Grandview Gold, Inc.: Exhibit 99.42 - Filed by newsfilecorp.com

EX-99.42 43 exhibit99-42.htm EXHIBIT 99.42 Grandview Gold, Inc.: Exhibit 99.42 - Filed by newsfilecorp.com

Exhibit 99.42

Grandview Gold Inc.

(An Exploration Stage Company)

Interim Consolidated Financial Statements

For the Three and Nine Months Ended February 28, 2010

(Expressed in Canadian Dollars)

(Unaudited)

Management’s Responsibility for Financial Reporting

The accompanying unaudited interim consolidated financial statements of Grandview Gold Inc. (An Exploration 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, 2009 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 February 28, 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 February 28, 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
April 14, 2010

Grandview Gold Inc.
(An Exploration Stage Company)
Interim Consolidated Balance Sheets
(Expressed in Canadian Dollars)

		February 28,		May 31,
(Unaudited)		2010		2009
Assets
Current assets
Cash and cash equivalents	$	1,729,330	$	106,593
Short term investments		25,000		407,493
GST and sundry receivable		19,752		5,707
Prepaid expenses		15,718		12,283
Due from a related party (Note 12(iv))		10,000		10,000
		1,799,800		542,076
Reclamation bond (Note 5)		13,817		14,332
Mining interests (Note 6)		3,884,563		3,442,793
	$	5,698,180	$	3,999,201
Liabilities
Current liabilities
Accounts payable and accrued liabilities	$	65,388	$	72,467
Asset retirement obligation		13,817		14,332
		79,205		86,799

Shareholders' equity		5,618,975		3,912,402
	$	5,698,180	$	3,999,201

Nature of operations and going concern (Note 1) Subsequent event (Note 14)

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

- 2 -

Grandview Gold Inc.

(An Exploration Stage Company)

Interim Consolidated Statements of Operations and Comprehensive Loss

(Expressed in Canadian Dollars)

														Cumulative
														from date of
														inception
														of the
		Three Months Ended						Nine Months Ended						exploration
		February 28,						February 28,						stage (March
(Unaudited)		2010			2009			2010			2009			26, 2004)

Expenses
Share-based payments	$	80,991		$	-		$	449,491		$	-		$	4,479,616
Investor relations, business development and reporting issuer maintenance costs		21,014			35,660			54,090			75,007			1,841,901
Professional fees		21,385			47,568			111,799			111,825			1,335,443
Management services (Note 12)		29,824			62,769			73,074			175,846			1,416,264
Office and administration		10,019			34,333			35,264			50,749			704,402
Exploration evaluation expenses		13,232			-			20,881			4,656			40,766
Flow-through interest expense		-			2,747			-			2,747			188,801
Write-down of marketable securities		-			-			-			-			25,000
Bad debt		-			-			-			-			1,235

		176,465			183,077			744,599			420,830			10,033,428

Loss before the under noted		(176,465	)		(183,077	)		(744,599	)		(420,830	)		(10,033,428	)
Interest income		2,597			2,204			12			5,252			89,084
Write-off of mineral properties		-			(1,469,669	)		-			(1,469,669	)		(7,988,830	)
Forgiveness of debt		(28,875	)		(60,000	)		(28,875	)		(60,000	)		6,792
Failed merger costs		-			-			-			-			(170,000	)

Loss before income taxes		(202,743	)		(1,710,542	)		(773,462	)		(1,945,247	)		(18,096,382	)
Future income tax recovery		-			120,833			-			120,833			1,675,990

Net loss and comprehensive loss for the period	$	(202,743	)	$	(1,589,709	)	$	(773,462	)	$	(1,824,414	)	$	(16,420,392	)

Basic and diluted loss per share (Note 10)	$	(0.00	)	$	(0.04	)	$	(0.01	)	$	(0.05	)

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

- 3 -

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						Nine Months Ended						exploration
		February 28,						February 28,						stage (March
(Unaudited)		2010			2009			2010			2009			26, 2004)

Accumulated Deficit
Balance at beginning of period	$	(19,651,897	)	$	(11,427,965	)	$	(19,081,178	)	$	(11,193,260	)	$	(3,434,248	)
Net loss for the period		(202,743	)		(1,589,709	)		(773,462	)		(1,824,414	)		(16,420,392	)

Balance at end of period	$	(19,854,640	)	$	(13,017,674	)	$	(19,854,640	)	$	(13,017,674	)	$	(19,854,640	)

