’s United States federal income tax liability that the U.S. Holder's foreign source income bears to his or its worldwide taxable income. In the determination of the application of this limitation, the various items of income and deduction must be classified into foreign and domestic sources. Complex rules govern this classification process. In addition, this limitation is calculated separately with respect to specific “baskets” of income. Foreign taxes assigned to a particular basket generally cannot offset United States tax on income assigned to another basket. Unused foreign tax credits can generally be carried back one year and carried forward ten years. The availability of the foreign tax credit and the application of the limitations on the credit are fact specific and U.S. Holders should consult their own U.S. tax advisors regarding their ability to utilize foreign tax credits in light of their individual circumstances.

Other Considerations

In the following circumstances, the above sections of this discussion may not describe the United States federal income tax consequences resulting from the holding and disposition of the Company’s shares:

Passive Foreign Investment Company

As a foreign corporation with U.S. Holders, the Company could potentially be treated as a PFIC if 75% or more of its gross income in a taxable year is passive income, or the average percentage of its assets (by value) during the taxable year which produce passive income or which are held for the production of passive income is at least 50%. Passive income is generally defined to include gross income in the nature of dividends, interest, royalties, rents and annuities; excess of gains over losses from certain transactions in any commodities not arising inter alia from a PFIC whose business is actively involved in such commodities; certain foreign currency gains; and other similar types of income with respect to certain distributions or, of dispositions of shares, of a PFIC. U.S. Holders are subject to an increased United States federal income tax liability and to an interest charge based on the value of the tax deferral for the period during which the shares of the PFIC are owned.

59

The PFIC rules are very complex. The Company offers no opinion or representations as to its status as a PFIC for the current year or any prior or future tax years. Each U.S. Holder should consult a U.S. tax advisor with respect to the PFIC rules and their applicability to his or its particular tax situation.

Shareholder Election

The adverse tax consequences associated with a PFIC may be avoided if the U.S. Holder has elected to treat the PFIC as a QEF with respect to that U.S. Holder (a “QEF Election”) effective for each of the PFIC's taxable years beginning on or after January 1, 1987, which include any portion of the U.S. Holder’s holding period. In general, U.S. Holders of a QEF are taxable currently on their pro rata share of the QEF’s ordinary income and net capital gain regardless of whether such income or gain is actually distributed. Certain reporting obligations to the IRS must also be met by the U.S. Holder if there is a QEF Election in place.

The procedure a U.S. Holder must comply with in making an effective QEF Election will depend on whether the year of election is the first year in the U.S. Holder's holding period in which the Company is classified as a PFIC. If the U.S. Holder makes a QEF Election in such first year (i.e., a timely QEF Election), then the U.S. Holder may make the QEF Election by simply filing the appropriate documents at the time the U.S. Holder files his tax return for such first year. If, however, the Company was classified as a PFIC in a prior year, then additional considerations apply. U.S. Holders should consult their own U.S. tax advisors regarding making a QEF Election.

Mark to Market Election

As an alternative to making a QEF Election, U.S. Holders who hold, actually or constructively, marketable stock of a foreign corporation that is a PFIC may elect to mark such stock to the market (a “Mark-to-Market Election”). If such an election is made, such U.S. Holder will not be subject to the special PFIC taxation rules described above for the taxable years for which the Mark-to-Market Election is made and subsequent taxable years if not revoked. Instead, a U.S. Holder who makes such an election will include in income for each taxable year an amount equal to the excess, if any, of the fair market value of the common shares as of the close of such tax year over such U.S. Holder's adjusted tax basis in such shares. In addition, the U.S. Holder is allowed a deduction for the lesser of (i) the excess, if any, of such U.S. Holder's adjusted tax basis in the common shares over the fair market value of such shares as of the close of the tax year, or (ii) the excess, if any of (A) the mark-to-market gains for the common shares included by such U.S. Holder for prior tax years, over (B) the mark-to-market losses for shares that were allowed as deductions for prior tax years. Amounts included in income are deducted under the mark-to-market Election, and gain pr loss on a disposition of shares, are classified as ordinary income or loss. A U.S. Holder's adjusted tax basis in the common shares will be increased or decreased to reflect the amount included or deducted as a result of the Mark-to-Market Election. A Mark-to-Market Election will apply to the tax year for which the election is made and to all later tax years, unless the PFIC stock ceases to be marketable or the IRS consents to the revocation of the election. Various IRS reporting requirements may also apply to a U.S. Holder who makes a mark-to-market Election.

60

The PFIC, QEF Election, and Mark-to-Market Election rules are complex. U.S. Holders should consult their own tax advisors regarding the availability of, an procedure for, and consequences of, making an QEF Election.

Controlled Foreign Corporation

If more than 50% of the voting power of all classes of stock or the total value of the Company’s stock is owned, directly or indirectly, by citizens or residents of the United States, United States domestic partnerships, corporations or estates or trusts (other than foreign estates or trusts), each of whom own 10% or more of the total combined voting power of all classes of stock (“United States Shareholders”), the Company could be treated as a CFC under Subpart F of the Code. This classification would cause many complex results, including the required inclusion by such United States Shareholders in income of their pro rata share of “Subpart F income” (as specially defined by the Code). If we are both a PFIC and CFC, we will generally not be treated as a PFIC with respect to United States Shareholders of the CFC that acquired the common shares on or after January 1, 1998. With respect to United States Shareholders that acquired the common shares prior to January 1, 1998 and other U.S. Holders (that are not United States Shareholders), the Company would generally remain a PFIC unless certain elections, if available, were made. In addition, under Section 1248 of the Code, certain gains from the sale or exchange of shares by a U.S. Holder who is or was a United States Shareholder at any time during the five year period ending with the sale or exchange is generally treated as ordinary dividend income to the extent of the Company’s earnings and profits attributable to the stock sold or exchanged. Because of the complexity of Subpart F, and because it is not clear that Subpart F would apply to the U.S. Holders of the common shares, a more detailed review of these rules is outside of the scope of this discussion. The CFC rules are complex. The Company offers no opinion or representations as to its status as a CFC for the current year or any prior or future tax years. U.S. Holders should consult their own U.S. tax advisors regarding the CFC rules and their applicability to such U.S. Holder’s particular tax situation.

F. Dividends and Paying Agents

Not applicable.

G. Statements by Experts

Christopher Lee, M.Sc., P. Geo and SRK Consulting were both involved in the preparation and compilation of the SRK Report. Statements with respect to such report are included with the consent of Mr. Lee, who has authorized its content.

H. Documents on Display

Copies of the documents referred to in this document may be inspected during normal business hours, at the offices of WeirFoulds, LLP located at 1600 – 130 King Street West, Toronto, Ontario, M5X 1J5, Canada.

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I. Subsidiary Information

The consolidated financial statements include the assets, liabilities, revenues and expenses of the Company and its wholly owned subsidiaries, Grandview Gold (USA) Inc. ("Grandview USA"), and Recuperacion Realzada S.A.C. ("Recuperacion"). All significant intercompany transactions and accounts are eliminated in consolidation.

ITEM 11: Quantitative and Qualitative Disclosures about Market Risk

Not applicable.

ITEM 12: Description of Securities other than Equity Securities

Not applicable.

62

PART II

ITEM 13: Defaults, Dividend Arrearages and Delinquencies

None.

ITEM 14: Material Modifications to the Rights of Security Holders and Use of Proceeds

None.

ITEM 15: Controls and Procedures

Disclosure Controls and Procedures

The Company maintains disclosure controls and procedures designed to ensure that information required to be disclosed in the Company’s reports filed under the Securities Exchange Act of 1934, as amended, is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow for timely decisions regarding required disclosure. In designing and evaluating the disclosure controls and procedures, management recognized that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and management necessarily was required to apply its judgment in evaluating the cost benefit relationship of possible controls and procedures.

The Company has evaluated, under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, the effectiveness of the design and operation of the Company’s disclosure controls and procedures as of the end year covered by this report. Based upon the evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were effective at the reasonable assurance level.

Management’s Annual Report on Internal Control Over Financial Reporting.

Management is responsible for establishing and maintaining adequate internal control over financial reporting for the Company. Management has designed such internal control over financial reporting to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with Canadian GAAP, and reconciled to US GAAP, as applicable.

Because of its inherent limitations, the Company’s internal control over financial reporting may not prevent or detect all possible misstatements or frauds. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with policies or procedures may deteriorate.

63

To evaluate the effectiveness of the Company’s internal control over financial reporting, Management has used the Internal Control - Integrated Framework, which is a suitable, recognized control framework established by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Management has assessed the effectiveness of the Company’s internal control over financial reporting and concluded that such internal control over financial reporting is effective as of May 31, 2010.

This annual report does not include an alteration of the Company’s registered public accounting firm regarding internal control over financial reporting. Management’s report was not subject to alteration by the Company’s registered public accounting firm pursuant to temporary rules of the Securities and Exchange Commission that permit the Company to provide only management’s report in this annual report.

ITEM 16: Reserved

A. Audit Committee Financial Expert

The Company’s Chairman and independent, non-management directors serve as the Audit Committee. D. Richard Brown serves as the financial expert, as defined under the SEC’s rules, on the Company’s Audit Committee. The members of the Audit Committee are D. Richard Brown, Harold Wolkin, and Peter Born.

B. Code of Ethics

The Company does not currently have a code of ethics that applies to its senior executive officers. The Company has circulated a draft code of ethics and hopes to adopt a code of ethics for its senior executive officers in the near future. The Company undertakes that it will file a copy of its Code of Ethics with the Securities and Exchange Commission and post the text of such Code of Ethics on the Company’s website.

C. Principal Accountant Fees and Services

The following chart summarizes the aggregate fees billed by the Company’s external auditors for professional services rendered to the Company during the fiscal years ended May 31, 2010 and 2009 for audit and non-audit related services:

		Year Ended		Year Ended
Type of Work		May 31, 2010		May 31, 2009
Audit fees(1)	$	48,000	$	45,000
Audit-related fees(2)		Nil		Nil
Tax fees		3,000		3,000
All other fees		Nil		Nil
Total	$	51,000	$	48,000

Notes:

1. Aggregate fees billed for the Company’s annual financial statements and services normally provided by the auditor in connection with the Company’s statutory and regulatory filings.

64

2. Aggregate fees billed for assurance and related services that are reasonably related to the performance of the audit or review of the Company’s financial statements and are not reported as “Audit fees”, including: assistance with aspects of tax accounting, attest services not required by state or regulation and consultation regarding financial accounting and reporting standards.

D. Exemptions From the Listing Standards for Audit Committees

Not applicable.

E. Purchases of Equity Services by the Issuer and Affiliated Purchasers

None.

65

PART III

ITEM 17: Financial Statements

See Item 18. (A.) - Financial Statements.

ITEM 18: Financial Statements

A. Audited Annual Financial Statements, May 31, 2010

1. Balance Sheets of Grandview Gold Inc. as at May 31, 2010 and 2009 and Statements of Operations and Deficit and Cash Flows for each of the three years ended May 31, 2010, 2009 and 2008, reported on by McCarney Greenwood LLP, Chartered Accountants. These statements are prepared in accordance with Canadian generally accepted accounting principles, which differ in certain respects from United States generally accepted accounting principles. See Note 15 to the financial statements.

66

________________________________________________________________________

Grandview Gold Inc.

(An Exploration Stage Company)

 Consolidated Financial Statements

May 31, 2010 and 2009

(Expressed in Canadian Dollars)

 ________________________________________________________________________

67

Management’s Responsibility for Financial Reporting

The accompanying consolidated financial statements of Grandview Gold Inc. (An Exploration Stage Enterprise) were prepared by management in accordance with Canadian generally accepted accounting principles. Management acknowledges responsibility for the preparation and presentation of the year end consolidated financial statements, including responsibility for significant accounting judgments and estimates and the choice of accounting principles and methods that are appropriate to the Company’s circumstances. Management also accepts responsibility for ensuring the use of appropriate accounting policies and estimates in disclosure of information prepared following accounting principles generally accepted in the United States of America. The significant accounting policies of the Company are summarized in Note 2 to the consolidated financial statements.

Management has established systems of internal control over the financial reporting process, which are designed to provide reasonable assurance that relevant and reliable financial information is produced.

The Board of Directors is responsible for ensuring that management fulfills its financial reporting responsibilities and for reviewing and approving the year end consolidated financial statements together with other financial information. An Audit Committee assists the Board of Directors in fulfilling this responsibility. The Audit Committee meets with management to review the internal controls over the financial reporting process and the year end consolidated financial statements together with other financial information of the Company. The Audit Committee reports its findings to the Board of Directors for its consideration in approving the year end consolidated financial statements together with other financial information of the Company for issuance to the shareholders.

Management recognizes its responsibility for conducting the Company’s affairs in compliance with established financial standards and applicable laws and regulations, and for maintaining proper standards of conduct for its activities.

Management's Report on Control Over Financial Reporting

Management is responsible for establishing and maintaining adequate internal control over financial reporting. Management conducted an evaluation of the effectiveness of internal control over financial reporting based on “Internal Control Over Financial Reporting – Guidance For Smaller Public Companies” issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on this evaluation, management concluded that the Company’s internal control over financial reporting was effective as at May 31, 2010.

Conclusion Relating to Disclosure Controls and Procedures

An evaluation was performed under the supervision of and with the participation of management, including the Chief Executive Officer and the Chief Financial Officer, of the effectiveness of the Company’s disclosure controls and procedures as defined in the Multilateral Instrument 52-109. Based on that evaluation, the Chief Executive Officer and the Chief Financial Officer concluded that the design and operation of the Company’s disclosure controls and procedures were effective as at May 31, 2010.

(signed)	(signed)
Paul T. Sargeant	Ernest Cleave
Chief Executive Officer	Chief Financial Officer
Toronto, Canada
August 17, 2010

68

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Shareholders of Grandview Gold Inc.

We have audited the consolidated balance sheets of Grandview Gold Inc. (An Exploration Stage Company) as at May 31, 2010 and 2009 and the consolidated statements of operations and comprehensive loss, accumulated deficit, changes in shareholders’ equity, cash flows and mineral properties for each of the three years ended May 31, 2010 and for the period from the date of inception of the exploration stage on March 26, 2004 to May 31, 2010. These consolidated financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits.

We conducted our audits in accordance with Canadian generally accepted auditing standards and with the standards of the Public Company Accounting Oversight Board (United States of America). Those standards require that we plan and perform an audit to obtain reasonable assurance whether the financial statements are free of material misstatement. An audit includes examining on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as at May 31, 2010 and 2009 and the results of its operations and its cash flows for each of the three years ended May 31, 2010 and for the period from the date of inception of the exploration stage on March 26, 2004 to May 31, 2010 in accordance with Canadian generally accepted accounting principles.

	"McCarney Greenwood LLP"
Toronto, Canada
	McCarney Greenwood LLP
August 17, 2010	Chartered Accountants
	Licensed Public Accountants

Comments by Auditors on United States of America-Canada Reporting Difference

In the United States of America, reporting standards for auditors require the addition of an explanatory paragraph (following the opinion paragraph) when the consolidated financial statements are affected by conditions and events that cast significant doubt on the Company's ability to continue as a going concern, such as those described in Note 1 to the consolidated financial statements. Our report to the shareholders dated August 17, 2010 is expressed in accordance with Canadian reporting standards which do not require a reference to such conditions and events in the auditor's report when these are adequately disclosed in the consolidated financial statements.

	"McCarney Greenwood LLP"
Toronto, Canada
	McCarney Greenwood LLP
August 17, 2010	Chartered Accountants
	Licensed Public Accountants

69

GRANDVIEW GOLD INC. (AN EXPLORATION STAGE COMPANY) CONSOLIDATED BALANCE SHEETS (EXPRESSED IN CANADIAN DOLLARS)
As at May 31,		2010		2009
Assets
Current assets
Cash and cash equivalents	$	1,432,824	$	106,593
Short term investments (Note 5)		25,037		407,493
GST and sundry receivable		26,416		5,707
Prepaid expenses		12,876		12,283
Due from a related party (Note 14(iv))		-		10,000
		1,497,153		542,076
Reclamation bond (Note 6)		13,699		14,332
Mining interests (Note 7)		4,149,771		3,442,793
	$	5,660,623	$	3,999,201
Liabilities
Current liabilities
Accounts payable and accrued liabilities (Note 14)	$	89,284	$	72,467
Asset retirement obligation (Note 7)		13,699		14,332
		102,983		86,799
Shareholders' equity		5,557,640		3,912,402
	$	5,660,623	$	3,999,201
Nature of operations and going concern assumption (Note 1)
The notes to consolidated financial statements are an integral part of these statements.
Approved by the Board of Directors:
"Paul T. Sarjeant" , Director
"Richard Brown" , Director

- 70 -

GRANDVIEW GOLD INC.
(AN EXPLORATION STAGE COMPANY)
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(Expressed in Canadian Dollars)

											Cumulative
											from date of
											inception of
											the
											exploration
					Year ended May 31,						stage (March
		2010			2009			2008			26, 2004	)
Expenses
Share-based payments (Note 10)	$	449,491		$	-		$	1,322,125		$	4,479,616
Investor relations, business development and reporting issuer maintenance costs		115,352			88,716			673,712			1,903,163
Professional fees		142,354			167,672			322,033			1,365,998
Management and consulting services (Note 14)		98,750			255,201			238,539			1,441,940
Office and administration		69,107			21,579			196,503			738,245
Exploration evaluation expenses		5,000			19,885			-			24,885
Flow-through interest expense		-			2,747			44,688			188,801
Bad debt		-			-			-			1,235
		880,054			555,800			2,797,600			10,143,883
Loss before the under noted		(880,054	)		(555,800	)		(2,797,600	)		(10,143,883	)
Interest income (expense)		(349	)		7,503			59,887			88,723
Write-down of marketable securities		-			-			-			(25,000	)
Write-off of mineral properties		-			(5,903,342	)		(528,376	)		(6,431,718	)
Impairment of mineral properties		-			(1,557,112	)		-			(1,557,112	)
Forgiveness of debt		-			-			-			35,667
Failed merger costs		-			-			-			(170,000	)
Loss before income taxes		(880,403	)		(8,008,751	)		(3,266,809	)		(18,203,323	)
Future income tax recovery (Note 12)		-			(120,833	)		(260,255	)		(1,675,990	)
Net loss and comprehensive loss for the period	$	(880,403	)	$	(7,887,918	)	$	(3,005,834	)	$	(16,527,333	)
Basic loss per share (Note 11)	$	(0.02	)	$	(0.20	)	$	(0.09	)
				$
Diluted loss per share (Note 11)	$	(0.02	)		(0.20	)	$	(0.09	)
The notes to consolidated financial statements are an integral part of these statements.

- 71 -

GRANDVIEW GOLD INC.
(AN EXPLORATION STAGE COMPANY)
CONSOLIDATED STATEMENTS OF ACCUMULATED DEFICIT

(Expressed in Canadian Dollars)
											Cumulative from
											date of inception
											of the
											exploration stage
					Year ended May 31,						(March
											26, 2004	)
		2010			2009			2008
Accumulated deficit
Balance at beginning of period	$	(19,081,178	)	$	(11,193,260	)	$	(8,187,426	)	$	(3,434,248	)
Net loss for the period		(880,403	)		(7,887,918	)		(3,005,834	)		(16,527,333	)
Balance at end of period	$	(19,961,581	)	$	(19,081,178	)	$	(11,193,260	)	$	(19,961,581	)
The notes to consolidated financial statements are an integral part of these statements.

- 72 -

GRANDVIEW GOLD INC. (AN EXPLORATION STAGE COMPANY) CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (EXPRESSED IN CANADIAN DOLLARS)
								Contributed		Accumulated
		Share capital			Warrants			Surplus		Deficit			Total
At May 31, 2007	$	11,019,703		$	2,611,614		$	3,356,344	$	(8,187,426	)	$	8,800,235
Private placement		4,950,150			-			-		-			4,950,150
Warrant valuation		(940,212	)		940,212			-		-			-
Mineral property acquisition		45,800			-			-		-			45,800
Exercise of warrants		66,544			-			-		-			66,544
Fair value of warrants exercised		36,673			(36,673	)		-		-			-
Share-based payments		-			-			1,433,600		-			1,433,600
Cost of issue - cash laid out		(488,720	)		-			-		-			(488,720	)
Cost of issue - broker warrant valuation		(227,417	)		227,417			-		-			-
Flow-through cost of issue		(260,255	)		-			-		-			(260,255	)
Net loss for the year		-			-			-		(3,005,834	)		(3,005,834	)
At May 31, 2008		14,202,266			3,742,570			4,789,944		(11,193,260	)		11,541,520
Mineral property acquisition		10,800			-			-		-			10,800
Private placement		416,666			-			-		-			416,666
Cost of issue - cash laid out		(47,833	)		-			-		-			(47,833	)
Cost of issue - broker warrant valuation		(30,666	)		30,666			-		-			-
Flow-through cost of issue		(120,833	)		-			-		-			(120,833	)
Warrants expired		-			(2,569,432	)		2,569,432		-			-
Net loss for the year		-			-			-		(7,887,918	)		(7,887,918	)
At May 31, 2009	$	14,430,400		$	1,203,804		$	7,359,376	$	(19,081,178	)	$	3,912,402

See notes 8, 9 and 10 for share capital, warrants and contributed surplus from the date of inception of the exploration stage, March 26, 2004 to May 31, 2010. The notes to consolidated financial statements are an integral part of these statements.

- 73 -

GRANDVIEW GOLD INC. (AN EXPLORATION STAGE COMPANY) CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY - CONTINUED (EXPRESSED IN CANADIAN DOLLARS)
								Contributed		Accumulated
		Share capital			Warrants			surplus		deficit			Total
At May 31, 2008	$	14,430,400		$	1,203,804		$	7,359,376	$	(19,081,178	)	$	3,912,402
Share-based payments		-			-			449,491		-			449,491
Exercise of warrants		16,667			-			-		-			16,667
Fair value of warrants exercised		15,333			(15,333	)		-		-			-
Mineral property acquisition		67,000			-			-		-			67,000
Private placement		2,000,000			-			-		-			2,000,000
Cost of issue - cash laid out		(36,392	)		-			-		-			(36,392	)
Cost of issue - broker warrant valuation		(1,440,000	)		1,440,000			-		-			-
Debt conversion		28,875			-			-		-			28,875
Warrants expired		-			(1,173,138	)		1,173,138		-			-
Net loss for the year		-			-			-		(880,403	)		(880,403	)
At May 31, 2010	$	15,081,883		$	1,455,333		$	8,982,005	$	(19,961,581	)	$	5,557,640

See notes 8, 9 and 10 for share capital, warrants and contributed surplus from the date of inception of the exploration stage, March 26, 2004 to May 31, 2010. The notes to consolidated financial statements are an integral part of these statements.