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

- 4 -

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		20,000			-			-		-			20,000
Private placement		2,000,000			-			-		-			2,000,000
Cost of issue - cash laid out		(34,998	)		-			-		-			(34,998	)
Cost of issue - broker warrants valuation		(1,440,000	)		1,440,000			-		-			-
Debt settlement		28,875			-			-		-			28,875
Warrants expired		-			(1,173,138	)		1,173,138		-			-
Net loss for the period		-			-			-		(773,462	)		(773,462	)

At February 28, 2010	$	15,036,277		$	1,455,333		$	8,982,005	$	(19,854,640	)	$	5,618,975

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

- 5 -

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						Nine Months Ended						exploration
		February 28,						February 28,						stage (March
(Unaudited)		2010			2009			2010			2009			26, 2004)

Cash flows from operating activities
Net loss for the period	$	(202,743	)	$	(1,589,709	)	$	(773,462	)	$	(1,824,414	)	$	(16,420,392	)
Items not involving cash:
Write-down of marketable securities		-			-			-			-			25,000
Forgiveness of debt		28,875			60,000			28,875			60,000			(6,792	)
Accrued bonus		-			20,000			-			20,000			-
Write-off of bad debts		-			-			-			-			1,235
Share-based payments		80,991			-			449,491			-			4,479,616
Future income tax recovery		-			(120,833	)		-			(120,833	)		(1,675,990	)
Accrued interest income		-			-			-			-			(43,903	)
Write-off of mineral properties		-			1,469,669			-			1,469,669			7,988,830
Changes in non-cash working capital items:
GST and sundry receivable		(6,930	)		2,191			(14,045	)		34,402			(19,262	)
Prepaid expenses		13,524			(5,068	)		(3,435	)		113,666			(15,718	)
Due from a related party		-			-			-			-			80,000
Accounts payable and accrued liabilities		(287,217	)		51,103			(7,079	)		(31,464	)		71,558

Cash flows provided by (used in) operating activities		(373,500	)		(112,647	)		(319,655	)		(278,974	)		(5,535,818	)

Cash flows from financing activities
Loans from related parties		-			-			-			-			(28,594	)
Share/warrant issuance		2,000,000			416,666			2,016,667			416,666			20,068,877
Cost of issuance		(34,998	)		(33,333	)		(34,998	)		(33,333	)		(1,811,307	)
Proceeds from loan		-			-			-			-			175,000
Repayment of loan		-			-			-			-			(75,000	)

Cash flows provided by financing activities		1,965,002			383,333			1,981,669			383,333			18,328,976

Cash flows from investing activities
Purchase of reclamation bond		-			-			-			-			(13,090	)
(Purchase) redemption of short term investments		-			(2,204	)		382,493			605,670			18,903
Expenditures on mining interests		(69,916	)		(54,799	)		(421,770	)		(505,667	)		(10,979,641	)
Due from a related party		-			-			-			-			(90,000	)

Cash flows (used in) provided by investing activities	$	(69,916	)	$	(57,003	)	$	(39,277	)	$	100,003		$	(11,063,828	)

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

- 6 -

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				Nine Months Ended				exploration
		February 28,				February 28,				stage (March
(Unaudited)		2010		2009		2010		2009		26, 2004)

Change in cash during the period	$	1,521,586	$	213,683	$	1,622,737	$	204,362	$	1,729,330

Cash, beginning of period		207,744		75,535		106,593		84,856		-

Cash, end of period	$	1,729,330	$	289,218	$	1,729,330	$	289,218	$	1,729,330

Supplemental Schedule of Non-cash Transactions
Share issuance included in mining interest	$	20,000	$	-	$	20,000	$	10,800	$	583,875
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.