- 74 -

GRANDVIEW GOLD INC. (AN EXPLORATION STAGE COMPANY) CONSOLIDATED STATEMENTS OF CASH FLOWS (EXPRESSED IN CANADIAN DOLLARS)
											Cumulative
											from date of
											inception of the
											exploration
		Year ended May 31,									stage (March
		2010			2009			2008			26, 2004	)
Cash flows from operating activities
Net loss for the period	$	(880,403	)	$	(7,887,918	)	$	(3,005,834	)	$	(16,527,333	)
Items not involving cash:
Write-down of marketable securities		-			-			-			25,000
Debt conversion		28,875			-			-			(6,792	)
Write-off of bad debts		-			-			-			1,235
Share-based payments		449,491			-			1,322,125			4,479,616
Future income tax recovery		-			(120,833	)		(260,255	)		(1,675,990	)
Accrued interest income		(37	)		(7,493	)		(36,410	)		(43,940	)
Write-off of mineral properties		-			5,903,342			528,376			6,431,718
Changes in non-cash working capital items:
GST and sundry receivable		(20,709	)		34,957			181,267			(25,926	)
Prepaid expenses		(593	)		137,883			8,526			(12,876	)
Due from a related party		10,000			80,000			-			90,000
Accounts payable and accrued liabilities		16,817			(46,059	)		(298,248	)		95,454
Cash flows used in operating activities		(396,559	)		(349,009	)		(1,560,453	)		(5,612,722	)
Cash flows from financing activities
Loans from related parties		-			-			-			(28,594	)
Share/warrant issuance		2,016,667			416,666			5,016,694			20,068,877
Cost of issuance		(36,392	)		(47,833	)		(488,720	)		(1,812,701	)
Proceeds from loan		-			-			-			175,000
Repayment of loan		-			-			-			(75,000	)
Cash flows provided by financing activities		1,980,275			368,833			4,527,974			18,327,582
Cash flows from investing activities
Purchase of reclamation bond		-			-			(13,090	)		(13,090	)
Redemption (purchase) of short term investments		382,493			611,410			(975,000	)		18,903
Exploration advances		-						312,491			-
Expenditures on mining interests		(639,978	)		(609,497	)		(3,506,343	)		(11,197,849	)
Due from a related party		-			-			-			(90,000	)
Cash flows provided by (used in) investing activities	$	(257,485	)	$	1,913		$	(4,181,942	)	$	(11,282,036	)

The notes to consolidated financial statements are an integral part of these statements.

- 75 -

GRANDVIEW GOLD INC.
(AN EXPLORATION STAGE COMPANY)
CONSOLIDATED STATEMENTS OF CASH FLOWS - CONTINUED
(EXPRESSED IN CANADIAN DOLLARS)
									Cumulative
									from date of
									inception of the
									exploration stage
		Year ended May 31,							(March
		2010		2009		2008			26, 2004	)
Change in cash and cash equivalents during the period	$	1,326,231	$	21,737	$	(1,214,421	)	$	1,432,824
Cash and cash equivalents, beginning of period		106,593		84,856		1,299,277			-
Cash and cash equivalents, end of period	$	1,432,824	$	106,593	$	84,856		$	1,432,824
Supplemental schedule of non-cash transactions
Share issuance included in mining interest	$	67,000	$	10,800	$	45,800		$	630,875
Warrant issuance included in mining interest	$	-	$	-	$	-		$	184,750
Share-based payments included in mining interest	$	-	$	-	$	111,475		$	111,475
Interest paid	$	-	$	-	$	23,477		$	45,159

The notes to consolidated financial statements are an integral part of these statements.

- 76 -

GRANDVIEW GOLD INC.
(AN EXPLORATION STAGE COMPANY)
CONSOLIDATED STATEMENTS OF MINERAL PROPERTIES
(EXPRESSED IN CANADIAN DOLLARS)
									Cumulative
									from date of
									inception of the
									exploration stage
		Year ended May 31,							(March
		2010		2009			2008		26, 2004	)
Pony Creek Carlin Trend Project, Nevada, USA (Note 7(a))
Balance, beginning of period	$	-	$	5,679,340		$	4,386,457	$	-
Drilling, assays and related field work		-		90,775			989,754		4,684,830
Project administration and general		-		38,848			16,200		96,879
Property acquisition and holding costs		-		94,379			286,929		1,121,633
Write-off		-		(5,903,342	)		-		(5,903,342	)
Total activity during the period		-		(5,679,340	)		1,292,883		-
Balance, end of period	$	-	$	-		$	5,679,340	$	-
Red Lake Gold Camp, Ontario, Canada (Note 7(b))
Balance, beginning of period	$	3,442,793	$	3,275,971		$	1,531,160	$	-
Drilling, assays and related field work		272,911		166,146			1,655,011		3,202,798
Property acquisition and holding costs		158,263		676			89,800		671,169
Total activity during the period		431,174		166,822			1,744,811		3,873,967
Balance, end of period	$	3,873,967	$	3,442,793		$	3,275,971	$	3,873,967
Rice Lake Gold Camp, Manitoba, Canada (Note 7(c))
Balance, beginning of period	$	-	$	1,327,639		$	668,597	$	-
Drilling, assays and related field work		-		218,436			659,042		1,163,762
Project administration and general		-		227			-		227
Property acquisition and holding costs		-		10,810			-		393,123
Impairment		-		(1,557,112	)		-		(1,557,112	)
Total activity during the period		-		(1,327,639	)		659,042		-
Balance, end of period	$	-	$	-		$	1,327,639	$	-

The notes to consolidated financial statements are an integral part of these statements.

- 77 -

GRANDVIEW GOLD INC.
(AN EXPLORATION STAGE COMPANY)
CONSOLIDATED STATEMENTS OF MINERAL PROPERTIES - CONTINUED
(EXPRESSED IN CANADIAN DOLLARS)

									Cumulative from
									date of inception
									of the exploration
		Year ended May 31,							stage (March
		2010		2009		2008			26, 2004	)
Rocky Ridge Gold Property, Manitoba, Canada (Note 7(d))
Balance, beginning of period	$	-	$	-	$	548,404		$	-
Drilling, assays and related field work		-		-		-			415,904
Property acquisition and holding costs		-		-		(20,028	)		112,472
Write-off		-		-		(528,376	)		(528,376	)
Total activity during the period		-		-		(548,404	)	$	-
Balance, end of period	$	-	$	-	$	-		$	-
Giulianita Property, Peru (Note 7(e))
Balance, beginning of period	$	-	$	-	$	-		$	-
Drilling, assays and related field work		234,872		-		-			234,872
Property acquisition and holding costs		40,932		-		-			40,932
Total activity during the period		275,804		-		-			275,804
Balance, end of period	$	275,804	$	-	$	-		$	275,804
						-
Total	$	4,149,771	$	3,442,793	$	10,282,950		$	4,149,771

The notes to consolidated financial statements are an integral part of these statements.

1. Nature of Operations and Going Concern

Grandview Gold Inc. (the "Company" or "Grandview") is a gold exploration company focused on exploring and developing gold properties in gold camps of North and South America.

The Company was incorporated under the laws of the Province of Ontario. The Company was previously in the business of investing significant equity interests in high-technology companies. As at March 26, 2004, the Company changed its direction to a gold exploration company. To date, the Company has not earned significant revenues from gold exploration and is considered to be in the exploration stage. As such, the Company will be applying Accounting Guideline 11 "Enterprises in the Development Stage" as required by the Canadian Institute of Chartered Accountants' ("CICA") Handbook effective March 26, 2004 onward.

The consolidated financial statements have been prepared in accordance with Canadian generally accepted accounting principles ("GAAP"), as applicable to a going concern entity which contemplates the realization of its assets and the settlement of its liabilities in the normal course of operations. In assessing whether the going concern assumption is appropriate, management takes into account all available information about the future, which is at least, but is not limited to, twelve months from the end of the reporting period. The ability of the Company to continue operations is dependent upon obtaining the necessary financing to complete the development of a mineral property. Management is aware, in making its assessment, of material uncertainties related to events or conditions that may cast significant doubt upon the entity’s ability to continue as a going concern, as described in the following paragraph. Accordingly, the consolidated financial statements do not give effect to adjustments that would be necessary should the Company be unable to continue as a going concern and therefore be required to realize its assets and liquidate its liabilities and commitments in other than the normal course of business and at amounts different from those in the accompanying consolidated financial statements.

- 78 -

Grandview Gold Inc.
(An Exploration Stage Company)
Notes to Consolidated Financial Statements
For the Years ended May 31, 2010 and 2009
(Expressed in Canadian Dollars)

The Company's financing efforts to date, while substantial, are not sufficient in and of themselves to enable the Company to fund all aspects of its operations. Management expects that the Company, based upon the underlying value of its exploration projects, will be able to secure the necessary financing to meet the Company’s requirements on an ongoing basis. Nevertheless, there is no assurance that these initiatives will be successful.

2.	Summary of Significant Accounting Policies
	The significant accounting policies for the Company are as follows:
	(a)	Basis of Presentation
		The consolidated financial statements are presented in Canadian dollars and are prepared in accordance with accounting principles generally accepted in Canada.
		A summary of the differences between Canadian GAAP and those generally accepted in the United States ("US GAAP") which affect the Company is contained in Note 15.

- 79 -

Grandview Gold Inc.
(An Exploration Stage Company)
Notes to Consolidated Financial Statements
For the Years ended May 31, 2010 and 2009
(Expressed in Canadian Dollars)

2.	Summary of Significant Accounting Policies (Continued)
	(b)	Basis of Consolidation
		These consolidated financial statements include the assets, liabilities, revenues and expenses of the Company and its wholly owned subsidiaries, Grandview Gold (USA) Inc. ("Grandview USA"), and Recuperacion Realzada S.A.C. ("Recuperacion"). All significant intercompany transactions and accounts are eliminated in consolidation.
	(c)	Use of Estimates
		The preparation of consolidated financial statements in accordance with Canadian GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and reported amounts of revenues and expenses during the reporting period. Significant areas requiring the use of management estimates relate to the determination of the recoverability of mining interest costs, the asset retirement obligation, the valuation allowance relating to the future tax asset, the calculation of share-based payments expense and warrants. Actual results may differ significantly from these estimates.
	(d)	Cash and Cash Equivalents
		Cash and cash equivalents include cash on hand and balances with banks with original maturities of three months or less and which are readily convertible into cash.
	(e)	Mineral Property Costs
		Direct exploration and development costs are deferred in the accounts, net of amounts recovered from third parties, including receipts from options. At production, these costs will be amortized using the units-of-production method based on estimated reserves. Costs relating to properties abandoned are written-off when the decision to abandon is made, or earlier if a determination is made that the property does not have economically recoverable reserves.
		The recorded book value of the Company's mineral properties is not intended to reflect the present or future value of the gold projects.
		The Company is in the process of exploring and developing its properties. On a regular basis, the Company reviews the carrying values of deferred mineral property acquisition and exploration expenditures with a view to assessing whether there has been any impairment in value. If after the review, it is determined that the carrying amount of a mining interest is impaired, that mining interest is written-down to its estimated net realizable value. A mining interest is reviewed for impairment when events or changes in circumstances indicate that its carrying amount may not be recoverable.
		The amounts shown for mining properties do not necessarily represent present or future values. Their recoverability is dependent upon the discovery of economically recoverable reserves, the ability of the Company to obtain the necessary financing to complete the development, and future profitable production or proceeds from the disposition thereof.

- 80 -

Grandview Gold Inc.
(An Exploration Stage Company)
Notes to Consolidated Financial Statements
For the Years ended May 31, 2010 and 2009
(Expressed in Canadian Dollars)

2.	Summary of Significant Accounting Policies (Continued)
	(f)	Flow-Through Financing
		The Company has financed a portion of its exploration activities through the issue of flow-through shares in the past, which transfer the tax deductibility of exploration expenditures to the investor. Proceeds received on the issue of such shares have been credited to share capital and the related exploration costs have been charged to mineral properties. Resource expenditure deductions for income tax purposes related to exploration and development activities funded by flow-through share arrangements are renounced to investors in accordance with income tax legislation. When these expenditures are renounced, temporary taxable differences created by the renunciations reduce share capital.
	(g)	Short Term Investments
		Short term investments comprise investments in guaranteed investment certificates due to mature within one year from the date of purchase. These investments are classified as "held-for-trading" and have been recorded at fair value.
	(h)	Asset Retirement Obligation
		Section 3110 of the CICA Handbook requires the recognition of a liability for obligations relating to the retirement of property, plant and equipment and obligations arising from acquisition, construction, development or normal operations of those assets. The Company recognizes the fair value of a liability for an asset retirement obligation ("ARO") in the year in which a reasonable estimate of the fair value can be made. The estimates are based principally on legal and regulatory requirements. It is quite possible that the Company's estimates of its ultimate reclamation and closure liabilities associated with any mine or facility built will change as a result of changes in regulations, changes in the extent of environmental remediation required, changes in the means of reclamation or changes in cost estimates. Consequently, changes resulting from revisions to the timing or the amount of the original estimated undiscounted cash flows will be recognized as an increase or a decrease to the carrying amount of the liability and related long-lived asset. The liability will be increased for the passage of time and reported as an operating expense (accretion cost). The estimated cost associated with the retirement of the mineral properties is capitalized to those assets and will be amortized when these assets are put into production at amortization rates assigned to those assets.
	(i)	Income Taxes
		Income taxes are calculated using the asset and liability method of tax accounting. Under this method, current income taxes are recognized for the estimated income taxes payable for the current period. Future income tax assets and liabilities are determined based on differences between the financial reporting and tax bases of assets and liabilities and on unclaimed losses carried forward and are measured using the substantially enacted tax rates that are expected to be in effect when the differences are expected to reverse or losses are expected to be utilized. Future tax assets are recorded to recognize tax benefits only to the extent that, based on available evidence, it is more likely than not they will be realized.
	(j)	Share-Based Payments
		The fair value of the stock options granted is determined using the Black-Scholes option pricing model and management's assumptions as disclosed in Note 10 and is recorded as share-based payments over the vesting period of the stock-options, with the offsetting credit recorded as an increase in contributed surplus. If the stock options are exercised, the proceeds are credited to share capital and the fair value at the date of grant is reclassified from contributed surplus to share capital.

- 81 -

Grandview Gold Inc.
(An Exploration Stage Company)
Notes to Consolidated Financial Statements
For the Years ended May 31, 2010 and 2009
(Expressed in Canadian Dollars)

2.	Summary of Significant Accounting Policies (Continued)
	(k)	Revenue Recognition
		Interest income is recognized on the accrual basis.
	(l)	Share Issue Costs and Reorganization Costs
		Share issue costs are recorded as a reduction of share capital. Reorganization costs are charged to deficit.
	(m)	Translation of Foreign Currencies
		Foreign currency accounts are translated into Canadian dollars as follows:
		At the transaction date, each asset, liability, revenue or expense is translated into Canadian dollars by the use of the exchange rate in effect at that date. At the year end date, monetary assets and liabilities are translated into Canadian dollars by using the exchange rate in effect at that date and the resulting foreign exchange gains and losses are included in operations in the current period.
	(n)	Financial Instruments - Recognition and Measurement

All financial instruments are classified into one of the following five categories: held-for-trading, held-to-maturity, loans and receivables, available-for-sale financial assets or other financial liabilities. All financial instruments, including derivatives, are measured in the balance sheet at fair value except for loans and receivables, held to maturity investments and other financial liabilities which are measured at amortized cost using the effective interest method. Subsequent measurement and changes in fair value will depend on their initial classification, as follows: held-for-trading financial assets are measured at fair value and changes in fair value are recognized in the statement of operations in the period in which they arise; available-for-sale financial instruments are measured at fair value with changes in fair value recorded in other comprehensive income until the investment is de-recognized or becomes impaired at which time the amounts would be recorded in the statement of operations. The Company has made the following classifications:

Cash and cash equivalents	Held-for-trading
Short term investments	Held-for-trading
GST and sundry receivable	Loans and receivable
Due from a related party	Loans and receivable
Reclamation Bond	Loans and receivable
Accounts payable and accrued liabilities	Other financial liabilities

Transaction costs are expensed as incurred for financial instruments classified as held for trading and transaction costs, other than impairment losses, are included in other comprehensive income until the asset is removed from the balance sheet for financial instruments classified as available-for-sale. For other financial instruments, transaction costs are expensed on initial recognition. The Company accounts for regular purchases and sales of financial assets using trade date accounting.

- 82 -

Grandview Gold Inc.

(An Exploration Stage Company)

Notes to Consolidated Financial Statements

For the Years ended May 31, 2010 and 2009

(Expressed in Canadian Dollars)

2.	Summary of Significant Accounting Policies (Continued)
	(o)	Capital Disclosures and Financial Instruments – Disclosures and Presentation
		Capital Disclosures
		Handbook Section 1535 specifies the disclosure of (i) an entity’s objectives, policies and processes for managing capital; (ii) quantitative data about what the entity regards as capital; (iii) whether the entity has complied with any capital requirements; and (iv) if it has not complied, the consequences of such noncompliance. The Company has included disclosures recommended by the new Handbook section in Note 3 to these consolidated financial statements.
		Financial Instruments
		Handbook Sections 3862 and 3863 replace Handbook Section 3861, "Financial Instruments – Disclosure and Presentation", revising and enhancing its disclosure requirements, and carrying forward unchanged its presentation requirements. These new sections place increased emphasis on disclosures about the nature and extent of risks arising from financial instruments and how the entity manages those risks. The Company has included disclosures recommended by the new Handbook sections in Note 4 to these consolidated financial statements.
	(p)	Section 1400, "General Standard of Financial Statement Presentation"
		This section specifies requirements to assess an entity’s ability to continue as a going concern and disclose any material uncertainties that cast doubt on its ability to continue as a going concern. The Company's disclosure reflects such assessment.
	(q)	Credit Risk and the Fair Value of Financial Assets and Financial Liabilities
		In January 2009, the CICA approved EIC-173, "Credit Risk and the Fair Value of Financial Assets and Financial Liabilities", which applies to interim and annual financial statements for periods ending on or after January 20, 2009. The Company has evaluated the new section and determined that adoption of these new requirements has had no impact on the Company’s consolidated financial statements.

- 83 -

Grandview Gold Inc.

(An Exploration Stage Company)

Notes to Consolidated Financial Statements

For the Years ended May 31, 2010 and 2009

(Expressed in Canadian Dollars)

2.	Summary of Significant Accounting Policies (Continued)
	(r)	Mining Exploration Costs
		On March 27, 2009, the CICA approved an abstract EIC-174, “Mining Exploration Costs”, which provides guidance on capitalization of exploration costs related to mining properties in particular, and on impairment of long-lived assets in general. The Company has applied this new abstract for the year ended May 31, 2009 and there was no significant impact on its consolidated financial statements as a result of applying this abstract.
	(s)	Goodwill and Intangible Assets
		In February 2008, the CICA approved Handbook Section 3064, “Goodwill and Intangible Assets” which replaced Handbook Sections 3062, “Goodwill and Other Intangible Assets” and 3450 “Research and Development Costs”. This standard is effective for interim and annual financial statements relating to fiscal years beginning on or after October 1, 2008. The standard provides guidance on the recognition, measurement and disclosure requirements for goodwill and intangible assets. The Company adopted this standard on June 1, 2009, with no impact on its consolidated financial statements.
	(t)	Fair Value Hierarchy and Liquidity Risk Disclosure
		In June 2009, the CICA issued an amendment to Handbook Section 3862 to provide improvements to fair value and liquidity risk disclosures. The amendment applies to the Company's fiscal year ending May 31, 2010. This adoption resulted in additional disclosure. See note 4 for relevant disclosure.
	(u)	Future Accounting Changes
		International Financial Reporting Standards [“IFRS”]
		In January 2006, the CICA’s Accounting Standards Board ("AcSB") formally adopted the strategy of replacing Canadian GAAP with IFRS for Canadian enterprises with public accountability. The current conversion timetable calls for financial reporting under IFRS for accounting periods commencing on or after January 1, 2011. On February 13, 2008 the AcSB confirmed that the use of IFRS will be required in 2011 for publicly accountable profit-oriented enterprises. For these entities, IFRS will be required for interim and annual financial statements relating to fiscal years beginning on or after January 1, 2011. The Company is currently assessing the impact of IFRS on its consolidated financial statements.
		Business Combinations, Consolidated Financial Statements and Non-Controlling Interests
		The CICA issued three new accounting standards in January 2009: Section 1582, "Business Combinations", Section 1601, "Consolidated Financial Statements" and Section 1602, "Non-Controlling interests". These new standards will be effective for fiscal years beginning on or after January 1, 2011. Section 1582 replaces section 1581 and establishes standards for the accounting for a business combination. It provides the Canadian equivalent to IFRS 3 - Business Combinations. Sections 1601 and 1602 together replace section 1600, "Consolidated Financial Statements". Section 1601, establishes standards for the preparation of consolidated financial statements. Section 1602 establishes standards for accounting for a non-controlling interest in a subsidiary in consolidated financial statements subsequent to a business combination. It is equivalent to the corresponding provisions of IFRS lAS 27 - Consolidated and Separate Financial Statements. The Company is in the process of evaluating the requirements of the new standards.

- 84 -

Grandview Gold Inc.

(An Exploration Stage Company)

Notes to Consolidated Financial Statements

For the Years ended May 31, 2010 and 2009

(Expressed in Canadian Dollars)

3.	Capital Management
	The Company considers its capital structure to consist of share capital, warrants, contributed surplus and accumulated deficit. When managing capital, the Company’s objective is to ensure the entity continues as a going concern as well as to achieve optimal returns to shareholders and benefits for other stakeholders. Management adjusts the capital structure as necessary in order to support the acquisition, exploration and development of its mineral properties. The Board of Directors does not establish quantitative return on capital criteria for management, but rather relies on the expertise of the Company's management team to sustain the future development of the business.
	The properties in which the Company currently has an interest are in the exploration stage. As such the Company is dependent on external financing to fund its activities. In order to carry out the planned exploration program and pay for administrative costs, the Company will spend its existing working capital and raise additional amounts when economic conditions permit it to do so. Management has chosen to mitigate the risk and uncertainty associated with raising additional capital within current economic conditions by:
	i)	minimizing discretionary disbursements;
	ii)	reducing or eliminating exploration expenditures which are of limited strategic value; and
	iii)	exploring alternate sources of liquidity.
	In light of the above, the Company will continue to assess new properties and seek to acquire an interest in additional properties if it believes there is sufficient potential and if it has adequate financial resources to do so.
	There were no changes in the Company's approach to capital management during the year ended May 31, 2010. The Company is not subject to externally imposed capital requirements.
4.	Risk Factors
	The Company’s significant mineral properties are the Red Lake Gold Camp, Ontario, Canada, and the Guilianta Property, Peru (collectively called the "Properties").
	Unless the Company acquires or develops additional significant properties, the Company will be solely dependent upon the Properties. If no additional mineral properties are acquired by the Company, any adverse development affecting the Properties would have a material adverse effect on the Company's financial condition and results of operations.
	The Company's risk exposures and their impact on the Company's financial instruments are summarized below:
	Fair Value

The following summarizes the methods and assumptions used in estimating the fair value of the Company's financial instruments where measurement is required. The fair value of short-term financial instruments approximates their carrying amounts due to the relatively short period to maturity. These include cash and cash equivalents and short-term investments. Fair value amounts represent point-in-time estimates and may not reflect fair value in the future. The measurements are subjective in nature, involve uncertainties and are a matter of significant judgment. The methods and assumptions used to develop fair value measurements, for those financial instruments where fair value is recognized in the balance sheet, have been prioritized into three levels as per the fair value hierarchy included in GAAP. Level one includes quoted prices (unadjusted) in active markets for identical assets or liabilities. Level two includes inputs that are observable other than quoted prices included in level one. Level three includes inputs that are not based on observable market data.