- 7 -

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					Nine Months Ended					exploration
		February 28,					February 28,					stage (March
(Unaudited)		2010		2009			2010		2009			26, 2004)

Pony Creek Carlin Trend Project, Nevada, USA
Balance, beginning of period	$	-	$	5,884,391		$	-	$	5,679,340		$	-

Drilling, assays and related field work		-		-			-		96,595			4,684,830
Project administration and general		-		-			-		14,090			96,879
Property acquisition and holding costs		-		13			-		94,379			1,121,633
Write-off		-		-			-		-			(5,903,342	)

		-		13			-		205,064			-

Balance, end of period	$	-	$	5,884,404		$	-	$	5,884,404		$	-

Red Lake Gold Camp, Ontario, Canada
Balance, beginning of period	$	3,707,171	$	3,405,844		$	3,442,793	$	3,275,971		$	-

Drilling, assays and related field work		3,866		39,264			268,244		157,897			3,198,131
Property acquisition and holding costs		-		236			-		11,476			512,906

		3,866		39,500			268,244		169,373			3,711,037

Balance, end of period	$	3,711,037	$	3,445,344		$	3,711,037	$	3,445,344		$	3,711,037

Rice Lake Gold Camp, Manitoba, Canada
Balance, beginning of period	$	-	$	1,454,383		$	-	$	1,327,639		$	-

Drilling, assays and related field work		-		15,356			-		177,093			1,163,762
Project administration and general		-		(70	)		-		237			227
Property acquisition and holding costs		-		-			-		-			393,123
Government refund		-		-			-		(35,300	)		-
Write-off		-		(1,469,669	)		-		(1,469,669	)		(1,557,112	)

		-		(1,454,383	)		-		(1,327,639	)		-

Balance, end of period	$	-	$	-		$	-	$	-		$	-

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

- 8 -

Grandview Gold Inc.

(An Exploration Stage Company)

Interim Consolidated Statements of Mineral Properties - Continued

(Expressed in Canadian Dollars)

										Cumulative
										from date of
										inception
										of the
		Three Months Ended				Nine Months Ended				exploration
		February 28,				February 28,				stage (March
(Unaudited)		2010		2009		2010		2009		26, 2004)

Giulianita Property, Peru (Note 6(a))
Balance, beginning of period	$	87,476	$	-	$	-	$	-	$	-

Drilling, assays and related field work		66,085		-		102,007		-		102,007
Property acquisition and holding costs		19,965		-		71,519		-		71,519

		86,050		-		173,526		-		173,526

Balance, end of period	$	173,526	$	-	$	173,526	$	-	$	173,526

Total	$	3,884,563	$	9,329,748	$	3,884,563	$	9,329,748	$	3,884,563

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

- 9 -

Grandview Gold Inc.

(An Exploration Stage Company)

Notes to Interim Consolidated Financial Statements

Three and Nine Months Ended February 28, 2010

(Expressed in Canadian Dollars)

(Unaudited)

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.	Basis of Presentation and Accounting Policies

	The unaudited interim consolidated 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, 2009, 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.

- 10 -

Grandview Gold Inc.

(An Exploration Stage Company)

Notes to Interim Consolidated Financial Statements

Three and Nine Months Ended February 28, 2010

(Expressed in Canadian Dollars)

(Unaudited)

2.	Basis of Presentation and Accounting Policies (continued)

	Goodwill and Intangible Assets

	In February 2008, the CICA approved Handbook Section 3064, “Goodwill and Intangible Assets” which replaces the existing 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, with earlier application encouraged. The standard provides guidance on the recognition, measurement and disclosure requirements for goodwill and intangible assets. The adoption of this new accounting standard had no impact on the unaudited interim consolidated financial statements as of February 28, 2010.

	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.

	Financial Instruments

	During 2009, CICA Handbook Section 3862, Financial Instruments - Disclosures ("Section 3862") was amended to require disclosure about the inputs to fair value measurements, including their classification within a hierarchy that prioritizes the inputs to fair value measurement. The three levels of the fair value hierarchy are:

	• Level 1 - Unadjusted quoted prices in active markets for identical assets or liabilities;
	• Level 2 - Inputs other than quoted prices that are observable for the asset or liability either directly or indirectly, and;
	• Level 3 - Inputs that are not based on observable market data.

	This amendment is effective for the Company's consolidated financial statements for the year ending May 31, 2010. The adoption of this amendment will have no impact on the Company's operating results or financial position.

- 11 -

Grandview Gold Inc.

(An Exploration Stage Company)

Notes to Interim Consolidated Financial Statements

Three and Nine Months Ended February 28, 2010

(Expressed in Canadian Dollars)

(Unaudited)

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 three and nine months ended February 28, 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 Guilianita Property, Peru (called the "Properties").

	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:

	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, short term investments, GST and sundry receivable and due from a related party. Cash 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 February 28, 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.

- 12 -

Grandview Gold Inc.