		Level One		Level Two		Level Three
Cash and cash equivalents	$	1,432,824	$	-	$	-
Short-term investments	$	25,037	$	-	$	-
Reclamation bond	$	13,699	$	-	$	-

- 85 -

Grandview Gold Inc.

(An Exploration Stage Company)

Notes to Consolidated Financial Statements

For the Years ended May 31, 2010 and 2009

(Expressed in Canadian Dollars)

4.	Risk Factors (Continued)
	Credit Risk
	Credit risk is the risk of loss associated with a counterparty’s inability to fulfill its payment obligations. The Company's credit risk is primarily attributable to cash and cash equivalents, short term investments, GST and sundry receivable and due from a related party. Cash and cash equivalents and short term investments are held with a reputable Canadian chartered bank, from which management believes the risk of loss to be minimal.
	Financial instruments included in GST and sundry receivable and due from a related party consist of sales tax receivable from government authorities in Canada, deposits held with service providers and a loan provided to the President and CEO of the Company. GST and sundry receivable and due from a related party are in good standing as of May 31, 2010. Management believes that the credit risk concentration with respect to financial instruments included in GST and sundry receivable and due from a related party is minimal.
	Liquidity Risk
	The Company's approach to managing liquidity risk is to ensure that it will have sufficient liquidity to meet liabilities when due. As at May 31, 2010, the Company had a cash and cash equivalents and short term investments balance of $1,457,861 (May 31, 2009 - $514,086) to settle current liabilities of $89,284 (May 31, 2009 - $72,467). All of the Company's financial liabilities have contractual maturities of less than 30 days and are subject to normal trade terms.
	Market Risk
	Market risk is the risk of loss that may arise from changes in interest rates, foreign exchange rates and commodity prices.
	(a)	Interest Rate Risk
		The Company has cash balances and no interest-bearing debt. The Company's current policy is to invest excess cash in investment-grade short-term deposit certificates issued by the Company's Canadian chartered bank. The Company periodically monitors the investments it makes and is satisfied with the creditworthiness of its bank.
	(b)	Foreign Currency Risk
		The Company's functional and reporting currency is the Canadian dollar and major purchases are transacted in Canadian dollars. As a result, the Company's exposure to foreign currency risk is minimal.
	(c)	Price Risk
		The Company is exposed to price risk with respect to commodity prices. Commodity price risk is defined as the potential adverse impact on earnings and economic value due to commodity price movements and volatilities. The Company closely monitors commodity prices, as they relate to gold to determine the appropriate course of action to be taken by the Company.

- 86 -

Grandview Gold Inc.

(An Exploration Stage Company)

Notes to Consolidated Financial Statements

For the Years ended May 31, 2010 and 2009

(Expressed in Canadian Dollars)

4.	Risk Factors (Continued)
	Sensitivity Analysis
	The Company has, for accounting purposes, designated its cash and cash equivalents and short term investments as held for trading, which is measured at fair value. GST and sundry receivable and due from a related party are classified for accounting purposes as loans and receivables, which are measured at amortized cost which equals fair value. Accounts payable and accrued liabilities are classified for accounting purposes as other financial liabilities, which are measured at amortized cost and which also equal fair value.
	As of May 31, 2010, the carrying and fair value amounts of the Company's financial instruments are approximately equivalent.
	The sensitivity analysis shown in the notes below may differ materially from actual results.
	Based on management's knowledge and experience of the financial markets, the Company believes the following movements are "reasonably possible" over a twelve month period:
	(i)	Short term investments are subject to floating interest rates. As at May 31, 2010, if interest rates had decreased/increased by 1% with all other variables held constant, the loss for the twelve months ended May 31, 2010 would have been approximately $250 higher/lower, as a result of lower/higher interest income from short term investments. As at May 31, 2010, reported shareholders' equity would have been approximately $250 lower/higher as a result of lower/higher interest income from short term investments.
	(ii)	The Company does not hold significant balances in foreign currencies to give rise to exposure to foreign exchange risk.
	(iii)	Commodity price risk could adversely affect the Company. In particular, the Company’s future profitability and viability of development depends upon the world market price of gold. Gold has fluctuated widely in recent years. There is no assurance that, even as commercial quantities of gold may be produced in the future, a profitable market will exist for gold. A decline in the market price of gold may also require the Company to reduce its mining interests, which could have a material and adverse effect on the Company’s value. As of May 31, 2010, the Company was not a gold producer. As a result, commodity price risk may affect the completion of future equity transactions such as equity offerings and the exercise of stock options and warrants. This may also affect the Company's liquidity and its ability to meet its ongoing obligations.
5.	Short Term Investments
	As of May 31, 2010, the Company has $25,000 (2009 - $400,000; 2008 - $975,000) invested in cashable guaranteed investment certificates maturing at various dates to April 8, 2011, bearing interest at a variable rate. As at May 31, 2010, 2009 and 2008 the Company had accrued $37, $7,493 and $36,410 respectively as interest receivable on its short term investments.

- 87 -

Grandview Gold Inc.

(An Exploration Stage Company)

Notes to Consolidated Financial Statements

For the Years ended May 31, 2010 and 2009

(Expressed in Canadian Dollars)

6.	Reclamation Bond
	The Company has posted reclamation bonds for its mining projects, as required by the United States Department of the Interior Bureau of Land Management, to secure clean-up costs, if any, on projects that are abandoned or closed.
7.	Mining Interests
	(a)	Pony Creek Carlin Trend Project, Nevada, USA
		On July 27, 2004, the Company entered into an option agreement with Mill City Gold Corp. (formerly Mill City International Corporation) ("Mill City") to earn a 60% interest in the Pony Creek/Elliot Dome Property (the “Pony Creek”) in the State of Nevada, USA. In order to earn this option the Company must do the following:
		(i)	After 10 business days of signing the agreement issue 400,000 common shares to Mill City, which were valued at $4,000 (issued);
		(ii)	Spend or cause to be spent $500,000 US on the properties by July 31, 2005 (completed);
		(iii)	Spend or cause to be spent $1,000,000 US on the properties by July 31, 2006 (completed);
		(iv)	During this 2 year period the Company and Mill City will look for a joint venture partner who is a major mining and exploration company ("major"). This major would provide assistance with deep hole structural modelling as well as geological database development. In return for the assistance the major will be offered a 1st right of refusal option to earn a 60% interest in the properties by completing a bankable feasibility study;
		(v)	Mill City will enter into a Professional Geological Services Contract with the Company specifically mandated to ensure all communications with the major are maximized. The Company will pay Mill City $7,250 US per month for the first year and $8,250 US per month for the second year for the various services outlined in the contract;
		(vi)	If the Company is able to complete sections (i), (ii), (iii) and (iv), Mill City can elect to convert its 40% interest to a 20% carried interest. If Mill City does not convert to a carried interest, it is responsible for 40% of the costs associated with the project. There is a 4% Net Smelter Return ("NSR") payable to an individual who owned the property and it will be reduced to 2% as the Company has the option to purchase another 1% for each property prior to the commencement of commercial production for $1,500,000 US each, for a total of $3,000,000 US;

- 88 -

Grandview Gold Inc.

(An Exploration Stage Company)

Notes to Consolidated Financial Statements

For the Years ended May 31, 2010 and 2009

(Expressed in Canadian Dollars)

7.	Mining Interests (Continued)
	(a)	Pony Creek Carlin Trend Project, Nevada, USA (Continued)
		(vii)	If the Company cannot satisfy the conditions of finding a major it can still earn the 60% interest by spending an additional $2,000,000 US by August 31, 2007 and continue the Professional Geological Services Contract for a further year. The NSR will not be reduced from 4% to 2% but the Company may purchase 1% for each property prior to commencement of commercial production for $1,000,000 US each for a total of $2,000,000 US. As of January 21, 2005, the Company and Mill City have amended the option agreement of July 27, 2004. The Company and Mill City have agreed to revise the Agreement by removing the Company's obligation to enter into a Professional Geological Services Contract with Mill City and add that the Company will be responsible for all future underlying advance royalty payments. The terms of the Agreement, as amended, was contained in a standard form Option Agreement dated April 14, 2005 (the “Option Agreement”).
			On June 20, 2007, the Company announced that it has fulfilled the terms of its option agreement with Mill City relating to the Company’s right to earn an undivided 60% interest in Pony Creek.
			Under the terms of the option agreement with Mill City, dated April 14, 2005, the Company had a right to earn an undivided 60% interest in Pony Creek by spending US$3,500,000 over three years. The Company presented a detailed accounting of its US$3,500,000 exploration program completed to date, as well as plans for exploration moving forward.
			Mill City accepted in writing on June 20, 2007, the Company’s earn-in and further, Mill City has informed the Company that, as per the terms of the Option Agreement, it will exercise its option to dilute its 40% participating interest to a 20% carried interest, up to and including the date on which the Bankable Feasibility Study is completed by the Company. At that time Mill City shall convert its 20% carried interest to a 20% participating interest. The acceptance by Mill City of the terms of the Company’s earn in, immediately converts the Company’s 60% interest to an 80% interest in Pony Creek.
			The Company has recorded an asset retirement obligation on its Pony Creek Carlin Trend project, representing the estimated costs of the Company's obligation to restore the property site to its original condition as required by regulatory authorities. The Company has recorded an asset retirement obligation in the amount of $13,699, equal to the amount of reclamation bond posted by the Company with the United States, Department of Interior Bureau of Land Management.
			In fiscal 2009, the Company determined that the carrying value of its Pony Creek Carlin Trend project in Nevada, USA could not be supported, resulting in a write-off charge of $5,903,342.

- 89 -

Grandview Gold Inc.

(An Exploration Stage Company)

Notes to Consolidated Financial Statements

For the Years ended May 31, 2010 and 2009

(Expressed in Canadian Dollars)

7.	Mining Interests (Continued)
	(b)	Red Lake Gold Camp, Ontario, Canada
		(i)	The Company owns a 100% interest in 8 mining claims located in the Red Lake Area, District of Kenora, in Northwestern Ontario. The mining claims were written off several years ago when the Company decided to change its business. Since the Company has changed back to resource exploration the Company is once again capitalizing the expenditures related to these claims.
		(ii)	On October 18, 2005, the Company signed a definitive Option Agreement with Fronteer Development Group Inc. (“Fronteer”) for Fronteer’s Dixie Lake Property (the “Dixie lake”) located in Ontario’s Red Lake Gold District on the following terms and conditions:
			(a)	The Company shall earn a 51% interest in the Dixie Lake Property by incurring exploration expenditures of $300,000 (completed), assuming payments totaling $75,000 to the underlying property vendor; and
			(b)	issuing 160,000 shares of the Company at $1.25 per share for a total value of $200,000, to a third party as a finder’s fee (issued).
			On October 17, 2007, the Company announced that it has fulfilled the terms of its option agreement with Fronteer relating to the Company’s right to earn an undivided 51% interest in Dixie lake.
			Under the terms of the option agreement with Fronteer, dated August 26, 2005, the Company had a right to earn an undivided 51% interest in Dixie lake by spending US$300,000 over three years, making $75,000 in cash payments and issuing 40,000 shares to the underlying vendor. The Company presented a detailed accounting of its US$1,711,000 exploration program completed to date, as well as plans for exploration moving forward.
			Fronteer accepted in writing, the Company’s earn-in and further, Fronteer has informed the Company that, as per the terms of the Option Agreement, it will exercise its option to dilute its 49% participating interest to a 36% participating interest in Dixie lake.
		(iii)	On February 8, 2007, the Company announced it had signed a formal option agreement with EMCO SA, (“EMCO”) relating to the acquisition of an option to acquire a 60 percent interest in the 10 unpatented and 2 patented claims in Sanshaw-Bonanza gold property on the following terms and conditions:
			(a)	the Company has an option to earn an undivided 60 percent interest in the Sanshaw-Bonanza property by incurring $250,000 in resource exploration and development expenditures on or before August 31, 2007; and
			(b)	issuing 115,000 of the Company's common shares (55,000 common shares were issued in February 2007 and valued at $22,000; 30,000 common shares were issued in April 2008 and valued at $10,800; 30,000 commons shares were issued in July 2008 and valued at $10,800) in tranches over an 18-month period and 200,000 warrants (issued) at an exercise price of $1.40 per share which will expire 36 months from the date of issuance.
				The fair value of the 200,000 common share purchase warrants issued for the 60 percent interest in the 10 claim Sanshaw-Bonanza gold property has been estimated to be $32,200 using the Black-Scholes option pricing model. In determining this value, the following assumptions were used: risk-free interest rate of 3.96%, dividend yield of 0%, expected stock volatility of 101% and an expected life of 36 months.

- 90 -

Grandview Gold Inc.

(An Exploration Stage Company)

Notes to Consolidated Financial Statements

For the Years ended May 31, 2010 and 2009

(Expressed in Canadian Dollars)

7.	Mining Interests (Continued)
	(b) Red Lake Gold Camp, Ontario, Canada (Continued)

(iii) (b) (Continued)

Terms of the agreement provide for the dilution of EMCO’s interest in the property to 10% on the occurrence of certain events, which would then convert their interest to a 3% NSR. An underlying 1.5% NSR remains with the original property owner.

On June 18, 2007, the Company amended the option agreement with EMCO relating to the Sanshaw-Bonanza property. The Company has agreed to increase the expenditures required to be incurred on or before August 31, 2008 to $500,000 and to issue to EMCO 100,000 common shares in the capital of the Company as consideration for the amended agreement (issued and valued at $35,000).

On September 11, 2008, the Company reported that it has incurred the expenditures required to successfully fulfill the terms of its option agreement with EMCO to earn a 60% undivided interest in the Sanshaw-Bonanza property.

(iv)	On April 28, 2010, the Company to announced that, through a series of cash and share payments (the “Transaction”), it had:
	1.	acquired the remaining 40% interest in its Sanshaw-Bonanza property (the “Property”) in the Red LakeGold District of Ontario from EMCO Corporation S.A. ("EMCO");
	2.	acquired four additional claims which are contiguous to the Property from Perry English ("English"); and
	3.	reduced the existing NSR on the Property, so that the Company now holds a 100% interest in and to the Property, subject only to an NSR of just 0.375%.
	Grandview had previously completed expenditure requirements to earn a 60% interest in the Property as per an option agreement with EMCO dated February 7, 2007. To acquire the remaining 40% interest in the Property, the Company paid EMCO $25,000 CAD in cash and issued 50,000 common shares in its capital. Also, the Company expanded the Property parcel by acquiring two unpatented claims and two patented claims for aggregate consideration of $60,000 CAD in cash and the issuance of 500,000 common shares in its capital.
	Concurrently, the Company also purchased 75% of the outstanding 1.5% NSR on the Property for $25,000 CAD cash. Cumulative expenditures related to the Transaction totalled $110,000 CAD cash and 550,000 common shares of the Company.

- 91 -

Grandview Gold Inc.

(An Exploration Stage Company)

Notes to Consolidated Financial Statements

For the Years ended May 31, 2010 and 2009

(Expressed in Canadian Dollars)

7.	Mining Interests (Continued)
	(c)	Rice Lake Gold Camp, Manitoba, Canada
		(i)	The Company currently holds 100% interest in 5 mining claims in close proximity to the Bissett Gold Mine (San Antonio Mine) located on the Rice Lake greenstone belt, in southeastern Manitoba.
		(ii)	On September 30, 2005, the Company and Marum Resources Inc. (“Marum”) entered into an option agreement to jointly explore Marum’s 100% owned Gem gold property representing 7 mining claims at the eastern end of Manitoba’s Rice Lake Greenstone Belt.
			The Company can earn a 50% undivided interest in the Gem property by performing $250,000 in exploration work on the Property, at a cumulative rate of $125,000 by September 30, 2006 and $250,000 by September 30, 2007, such work to include a high-resolution aeromagnetic survey with a maximum 50-metre line spacing (completed). The Company will be the operator of the property until such time as its option to earn the 50% interest is exercised.
			In December 2006, Marum and Grandview agreed to amend their option agreement dated September 30, 2005, whereby Grandview shall earn a 50% interest in the property by spending $250,000 in exploration work before September 30, 2007. Marum and Grandview have agreed to extend the earn-in period to December 31, 2007.
		(iii)	On February 23, 2007, the Company purchased, from McKeena Gold Inc. (“McKeena”), a 100% interest in the Angelina and the Banksian gold properties (Manitoba). The Angelina gold property consists of 4 unpatented mining claims and the Banksian gold property consists of 14 claims. In order to acquire these properties the Company must do the following:
			(a)	Issuance of 100,000 common share warrants (issued) at an exercise price of $0.70, initially expiring February 28, 2008, extended to February 28, 2009.
			(b)	Issuance of 250,000 common share warrants (issued) at an exercise price of $0.70, initially expiring February 28, 2008, extended to February 28, 2009.
			The fair value of the 350,000 common share purchase warrants issued for the Angelina and Banksian gold properties has been estimated to be $74,550 using the Black-Scholes option pricing model. In determining this value, the following assumptions were used: risk-free interest rate of 4.02%, dividend yield of 0%, expected stock volatility of 102% and an expected life of 12 months.
		(iv)	Grandview has a 100% interest in 16 unpatented mining claims in the Long Lake - Cat Lake area of southeastern Manitoba (the "GVG Property"). The Company staked these claims in 2005 and 2006.
			In fiscal 2009, the Company determined that the carrying value of its Rice Lake Gold Camp in Manitoba, Canada could not be supported, resulting in an impairment charge of $1,557,112.

- 92 -

Grandview Gold Inc.

(An Exploration Stage Company)

Notes to Consolidated Financial Statements

For the Years ended May 31, 2010 and 2009

(Expressed in Canadian Dollars)

7.	Mining Interests (Continued)
	(d)	Rocky Ridge Gold Property, Manitoba, Canada
		On November 23, 2006, the Company signed a formal option agreement with Harvest Gold Corp ("Harvest Gold") relating to the acquisition of a 70 percent interest in the Rocky Ridge gold property in Manitoba on following terms and conditions:
		(i)	the Company had an option to earn an undivided 70 percent interest in the Rocky Ridge property by paying an amount of $85,000 and incurring $600,000 in resource exploration; and
		(ii)	issuing 225,000 shares of the Company, over a two-year period. On signing, the Company was required to make a payment of $20,000 (accrued) and issue 50,000 (valued at $34,500) shares (issued) to Harvest Gold (Note 9(b)). At the end of year one, the Company is required to incur $250,000 in exploration expenditures, make a payment of $30,000, and issue 75,000 shares to Harvest Gold. At the end of year two, the Company is required to make a further $350,000 in exploration expenditures, make a final $35,000 payment, and issue the outstanding 100,000 common shares.
			Harvest Gold has an option to buy-out up to two percent of a three percent underlying NSR assigned to the original property owner, at a cost of $250,000 per each one percent, for a potential total of $500,000. The one to two percent NSR buy-out would occur on a pro-rata basis, with the Company acquiring 70 percent and Harvest Gold acquiring 30 percent.
			A finders fee of 250,000 common share purchase warrants exercisable at $1.00 for a period of two years was issued in connection with the transaction. The value assigned to these warrants was $78,000 using the Black- Scholes option pricing model with the following assumptions: expected dividend yield - 0%; expected volatility - 101%; risk-free interest rate - 3.85% and an expected life of 2 years.
			During 2008, the Company decided not to pursue the exploration of this project and to write off all accumulated deferred exploration costs.
	(e)	Guilianita Project, Peru
		On July 2, 2009, a binding Memorandum of Understanding (the “Memorandum”) was signed with a private Peruvian Group which grants a two-stage option (the "Option") to acquire up to a 100% interest in a property located in the Suyo District, Ayabaca Province, Piura Department, Peru (the “Guilianita”). The Option provides the Company with a right to earn an 80% interest in Guilianita by (i) making a US$20,000 cash payment on signing of the Memorandum;
		(ii)	incurring CAD $1.4 million in exploration and development expenditures; and (iii) issuing a total of two million common shares of the Company over a three year period. (issued - 200,000 common shares)
			The Option also allows the Company to acquire the remaining 20% subject to it making an additional payment of US$300,000 (CAD$313,050) and issuing a further 250,000 common shares of the Company prior to the third anniversary of the date of the Memorandum.

- 93 -

Grandview Gold Inc.

(An Exploration Stage Company)

Notes to Consolidated Financial Statements

For the Years ended May 31, 2010 and 2009

(Expressed in Canadian Dollars)

8.	Share Capital
	(a)	Authorized
	Unlimited number of common shares
	Unlimited number of preference shares. The preference shares are without par value, redeemable, voting, nonparticipating, and are convertible into common shares at the rate of one common share for five preference shares (none currently issued and outstanding).
	(b)	Issued

	Number
	of
	shares		Amount
Balance, March 26, 2004 and May 31, 2004	3,270,998	$	3,378,444
Stock split (3 for 1)	6,541,996		-
Private Placement	120,000		120,000
Private Placement	150,000		150,000
Mineral property acquisition	400,000		4,000
Private Placement	175,000		175,000
Private Placement	1,005,000		1,005,000
Warrant valuation	-		(138,188	)
Mineral property acquisition	118,500		159,975
Mineral property acquisition	70,000		86,800
Cost of issue – warrant valuation	-		(35,200	)
Cost of issue – cash laid out	-		(124,081	)
Balance, May 31, 2005	11,851,494	$	4,781,750

- 94 -

Grandview Gold Inc.

(An Exploration Stage Company)

Notes to Consolidated Financial Statements

For the Years ended May 31, 2010 and 2009

(Expressed in Canadian Dollars)

8.	Share Capital (Continued)
	(b) Issued (Continued)

	Number
	of
	shares		Amount
Balance, May 31, 2005	11,851,494	$	4,781,750
Private placement	2,019,104		2,523,880
Debt conversion	80,000		100,000
Warrant valuation	-		(178,023	)
Private placement	590,320		737,900
Warrant valuation	-		(111,498	)
Shares issued for a finders’ fee	160,000		200,000
Private placement	400,000		500,000
Private placement	3,985,974		4,384,571
Warrant valuation	-		(1,335,301	)
Cost of issue – broker warrant valuation	-		(462,173	)
Cost of issue – cash laid out	-		(866,375	)
Flow-through cost of issue	-		(731,430	)
Balance, May 31, 2006	19,086,892	$	9,543,301
Private placement	2,399,998		1,559,999
Warrant valuation	-		(284,400	)
Mineral property acquisition	50,000		34,500
Mineral property acquisition	55,000		22,000
Private placement	3,250,000		1,462,500
Warrant valuation	-		(339,625	)
Cost of issue – cash laid out	-		(249,300	)
Cost of issue – finder options valuation	-		(165,800	)
Flow-through cost of issue	-		(563,472	)
Balance, May 31, 2007	24,841,890	$	11,019,703
Private placement (i) (ii) (iii)	11,169,000		4,950,150
Warrant valuation (i) (ii)	-		(940,212	)
Mineral property acquisition (Note 7(b)(iii))	130,000		45,800
Exercise of warrants (Note 9(i))	147,875		66,544
Exercise of warrants valuation	-		36,673
Cost of issue – cash laid out	-		(488,720	)
Cost of issue – broker warrants valuation (Note 8(b)(i)(ii) and Note 9(i))	-		(227,417	)
Flow-through cost of issue (iv)	-		(260,255	)
Balance, May 31, 2008	36,288,765	$	14,202,266

- 95 -

Grandview Gold Inc.