(An Exploration Stage Company)

Notes to Interim Consolidated Financial Statements

Three and Nine Months Ended February 28, 2010

(Expressed in Canadian Dollars)

(Unaudited)

4.	Risk Factors (continued)

	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 February 28, 2010, the Company had a cash and short term investments balance of $1,754,330 (May 31, 2009 - $514,086) to settle current liabilities of $65,388 (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.

	Sensitivity Analysis

	The Company has, for accounting purposes, designated its cash 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 which also equals fair value.

	As of February 28, 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.

- 13 -

Grandview Gold Inc.

(An Exploration Stage Company)

Notes to Interim Consolidated Financial Statements

Three and Nine Months Ended February 28, 2010

(Expressed in Canadian Dollars)

(Unaudited)

4.	Risk Factors (continued)

	Sensitivity Analysis (continued)

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

	(i)	Short term investments are subject to floating interest rates. As at February 28, 2010, if interest rates had decreased/increased by 1% with all other variables held constant, the loss for the nine months ended February 28, 2010 would have been approximately $200 higher/lower, as a result of lower/higher interest income from short term investments. As at February 28, 2010, reported shareholders' equity would have been approximately $200 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 February 28, 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 8 of the audited consolidated financial statements as at May 31, 2009. There following changes to mining interests occurred from June 1, 2009 to February 28, 2010.

	(a)	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.

- 14 -

Grandview Gold Inc.

(An Exploration Stage Company)

Notes to Interim Consolidated Financial Statements

Three and Nine Months Ended February 28, 2010

(Expressed in Canadian Dollars)

(Unaudited)

6.	Mining interests (Continued)

	(a)	Guilianita Project, Peru (Continued)

		The Option also allows the Company to acquire the remaining 20% subject to it making an additional payment of US$300,000 (CAD$317,220) and issuing a further 250,000 common shares of the Company prior to the third anniversary of the date of the Memorandum.

		The Memorandum and the transactions contemplated therein and thereby are conditional upon receipt of all required regulatory approvals, including the approval of the TSX.

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

- 15 -

Grandview Gold Inc.

(An Exploration Stage Company)

Notes to Interim Consolidated Financial Statements

Three and Nine Months Ended February 28, 2010

(Expressed in Canadian Dollars)

(Unaudited)

7.	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	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

- 16 -

Grandview Gold Inc.

(An Exploration Stage Company)

Notes to Interim Consolidated Financial Statements

Three and Nine Months Ended February 28, 2010

(Expressed in Canadian Dollars)

(Unaudited)

7.	Share Capital (continued)

	(b)	Issued (continued)

	Number
	of
	Shares		Amount

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
Exercise of warrants	333,333		16,667
Exercise of warrants valuation	-		15,333
Private placement (i)	26,666,665		2,000,000
Cost of issue - cash	-		(34,998	)
Cost of issue - broker warrants valuation	-		(1,440,000	)
Debt conversion (ii)	360,937		28,875
Mineral property acquisition (iii)	200,000		20,000

Balance, February 28, 2010	72,213,033	$	15,036,277

(i)	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 placees resulting in aggregate proceeds to the Company treasury of $2M 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 $1.5M. 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, 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.

(ii)	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.

- 17 -

Grandview Gold Inc.

(An Exploration Stage Company)

Notes to Interim Consolidated Financial Statements

Three and Nine Months Ended February 28, 2010

(Expressed in Canadian Dollars)

(Unaudited)

7.	Share Capital (continued)

	(b)	Issued (continued)

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

8.	Warrants

	Number of			Weighted Average
	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	)		(0.05	)

Balance, February 28, 2010	26,999,998		$	0.12

- 18 -

Grandview Gold Inc.

(An Exploration Stage Company)

Notes to Interim Consolidated Financial Statements

Three and Nine Months Ended February 28, 2010

(Expressed in Canadian Dollars)

(Unaudited)

10.	Warrants (Continued)

	The following are the warrants outstanding at February 28, 2010:

Number of		Fair	Exercise	Expiry
Warrants		Value	Price ($)	Date

333,333	$	15,333	0.05	December 4, 2010
20,666,665		1,440,000	0.12	December 3, 2011

20,999,998	$	1,455,333

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 (i)(ii)	4,250,000			0.15
Expired	(675,000	)		1.01
Cancelled	(1,400,000	)		0.93

Balance, February 28, 2010	6,575,000		$	0.40

- 19 -

Grandview Gold Inc.

(An Exploration Stage Company)

Notes to Interim Consolidated Financial Statements

Three and Nine Months Ended February 28, 2010

(Expressed in Canadian Dollars)

(Unaudited)

9.	Stock Options (continued)

	(i)	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.

	(ii)	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.

	(ii)	The weighted average fair value of the total options granted during the period ended February 28, 2010, on the grant date was $0.11.

		The following are the stock options outstanding and exercisable at February 28, 2010:

	Options Outstanding				Options Exercisable
		Weighted
		Average
		Remaining		Weighted			Weighted
	Number	Contractual		Average	Number		Average
Expiry Date	of Options	Life (years)		Exercise Price	of Options		Exercise Price

April 15, 2010	700,000	0.13	$	0.50	700,000	$	0.50
April 3, 2011	250,000	1.09		1.80	250,000		1.80
September 27, 2012	1,825,000	2.58		0.68	1,825,000		0.68
June 23, 2014	2,900,000	4.32		0.15	2,900,000		0.15
December 9, 2014	900,000	4.78		0.15	900,000		0.15

	6,575,000	3.33	$	0.40	6,575,000	$	0.40

10.	Basic and Diluted Loss Per Share

	Basic loss per share is computed by dividing the loss for the period by the weighted-average number of common shares outstanding during the period, 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.

- 20 -

Grandview Gold Inc.

(An Exploration Stage Company)

Notes to Interim Consolidated Financial Statements

Three and Nine Months Ended February 28, 2010

(Expressed in Canadian Dollars)

(Unaudited)

10.

Basic and Diluted Loss Per Share (Continued)

		Three Months Ended						Nine Months Ended
		February 28,						February 28,
		2010			2009			2010			2009

Numerator for basic loss per share	$	(202,743	)	$	(1,589,709	)	$	(773,462	)	$	(1,824,414	)

Numerator for diluted loss per share	$	(202,743	)	$	(1,589,709	)	$	(773,462	)	$	(1,824,414	)

Denominator:
Weighted average number of common shares - basic		71,054,405			44,172,646			53,428,906			40,253,842

Weighted average number of common shares - diluted		71,054,405			44,172,646			53,428,906			40,253,842

Basic and diluted loss per share	$	(0.00	)		$(0.04	)	$	(0.01	)	$	(0.05	)

11.	Segmented Information

	The Company's operations comprise a single reporting operating segment engaged in mineral exploration (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 the following geographic segments for the nine months ended February 28, 2010, and year ended May 31, 2009:

		February 28,		May 31,
		2010		2009

Canada	$	5,519,391	$	3,999,201
Peru		178,789		-

Total assets	$	5,698,180	$	3,999,201

- 21 -

Grandview Gold Inc.

(An Exploration Stage Company)

Notes to Interim Consolidated Financial Statements

Three and Nine Months Ended February 28, 2010

(Expressed in Canadian Dollars)

(Unaudited)

12.	Related Party Transactions Not Disclosed Elsewhere

	i)	For the three and nine months ended February 28, 2010, $Nil and $Nil, respectively (three and nine months ended February 28, 2009 - $5,000 and $35,000, respectively) was paid to the former interim CEO and current chairman of the Company for consulting services.

	ii)	For the three and nine months ended February 28, 2010, $37,500 and $112,500, respectively (three and nine months ended February 28, 2009 - $39,500 and $126,500, respectively) was paid to the President and CEO of the Company for consulting services. Included in this amount was $18,750 and $71,500, respectively (three and nine months ended February 28, 2009 - $12,750 and $32,750, respectively) capitalized to mining interests. Also, $Nil and $Nil, respectively (three and nine months ended February 28, 2009 - $2,000 and $14,000, respectively) in car and office allowances was included in this amount.

	iii)	For the three and nine months ended February 28, 2010, $9,000 and $30,000, respectively (three and nine months ended February 28, 2009 - $11,000 and $43,638, respectively) in consulting fees was also paid or accrued to the CFO of the Company.

	iv)	The Company provided a loan of $90,000 to the President and CEO of the Company. The remaining balance of the loan is $10,000. The loan is unsecured, bears no interest and was due on October 31, 2009 but has not been repaid as at February 28, 2010. 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.

- 22 -

Grandview Gold Inc.