(An Exploration Stage Company)

Notes to Consolidated Financial Statements

For the Years ended May 31, 2010 and 2009

(Expressed in Canadian Dollars)

8.	Share Capital (Continued)
	(b) Issued (Continued)

	Number
	of
	shares		Amount
Balance, May 31, 2008	36,288,765	$	14,202,266
Mineral property acquisition (Note 7(b)(iii))	30,000		10,800
Private Placement (v)	8,333,333		416,666
Cost of issue – cash	-		(47,833	)
Cost of issue – broker warrants valuation	-		(30,666	)
Flow-through cost of issue (v)	-		(120,833	)
Balance, May 31, 2009	44,652,098		14,430,400
Mineral property acquisition (Note 7(b)(iv) and 7(e))	750,000		67,000
Debt conversion (vii)	360,937		28,875
Exercise of warrants – cash	333,333		16,667
Exercise of warrants – valuation	-		15,333
Private placement (vi)	26,666,665		2,000,000
Cost of issue – cash	-		(36,392	)
Cost of issue – broker warrant valuation (vi)	-		(1,440,000	)
Balance, May 31, 2010	72,763,033	$	15,081,883

(i)	On July 6, 2007, the Company closed a brokered private placement with Bolder Investment Partners, Ltd. (the "Agent") . The brokered placement resulted in the issuance by the Company of a total of 8,589,000 units in the capital of the Company (the “Units”) at a purchase price of $0.40 per Unit for gross proceeds of $3,435,600. Each Unit consists of one common share of the Company and one-half of one common share purchase warrant ("Warrant"). Each whole Warrant is exercisable to acquire one further common share of the Company at a price of $0.65 for a period of 24 months from closing.
	The fair value of the 4,294,500 common share purchase warrants has been estimated to be $704,298 using the Black- Scholes option pricing model. In determining this value, the following assumptions were used: risk-free interest rate of 4.72%, dividend yield of 0%, expected stock volatility of 97% and an expected life of 24 months.
	In connection with the brokered placement, the Company paid a cash fee to the Agent of 8% of the gross proceeds raised for total of $274,848 and also issued broker warrants to acquire 8% of the total number of Units issued at a price of $0.40 per Unit for a period of 24 months from closing. In addition, the Company also paid a cash work fee of $7,500 for certain services of the Agent.
	The fair value of the 687,120 broker warrants has been estimated to be $145,670 using the Black-Scholes option pricing model. In determining this value, the following assumptions were used: risk-free interest rate of 4.72%, dividend yield of 0%, expected stock volatility of 97% and an expected life of 24 months.
	The Company also closed a non-brokered placement on the same terms as the brokered placement for an additional 125,000 Units and further proceeds of $50,000.
	Other costs associated to the private placements amounted to $103,497.

- 96 -

Grandview Gold Inc.

(An Exploration Stage Company)

Notes to Consolidated Financial Statements

For the Years ended May 31, 2010 and 2009

(Expressed in Canadian Dollars)

8.	Share Capital (Continued)
	(b)	Issued (Continued)
	(i)	(Continued)
		The fair value of the 62,500 common share purchase warrants has been estimated to be $10,250 using the Black- Scholes option pricing model. In determining this value, the following assumptions were used: risk-free interest rate of 4.72%, dividend yield of 0%, expected stock volatility of 97% and an expected life of 24 months.
	(ii)	On December 21, 2007, the Company closed a brokered private placement (the "Brokered Placement") with Bolder Investment Partners, Ltd. (the "Agent"). The Brokered Placement resulted in the issuance of 1,312,000 units in the capital of the Company (the "Units) at a purchase price of $0.55 per Unit for gross proceeds of $721,600 and 605,000 flow-through shares at a purchase price of $0.65 per share for gross proceeds of $393,250. Each Unit consists of one common share of the Company and one-half of one common share purchase warrant ("Warrant"). Each whole Warrant is exercisable to acquire one further common share of the Company at a price of $0.70 for a period of 24 months from closing.
		The fair value of the 656,000 common share purchase warrants has been estimated to be $225,664 using the Black- Scholes option pricing model. In determining this value, the following assumptions were used: risk-free interest rate of 3.85%, dividend yield of 0%, expected stock volatility of 133.41% and an expected life of 24 months.
		In connection with the Brokered Placement, Grandview paid a cash fee to the Agent of 8% of the gross proceeds raised for a total of $89,188 and also issued broker warrants to acquire 8% of the total number of Units issued under the Brokered Placement at a price of $0.60 per Unit for a period of 24 months from closing.
		The fair value of the 153,360 broker warrants has been estimated to be $55,056 using the Black-Scholes option pricing model. In determining this value, the following assumptions were used: risk-free interest rate of 3.85%, dividend yield of 0%, expected stock volatility of 133.41% and an expected life of 24 months.
		Other costs associated to the private placements amounted to $12,466.
	(iii)	On December 28, 2007, the Company closed a non-brokered private placement (the "Non-Brokered Placement"). The Non-Brokered Placement resulted in the issuance by the Company of a total of 538,000 flow-through shares (the “Flow-Through Shares”) at a purchase price of $0.65 per Flow-Through Share for gross proceeds of $349,700 under the Non-Brokered Placement.

(iv) During the period from January 1, 2007 to December 31, 2007, the Company issued an aggregate of 1,143,000 flow- through common shares for total proceeds of $742,950. Exploration expenditures of $742,950 were renounced effective December 31, 2007. The renunciation created a future income tax recovery of approximately $260,255, which was allocated as a cost of issuing the flow-through shares.

- 97 -

Grandview Gold Inc.

(An Exploration Stage Company)

Notes to Consolidated Financial Statements

For the Years ended May 31, 2010 and 2009

(Expressed in Canadian Dollars)

8.	Share Capital (Continued)
	(b)	Issued (Continued)
	(v)	On December 5, 2008, the Company closed a brokered private placement (the “Offering”) with Sandfire Securities Inc. The Offering resulted in the issuance of 8,333,333 flow-through common shares (the “Common Shares”) to the MineralFields Group at a purchase price of $0.05 per share for gross proceeds of $416,666. The securities issued pursuant to Offering were subject to a four (4) month statutory hold commencing from the date of issuance.
		In connection with the Offering, Grandview paid a cash fee of 8% of the gross proceeds raised ($33,333) under the Offering and also issued broker warrants to acquire 666,666 Common Shares at a price of $0.05 per Common Share for a period of 24 months after closing. The fair value of each warrant was calculated using the Black-Scholes option pricing model with the following assumptions: dividend yield of 0%; expected volatility of 156.7%; risk-free interest rate of 1.52% and an expected average life of 2 years. The value assigned was $30,666.
		Pursuant to the terms of the flow-through share agreements, the tax attributes of the related expenditures are renounced to subscribers. As a result, the Company is required to recognize a foregone tax benefit of $120,833 at the time of renouncement.

(vi)	December 3, 2009, the Company announced that it has closed the private placement purchase agreement ("Purchase Agreement") with Centerpoint Resources Inc. ("Centerpoint"), a corporation incorporated under the laws of the Province of British Columbia, and 10 other investors resulting in aggregate proceeds to the Company treasury of $2,000,000 to fund exploration and development of the Giulianita project in Peru and to maintain Canadian operations.
	The Purchase Agreement represents an investment by Centerpoint in Grandview comprised of a private placement financing consisting of 20 million units ("Unit") at a price of $0.075 per Unit for aggregate proceeds to Grandview of $1,500,000. Each Unit consists of one common share and one common share purchase warrant ("Warrant") with each whole Warrant entitling the holder to acquire one further common share at a price of $0.12, expiring 24 months from the date of issue. In addition, Grandview completed a concurrent non-brokered financing resulting in the issuance of an additional 6,666,665 Units for aggregate proceeds of $500,000, some of which Units were acquired by directors and officers of Grandview.
	The fair value of the 26,666,665 common share purchase warrants has been estimated to be $1,440,000 using the Black-Scholes option pricing model. In determining this value, the following assumptions were used: risk-free interest rate of 1.12%, dividend yield of 0%, expected stock volatility of 169.78% and an expected life of 24 months.
(vii)	On January 7, 2010, the Company issued 360,937 common shares at a price of $0.08 to settle a debt of $28,875 in respect of services rendered by a consultant to the Company.

- 98 -

Grandview Gold Inc.
(An Exploration Stage Company)
Notes to Consolidated Financial Statements
For the Years ended May 31, 2010 and 2009
(Expressed in Canadian Dollars)
9.                  Warrants
	Number of			Weighted Average
	Warrants			Exercise Price
Balance, May 31, 2004 and March 26, 2004	-		$	-
Issued	602,500			1.44
Expired	-			-
Balance, May 31, 2005	602,500		$	1.44
Issued	3,435,238			1.63
Expired	(602,500	)		(1.44	)
Balance, May 31, 2006	3,435,238		$	1.63
Issued	4,189,999			0.91
Expired	(1,043,654	)		1.60
Balance, May 31, 2007	6,581,583		$	1.18
Issued (Note 8(b)(i)(ii))	5,853,480			0.62
Issued (i)	73,937			0.65
Exercised (i)	(147,875	)		0.45
Balance, May 31, 2008	12,361,125		$	0.92
Expired	(6,307,645	)		(1.18	)
Issued (Note 8(b)(vi))	666,666			0.05
Balance, May 31, 2009	6,720,146		$	0.59
Expired	(6,053,480	)		(0.60	)
Issued (Note 8(b)(vi))	26,666,665			0.12
Exercised	(333,333	)		(0.05	)
Balance, May 31, 2010	26,999,998		$	0.12

(i) 147,875 warrants at a price of $0.45 expiring March 16, 2009 were exercised. These warrants had a step-up feature resulting in the creation of 73,937 new warrants with an exercise price of $0.65 expiring on March 16, 2009. The fair value of the 73,937 warrants has been estimated to be $26,691 using the Black-Scholes option pricing model. In determining this value, the following assumptions were used: risk-free interest rate of 4.16%, dividend yield of 0%, expected stock volatility of 138.81% and an expected life of 1.5 years.

The following are the warrants outstanding at May 31, 2010:

Number of		Fair	Exercise	Expiry
Warrants		Value	Price	Date
333,333		15,333	0.05	December 4, 2010
26,666,665		1,440,000	0.12	December 3, 2011
26,999,998	$	1,455,333

- 99 -

Grandview Gold Inc.
(An Exploration Stage Company)
Notes to Consolidated Financial Statements
For the Years ended May 31, 2010 and 2009
(Expressed in Canadian Dollars)
9.              Warrants (Continued)
The following are the warrants outstanding at May 31, 2009:
	Number of		Fair		Exercise
	Warrants		Value		Price ($)	Expiry
	4,357,000	$	714,548	$	0.65	July 6, 2009
	687,120		145,670		0.40	July 6, 2009
	656,000		225,664		0.70	December 21, 2009
	153,360		55,056		0.60	December 21, 2009
	200,000		32,200		1.40	February 8, 2010
	666,666		30,666		0.05	December 4, 2010
	6,720,146	$	1,203,804
The following are the warrants outstanding at May 31, 2008
	Number of		Fair		Exercise
	Warrants		Value		Price ($)	Expiry
	250,000		78,000		1.00	November 29, 2008
	1,199,999		284,400		1.40	December 22, 2008
	240,000		85,200		0.65	December 22, 2008
	350,000	$	74,550		0.70	February 28, 2009
	1,698,937		366,316		0.65	March 16, 2009
	177,125		43,927		0.45	March 16, 2009
	1,992,987		1,335,301		1.75	March 27, 2009
	398,597		301,738		1.10	March 27, 2009
	4,357,000		714,548		0.65	July 6, 2009
	687,120		145,670		0.40	July 6, 2009
	656,000		225,664		0.70	December 21, 2009
	153,360		55,056		0.60	December 21, 2009
	200,000		32,200		1.40	February 8, 2010
	12,361,125	$	3,742,570

- 100 -

Grandview Gold Inc.

(An Exploration Stage Company)

Notes to Consolidated Financial Statements

For the Years ended May 31, 2010 and 2009

(Expressed in Canadian Dollars)

10. Stock Options

The Company maintains an employee stock option plan under which the Board of Directors, or a committee appointed for such purpose, may from time to time grant to employees, officers, directors or consultants of the Company, options to acquire common shares in such numbers, for such terms and at such exercise prices, as may be determined by the Board of Directors or such committee.

The stock option plan provides that the maximum number of common shares in the capital of the Company that may be reserved for issuance for all purposes under the stock option plan shall be equal to 10% of the total issued and outstanding common shares and that the maximum number of common shares which may be reserved for issuance to any one optionee pursuant to share options may not exceed 5% of the common shares outstanding at the time of grant.

The options are valid for a maximum of 5 years from the date of issue and the normal vesting term is 1/4 immediately and 1/4 after 3, 6 and 9 month period from the date of grant.

The following is continuity of stock options for the period from March 26, 2004 to May 31, 2010.

	Number			Weighted Average
	of			Exercise
	Stock Options			Price
Balance, May 31, 2004 and March 26, 2004	-		$	-
Granted	1,225,000			1.01
Forfeited	(100,000	)		1.00
Balance, May 31, 2005	1,125,000		$	1.06
Granted	1,100,000			1.55
Balance, May 31, 2006	2,225,000		$	1.28
Granted	1,250,000			1.06
Expired	(375,000	)		1.00
Forfeited	(250,000	)		1.19
Balance, May 31, 2007	2,850,000		$	1.22
Granted (i)(ii)	2,700,000			0.63
Expired	(850,000	)		1.13
Forfeited	(125,000	)		1.38
Balance, May 31, 2008	4,575,000		$	0.89
Forfeited	(175,000	)		0.68
Balance, May 31, 2009	4,400,000		$	0.90
Granted (iii)(iv)	4,250,000			0.15
Expired	(1,375,000	)		0.75
Forfeited	(1,400,000	)		0.93
Balance, May 31, 2010	5,875,000		$	0.38

- 101 -

Grandview Gold Inc.

(An Exploration Stage Company)

Notes to Consolidated Financial Statements

For the Years ended May 31, 2010 and 2009

(Expressed in Canadian Dollars)

10.	Stock Options (Continued)
	(i)	On September 28, 2007, the Company granted an aggregate of 2,000,000 options to directors, officers, geologists and consultants of the Company at an exercise price of $0.68 for a period of five years. All the options granted vest immediately. The estimated fair market value under the Black-Scholes option pricing model was $1,274,000. In determining this value, the following assumptions were used: risk-free interest rate of 4.20%, dividend yield of 0%, expected stock volatility of 161.6% and an expected life of 5 years. The fair value was allocated as follows: directors and management share-based payments - $1,162,525, consulting fees capitalized to mining interests - $111,475.
	(ii)	On April 15, 2008, the Company granted an aggregate of 700,000 options to a consultant of the Company at an exercise price of $0.50 for a period of two years. All the options granted vest immediately. The estimated fair market value under the Black-Scholes option pricing model was $159,600, which was expensed during the year. In determining this value, the following assumptions were used: risk-free interest rate of 2.65%, dividend yield of 0%, expected stock volatility of 146.3% and an expected life of 2 years.
	(iii)	On June 23, 2009, the Company granted an aggregate of 3,350,000 options to directors, officers, geologists and consultants of the Company at an exercise price of $0.15 for a period of five years. All the options granted vest immediately. The estimated fair market value under the Black-Scholes option pricing model was $368,500. In determining this value, the following assumptions were used: risk-free interest rate of 2.55%, dividend yield of 0%, expected stock volatility of 155% and an expected life of 5 years.
	(iv)	On December 9, 2009, the Company granted an aggregate of 900,000 options to directors of the Company at an exercise price of $0.15 for a period of five years. All the options granted vest immediately. The estimated fair market value under the Black-Scholes option pricing model was $80,991. In determining this value, the following assumptions were used: risk-free interest rate of 2.47%, dividend yield of 0%, expected stock volatility of 153% and an expected life of 5 years.
	The following are the stock options outstanding and exercisable at May 31, 2010:

	Options outstanding				Options exercisable
		Weighted
		average remaining		Weighted			Weighted
	Number	contractual		average	Number		average
Expiry Date	of Options	life		exercise price	of options		exercise price
April 3, 2011	250,000	0.84 years	$	1.80	250,000	$	1.80
September 27, 2012	1,825,000	2.33		0.68	1,825,000		0.68
June 23, 2014	2,900,000	4.07		0.15	2,900,000		0.15
December 9, 2014	900,000	4.53	$	0.15	900,000	$	0.15
	5,875,000	3.46 years	$	0.38	5,875,000	$	0.38

- 102 -

Grandview Gold Inc.

(An Exploration Stage Company)

Notes to Consolidated Financial Statements

For the Years ended May 31, 2010 and 2009

(Expressed in Canadian Dollars)

10. Stock Options (Continued)

The stock options have been expensed as follows:

					Expensed		Expensed		Remainder		Cumulative
	Number of		Expensed at		at		at		to be		share-based
	stock options		May 31, 2008		May 31, 2009		May 31, 2010		expensed		payment
(1)	675,000	$	-	$	-	$	-	$	-	$	800,100
(1)	75,000		-		-		-		-		62,850
(1)	150,000		-		-		-		-		97,050
(1)	200,000		-		-		-		-		137,100
(1)	150,000		-		-		-		-		117,150
(1)	600,000		-		-		-		-		723,000
(2)	500,000		-		-		-		-		255,500
(2)	150,000		-		-		-		-		60,750
(2)	500,000		-		-		-		-		365,000
(2)	100,000		-		-		-		-		89,500
(3)	2,000,000		1,162,525		-		-		-		1,162,525
(3)	700,000		159,600		-		-		-		159,600
(4)	3,350,000		-		-		368,500				368,500
(4)	900,000		-		-		80,991				80,991
	10,050,000	$	1,322,125	$	-	$	449,491	$	-	$	4,479,616

(1)	The values assigned were estimated using the Black-Scholes option pricing model with the following assumptions: expected dividend yield - 0%; expected volatility - 103.23% to 167.25%; risk-free interest rates - 3.44% to 4.15% and an expected average life of 2 to 5 years.
(2)	The values assigned were estimated using the Black-Scholes option pricing model with the following assumptions: expected dividend yield - 0%; expected volatility - 92.11% to 131.00%; risk-free interest rates - 3.95% to 4.26% and an expected average life of 1 to 5 years.
(3)	The values assigned were estimated using the Black-Scholes option pricing model with the following assumptions: expected dividend yield - 0%; expected volatility - 146.3% to 161.6%; risk-free interest rates - 2.65% to 4.20% and an expected average life of 2 to 5 years.
(4)	The values assigned were estimated using the Black-Scholes option pricing model with the following assumptions: expected dividend yield - 0%; expected volatility - 153% to 155%; risk-free interest rates - 2.47% to 2.55% and an expected average life of 5 years.

- 103 -

Grandview Gold Inc.

(An Exploration Stage Company)

Notes to Consolidated Financial Statements

For the Years ended May 31, 2010 and 2009

(Expressed in Canadian Dollars)

10. Stock Options (Continued)

The following are the stock options outstanding and exercisable at May 31, 2009:
	Options outstanding				Options exercisable
		Weighted
		average remaining		Weighted			Weighted
	Number	contractual		average	Number		average
Expiry Date	of Options	life		exercise price	of options		exercise price
October 1, 2009	600,000	0.34 years	$	1.00	600,000	$	1.00
December 20, 2009	75,000	0.56		1.10	75,000		1.10
April 15, 2010	700,000	0.87		0.50	700,000		0.50
January 6, 2011	150,000	1.60		1.25	150,000		1.25
April 3, 2011	550,000	1.84		1.80	550,000		1.80
October 31, 2011	500,000	2.42		1.00	500,000		1.00
September 27, 2012	1,825,000	3.33		0.68	1,825,000		0.68
	4,400,000	2.13 years		0.90	4,400,000	$	0.90
The following are the stock options outstanding and exercisable at May 31, 2008:
	Options outstanding				Options exercisable
		Weighted
		average remaining		Weighted			Weighted
	Number	contractual		average	Number		average
Expiry Date	of Options	life		exercise price	of options		exercise price
October 1, 2009	600,000	1.33 years	$	1.10	600,000	$	1.10
December 20, 2009	75,000	1.55		1.00	75,000		1.00
April 15, 2010	700,000	1.87		0.50	700,000		0.50
January 6, 2011	150,000	2.60		1.80	150,000		1.80
April 3, 2011	550,000	2.84		1.00	550,000		1.00
October 31, 2011	500,000	3.42		1.00	500,000		1.00
September 27, 2012	2,000,000	4.33		0.45	2,000,000		0.45
	4,575,000	3.18 years	$	0.89	4,575,000	$	0.89

- 104 -

Grandview Gold Inc.

(An Exploration Stage Company)

Notes to Consolidated Financial Statements

For the Years ended May 31, 2010 and 2009

(Expressed in Canadian Dollars)

11. Basic and Diluted Loss Per Share

Basic loss per share is computed by dividing the loss for the year by the weighted-average number of common shares outstanding during the year, including contingently issuable shares which are included when the conditions necessary for issuance have been met. Diluted loss per share is calculated in a manner similar to basic loss per share, except the weighted-average shares outstanding are increased to include potential common shares from the assumed exercise of options and warrants, if dilutive. The number of additional shares included in the calculation is based on the treasury stock method for options and warrants.

		2010			2009			2008
Numerator for basic loss per share	$	(880,403	)	$	(7,887,918	)	$	(3,005,834	)
Numerator for diluted loss per share	$	(880,403	)	$	(7,887,918	)	$	(3,005,834	)
Denominator:
Weighted average number of common shares - basic		58,224,647			40,379,322			33,985,825
Weighted average number of common shares - diluted		58,224,647			40,379,322			33,985,825
Basic and diluted loss per share	$	(0.02	)	$	(0.20	)	$	(0.09	)

Diluted loss per share reflects the maximum possible dilution from the potential exercise of outstanding stock options and warrants and the conversion of convertible securities. However, the effect of outstanding warrants and stock options has not been included as the effect would be anti-dilutive.

- 105 -

Grandview Gold Inc.

(An Exploration Stage Company)

Notes to Consolidated Financial Statements

For the Years ended May 31, 2010 and 2009

(Expressed in Canadian Dollars)

12. Income Taxes

Future income taxes reflect the net tax effects of temporary timing differences between the carrying amounts of assets and liabilities for financial reporting purposes and the corresponding amounts for income tax purposes.