(An Exploration Stage Company)

Notes to Interim Consolidated Financial Statements

Three and Nine Months Ended February 28, 2010

(Expressed in Canadian Dollars)

(Unaudited)

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 2009 audited 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 nine months ended February 28, 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 nine months ended February 28, 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, 2009, 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 13 of the annual consolidated financial statements for May 31, 2009). 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.

- 23 -

Grandview Gold Inc.

(An Exploration Stage Company)

Notes to Interim Consolidated Financial Statements

Three and Nine Months Ended February 28, 2010

(Expressed in Canadian Dollars)

(Unaudited)

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

	Had the Company's consolidated balance sheets as at February 28, 2010 and May 31, 2009 been prepared using US GAAP, such consolidated balance sheets would be presented as follows:

		February 28, 2010			May 31, 2009

Assets
Current assets
Cash	$	1,729,330		$	106,593
Short term investments		25,000			407,493
GST and sundry receivable		19,752			5,707
Prepaid expenses		15,718			12,283
Due from a related party		13,177			12,803

		1,802,977			544,879

Reclamation bond		13,817			14,332
Mineral property rights		584,425			512,906

	$	2,401,219		$	1,072,117

Liabilities
Current liabilities
Accounts payable	$	41,858		$	9,017
Accrued liabilities		23,530			63,450

		65,388			72,467
Assets retirement obligation		13,817			14,332

		79,205			86,799

Shareholders' Equity
Share capital
Authorized - unlimited common shares
Issued
Common shares		16,712,267			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		(21,368,343	)		(20,225,004	)

		2,322,014			985,318

	$	2,401,219		$	1,072,117

- 24 -

Grandview Gold Inc.

(An Exploration Stage Company)

Notes to Interim Consolidated Financial Statements

Three and Nine Months Ended February 28, 2010

(Expressed in Canadian Dollars)

(Unaudited)

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
		Nine Months Ended									from date
		February 28,									of inception
		2010			2009			2007			("March 26, 2004")

Expenses
General exploration	$	391,132		$	415,268		$	2,697,260		$	9,682,478
Management services		522,565			175,846			129,839			5,748,926
Investor relations, business development and reporting issuer maintenance costs		54,090			75,007			772,967			2,001,151
Write-off of bad debts		-			-			-			1,235
Professional fees		111,799			111,825			223,890			1,335,443
Office and administration		35,264			63,045			197,038			704,402
Flow-through interest expense		-			2,747			44,688			188,801
Gain on forgiveness of debt		28,875			-			-			(6,792	)
Share-based payments		-			-			1,003,275			-
Failed merger costs		-			-			-			170,000
Site restoration costs		-			-			30,000			-
Debt forgiveness		-			60,000			-			-

Loss before the under noted		(1,143,725	)		(903,738	)		(5,098,957	)		(19,825,644	)
Interest income		386			7,929			50,815			104,557
Write-off mineral property rights		-			(382,313	)		-			(1,647,256	)

Net loss for the period		(1,143,339	)		(1,278,122	)		(5,048,142	)		(21,368,343	)

Comprehensive loss items:
Write-down of marketable securities		-			-			-			(25,000	)

Comprehensive loss for the period	$	(1,143,339	)	$	(1,278,122	)	$	(5,048,142	)	$	(21,393,343	)

Loss per common share
Basic	$	(0.02	)	$	(0.03	)	$	(0.15	)
Diluted	$	(0.02	)	$	(0.03	)	$	(0.15	)

Comprehensive loss per
common share
Basic	$	(0.02	)	$	(0.03	)	$	(0.15	)
Diluted	$	(0.02	)	$	(0.03	)	$	(0.15	)

- 25 -

Grandview Gold Inc.

(An Exploration Stage Company)

Notes to Interim Consolidated Financial Statements

Three and Nine Months Ended February 28, 2010

(Expressed in Canadian Dollars)

(Unaudited)

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

- 26 -

Grandview Gold Inc.

(An Exploration Stage Company)

Notes to Interim Consolidated Financial Statements

Three and Nine Months Ended February 28, 2010

(Expressed in Canadian Dollars)

(Unaudited)

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
Exercise of warrants	333,333		16,667
Exercise of warrants valuation	-		15,333
Private placement	26,666,665		2,000,000
Cost of issue - cash	-		(34,998	)
Cost of issue - broker warrants valuation	-		(1,440,000	)
Debt conversation	360,937		28,875
Mineral property acquisition	200,000		20,000

Balance, February 28, 2010	72,213,033	$	16,712,267

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, February 28, 2010	$	4,390,914

- 27 -

Grandview Gold Inc.

(An Exploration Stage Company)

Notes to Interim Consolidated Financial Statements

Three and Nine Months Ended February 28, 2010

(Expressed in Canadian Dollars)

(Unaudited)

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
Expired		(2,569,432	)
Issued		30,666

Balance, May 31, 2009	$	1,203,804
Expired		(1,173,138	)
Exercised		(15,333	)
Issued		1,440,000

Balance, February 28, 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 and 2009 and February 28, 2010	$	(325,305	)

- 28 -

Grandview Gold Inc.

(An Exploration Stage Company)

Notes to Interim Consolidated Financial Statements

Three and Nine Months Ended February 28, 2010

(Expressed in Canadian Dollars)

(Unaudited)

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, February 28, 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		(1,143,339	)

Balance, February 28, 2010	$	(21,368,343	)

- 29 -

Grandview Gold Inc.

(An Exploration Stage Company)

Notes to Interim Consolidated Financial Statements

Three and Nine Months Ended February 28, 2010

(Expressed in Canadian Dollars)

(Unaudited)

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
		Nine Months Ended									from date
		February 28,									of inception
		2010			2009			2007			("March 26, 2004")

Cash flows from operating activities
Net loss for the period	$	(1,143,339	)	$	(1,278,122	)	$	(5,048,142	)	$	(21,368,343	)
Items not involving cash:
Forgiveness of debt		28,875			60,000			-			(6,792	)
Accrued bonus		-			20,000			-			-
Write-off of bad debts		-			-			-			1,235
Share-based payments		449,491			-			1,274,000			4,479,616
Accrued interest income		(374	)		9,619			(28,035	)		(59,376	)
Write-off of mineral property rights		-			382,313			-			1,647,256
Change in non-cash operating working activities:
GST and sundry receivable		(14,045	)		34,402			198,026			(24,932	)
Prepaid expenses		(3,435	)		113,666			22,872			(10,048	)
Due from a related party		-			-			-			2,296
Accounts payable		32,841			(32,100	)		(320,824	)		112,877
Accrued liabilities		(39,920	)		636			-			(40,758	)

Cash flows used in operating activities		(689,906	)		(689,586	)		(3,902,103	)		(15,266,969	)

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		(34,998	)		(33,333	)		(487,499	)		(1,811,307	)
Proceeds from loan		-			-			-			175,000
Repayment of loan		-			-			-			(75,000	)

Cash flows provided by financing activities		1,981,669			383,333			4,529,195			18,328,976

Cash flows from investing activities
Purchase of reclamation bond		-			-			(12,923	)		(13,090	)
Redemption (purchase) of short term investments		382,493			605,670			(975,000	)		18,903
Exploration advances		-			-			312,491			-
Purchase of mineral property rights		(51,519	)		(95,055	)		(326,929	)		(1,338,491	)

Cash flows provided by (used in) investing activities		330,974			510,615			(1,002,361	)		(1,332,678	)

Change in cash during the period		1,622,737			204,362			(375,269	)		1,729,329
Cash, beginning of period		106,593			84,856			1,299,277			1

Cash, end of period	$	1,729,330		$	289,218		$	924,008		$	1,729,330

- 30 -

Grandview Gold Inc.

(An Exploration Stage Company)

Notes to Interim Consolidated Financial Statements

Three and Nine Months Ended February 28, 2010

(Expressed in Canadian Dollars)

(Unaudited)

13.

Differences Between Canadian GAAP and US GAAP (continued) Statements of Cash Flows (continued)

								Cumulative
		Nine Months Ended						from date
		February 28,						of inception
		2010		2009		2007		("March 26, 2004")

Supplemental Schedule of Non-Cash Transaction
Share issuance included in mining interest	$	20,000	$	10,800	$	35,000	$	583,875
Warrant issuance included in mining interest	$	-	$	-	$	-	$	184,750
Share-based payments included in mining interest	$	-	$	-	$	111,475	$	111,475
Interest paid	$	-	$	-	$	-	$	45,159

14.	Subsequent Event

	On March 22, 2010, the Company issued 200,000 common shares to EMCO related to the Sanshaw-Bonanza gold property.

- 31 -