The future tax assets are as follows:

		2010			2009			2008
Future tax assets
Exploration expenditures	$	1,588,778		$	1,842,983		$	199,715
Marketable securities		40,663			47,169			47,169
Capital losses		-			24,273			48,299
Non-capital losses		1,383,953			1,612,960			1,620,056
Share issue costs		75,790			175,303			266,499
Total future tax assets		3,089,184			3,702,688			2,181,738
Valuation allowance for future tax assets		(3,089,184	)		(3,702,688	)		(2,181,738	)
Net Future tax assets	$	-		$	-		$	-

The Company has provided a valuation allowance equal to the future tax assets because it is not presently more likely than not that they will be realized. The Company’s income tax (recovery) for each of the years ended is made up as follows:

		2010		2009			2008
Current income tax recovery	$	-	$	-		$	-
Future income tax recovery		-		(120,833	)		(260,255	)
Total income tax recovery	$	-	$	(120,833	)	$	(260,255	)

- 106 -

Grandview Gold Inc.

(An Exploration Stage Company)

Notes to Consolidated Financial Statements

For the Years ended May 31, 2010 and 2009

(Expressed in Canadian Dollars)

12. Income Taxes

The Company’s actual income tax expense for each of the years ended is made up as follows:
		2010			2009			2008
Loss before income taxes	$	(880,403	)		(8,008,751	)		(3,266,089	)
Income tax recovery at combined Federal and Provincial rates of 32.58%, 33.29% and 35.03%		(286,835	)		(2,666,113	)		(1,144,111	)
Non-deductible stock-based compensation		146,444			-			-
Non-deductible expenses		56			146			2,818
Non-deductible write-down of mineral properties		-			2,483,585			185,090
Expiry of warrants		286,143			330,573			-
Share-based payments		-			-			463,140
Cost of issue		(110,030	)		(120,610	)		(123,563	)
Potential income tax recovery not recognized		-			-			616,626
Utilization of losses not previously recognized		(35,778	)		(27,581	)		-
Resource properties – expenditures renounced		-			(120,833	)		(260,255	)
Income tax recovery	$	-		$	(120,833	)	$	(260,255	)
At May 31, 2010, the Company has non-capital losses of approximately $5,535,000. No benefit from these amounts has been recorded in the consolidated financial statements.
The non capital losses will expire as follows:
2015							$	724,000
2026								1,366,000
2027								1,685,000
2028								1,760,000
							$	5,535,000

13. Segmented Information

The Company's operations comprise a single reporting operating segment engaged in mineral exploration (2009 - same and 2008 - same). As the operations comprise a single reporting segment, amounts disclosed in the consolidated financial statements for loss for the periods presented also represent segment amounts.

The Company operates in three geographic segments for the year ended May 31, 2010, and two segments for years ended May 31, 2009 and 2008. The Company's assets by geographic location are:

- 107 -

Grandview Gold Inc.

(An Exploration Stage Company)

Notes to Consolidated Financial Statements

For the Years ended May 31, 2010 and 2009

(Expressed in Canadian Dollars)

		2010		2009		2008
Canada	$	5,372,915	$	3,999,201	$	5,993,796
United States of America		-		-		5,679,340

Peru		287,708		-		-
Total assets	$	5,660,623	$	3,999,201	$	11,673,136

- 108 -

Grandview Gold Inc.

(An Exploration Stage Company)

Notes to Consolidated Financial Statements

For the Years ended May 31, 2010 and 2009

(Expressed in Canadian Dollars)

14.	Related Party Transactions Not Disclosed Elsewhere
	i)	For year ended May 31, 2010, $10,000 (2009 - $35,000, 2008 - $66,000) was paid to the former interim CEO and current chairman of the Company for consulting services.
	ii)	For year ended May 31, 2010, $150,000 (2009 - $150,010, 2008 - $150,000) was paid to the President and CEO of the Company for consulting services. Included in this amount was $90,250 (2009 - $62,250, 2008 - $150,000) capitalized to mining interests. Also, $nil (2009 - $14,000, 2008 - $24,000) in car and office allowances and $nil (2009 - $607, 2008 - $1,765) were paid.
	iii)	For year ended May 31, 2010, $39,000 (2009 - $51,794, 2008 - $76,974) in consulting fees was also paid or accrued to the Chief Financial Officer or a company controlled by the Chief Financial Officer. Included in accounts payable as at May 31, 2010 is $6,000 in relation to consulting services rendered.
	iv)	The Company provided a loan of $90,000 to the President and CEO of the Company. The loan was unsecured, bears no interest and is due on October 31, 2009. The loan was paid down through the application of various bonuses issued to the President and CEO.
	These transactions were in the normal course of operations and were measured at the exchange value which is represented by the amount of consideration established and agreed to by the related parties.
15.	Differences between Canadian GAAP and US GAAP
	The Company's consolidated financial statements have been prepared in accordance with Canadian GAAP. These principles, as they pertain to the Company's consolidated financial statements differ from US GAAP as follows:
	Under Canadian GAAP, the Company accounted for its stock compensation plan as described in Note 2(j) in the fiscal 2010 consolidated financial statements under which CICA Handbook Section 3870 requires that compensation for option awards to employees and consultants be recognized in the consolidated financial statements at fair value for options granted in fiscal years beginning on or after January 1, 2004. The Company, as permitted by CICA Handbook Section 3870, has adopted this section prospectively for new option awards granted on or after June 1, 2003. Accordingly, a fair value compensation expense is reported for any options that were granted and vested during an interim or fiscal period. Prior to this accounting policy, no compensation expense was required to be recorded for stock option grants under Canadian GAAP for fiscal 2004. For US GAAP purposes, the Company has adopted the provisions of Financial Accounting Standards Board (FASB) Statement 148 "Accounting for Stock-Based Compensation - Transition and Disclosure" effective as of June 1, 2003, which provisions allow the Company to record compensation expense for stock options granted in fiscal 2004 and all future periods based on the estimated fair value of such option, using the prospective method. In December 2004, FASB issued Statement 123 (Revised 2004), "Share-Based Payment," (codified within Accounting Standards Codification ("ASC") 718) which mandates the recording of compensation expense based on the fair value of such options.
	For the years ended ended May 31, 2010, 2009 and 2008, the Company's accounting for stock option grants under US GAAP is substantially equivalent to the accounting under Canadian GAAP. As such, the expense recorded for US GAAP purposes would be equal to the expense recorded for Canadian GAAP purposes for the years ended May 31, 2010, 2009, and 2008. Had the Company adopted (FASB) Statement 148 for fiscal 2004, there would be no affect on earnings since no stock options were issued in that year.
	Under Canadian GAAP, the Company accounts for its exploration costs as described in Note 2(e) of the annual consolidated financial statements for May 31, 2010, while under US GAAP, exploration costs (except for property purchase costs) cannot be capitalized and are expensed as incurred. Mineral property rights relating to the properties are capitalized and they are tested for impairment.

- 109 -

Grandview Gold Inc.

(An Exploration Stage Company)

Notes to Consolidated Financial Statements

For the Years ended May 31, 2010 and 2009

(Expressed in Canadian Dollars)

15. Differences between Canadian GAAP and US GAAP (Continued)

Prior to June 1, 2007, under Canadian GAAP marketable securities and long-term investments were carried at the lower of cost or market, and adjustments to the carrying value are shown as an expense on the statement of operations. Under US GAAP marketable equity securities are carried at market value, and changes to the market value are shown as a component of shareholder's equity (if the securities are classified as available-for-sale securities) or as gain or loss in the statement of operations (if the securities are classified as trading securities). Effective June 1, 2007, the Company's accounting for financial instruments, equity and comprehensive income under US GAAP is substantially equivalent to the accounting under Canadian GAAP.

Canadian GAAP provides that a tax benefit be recorded in the statement of operations to reflect the recovery of future income taxes relating to the renunciation of resource property expenditures to the Company's flow-through share investors (see Note 12 of the annual consolidated financial statements for May 31, 2010). US GAAP requires the recognition of a deferred tax liability in the difference between the fair value of common shares and the amount received upon issuance of flow-through shares. The deferred income tax liability is relieved at the time the expenditures are renounced. No flow-through shares were issued during the current fiscal year.

Under Canadian GAAP, the Company does not impute interest on loans to related parties, while under US GAAP, imputed interest is required to be recorded for the purpose of preparing consolidated financial statements.

- 110 -

Grandview Gold Inc.

(An Exploration Stage Company)

Notes to Consolidated Financial Statements

For the Years ended May 31, 2010 and 2009

(Expressed in Canadian Dollars)

15. Differences between Canadian GAAP and US GAAP (Continued)

Had the Company's consolidated balance sheets as at May 31, 2010 and May 31, 2009 been prepared using US GAAP, such consolidated balance sheets would be presented as follows:

		May 31, 2010			May 31, 2009
Assets
Current assets
Cash	$	1,432,824		$	106,593
Short term investments		25,037			407,493
GST and sundry receivable		29,179			5,707
Prepaid expenses		12,876			12,283
Due from a related party		-			12,803
		1,500,456			544,879
Reclamation bond		13,699			14,332
Mineral property rights		712,101			512,906
	$	2,226,256		$	1,072,117
Liabilities
Current liabilities
Accounts payable	$	7,835		$	9,017
Accrued liabilities		81,449			63,450
		89,284			72,467
Assets retirement obligation		13,699			14,332
		102,983			86,799
Shareholders' Equity
Share capital
Authorized - unlimited common shares
Issued
Common shares		16,757,873			16,106,390
Additional paid in capital		4,390,914			3,217,776
Warrants		1,455,333			1,203,804
Cumulative adjustments to marketable securities		(325,305	)		(325,305	)
Deferred share-based payments		4,591,091			4,141,600
Deficit accumulated before change to an exploration
stage company		(3,133,943	)		(3,133,943	)
Deficit accumulated during the exploration stage		(21,612,690	)		(20,225,004	)
		2,123,273			985,318
	$	2,226,256		$	1,072,117

- 111 -

Grandview Gold Inc.

(An Exploration Stage Company)

Notes to Consolidated Financial Statements

For the Years ended May 31, 2010 and 2009

(Expressed in Canadian Dollars)

15. Differences between Canadian GAAP and US GAAP (Continued)

Under US GAAP, exploration stage companies are required to provide cumulative-from-inception information relating to income statements, statements of cash flows, and statements of changes in shareholders' equity. Inception has been deemed to be March 26, 2004, the date on which the Company, at a shareholders' meeting, made the decision to return to the business of exploration of mineral properties as its primary business focus. The Company's statements of operations and comprehensive loss under US GAAP are as follows:

Statements of Operations and Comprehensive Loss

											Cumulative
											from date
					Year ended May 31,						of inception
		2010			2009			2008			("March 26, 2004"	)
Expenses
General exploration	$	512,783		$	534,317		$	3,299,979		$	9,804,129
Management services		548,241			267,497			1,401,414			5,774,602
Investor relations, business development and reporting issuer maintenance costs		115,352			88,716			832,962			2,062,413
Write-off of bad debts		-			-			-			1,235
Professional fees		142,354			167,672			322,033			1,365,998
Office and administration		69,107			21,579			196,503			738,245
Flow-through interest expense		-			2,747			44,688			188,801
Gain on forgiveness of debt		-			-			-			(35,667	)
Failed merger costs		-			-			-			170,000
Loss before the under noted		(1,387,837	)		(1,082,528	)		(6,097,579	)		(20,069,756	)
Interest income		151			10,306			72,183			104,322
Write-off mineral property rights		-			(1,514,756	)		(132,500	)		(1,647,256	)
Net loss for the period		(1,387,686	)		(2,586,978	)		(6,157,896	)		(21,612,690	)
Comprehensive (loss) items:
Write-down of marketable securities		-			-			-			(25,000	)
Comprehensive loss for the period	$	(1,387,686	)	$	(2,586,978	)	$	(6,157,896	)	$	(21,637,690	)
Loss per common share
Basic	$	(0.02	)	$	(0.06	)	$	(0.18	)
Diluted	$	(0.02	)	$	(0.06	)	$	(0.18	)
Comprehensive loss per common share
Basic	$	(0.02	)	$	(0.06	)	$	(0.29	)
Diluted	$	(0.02	)	$	(0.06	)	$	(0.29	)

- 112 -

Grandview Gold Inc.

(An Exploration Stage Company)

Notes to Consolidated Financial Statements

For the Years ended May 31, 2010 and 2009

(Expressed in Canadian Dollars)

15. Differences between Canadian GAAP and US GAAP (Continued)

Statements of Changes in Shareholders' Equity

The changes in common shares from March 26, 2004 (date the Company became a exploration stage enterprise) as required by US GAAP are disclosed below:

			Amount
			Under
Common Shares	Shares		US GAAP
Common shares before change to an exploration stage company and
as of March 26, 2004	3,270,998	$	3,378,444
Stock split (3 for 1)	6,541,996		-
Private placement	120,000		120,000
Private placement	150,000		150,000
Mineral property acquisition	400,000		4,000
Private placement	175,000		175,000
Private placement	1,005,000		1,005,000
Warrant valuation	-		(138,188	)
Mineral property acquisition	118,500		159,975
Mineral property acquisition	70,000		86,800
Cost of issue – warrant valuation	-		(35,200	)
Cost of issue – cash laid out	-		(124,081	)
Balance, May 31, 2005	11,851,494	$	4,781,750
Private placement	2,019,104		2,523,880
Debt conversion	80,000		100,000
Warrant valuation	-		(178,023	)
Private placement	590,320		737,900
Warrant valuation	-		(111,498	)
Shares issued for a finders’ fee	160,000		200,000
Private placement	400,000		500,000
Private placement	3,985,974		4,384,571
Warrant valuation	-		(1,335,301	)
Cost of issue – broker warrant valuation	-		(462,173	)
Cost of issue – cash laid out	-		(866,375	)
Balance, May 31, 2006	19,086,892	$	10,274,731
Private placement	2,399,998		1,559,999
Warrant valuation	-		(284,400	)
Mineral property acquisition	50,000		34,500
Mineral property acquisition	55,000		22,000
Private placement	3,250,000		1,462,500
Warrant valuation	-		(339,625	)
Cost of issue – cash laid out	-		(249,300	)
Cost of issue – finder options valuation	-		(165,800	)
Balance, May 31, 2007	24,841,890	$	12,314,605

- 113 -

Grandview Gold Inc.

(An Exploration Stage Company)

Notes to Consolidated Financial Statements

For the Years ended May 31, 2010 and 2009

(Expressed in Canadian Dollars)

15. Differences between Canadian GAAP and US GAAP (Continued)

			Amount Under
Common Shares (continued	Shares		US GAAP
Balance, May 31, 2007	24,841,890	$	12,314,605
Private placements	11,169,000		4,950,150
Warrants valuation	-		(940,212	)
Mineral property acquisition	130,000		45,800
Exercise of warrants	147,875		66,544
Exercise of warrants valuation	-		36,673
Cost of issue – cash laid out	-		(488,720	)
Cost of issue – broker warrants valuation	-		(227,417	)
Balance, May 31, 2008	36,288,765	$	15,757,423
Mineral property acquisition	30,000		10,800
Private placement	8,333,333		416,666
Cost of issue – cash	-		(47,833	)
Cost of issue – broker warrants valuation	-		(30,666	)
Balance, May 31, 2009	44,652,098	$	16,106,390
Private placement	26,666,665		2,000,000
Cost of issue – cash	-		(36,392	)
Mineral property acquisition	750,000		67,000
Debt conversion	360,937		28,875
Exercise of warrants – valuation	-		15,333
Exercise of warrants – cash	333,333		16,667
Cost of issue – broker warrants valuation	-		(1,440,000	)
Balance, May 31, 2010	72,763,033	$	16,757,873

Other changes in shareholders’ equity are presented as follows:

Additional Paid in Capital
Balance from inception and as of May 31, 2004 and 2005	$	25,000
Expired warrants		173,388
Balance, May 31, 2006	$	198,388
Expired warrants		449,956
Balance, May 31, 2007 and May 31, 2008	$	648,344
Expired warrants		2,569,432
Balance, May 31, 2009		3,217,776
Expired warrants		1,173,138
Balance, May 31, 2010	$	4,390,914

- 114 -

Grandview Gold Inc.

(An Exploration Stage Company)

Notes to Consolidated Financial Statements

For the Years ended May 31, 2010 and 2009

(Expressed in Canadian Dollars)

15. Differences between Canadian GAAP and US GAAP (Continued)

Warrants
Balance from March 26, 2004 to May 31, 2004	$	-
Issued		173,388
Balance, May 31, 2005	$	173,388
Issued		2,086,995
Expired		(173,388	)
Balance, May 31, 2006	$	2,086,995
Issued		974,575
Expired		(449,956	)
Balance, May 31, 2007	$	2,611,614
Issued		1,167,629
Expired		(36,673	)
Balance, May 31, 2008	$	3,742,570
Issued		(2,569,432	)
Expired		30,666
Balance, May 31, 2009	$	1,203,804
Issued		1,440,000
Expired		(1,173,138	)
Exercised		(15,333	)
Balance, May 31, 2010	$	1,455,333
Cumulative adjustments to marketable securities
Balance June 1, 2001	$	(85,625	)
Comprehensive loss items		(121,100	)
Balance, May 31, 2002	$	(206,725	)
Comprehensive loss items		(88,580	)
Balance, May 31, 2003	$	(295,305	)
Comprehensive loss items		(5,000	)
Balance, March 26, 2004		(300,305	)
Comprehensive loss items		(15,234	)
Balance, May 31, 2004, 2005 and 2006		(315,539	)
Comprehensive loss items		(9,766	)
Balance, May 31, 2007		(325,305	)
Comprehensive loss items		-
Balance, May 31, 2008, 2009 and 2010	$	(325,305	)

- 116 -

Grandview Gold Inc.

(An Exploration Stage Company)

Notes to Consolidated Financial Statements

For the Years ended May 31, 2010 and 2009

(Expressed in Canadian Dollars)

15. Differences between Canadian GAAP and US GAAP (Continued)

Deferred share-based payments
Balance, May 31, 2004	$	-
Vesting of stock options		775,613
Balance, May 31, 2005	$	775,613
Vesting of stock options		573,700
Balance, May 31, 2006	$	1,349,313
Vesting of stock options		1,358,687
Balance, May 31, 2007	$	2,708,000
Vesting of stock options		1,433,600
Balance, May 31, 2008 and May 31, 2009	$	4,141,600
Vesting of stock options		449,491
Balance, May 31, 2010	$	4,591,091

- 117 -

Grandview Gold Inc.

(An Exploration Stage Company)

Notes to Consolidated Financial Statements

For the Years ended May 31, 2010 and 2009

(Expressed in Canadian Dollars)

15. Differences between Canadian GAAP and US GAAP (Continued)

Deficit accumulated during the exploration stage
Balance, March 26, 2004	$	-
Net Loss		4,678
Comprehensive loss items		(15,234	)
Balance, May 31, 2004	$	(10,556	)
Net Loss		(1,743,463	)
Balance, May 31, 2005	$	(1,754,019	)
Net Loss		(3,673,388	)
Balance, May 31, 2006	$	(5,427,407	)
Net Loss		(6,052,723	)
Balance, May 31, 2007	$	(11,480,130	)
Net Loss		(6,157,896	)
Balance, May 31, 2008	$	(17,638,026	)
Net Loss		(2,586,978	)
Balance, May 31, 2009	$	(20,225,004	)
Net Loss		(1,387,686	)
Balance, May 31, 2010	$	(21,612,690	)

- 118 -

Grandview Gold Inc.

(An Exploration Stage Company)

Notes to Consolidated Financial Statements

For the Years ended May 31, 2010 and 2009

(Expressed in Canadian Dollars)

15. Differences between Canadian GAAP and US GAAP (Continued)

The Company's statements of cash flows under US GAAP are as follows:
Statements of Cash Flows
											Cumulative
											from date
					Year ended May 31,						of inception
		2010			2009			2008			("March 26, 2004"	)
Cash flows from operating activities
Net loss for the period	$	(1,387,686	)	$	(2,586,978	)	$	(6,157,896	)	$	(21,612,690	)
Items not involving cash:
Forgiveness of debt		28,875			-			-			(6,792	)
Write-off of bad debts		-			-			-			1,235
Share-based payments		449,491			-			1,322,125			4,479,616
Accrued interest income		(537	)		(10,296	)		(48,706	)		(59,539	)
Write-off of mineral property rights		-			1,514,756			132,500			1,647,256
Change in non-cash operating working activities:
GST and sundry receivable		(23,512	)		34,957			181,267			(34,399	)
Prepaid expenses		(593	)		137,883			8,526			(7,206	)
Due from a related party		12,803			92,296			-			15,099
Accounts payable		(1,182	)		(64,509	)		(222,129	)		78,854
Accrued liabilities		17,999			18,450			(76,119	)		17,161
Cash flows used in operating activities		(904,342	)		(863,441	)		(4,860,432	)		(15,481,405	)
Cash flows from financing activities
Repayment of loans from related parties		-			-			-			(28,594	)
Share/warrant issuance		2,016,667			416,666			5,016,694			20,068,877
Cost of issue		(36,392	)		(47,833	)		(488,720	)		(1,812,701	)
Proceeds from loan		-			-			-			175,000
Repayment of loan		-			-			-			(75,000	)
Cash flows provided by financing activities		1,980,275			368,833			4,527,974			18,327,582
Cash flows from investing activities
Purchase of reclamation bond		-			-			(13,090	)		(13,090	)
Redemption (purchase) of short term investments		382,493			611,410			(975,000	)		18,903
Exploration advances		-			-			312,491			-
Purchase of mineral property rights		(132,195	)		(95,065	)		(206,364	)		(1,419,167	)
Cash flow provided by (used in) investing activities		250,298			516,345			(881,963	)		(1,413,354	)
Change in cash during the period		1,326,231			21,737			(1,214,421	)		1,432,823
Cash, beginning of period		106,593			84,856			1,299,277			1
Cash, end of period	$	1,432,824		$	106,593		$	84,856		$	1,432,824

- 119 -

Grandview Gold Inc.

(An Exploration Stage Company)

Notes to Consolidated Financial Statements

For the Years ended May 31, 2010 and 2009

(Expressed in Canadian Dollars)

15. Differences between Canadian GAAP and US GAAP (Continued)

Statements of Cash Flows (continued)
								Cumulative
								from date
				Year ended May 31,				of inception
		2010		2009		2008		("March 26, 2004"	)
Supplemental schedule of non-cash transactions
Share issuance included in mining interest	$	67,000	$	10,800	$	45,800	$	630,875
Warrant issuance included in mining interest	$	-	$	-	$	-	$	184,750
Share-based payments including mining interest	$	-	$	-	$	111,475	$	111,475
Interest paid	$	-	$	-	$	23,477	$	45,159

US GAAP Accounting Pronouncements Adopted in Prior Years

In March 2005, the FASB issued FASB Interpretation (FIN) No. 47, "Accounting for Conditional Asset Retirement Obligations, an interpretation of FASB Statement No. 143" (FIN 47). FIN 47 clarifies that conditional asset retirement obligations meet the definition of liabilities and should be recognized when incurred if their fair values can be reasonably estimated. The Company was required to adopt FIN 47 during the year ended May 31, 2007; the implementation did not have any effect on the Company's consolidated financial statements as the Company does not yet have significant assets which the Company is obligated to retire.

In March 2005, the FASB ratified a consensus reached by the EITF on the issue No. 04-6 entitled "Accounting for Stripping Costs Incurred during Production in the Mining Industry". This Consensus affects the accounting for costs of removing overburden and waste materials during the production phase of a mine. The consensus requires that stripping costs are to be accounted for as variable production costs and charged to operations during the period that the stripping costs are incurred. This consensus is required to be adopted in the fiscal year ending May 31, 2007. This consensus has no effect on the consolidated financial statements since the Company is not yet in the production phase.

In May 2005, the FASB issued Statement 154, "Accounting Changes and Error Corrections", effective for accounting changes and error corrections made in the fiscal years beginning after December 15, 2005, has been introduced and requires, unless impracticable, retroactive application as the required method for reporting changes in accounting principles in the absence of transitional provisions specific to the newly adopted accounting principle. The adoption of this accounting principle had no effect on the consolidated financial statements.

In July 2006, the FASB issued FASB Interpretation No.48, "Accounting for Uncertainty in Income Taxes" (FIN 48). FIN 48 prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. The Interpretation also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. FIN 48 is effective in fiscal years beginning after December 15, 2006. The provisions of FIN 48 are to be applied to all tax positions upon initial adoption, with the cumulative effect adjustment reported as an adjustment to the opening balance of retained earnings. The adoption of this standard did not have any material effect on the Company's consolidated financial statements.

- 120 -

Grandview Gold Inc.

(An Exploration Stage Company)

Notes to Consolidated Financial Statements

For the Years ended May 31, 2010 and 2009

(Expressed in Canadian Dollars)

15. Differences between Canadian GAAP and US GAAP (Continued)

US GAAP Accounting Pronouncements Adopted in Prior Years (Continued)

In September 2006, the FASB issued SFAS No. 157, "Fair Value Measurements" ("SFAS No. 157"), which provides a consistent definition of fair value that focuses on exit price and prioritizes, within a measurement of fair value, the use of market-based inputs over entity-specific inputs. SFAS No. 157 requires expanded disclosures about fair value measurements. SFAS No. 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007 and interim periods within those fiscal years. The provisions of SFAS No. 157 were applied prospectively. The Company adopted the provisions of SFAS No. 157 on April 1, 2008. The adoption of this standard did not have any effect on the Company's overall financial condition and results of operations.

SFAS No. 157 establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurement) and the lowest priority to unobservable inputs (level 3 measurements). The three levels of the fair value hierarchy under SFAS No. 157 are described below:

Level 1	- Unadjusted quoted prices in active markets that are accessible at the measurement date for identical unrestricted assets or liabilities.
Level 2	- Inputs that are observable, either directly or indirectly, but do not qualify as Level 1 inputs (i.e., quoted prices for similar assets or liabilities).
Level 3	- Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity).

As at May 31, 2010, the Company had short term investments totalling $25,037 which are classified as held for trading and measured as level 1 of the fair value hierarchy.

In February 2007, the FASB issued Statement 159 "Fair Value Option for Financial Assets and Financial Liabilities". Statement 159 became effective for financial statements issued for fiscal years beginning on or after November 15, 2007, and interim periods within those fiscal years. This Statement permits entities to choose to measure many financial instruments and certain other items at fair value. The objective is to improve financial reporting by providing entities with opportunity to mitigate volatility in reported earnings caused by measuring related assets and liabilities differently without having to apply complex hedge accounting provisions. This expands the use of fair value measurement for accounting for financial instruments. The adoption of this standard has not had any material effect on the Company's consolidated financial statements.

In May 2008, the FASB issued FASB Statement No. 162, "The Hierarchy of Generally Accepted Accounting Principles". (Superseded by SFAS 168) This Statement identifies the sources of accounting principles and the framework for selecting the principles to be used when preparing financial statements of non-governmental entities that are presented in conformity with generally accepted accounting principles in the United States. This Statement was effective 60 days following the SEC's approval of the Public Company Accounting Oversight Board amendments to AU Section 411, "The Meaning of Present Fairly in Conformity with Generally Accepted Accounting Principles". The adoption of this statement did not have any material impact on the financial and results of operation of the Company.

- 121 -

Grandview Gold Inc.

(An Exploration Stage Company)

Notes to Consolidated Financial Statements

For the Years ended May 31, 2010 and 2009

(Expressed in Canadian Dollars)

15. Differences between Canadian GAAP and US GAAP (Continued)

US GAAP Accounting Pronouncements Adopted in the Current Year

In May 2009, the FASB issued SFAS No. 165, "Subsequent Events" (ASC Subtopic 855-10) which establishes principles and requirements for subsequent events. This Statement sets forth (a) the period after the balance sheet date during which management of a reporting entity shall evaluate events or transactions that may occur for potential recognition or disclosure in the financial statements, (b) the circumstances under which an entity shall recognize events or transactions occurring after the balance sheet date in its financial statements and (c) the disclosures that an entity shall make about events or transactions that occurred after the balance sheet date. This Statement shall be applied to the accounting for and disclosure of subsequent events not addressed in other applicable generally accepted accounting principles. This Statement is effective for interim or annual financial periods ending after June 15, 2009, and has been applied prospectively. The adoption of this standard has not had any material effect on the Company's consolidated financial statements.

In June 2008, the FASB issued EITF Issue No. 07-5, “Determining Whether an Instrument (or Embedded Feature) is Indexed to an Entity’s Own Stock” (“EITF 07-05”). EITF 07-05 provides guidance on determining whether an equity-linked financial instrument, or embedded feature, is indexed to an entity’s own stock. EITF 07-05 concludes, among other matters, that warrants and options issued by an entity with an exercise price that is different from the entity’s functional currency cannot be classified as equity. EITF 07-05 is effective for financial statements issued for fiscal years beginning after December 15, 2008. The adoption of EITF 07-05 did not have any material impact on the financial position and results of operations of the Company.

In December 2007, the FASB issued SFAS No. 141(R), "Business Combinations" (codified in ASC 805), which retained the underlying concepts of SFAS No. 141 in that all business combinations are still required to be accounted for at fair value under the acquisition method of accounting. However, SFAS No. 141(R) changed the method of applying the acquisition method in a number of significant aspects.

SFAS No. 141(R) requires that: (1) for all business combinations, the acquirer records all assets and liabilities of the acquired business, including goodwill, generally at their fair values; (2) certain contingent assets and liabilities acquired be recognized at their fair values on the acquisition date; (3) contingent consideration be recognized at its fair value on the acquisition date and, for certain arrangements, changes in fair value will be recognized in earnings until settled; (4) acquisition-related transaction and restructuring costs be expensed rather than treated as part of the cost of the acquisition and included in the amount recorded for assets acquired; (5) in step acquisitions, previous equity interests in an acquiree held prior to obtained control be remeasured to their acquisition-date fair values, with any gain or loss recognized in earnings; and (6) when making adjustments to finalize initial accounting, companies revise any previously issued post-acquisition financial information in future financial statements to reflect any adjustments as if they had been recorded on the acquisition date.

SFAS No. 141(R) is effective on a prospective basis for all business combinations for which the acquisition date is on or after the beginning of the first annual period subsequent to December 15, 2008, with the exception of the accounting for valuation allowances on deferred taxes and acquired tax contingencies. SFAS No. 141(R) amends SFAS No. 109 such that adjustments made to valuation allowances on deferred taxes and acquired tax contingencies associated with acquisitions that closed prior to the effective date of this statement should also apply the provisions of SFAS No. 141(R). This standard will be applied to all future business combinations for US GAAP purposes.

- 122 -

Grandview Gold Inc.

(An Exploration Stage Company)

Notes to Consolidated Financial Statements

For the Years ended May 31, 2010 and 2009

(Expressed in Canadian Dollars)

15. Differences between Canadian GAAP and US GAAP (Continued)

US GAAP Accounting Pronouncements Adopted in the Current Year (Continued)

In April 2009, FASB amended accounting standards for Fair Value Measurements and Disclosures. The amended standard, ASC 820, addresses issues related to the determination of fair value when the volume and level of activity for an asset or liability has significantly decreased, and identifying transactions that are not orderly. The revisions affirm the objective that fair value is the price that would be received to sell an asset in an orderly transaction (that is not a forced liquidation or distressed sale) between market participants at the measurement date under current market conditions, even if the market is inactive. The amendment provides additional guidance for estimating fair value when the volume and level of activity for the asset or liability have decreased significantly. It also provides guidance on identifying circumstances that indicate a transaction is not orderly. If determined that a quoted price is distressed (not orderly), and thereby not representative of fair value, the entity may need to make adjustments to the quoted price or utilize an alternative valuation technique (e.g., income approach or multiple valuation techniques) to determine fair value. Additionally, an entity must incorporate appropriate risk premium adjustments, reflective of an orderly transaction under current market conditions due to uncertainty in cash flows. The revised guidance requires disclosures in interim and annual periods regarding the inputs and valuation techniques used to measure fair value and a discussion of changes in valuation techniques and related inputs, if any, during the period. The changes are effective for interim and annual reporting periods ending after June 15, 2009, and are to be applied prospectively. The adoption of this new standard had no impact on the Company’s financial statements.

In April 2009, FASB revised accounting standards for Financial Instruments. The revised standard, ASC 825, requires fair value disclosures in the notes of an entity’s interim financial statements for all financial instruments, whether or not recognized in the statement of financial position. This revision became effective for the interim reporting periods ending after June 15, 2009. The adoption of this new standard had no impact on the Company’s financial statements.

In June 2009 FASB issued Statement No. 168, The FASB Accounting Standards Codification (the "codification") and the Hierarchy of Generally Accepted Accounting Principles", ("SFAS No. 168") "-- a replacement of FASB Statement No. 162. SFAS No. 168 is the new source of authoritative GAAP recognized by the FASB to be applied by nongovernmental entities. Rules and interpretive releases of the SEC under authority of federal securities laws are also sources of authoritative GAAP for SEC registrants. This statement was incorporated into ASC 105, Generally Accepted Accounting Principles under the new FASB codification which became effective on July 1, 2009. The new Codification supersedes all then-existing non-SEC accounting and reporting standards. All other non-grandfathered non-SEC accounting literature not included in the Codification will become non-authoritative. ASC 105, culminated a multi-year project to replace the previous GAAP hierarchy and established Accounting Standard Codification. The Codification is not expected to change US GAAP, but combines all authoritative standards into a comprehensive, topically organized online database. Following this guidance, the FASB will not issue new standards in the form of Statements, FASB Staff Positions or Emerging Issues Task Force Abstracts. Instead, it will issue Accounting Standards Updates ("ASU") to update the Codification. After the launch of the Codification on July 1, 2009, only one level of authoritative US GAAP for non-governmental entities exists, other than guidance issued by the SEC. This statement is effective for interim and annual reporting periods ending after September 15, 2009. The adoption of this new standard only had the effect of amending references to authoritative accounting guidance in the Company’s financial statements.

- 123 -

Grandview Gold Inc.

(An Exploration Stage Company)

Notes to Consolidated Financial Statements

For the Years ended May 31, 2010 and 2009

(Expressed in Canadian Dollars)

15. Differences between Canadian GAAP and US GAAP (Continued)

US GAAP Accounting Pronouncements Adopted in the Current Year (Continued)

In June 2009, the ASC guidance for consolidation accounting was updated to require an entity to perform a qualitative analysis to determine whether the enterprise’s variable interest gives it a controlling financial interest in a variable interest entity ("VIE"). This analysis identifies a primary beneficiary of a VIE as the entity that has both of the following characteristics: i) the power to direct the activities of a VIE that most significantly impact the entity’s economic performance and ii) the obligation to absorb losses or receive benefits from the entity that could potentially be significant to the VIE. The updated guidance also requires ongoing reassessments of the primary beneficiary of a VIE. The provisions of the updated guidance are effective for the Company’s fiscal year beginning June 1, 2010. The Company does not expect the adoption of this guidance to have an impact on the Company’s financial position, results of operations or cash flows.

In August 2009, FASB issued ASU No. 2009-05 Measuring Liabilities at Fair Value. This update amends ASC 820, Fair Value Measurements and Disclosure, in regard to the fair value measurement of liabilities. FASB ASC 820 clarifies that in circumstances in which a quoted price for an identical liability in an active market is not available, a reporting entity shall utilize one or more of the following techniques: (i) the quoted price of the identical liability when traded as an asset, (ii) the quoted price for a similar liability or for a similar liability when traded as an asset, or (iii) another valuation technique that is consistent with the principles of ASC 820. In all instances a reporting entity shall utilize the approach that maximizes the use of relevant observable inputs and minimizes the use of unobservable inputs. Also, when measuring the fair value of a liability, a reporting entity shall not include a separate input or adjustment to other inputs relating to the existence of a restriction that prevents the transfer of the liability. The adoption of this new standard had no impact on the Company’s financial statements.

Recent Accounting Guidance Not Yet Adopted

In January 2010, the FASB issued ASU 2010-06, Improving Disclosures about Fair Value Measurements, which is included in the ASC Topic 820 (Fair Value Measurements and Disclosures). ASU 2010-06 requires new disclosures on the amount and reason for transfers in and out of Level 1 and 2 fair value measurements. ASU 2010-06 also requires disclosures of activities, including purchases, sales, issuances, and a settlement within Level 3 fair value measurements and clarifies existing disclosure requirements on levels of disaggregation and disclosures about inputs and valuation techniques. ASU 2010-06 is effective for interim and annual reporting periods beginning after December 15, 2009 except for the disclosures about purchases, sales, issuances, and settlements in the roll forward of activity in Level 3 fair value measurements. Those disclosures are effective for fiscal years beginning after December 15, 2010, and for interim periods within those fiscal years. The Company is currently assessing the impact of adoption of ASU 2010-06 and does not expect that it will have a material impact on the Company's financial statements.

In February 2010, the FASB issued ASU 2010-09, "Subsequent Events (Topic 855) Amendments to Certain Recognition and Disclosure Requirements". The amendment eliminates the requirement for SEC filers to disclose the date through which subsequent events have been evaluated. This standard had no impact on the Company's consolidated financial statements. There are several new accounting pronouncements issued by FASB which are not yet effective. Each of these pronouncements, as applicable, has been or will be adopted by the Company. Management does not believe any of these accounting pronouncements has had or will have a material impact on the Company's financial position or operating results.

- 124 -

B. Unaudited Quarterly Financial Statements, August 31, 2010

Unaudited Balance Sheet as at August 31, 2010, Statements of Operations and Deficit for the Three Months ended August 31, 2010 and 2009, and Statements of Cash Flows for the Three Months ended August 31, 2010 and 2009.

- 125 -

__________________________________________________________________

Grandview Gold Inc.

(An Exploration Stage Company)

Interim Consolidated Financial Statements

For the Three Months Ended August 31, 2010

(Expressed in Canadian Dollars)

(Unaudited)

___________________________________________________________________

- 126 -

Management’s Responsibility for Financial Reporting

The accompanying unaudited interim consolidated financial statements of Grandview Gold Inc. (A Development Stage Enterprise) were prepared by management in accordance with Canadian generally accepted accounting principles. The most significant of these accounting principles have been set out in the May 31, 2010 audited consolidated financial statements. Only changes in accounting policies have been disclosed in these unaudited interim consolidated financial statements. Management acknowledges responsibility for the preparation and presentation of the period end unaudited interim consolidated financial statements, including responsibility for significant accounting judgments and estimates and the choice of accounting principles and methods that are appropriate to the Company’s circumstances.

Management has established systems of internal control over the financial reporting process, which are designed to provide reasonable assurance that relevant and reliable financial information is produced.

The Board of Directors is responsible for ensuring that management fulfills its financial reporting responsibilities and for reviewing and approving the period end unaudited interim consolidated financial statements together with other financial information. An Audit Committee assists the Board of Directors in fulfilling this responsibility. The Audit Committee meets with management to review the internal controls over the financial reporting process and the period end unaudited interim consolidated financial statements together with other financial information of the Company. The Audit Committee reports its findings to the Board of Directors for its consideration in approving the period end unaudited interim consolidated financial statements together with other financial information of the Company for issuance to the shareholders.

Management recognizes its responsibility for conducting the Company’s affairs in compliance with established financial standards, and applicable laws and regulations, and for maintaining proper standards of conduct for its activities.

Management's Report on Control Over Financial Reporting

Management is responsible for establishing and maintaining adequate control over financial reporting. Management conducted an evaluation of the effectiveness of internal control over financial reporting based on “Internal Control Over Financial Reporting –Guidance For Smaller Public Companies” issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on this evaluation, management concluded that the Company’s internal control over financial reporting was effective as at August 31, 2010.

Conclusion Relating to Disclosure Controls and Procedures

An evaluation was performed under the supervision of and with the participation of management, including the Chief Executive Officer and the Chief Financial Officer, of the effectiveness of the Company’s disclosure controls and procedures as defined in the Multilateral Instrument 52-109. Based on that evaluation, the Chief Executive Officer and the Chief Financial Officer concluded that the design and operation of the Company’s disclosure controls and procedures were effective as at August 31, 2010.

Notice to Reader

Under National Instrument 51-102, Part 4, subsection 4.3(3)(a), if an auditor has not performed a review of the interim financial statements, they must be accompanied by a notice indicating that the financial statements have not been reviewed by an auditor.

The accompanying unaudited interim consolidated financial statements of the Company have been prepared by and are the responsibility of the Company's management.

The Company's independent auditor has not performed a review of these unaudited interim consolidated financial statements in accordance with standards established by the Canadian Institute of Chartered Accountants for a review of interim financial statements by an entity's auditor.

(signed)	(signed)
Paul T. Sarjeant	Ernest Cleave
Chief Executive Officer	Chief Financial Officer
Toronto, Canada
October 14, 2010
- 127 -

Grandview Gold Inc.
(An Exploration Stage Company)
Interim Consolidated Balance Sheets
(Expressed in Canadian Dollars)
		August 31,
(Unaudited)		2010		May 31, 2010
Assets
Current assets
Cash and cash equivalents	$	1,226,090	$	1,432,824
Short term investments		25,099		25,037
GST and sundry receivable		40,118		26,416
Prepaid expenses		12,777		12,876
		1,304,084		1,497,153
Reclamation bond (Note 5)		14,001		13,699
Mining interests (Note 6)		4,247,910		4,149,771
	$	5,565,995	$	5,660,623
Liabilities
Current liabilities
Accounts payable and accrued liabilities	$	78,612	$	89,284
Asset retirement obligation		14,001		13,699
		92,613		102,983
Shareholders' equity		5,473,382		5,557,640
	$	5,565,995	$	5,660,623

Nature of operations and going concern (Note 1)

The notes to unaudited interim consolidated financial statements are an integral part of these statements.

- 128 -

Grandview Gold Inc.
(An Exploration Stage Company)
Interim Consolidated Statements of Operations and Comprehensive Loss
(Expressed in Canadian Dollar)
								Cumulative
								from date of
								inception
		Three Months Ended						of the exploration
		August 31,						stage (March
(Unaudited)		2010			2009			26, 2004	)
Expenses
Share-based payments	$	-		$	368,500		$	4,479,616
Investor relations, business development and reporting issuer maintenance costs		13,509			17,393			1,916,672
Professional fees		31,169			42,438			1,397,167
Management services (Note 12)		27,750			20,000			1,469,690
Office and administration		9,499			11,934			747,744
Exploration evaluation expenses		2,394			60			27,279
Flow-through interest expense		-			-			188,801
Bad debt		-			-			1,235
		84,321			460,325			10,228,204
Loss before the under noted		(84,321	)		(460,325	)		(10,228,204	)
Interest income		63			(2,715	)		88,786
Write-down of marketable securities		-			-			(25,000	)
Write-off of mineral properties		-			-			(6,431,718	)
Impairment of mineral properties		-			-			(1,557,112	)
Forgiveness of debt		-			-			35,667
Failed merger costs		-			-			(170,000	)
Loss before income taxes		(84,258	)		(463,040	)		(18,287,581	)
Future income tax recovery		-			-			1,675,990
Net loss and comprehensive loss for the period	$	(84,258	)	$	(463,040	)	$	(16,611,591	)
Basic loss per share (Note 10)	$	(0.00	)	$	(0.01	)
Diluted loss per share (Note 10)	$	(0.00	)	$	(0.01	)

The notes to unaudited interim consolidated financial statements are an integral part of these statements.

- 129 -

Grandview Gold Inc.
(An Exploration Stage Company)
Interim Consolidated Statements of Accumulated Deficit
(Expressed in Canadian Dollars)
								Cumulative
								from date of
								inception
								of the
		Three Months Ended						exploration
		August 31,						stage (March
(Unaudited)		2010			2009			26, 2004	)
Accumulated Deficit
Balance at beginning of period	$	(19,961,581	)	$	(19,081,178	)	$	( 3,434,248	)
Net loss for the period		(84,258	)		(463,040	)		(16,611,591	)
Balance at end of period	$	(20,045,839	)	$	(19,544,218	)	$	(20,045,839	)

The notes to unaudited interim consolidated financial statements are an integral part of these statements.

- 130 -

Grandview Gold Inc.
(An Exploration Stage Company)
Interim Consolidated Statements of Changes in Shareholders' Equity
(Expressed in Canadian Dollars)
								Contributed		Accumulated
(Unaudited)		Share Capital			Warrants			Surplus		Deficit			Total
At May 31, 2008	$	14,202,266		$	3,742,570		$	4,789,944	$	(11,193,260	)	$	11,541,520
Mineral property acquisition		10,800			-			-		-			10,800
Private placement		416,666			-			-		-			416,666
Cost of issue - cash laid out		(47,833	)		-			-		-			(47,833	)
Cost of issue - broker warrants valuation		(30,666	)		30,666			-		-			-
Flow-through cost of issue		(120,833	)		-			-		-			(120,833	)
Warrants expired		-			(2,569,432	)		2,569,432		-			-
Net loss for the year		-			-			-		(7,887,918	)		(7,887,918	)
At May 31, 2009		14,430,400			1,203,804			7,359,376		(19,081,178	)		3,912,402
Share-based payments		-			-			449,491		-			449,491
Exercise of warrants		16,667			-			-		-			16,667
Fair value of warrants exercised		15,333			(15,333	)		-		-			-
Mineral property acquisition		67,000			-			-		-			67,000
Private placement		2,000,000			-			-		-			2,000,000
Cost of issue – cash laid out		(36,392	)		-			-		-			(36,392	)
Cost of issue – broker warrant valuation		(1,440,000	)		1,440,000			-		-			-
Debt conversion		28,875			-			-		-			28,875
Warrants expired		-			(1,173,138	)		1,173,138		-			-
Net loss for the year		-			-			-		(880,403	)		(880,403	)
At May 31, 2010	$	15,081,883		$	1,455,333		$	8,982,005	$	(19,961,581	)	$	5,557,640
Net loss for the period		-			-			-		(84,258	)		(84,258	)
At August 31, 2010	$	15,081,883		$	1,455,333		$	8,982,005	$	(20,045,839	)	$	5,473,382

The notes to unaudited interim consolidated financial statements are an integral part of these statements.

- 131 -

Grandview Gold Inc.
(An Exploration Stage Company)
Interim Consolidated Statements of Cash Flows
(Expressed in Canadian Dollars)
								Cumulative
								from date of
								inception
								of the
		Three Months Ended						exploration
		August 31,						stage (March
(Unaudited)		2010			2009			26, 2004	)
Cash flows from operating activities
Net loss for the period	$	(84,258	)	$	(463,040	)	$	(16,611,591	)
Items not involving cash:
Write-down of marketable securities		-			-			25,000
Debt conversion		-			-			(6,792	)
Write-off of bad debts		-			-			1,235
Share-based payments		-			368,500			4,479,616
Future income tax recovery		-			-			(1,675,990	)
Accrued interest income		(63	)		-			(44,003	)
Write-off of mineral properties		-			-			6,431,718
Impairment of mineral properties		-			-			1,557,112
Changes in non-cash working capital items:
GST and sundry receivable		(13,702	)		(4,377	)		(39,628	)
Prepaid expenses		99			3,967			(12,777	)
Due from a related party		-			-			90,000
Accounts payable and accrued liabilities		(10,671	)		29,552			84,783
Cash flows used in operating activities		(108,595	)		(65,398	)		(5,721,317	)
Cash flows from financing activities
Loans from related parties		-			-			(28,594	)
Share/warrant issuance		-			-			20,068,877
Cost of issuance		-			-			(1,812,701	)
Proceeds from loan		-			-			175,000
Repayment of loan		-			-			(75,000	)
Cash flows provided by financing activities		-			-			18,327,582
Cash flows from investing activities
Purchase of reclamation bond		-			-			(13,090	)
Redemption (purchase) of short term investments		-			407,493			18,903
Exploration advances		-			-			-
Expenditures on mining interests		(98,139	)		(124,034	)		(11,295,988	)
Due from a related party		-			-			(90,000	)
Cash flows provided by (used in) investing activities	$	(98,139	)	$	283,459		$	(11,380,175	)

The notes to unaudited interim consolidated financial statements are an integral part of these statements.

- 132-

Grandview Gold Inc.
(An Exploration Stage Company)
Interim Consolidated Statements of Cash Flows – Continued
(Expressed in Canadian Dollars)
							Cumulative
							from date of
							inception
							of the
		Three Months Ended					exploration
		August 31,					stage (March
(Unaudited)		2010			2009		26, 2004	)
Change in cash and cash equivalents during the period	$	(206,734	)	$	218,061	$	1,226,090
Cash and cash equivalents, beginning of period		1,432,824			106,593		-
Cash and cash equivalents, end of period	$	1,226,090		$	324,654	$	1,226,090
Supplemental Schedule of Non-cash Transactions
Share issuance included in mining interest	$	-		$	10,800	$	630,875
Warrant issuance included in mining interest	$	-		$	-	$	184,750
Share-based payments included in mining interest	$	-		$	-	$	111,475
Interest paid	$	-		$	-	$	45,159

The notes to unaudited interim consolidated financial statements are an integral part of these statements.

- 133 -

Grandview Gold Inc.
(An Exploration Stage Company)
Interim Consolidated Statements of Mineral Properties
(Expressed in Canadian Dollars)
						Cumulative
						from date of
						inception
						of the
		Three Months Ended				exploration
		August 31,				stage (March
(Unaudited)		2010		2009		26, 2004	)
Red Lake Gold Camp, Ontario, Canada
Balance, beginning of period	$	3,873,967	$	3,442,793	$	-
Drilling, assays and related field work		-		68,783		3,202,798
Property acquisition and holding costs		1,353		-		672,522
		1,353		68,783		3,875,320
Balance, end of period	$	3,875,320	$	3,511,576	$	3,875,320
Guilianita Property, Peru
Balance, beginning of period	$	275,804	$	-	$	-
Drilling, assays and related field work		57,600		13,582		292,472
Project administration and general		39,186		-		39,186
Property acquisition and holding costs		-		41,669		40,932
		96,786		55,251		372,590
Balance, end of period	$	372,590	$	55,251	$	372,590
Total	$	4,247,910	$	3,566,827	$	4,247,910

The notes to unaudited interim consolidated financial statements are an integral part of these statements.

- 134 -

1.  Nature of Operations and Going Concern

Grandview Gold Inc. (the "Company" or "Grandview") is a gold exploration company focused on exploring and developing gold properties in gold camps of North America.

The Company was incorporated under the laws of the Province of Ontario. The Company was previously in the business of investing significant equity interests in high-technology companies. As at March 26, 2004, the Company changed its direction to a gold exploration company. To date, the Company has not earned significant revenues from gold exploration and is considered to be in the exploration stage. As such, the Company will be applying Accounting Guideline 11 "Enterprises in the Development Stage" as required by the Canadian Institute of Chartered Accountants' ("CICA") Handbook effective March 26, 2004 onward.

The unaudited interim consolidated financial statements have been prepared in accordance with Canadian generally accepted accounting principles ("GAAP"), as applicable to a going concern entity which contemplates the realization of its assets and the settlement of its liabilities in the normal course of operations. In assessing whether the going concern assumption is appropriate, management takes into account all available information about the future, which is at least, but is not limited to, twelve months from the end of the reporting period. The ability of the Company to continue operations is dependent upon obtaining the necessary financing to complete the development of a mineral property. Management is aware, in making its assessment, of material uncertainties related to events or conditions that may cast significant doubt upon the entity’s ability to continue as a going concern, as described in the following paragraph. Accordingly, the unaudited interim consolidated financial statements do not give effect to adjustments that would be necessary should the Company be unable to continue as a going concern and therefore be required to realize its assets and liquidate its liabilities and commitments in other than the normal course of business and at amounts different from those in the accompanying unaudited interim consolidated financial statements.

The Company's financing efforts to date, while substantial, are not sufficient in and of themselves to enable the Company to fund all aspects of its operations. Management expects that the Company, based upon the underlying value of its exploration projects, will be able to secure the necessary financing to meet the Company’s requirements on an ongoing basis. Nevertheless, there is no assurance that these initiatives will be successful.

2.  Accounting Policies

The unaudited interim financial statements have been prepared by the Company in accordance with GAAP. The preparation of the unaudited interim consolidated financial statements is based on accounting policies and practices consistent with those used in the preparation of the audited annual consolidated financial statements except as noted below. The accompanying unaudited interim consolidated financial statements should be read in conjunction with the notes to the Company’s audited consolidated financial statements for the year ended May 31, 2010, since they do not contain all disclosures required by GAAP for annual financial statements. These unaudited interim consolidated financial statements reflect all normal and recurring adjustments which are, in the opinion of management, necessary for a fair presentation of the respective unaudited interim periods presented.

- 135-

2. Accounting Policies (Continued)

Future Accounting Pronouncements

International Financial Reporting Standards [“IFRS”]

In January 2006, the CICA’s Accounting Standards Board ("AcSB") formally adopted the strategy of replacing Canadian GAAP with IFRS for Canadian enterprises with public accountability. The current conversion timetable calls for financial reporting under IFRS for accounting periods commencing on or after January 1, 2011. On February 13, 2008 the AcSB confirmed that the use of IFRS will be required in 2011 for publicly accountable profit-oriented enterprises. For these entities, IFRS will be required for interim and annual financial statements relating to fiscal years beginning on or after January 1, 2011. The Company is currently assessing the impact of IFRS on its consolidated financial statements.

Business Combinations, Consolidated Financial Statements and Non-Controlling Interests

The CICA issued three new accounting standards in January 2009: Section 1582, "Business Combinations", Section 1601, "Consolidated Financial Statements" and Section 1602, "Non-Controlling interests". These new standards will be effective for fiscal years beginning on or after January 1, 2011. Section 1582 replaces section 1581 and establishes standards for the accounting for a business combination. It provides the Canadian equivalent to IFRS 3 - Business Combinations. Sections 1601 and 1602 together replace section 1600, "Consolidated Financial Statements". Section 1601, establishes standards for the preparation of consolidated financial statements. Section 1602 establishes standards for accounting for a non-controlling interest in a subsidiary in consolidated financial statements subsequent to a business combination. It is equivalent to the corresponding provisions of IFRS lAS 27 - Consolidated and Separate Financial Statements. The Company is in the process of evaluating the requirements of the new standards.

3. Capital Management

The Company considers its capital structure to consist of share capital, warrants, contributed surplus and accumulated deficit. When managing capital, the Company’s objective is to ensure the entity continues as a going concern as well as to achieve optimal returns to shareholders and benefits for other stakeholders. Management adjusts the capital structure as necessary in order to support the acquisition, exploration and development of its mineral properties. The Board of Directors does not establish quantitative return on capital criteria for management, but rather relies on the expertise of the Company's management team to sustain the future development of the business.

The properties in which the Company currently has an interest are in the exploration stage. As such the Company is dependent on external financing to fund its activities. In order to carry out the planned exploration program and pay for administrative costs, the Company will spend its existing working capital and raise additional amounts when economic conditions permit it to do so.

- 136 -

3. Capital Management (continued)

 Management has chosen to mitigate the risk and uncertainty associated with raising additional capital within current economic conditions by:

                               i) minimizing discretionary disbursements;

                               ii) reducing or eliminating exploration expenditures which are of limited strategic value; and

                               iii) exploring alternate sources of liquidity.

In light of the above, the Company will continue to assess new properties and seek to acquire an interest in additional properties if it believes there is sufficient potential and if it has adequate financial resources to do so.

There were no changes in the Company's approach to capital management during the three months period ended August 31, 2010. The Company is not subject to externally imposed capital requirements.

4. Risk Factors

The Company’s significant mineral properties are Red Lake Gold Camp, Ontario, Canada and Guilianta Property, Peru (called the "Properties"). A full description of these properties may be found in Note 7 of the May 31, 2010 audited consolidated financial statements.

Unless the Company acquires or develops additional significant properties, the Company will be solely dependent upon these Properties. If no additional mineral properties are acquired by the Company, any adverse development affecting the Properties would have a material adverse effect on the Company's financial condition and results of operations.

The Company's risk exposures and their impact on the Company's financial instruments are summarized below:

Fair Value

The following summarizes the methods and assumptions used in estimating the fair value of the Company's financial instruments where measurement is required. The fair value of short-term financial instruments approximates their carrying amounts due to the relatively short period to maturity. These include cash and cash equivalents and short-term investments. Fair value amounts represent point-in-time estimates and may not reflect fair value in the future. The measurements are subjective in nature, involve uncertainties and are a matter of significant judgment. The methods and assumptions used to develop fair value measurements, for those financial instruments where fair value is recognized in the balance sheet, have been prioritized into three levels as per the fair value hierarchy included in GAAP. Level one includes quoted prices (unadjusted) in active markets for identical assets or liabilities. Level two includes inputs that are observable other than quoted prices included in level one. Level three includes inputs that are not based on observable market data.

		Level One		Level Two		Level Three
Cash and cash equivalents	$	1,226,090	$	-	$	-
Short-term investments	$	25,099	$	-	$	-
Reclamation bond	$	14,001	$	-	$	-

- 137 -

4.  Risk Factors (continued)

Credit Risk

Credit risk is the risk of loss associated with a counterparty’s inability to fulfill its payment obligations. The Company's credit risk is primarily attributable to cash and cash equivalents, GST and sundry receivable and due from a related party. Cash and cash equivalents are held with a reputable Canadian chartered bank, from which management believes the risk of loss to be minimal.

Financial instruments included in GST and sundry receivable and due from a related party consist of sales tax receivable from government authorities in Canada, deposits held with service providers and a loan provided to the President and CEO of the Company. GST and sundry receivable and due from a related party are in good standing as of August 31, 2010. Management believes that the credit risk concentration with respect to financial instruments included in GST and sundry receivable and due from a related party is minimal.

Liquidity Risk

The Company's approach to managing liquidity risk is to ensure that it will have sufficient liquidity to meet liabilities when due. As at August 31, 2010, the Company had a cash and cash equivalents and short term investments balance of $1,251,189 (May 31, 2010 - $1,457,861) to settle current liabilities of $78,612 (May 31, 2010 - $89,284). All of the Company's financial liabilities have contractual maturities of less than 30 days and are subject to normal trade terms.

Market Risk

Market risk is the risk of loss that may arise from changes in interest rates, foreign exchange rates and commodity prices.

(a)	Interest Rate Risk
	The Company has cash balances and no interest-bearing debt. The Company's current policy is to invest excess cash in investment-grade short-term deposit certificates issued by the Company's Canadian chartered bank. The Company periodically monitors the investments it makes and is satisfied with the creditworthiness of its bank.
(b)	Foreign Currency Risk
	The Company's functional and reporting currency is the Canadian dollar and major purchases are transacted in Canadian dollars. As a result, the Company's exposure to foreign currency risk is minimal.
(c)	Price Risk
	The Company is exposed to price risk with respect to commodity prices. Commodity price risk is defined as the potential adverse impact on earnings and economic value due to commodity price movements and volatilities. The Company closely monitors commodity prices, as they relate to gold to determine the appropriate course of action to be taken by the Company.

- 138 -

4. Risk Factors (continued)

Sensitivity Analysis

The Company has, for accounting purposes, designated its cash and cash equivalents as held for trading, which is measured at fair value. GST and sundry receivable and due from a related party are classified for accounting purposes as loans and receivables, which are measured at amortized cost which equals fair value. Accounts payable and accrued liabilities are classified for accounting purposes as other financial liabilities, which are measured at amortized cost which also equals fair value.

As of August 31, 2010, the carrying and fair value amounts of the Company's financial instruments are approximately equivalent.

The sensitivity analysis shown in the notes below may differ materially from actual results.

Based on management's knowledge and experience of the financial markets, the Company believes the following movements are "reasonably possible" over a three month period:

(i)	Short term investments are subject to floating interest rates. As at August 31, 2010, if interest rates had decreased/increased by 1% with all other variables held constant, the loss for the three months ended August 31, 2010 would have been approximately $63 higher/lower, as a result of lower/higher interest income from short term investments. As at August 31, 2010, reported shareholders' equity would have been approximately $63 lower/higher as a result of lower/higher interest income from short term investments.
(ii)	The Company does not hold significant balances in foreign currencies to give rise to exposure to foreign exchange risk.
(iii)	Commodity price risk could adversely affect the Company. In particular, the Company’s future profitability and viability of development depends upon the world market price of gold. Gold has fluctuated widely in recent years. There is no assurance that, even as commercial quantities of gold may be produced in the future, a profitable market will exist for gold. A decline in the market price of gold may also require the Company to reduce its mining interests, which could have a material and adverse effect on the Company’s value. As of August 31, 2010, the Company was not a gold producer. As a result, commodity price risk may affect the completion of future equity transactions such as equity offerings and the exercise of stock options and warrants. This may also affect the Company's liquidity and its ability to meet its ongoing obligations.

5.	Reclamation Bond
	The Company has posted reclamation bonds for its mining projects, as required by the United States, Department of the Interior Bureau of Land Management, to secure clean-up costs, if any, on projects that are abandoned or closed.
6.	Mining Interests
	On a quarterly basis, management of the Company reviews exploration expenditures to ensure mining interests include only costs and projects that are eligible for capitalization.
	For a description of mining interests, refer to Note 7 of the audited financial statements as at May 31, 2010.

- 139 -

7.	Share Capital
	(a)	Authorized
	Unlimited number of common shares
	Unlimited number of preference shares. The preference shares are without par value, redeemable, voting, non-participating, and are convertible into common shares at the rate of one common share for five preference shares (none currently issued and outstanding).
	(b)	Issued

	Number
	of
	shares		Amount
Balance, May 31, 2004 and March 26, 2004	3,270,998	$	3,378,444
Stock split (3 for 1)	6,541,996		-
Private placement	120,000		120,000
Private placement	150,000		150,000
Mineral property acquisition	400,000		4,000
Private placement	175,000		175,000
Private placement	1,005,000		1,005,000
Warrant valuation	-		(138,188	)
Mineral property acquisition	118,500		159,975
Mineral property acquisition	70,000		86,800
Cost of issue - warrant valuation	-		(35,200	)
Cost of issue - cash laid out	-		(124,081	)
Balance, May 31, 2005	11,851,494	$	4,781,750
Private placement	2,019,104		2,523,880
Debt conversion	80,000		100,000
Warrant valuation	-		(178,023	)
Private placement	590,320		737,900
Warrant valuation	-		(111,498	)
Shares issued for a finders' fee	160,000		200,000
Private placement	400,000		500,000
Private placement	3,985,974		4,384,571
Warrant valuation	-		(1,335,301	)
Cost of issue - broker warrant valuation	-		(462,173	)
Cost of issue - cash laid out	-		(866,375	)
Flow-through cost of issue	-		(731,430	)
Balance, May 31, 2006	19,086,892	$	$9,543,301

 - 140 -
 

7. Share Capital (Continued)

(b) Issued (Continued)

	Number
	of
	shares		Amount
Balance, May 31, 2006	19,086,892	$	9,543,301
Private placement	2,399,998		1,559,999
Warrant valuation	-		(284,400	)
Mineral property acquisition	50,000		34,500
Mineral property acquisition	55,000		22,000
Private placement	3,250,000		1,462,500
Warrant valuation	-		(339,625	)
Cost of issue - cash laid out	-		(249,300	)
Cost of issue - finder options valuation	-		(165,800	)
Flow-through cost of issue	-		(563,472	)
Balance, May 31, 2007	24,841,890	$	11,019,703
Private placement	11,169,000		4,950,150
Warrant valuation	-		(940,212	)
Mineral property acquisition	130,000		45,800
Exercise of warrants	147,875		66,544
Exercise of warrants valuation	-		36,673
Cost of issue - cash laid out	-		(488,720	)
Cost of issue - broker warrants valuation	-		(227,417	)
Flow-through cost of issue	-		(260,255	)
Balance, May 31, 2008	36,288,765	$	14,202,266
Mineral property acquisition	30,000		10,800
Private placement	8,333,333		416,666
Cost of issue - cash	-		(47,833	)
Cost of issue - broker warrants valuation	-		(30,666	)
Flow-through cost of issue	-		(120,833	)
Balance, May 31, 2009	44,652,098	$	14,430,400
Mineral property acquisition	750,000		67,000
Debt conversion	360,937		28,875
Exercise of warrants – cash	333,333		16,667
Exercise of warrants – valuation	-		15,333
Private placement	26,666,665		2,000,000
Cost of issue – cash	-		(36,392	)
Cost of issue – broker warrant valuation	-		(1,440,000	)
Balance, May 31, 2010 and August 31, 2010	72,763,033	$	15,081,883

- 141 -

8.  Warrants

			Weighted Average
	Number of Warrants		Exercise Price
Balance, May 31, 2004 and March 26, 2004	-	$	-
Issued	602,500		1.44
Expired/cancelled	-		-
Balance, May 31, 2005	602,500	$	1.44
Issued	3,435,238		1.63
Expired/cancelled	(602,500		(1.44
Balance, May 31, 2006	3,435,238	$	1.63
Issued	4,189,999		0.91
Expired/cancelled	(1,043,654		1.60
Balance, May 31, 2007	6,581,583	$	1.18
Issued	5,853,480		0.62
Issued	73,937		0.65
Exercised	(147,875		0.45
Balance, May 31, 2008	12,361,125	$	0.92
Expired	(6,307,645		(1.18
Issued	666,666		0.05
Balance, May 31, 2009	6,720,146	$	0.59
Expired	(6,053,480		(0.60
Issued	26,666,665		0.12
Exercised	(333,333		(0.65
Balance, May 31, 2010 and August 31, 2010	26,999,998	$	0.12

The following are the warrants outstanding at August 31, 2010:

Number of		Fair	Exercise	Expiry
Warrants		Value	Price ($)
333,333		15,333	0.05	December 4, 2010
26,666,665		1,440,000	0.12	December 3, 2011
26,999,998	$	1,455,333

- 142 -

9. Stock Options
	Number			Weighted Average
	of			Exercise
	Stock Options			Price
Balance, May 31, 2004 and March 26, 2004	-		$	-
Granted	1,225,000			1.01
Cancelled	(100,000	)		1.00
Balance, May 31, 2005	1,125,000		$	1.06
Granted	1,100,000			1.55
Balance, May 31, 2006	2,225,000		$	1.28
Granted	1,250,000			1.06
Expired	(375,000	)		1.00
Cancelled	(250,000	)		1.19
Balance, May 31, 2007	2,850,000		$	1.22
Granted	2,700,000			0.63
Expired	(850,000	)		1.13
Cancelled	(125,000	)		1.38
Balance, May 31, 2008	4,575,000		$	0.89
Cancelled	(175,000	)		0.68
Balance, May 31, 2009	4,400,000		$	0.90
Granted	4,250,000			0.15
Expired	(1,375,000	)		0.75
Forfeited	(1,400,000	)		0.93
Balance, May 31, 2010	5,875,000		$	0.38
Cancelled	(225,000	)		(0.15	)
Balance, August 31, 2010	5,650,000		$	0.39

 

- 143 -
 

9. Stock Options (Continued)

The following are the stock options outstanding and exercisable at August 31, 2010:

	Options outstanding				Options exercisable
		Weighted average				Weighted
		remaining		Weighted		average
	Number	contractual		average	Number	exercise
Expiry Date	of Options	life		exercise price	of options	price
April 3, 2011	250,000	0.84		1.80	250,000	1.80
December 9, 2014	900,000	4.53		0.15	900,000	0.15
September 27, 2012	1,825,000	2.33		0.68	1,825,000	0.68
June 23, 2014	2,675,000	4.07		0.15	2,675,000	0.15
	5,650,000	3.44 years	$	0.39	5,650,000	0.39

10. Basic and Diluted Loss Per Share

Basic loss per share is computed by dividing the loss for the year by the weighted-average number of common shares outstanding during the year, including contingently issuable shares which are included when the conditions necessary for issuance have been met. Diluted loss per share is calculated in a manner similar to basic loss per share, except the weighted-average shares outstanding are increased to include potential common shares from the assumed exercise of options and warrants, if dilutive. The number of additional shares included in the calculation is based on the treasury stock method for options and warrants.

		Three Months Ended
		August 31,
		2010			2009
Numerator for basic loss per share	$	(84,258	)	$	(463,040	)
Numerator for diluted loss per share	$	(84,258	)	$	(463,040	)
Denominator:
Weighted average number of common shares - basic		72,763,033			44,652,098
Weighted average number of common shares - diluted		72,763,033			44,652,098
Basic and diluted loss per share	$	(0.00	)	$	(0.01	)

Diluted loss per share reflects the maximum possible dilution from the potential exercise of outstanding stock options and warrants and the conversion of convertible securities. However, the effect of outstanding warrants and stock options has not been included as the effect would be anti-dilutive.  

- 144-

11. Segmented Information

The Company's operations comprise a single reporting operating segment engaged in mineral exploration (2009 - same). As the operations comprise a single reporting segment, amounts disclosed in the consolidated financial statements for loss for the periods presented also represent segment amounts.

The Company operates in two geographic segments for the three months ended August 31, 2010, and year ended May 31, 2010 as follows.

		August 31,		May 31,
		2010		2010
Canada	$	5,167,437	$	5,372,915
Peru		398,558		287,708
Total assets	$	5,565,995	$	5,660,623

12.  Related Party Transactions Not Disclosed Elsewhere

	(i)	For three months period ended August 31, 2010, $37,500 (three months ended August 31, 2009 - $37,500) was paid to the President and CEO of the Company for consulting services. Included in this amount was $18,750 (three months ended August 31, 2009 - $26,500) capitalized to mining interests.
	(ii)	For three months period ended August 31, 2010, $9,000 (three months ended August 31, 2009 - $9,000) in consulting fees was also paid or accrued to the Chief Financial Officer of the Company.
	(iii)	The Company provided a loan of $90,000 to the President and CEO of the Company. The loan is unsecured, bears no interest and was due on October 31, 2009. The loan was paid down through the application of various bonuses issued to the President and CEO.
These transactions were in the normal course of operations and were measured at the exchange value which is represented by the amount of consideration established and agreed to by the related parties.

- 145 -

13. Differences Between Canadian GAAP and US GAAP

The Company's unaudited interim consolidated financial statements have been prepared in accordance with Canadian GAAP. These principles, as they pertain to the Company's consolidated financial statements differ from US GAAP as follows:

Under Canadian GAAP, the Company accounted for its stock compensation plan as described in Note 2(j) in the fiscal 2010 consolidated financial statements under which CICA Handbook Section 3870 requires that compensation for option awards to employees and consultants be recognized in the consolidated financial statements at fair value for options granted in fiscal years beginning on or after January 1, 2004. The Company, as permitted by CICA Handbook Section 3870, has adopted this section prospectively for new option awards granted on or after June 1, 2003. Accordingly, a fair value compensation expense is reported for any options that were granted and vested during an interim or fiscal period. Prior to this accounting policy, no compensation expense was required to be recorded for stock option grants under Canadian GAAP for fiscal 2004. For US GAAP purposes, the Company has adopted the provisions of Financial Accounting Standards Board (FASB) Statement 148 effective as of June 1, 2003, which provisions allow the Company to record compensation expense for stock options granted in fiscal 2004 and all future periods based on the estimated fair value of such option, using the prospective method. In December 2004, FASB issued Statement 123 (Revised 2004), "Share- Based Payment," which mandates the recording of compensation expense based on the fair value of such options.

For the three months ended August 31, 2010, 2009, and 2008, the Company's accounting for stock option grants under US GAAP is substantially equivalent to the accounting under Canadian GAAP. As such, the expense recorded for US GAAP purposes would be equal to the expense recorded for Canadian GAAP purposes for the three months ended August 31, 2010, 2009, and 2008. Had the Company adopted (FASB) Statement 148 for fiscal 2004, there would be no affect on earnings since no stock options were issued in that year.

Under Canadian GAAP, the Company accounts for its exploration costs as described in Note 2(e) of the annual consolidated financial statements for May 31, 2010, while under US GAAP, exploration costs cannot be capitalized and are expensed as incurred. Mineral property rights relating to the properties are capitalized and they are tested for impairment.

Prior to June 1, 2007, under Canadian GAAP marketable securities and long-term investments are carried at the lower of cost or market, and adjustments to the carrying value are shown as an expense on the statement of operations. Under US GAAP marketable equity securities are carried at market value, and changes to the market value are shown as a component of shareholder's equity (if the securities are classified as available-for-sale securities) or as gain or loss in the statement of operations (if the securities are classified as trading securities). Effective June 1, 2007, the Company's accounting for financial instruments, equity and comprehensive income under US GAAP is substantially equivalent to the accounting under Canadian GAAP.

Canadian GAAP provides that a tax benefit be recorded in the statement of operations to reflect the recovery of future income taxes relating to the renunciation of resource property expenditures to the Company's flow-through share investors (see Note 12 of the annual consolidated financial statements for May 31, 2010). US GAAP has no such provision; consequently, the US GAAP statement of operations contains no such tax benefit.

Under Canadian GAAP, the Company does not impute interest on loans to related parties, while under US GAAP, imputed interest is required to be recorded for the purpose of preparing consolidated financial statements.

- 146 -

13. Differences Between Canadian GAAP and US GAAP (Continued)

Had the Company's consolidated balance sheets as at August 31, 2010 and May 31, 2010 been prepared using US GAAP, such consolidated balance sheets would be presented as follows:

		August 31, 2010			May 31, 2010
Assets
Current assets
Cash	$	1,226,090		$	1,432,824
Short term investments		25,099			25,037
GST and sundry receivable		40,118			29,719
Prepaid expenses		12,777			12,876
Due from a related party		2,929			-
		1,307,013			1,500,456
Reclamation bond		14,001			13,699
Mineral property rights		713,454			712,101
	$	2,034,468		$	2,226,256
Liabilities
Current liabilities
Accounts payable	$	78,610		$	7,835
Accrued liabilities		-			81,449
		78,610			89,284
Assets retirement obligation		14,001			13,699
		92,611			102,983
Shareholders' Equity
Share capital
Authorized - unlimited common shares
Issued
Common shares		16,757,873			16,757,873
Additional paid in capital		4,390,914			4,390,914
Warrants		1,455,333			1,455,333
Cumulative adjustments to marketable securities		(325,305	)		(325,305	)
Deferred share-based payments		4,591,091			4,591,091
Deficit accumulated before change to an exploration stage company		(3,133,943	)		(3,133,943	)
Deficit accumulated during the exploration stage		(21,794,106	)		(21,612,690	)
		1,941,857			2,123,273
	$	2,034,468		$	2,226,256

- 147 -
 

13. Differences Between Canadian GAAP and US GAAP (Continued)

Under US GAAP, exploration stage companies are required to provide cumulative-from-inception information relating to income statements, statements of cash flows, and statements of changes in shareholders' equity. Inception has been deemed to be March 26, 2004, the date on which the Company, at a shareholders' meeting, made the decision to return to the business of exploration as its primary business focus. The Company's statements of operations and comprehensive loss under US GAAP are as follows:

Statements of Operations and Comprehensive Loss
											Cumulative
					Three Months Ended						from date
		August 31,			August 31,			August 31,			of inception
		2010			2009			2008			("March 26, 2004"	)
Expenses
General exploration	$	99,552		$	82,425		$	234,766		$	9,390,898
Management services		27,750			388,500			74,214			5,254,111
Investor relations, business development and reporting issuer maintenance costs		13,509			17,393			16,824			1,960,570
Write-off of bad debts		-			-			-			1,235
Professional fees		31,169			42,438			30,729			1,254,813
Office and administration		9,499			11,934			17,185			678,637
Flow-through interest expense		-			-			-			188,801
Gain on forgiveness of debt		-			-			-			(35,667	)
Failed merger costs		-			-			-			170,000
Loss before the under noted		(181,479	)		(542,690	)		(373,718	)		(18,863,398	)
Interest income		63			(2,589	)		1,842			104,234
Write-off mineral property rights		-			-			-			(90,144	)
Net loss for the period		(181,416	)		(545,279	)		(371,876	)		(18,849,308	)
Comprehensive (loss) items:
Write-down of marketable securities		-			-			-			(25,000	)
Comprehensive loss for the period	$	(181,416	)	$	(545,279	)	$	(371,876	)	$	(18,874,308	)
Loss per common share
Basic	$	(0.00	)		(0.01	)		(0.01	)
Diluted	$	(0.00	)		(0.01	)		(0.01	)
Comprehensive loss per
common share
Basic	$	(0.00	)	$	(0.01	)	$	(0.01	)
Diluted	$	(0.00	)	$	(0.01	)	$	(0.01	)

- 148 -
 

13. Differences Between Canadian GAAP and US GAAP (Continued)

Statements of Changes in Shareholders' Equity

The changes in common shares from March 26, 2004 (date the Company became a exploration stage enterprise) as required by US GAAP is disclosed below:

			Amount
			Under
Common Shares	Shares		US GAAP
Common shares before change to a exploration stage company and as of March 26, 2004	3,270,998	$	3,378,444
Stock split (3 for 1)	6,541,996		-
Private placement	120,000		120,000
Private placement	150,000		150,000
Mineral property acquisition	400,000		4,000
Private placement	175,000		175,000
Private placement	1,005,000		1,005,000
Warrant valuation	-		(138,188	)
Mineral property acquisition	118,500		159,975
Mineral property acquisition	70,000		86,800
Cost of issue - warrant valuation	-		(35,200	)
Cost of issue - cash laid out	-		(124,081	)
Balance, May 31, 2005	11,851,494	$	4,781,750
Private placement	2,019,104		2,523,880
Debt conversation	80,000		100,000
Warrant valuation	-		(178,023	)
Private placement	590,320		737,900
Warrant valuation	-		(111,498	)
Shares issued for a finders' fee	160,000		200,000
Private placement	400,000		500,000
Private placement	3,985,974		4,384,571
Warrant valuation	-		(1,335,301	)
Cost of issue - broker warrant valuation	-		(462,173	)
Cost of issue - cash laid out	-		(866,375	)
Balance, May 31, 2006	19,086,892	$	10,274,731
Private placement	2,399,998		1,559,999
Warrant valuation	-		(284,400	)
Mineral property acquisition	50,000		34,500
Mineral property acquisition	55,000		22,000
Private placement	3,250,000		1,462,500
Warrant valuation	-		(339,625	)
Cost of issue - cash laid out	-		(249,300	)
Cost of issue - finder options valuation	-		(165,800	)
Balance, May 31, 2007	24,841,890	$	12,314,605

- 149 -

13. Differences Between Canadian GAAP and US GAAP (Continued)
			Amount
			Under
Common Shares (continued)	Shares		US GAAP
Balance, May 31, 2007	24,841,890	$	12,314,605
Private placements	11,169,000		4,950,150
Warrants valuation	-		(940,212	)
Mineral property acquisition	130,000		45,800
Exercise of warrants	147,875		66,544
Exercise of warrants valuation	-		36,673
Cost of issue - cash laid out	-		(488,720	)
Cost of issue - broker warrants valuation	-		(227,417	)
Balance, May 31, 2008	36,288,765	$	15,757,423
Mineral property acquisition	30,000		10,800
Private placement	8,333,333		416,666
Cost of issue - cash	-		(47,833	)
Cost of issue - broker warrants valuation	-		(30,666	)
Balance, May 31, 2009	44,652,098	$	16,106,390
Private placements	26,666,665		2,000,000
Cost of issue – cash	-		(36,392	)
Mineral property acquisition	750,000		67,000
Debt conversion	360,937		28,875
Exercise of warrants - valuation	-		15,333
Exercise of warrants – cash	333,333		16,667
Cost of issue - broker warrants valuation	-		(1,440,000	)
Balance, May 31, 2010 and August 31, 2010	72,763,033	$	16,757,873
Other charges in shareholders’ equity are presented as follows:
Additional Paid in Capital
Balance from inception and as of May 31, 2004 and 2005		$	25,000
Expired warrants			173,388
Balance, May 31, 2006		$	198,388
Expired warrants			449,956
Balance, May 31, 2007 and May 31, 2008		$	648,344
Expired warrants			2,569,432
Balance, May 31, 2009		$	3,217,776
Expired warrants			1,173,138
Balance, May 31, 2010 and August 31, 2010		$	4,390,914

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13. Differences Between Canadian GAAP and US GAAP (Continued)
Warrants
Balance from March 26, 2004 to May 31, 2004	$	-
Issued		173,388
Balance, May 31, 2005	$	173,388
Issued		2,086,995
Expired		(173,388	)
Balance, May 31, 2006	$	2,086,995
Issued		974,575
Expired		(449,956	)
Balance, May 31, 2007	$	2,611,614
Issued		1,167,629
Exercised		(36,673	)
Balance, May 31, 2008	$	3,742,570
Issued		30,666
Expired		(2,569,432	)
Balance, May 31, 2009	$	1,203,804
Issued		1,440,000
Exercised		(15,333	)
Expired		(1,173,138	)
Balance, May 31, 2010 and August 31, 2010	$	1,455,333
Cumulative Adjustments to Marketable Securities
Balance, June 1, 2001	$	(85,625	)
Comprehensive loss items		(121,100	)
Balance, May 31, 2002	$	(206,725	)
Comprehensive loss items		(88,580	)
Balance, May 31, 2003	$	(295,305	)
Comprehensive loss items		(5,000	)
Balance, March 26, 2004	$	(300,305	)
Comprehensive loss items		(15,234	)
Balance, May 31, 2004, 2005 and 2006	$	(315,539	)
Comprehensive loss items		(9,766	)
Balance, May 31, 2007	$	(325,305	)
Comprehensive loss items		-
Balance, May 31, 2008, 2009, 2010 and August 31, 2010	$	(325,305	)

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13. Differences Between Canadian GAAP and US GAAP (Continued)

Deferred Share-Based Payments
Balance, May 31, 2004	$	-
Vesting of stock options		775,613
Balance, May 31, 2005	$	775,613
Vesting of stock options		573,700
Balance, May 31, 2006	$	1,349,313
Vesting of stock options		1,358,687
Balance, May 31, 2007	$	2,708,000
Vesting of stock options		1,433,600
Balance, May 31, 2008 and 2009	$	4,141,600
Vesting of stock options		449,491
Balance, May 31, 2010 and August 31, 2010	$	4,591,091

Deficit Accumulated During the Exploration Stage
Balance, March 26, 2004	$	-
Net loss		4,678
Comprehensive loss items		(15,234	)
Balance, May 31, 2004	$	(10,556	)
Net loss		(1,743,463	)
Balance, May 31, 2005	$	(1,754,019	)
Net loss		(3,673,388	)
Balance, May 31, 2006	$	(5,427,407	)
Net loss		(6,052,723	)
Balance, May 31, 2007	$	(11,480,130	)
Net loss		(6,157,896	)
Balance, May 31, 2008	$	(17,638,026	)
Net loss		(2,586,978	)
Balance, May 31, 2009	$	(20,225,004	)
Net loss		(1,387,686	)
Balance, May 31, 2010	$	(21,612,690	)
Net loss		(181,416	)
Balance, August 31, 2010	$	(21,794,106	)

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13. Differences Between Canadian GAAP and US GAAP (Continued)
The Company's statements of cash flows under US GAAP are as follows:
Statements of Cash Flows
											Cumulative
					Three Months Ended						from date
		August 31,			August 31,			August 31,			of inception
		2010			2009			2008			("March 26, 2004"	)
Cash flows from operating activities
Net loss for the period	$	(181,416	)	$	(545,279	)	$	(371,876	)	$	(18,849,308	)
Items not involving cash:
Forgiveness of debt		-			-			-			(6,792	)
Write-off of bad debts		-			-			-			1,235
Share-based payments		-			368,500			-			4,479,616
Accrued Interest income		-			(126	)		(1,279	)		(59,539	)
Write-off of mineral property rights		-			-			-			90,144
Change in non-cash operating working activities:
GST and sundry receivable		(13,702	)		(4,377	)		27,114			(48,101	)
Prepaid expenses		99			3,967			(28,456	)		(7,107	)
Due from a related party		-			-			-			15,099
Accounts payable		70,775			72,994			143,889			149,629
Accrued liabilities		(81,449	)		(43,442	)		(45,000	)		(64,288	)
Cash flows used in operating activities		(205,693	)		(147,763	)		(275,608	)		(14,299,412	)
Cash flows from financing activities
Repayment of loans from related
parties		-			-			-			(28,594	)
Share/warrant issuance		-			-			-			20,068,877
Cost of issue		-			-			-			(1,812,701	)
Proceeds from loan		-			-			-			175,000
Repayment of loan		-			-			-			(75,000	)
Cash flows provided by financing activities		-			-			-			18,327,582
Cash flows from investing activities
Purchase of reclamation bond		-			-			-			(13,090	)
Redemption (purchase) of short term investments		(62	)		407,493			534,804			18,841
Exploration advances		-			-			-			-
Purchase of mineral property rights		(979	)		(41,669	)		(85,135	)		(2,807,832	)
Cash flows provided by (used in) investing activities		(1,041	)		365,824			449,669			(2,802,081	)
Change in cash during the period		(206,734	)		218,061			174,061			1,226,089
Cash, beginning of period		1,432,824			106,593			84,856			1
Cash, end of period	$	1,226,090		$	324,654		$	258,917		$	1,226,090

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13. Differences Between Canadian GAAP and US GAAP (Continued)

Statements of Cash Flows (continued)

								Cumulative
		Three Months Ended						from date
		August 31,		August 31,		August 31,		of inception
		2010		2009		2008		("March 26, 2004"	)
Supplemental Schedule of Non-Cash Transaction
Share issuance included in mining Interest	$	-	$	-	$	10,800	$	563,875
Warrant issuance included in mining interest	$	-	$	-	$	-	$	184,750
Share-based payments included in mining interest	$	-	$	-	$	-	$	111,475
Interest paid	$	-	$	-	$	-	$	45,159

14. Comparative Figures

Certain prior year figures have been reclassified to conform with the current period’s presentation.

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ITEM 19: Exhibits

(Reference is made to Registration Statement on Form 20-F, dated May 3, 2005, filed with the Securities and Exchange Commission on May 5, 2005, for exhibits 1, 2, and 3.A - 3.B. Reference is made to Amendment No. 1 to Registration Statement on Form 20-F, dated August 17, 2005, filed with the Securities and Exchange Commission on August 18, 2005, for exhibit 5.B. Reference is made to Amendment No. 2 to Registration Statement on Form 20-F, filed with the Securities and Exchange Commission on November 15, 2005, for exhibits 3.C through 3.E. Reference is made to Annual Report on Form 20-F for the year ended May 31, 2006, filed with the Securities and Exchange Commission on December 26, 2006 for exhibits 3.F through 3.N and 5.A).

1.	Articles of Incorporation/Bylaws as currently in effect:
	A.	Certificate of Incorporation, Loisan Red Lake Gold Mines Limited, November 23, 1945
	B.	Articles of Amendment dated September 22, 1983
	C.	Articles of Amendment dated April 9, 1987
	D.	Articles of Amendment dated July 6, 2004
	E.	By-laws of the Company dated January 14, 1987

2.	Instruments defining the rights of holders of equity
	- Refer to Exhibit No. 1.
3.	Material Contracts
	A. Option Agreement between Mill City Gold Corp. and Grandview Gold Inc. dated April 13, 2005.
	B. Management contract dated June 1, 2004 with Global-Tek Business Development Inc., a consulting company owned by the president Raymond Pecoskie.
	C. Option Agreement with Fronteer Development Group Inc. and the Company, dated as of August 26, 2005 D. Option Agreement dated September 30, 2005 between the Company and Marum Resources Inc.
	E. Letter Agreement dated September 8, 2005 with Mill City Gold Corp. amending Option Agreement between Mill City Gold Corp. and Grandview Gold Inc. dated April 13, 2005. F. Consulting Agreement dated November 15, 2006 between Ernest M. Cleave and the Company.
	G. Agreement dated July 11, 2006 between the Company and Connect Capital Limited. H. Agreement dated July 11, 2006 between the Company and Ted Markovitz.
	I. Option Agreement dated November 23, 2006 between the Company and Harvest Gold Corporation.
	J. Consulting Agreement dated June 12, 2006 between the Company and Michael Hitch.

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K.	Consulting Agreement dated June 8, 2006 between the Company and Paul Sarjeant.
L.	Consulting Agreement dated October 31, 2006 between the Company, Doublewood Consulting, and Paul Sarjeant.
M.	Field Management Agreement dated July 12, 2006 between the Company and Carlin Trend Mining Services.
N.	Amendment dated December 15, 2006 to Option Agreement dated September 30, 2005 between the Company and Marum Resources Inc.
O.	Option Agreement between EMCO Corporation SA and the Company made effective as of October 30, 2006;
P.	Amendment to Option Agreement between EMCO Corporation SA and the Company dated June 18, 2007;
Q.	Agreement for Purchase and Sale between the Company and McKeena Gold Inc. dated February 23, 2007 regarding the Banksian Lake Gold Property;
R.	Agreement for Purchase and Sale between the Company and McKeena Gold Inc. dated February 23, 2007 regarding the Angelina Gold Property;

4.	List of Subsidiaries
	- None -
5.	Additional Exhibits
	A. 2006 Stock Option Plan B. Audit Committee Charter

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12.	Certifications
	A. Certification of Chief Executive Officer

SECTION 302 CERTIFICATION

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

I, Paul Sarjeant, certify that:

1.	I have reviewed this annual report on Form 20-F of Grandview Gold Inc. for the year ended May 31, 2010;
2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the company as of, and for, the periods presented in this report;
4.	The company’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the company and have:
	(a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
	(b)	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

- 157 -

	(c)	Evaluated the effectiveness of the company’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
	(d)	Disclosed in this report any change in the company’s internal control over financial reporting that occurred during the period covered by the annual report that has materially affected, or is reasonably likely to materially affect, the company’s internal control over financial reporting and;
5.	The company’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the company’s auditors and the audit committee of the company’s board of directors (or persons performing the equivalent function):
	(a)	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the company’s ability to record, process, summarize and report financial information; and
	(b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the company’s internal control over financial reporting.

Date: December 29, 2010

/s/ Paul Sarjeant                                                

Paul Sarjeant 

President and Chief Executive Officer

 - 158 -

B. Certification of Chief Financial Officer

SECTION 302 CERTIFICATION

CERTIFICATION OF CHIEF FINANCIAL OFFICER

I, Ernest Cleave, certify that:

1.	I have reviewed this annual report on Form 20-F of Grandview Gold Inc. for the year ended May 31, 2010;
2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the company as of, and for, the periods presented in this report;
4.	The company’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the company and have:
	(a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
	(b)	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

- 159 -

	(c)	Evaluated the effectiveness of the company’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
	(d)	Disclosed in this report any change in the company’s internal control over financial reporting that occurred during the period covered by the annual report that has materially affected, or is reasonably likely to materially affect, the company’s internal control over financial reporting and;
5.	The company’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the company’s auditors and the audit committee of the company’s board of directors (or persons performing the equivalent function):
	(a)	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the company’s ability to record, process, summarize and report financial information; and
	(b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the company’s internal control over financial reporting.

Date: December 29, 2010

/s/ Ernest Cleave                                      

Ernest Cleave

Chief Financial Officer

 - 160 -

Certifications Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

C. Certification of Chief Executive Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

CERTIFICATION PURSUANT TO

18 U.S.C. §1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the annual report of Grandview Gold Inc. (the "Company") on Form 20-F for the year ended May 31, 2010, I, Paul Sarjeant, President and Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge:

1.	The annual report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
2.	The information contained in the annual report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: December 29, 2010

/s/ Paul Sarjeant                                                

Paul Sarjeant 

President and Chief Executive Officer

 - 161 -

D. Certification of Chief Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

CERTIFICATION PURSUANT TO

18 U.S.C. §1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the annual report of Grandview Gold Inc. (the "Company") on Form 20-F for the year ended May 31, 2010, I, Ernest Cleave, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge:

1.	The annual report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
2.	The information contained in the annual report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: December 29, 2010

/s/ Ernest Cleave                                      

Ernest Cleave

Chief Financial Officer

 - 162 -

SIGNATURES

The Registrant hereby certifies that it meets all of the requirements for filing on Form 20-F and that is has duly caused and authorized the undersigned to sign this annual report on its behalf.

GRANDVIEW GOLD INC.

By: /s/ Paul Sarjeant
Paul Sarjeant
President

Dated: December 29, 2010

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