40-F

SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 40-F

£     REGISTRATION STATEMENT PURSUANT TO SECTION 12 OF THE SECURITIES EXCHANGE ACT OF 1934

Q     ANNUAL REPORT PURSUANT TO SECTION 13(a) OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2007                             Commission File Number: 000-32748

Corriente Resources Inc.
(Exact name of Registrant as specified in its charter)

British Columbia	1000	Not Applicable
(Province or other Jurisdiction of	(Primary Standard Industrial	(I.R.S. Employer Identification No.)
Incorporation or Organization)	Classification Code Number)

520 – 800 West Pender Street
Vancouver, British Columbia, Canada
V6C 2V6
(604) 687-0449
(Address and telephone number of Registrant’s principal executive offices)

CT Corporation System
111 Eighth Avenue
New York, New York 10011
(212) 894-8940
(Name, address (including zip code) and telephone number
(including area code) of agent for service in the United States)

Securities registered or to be registered pursuant to Section 12(b) of the Act:

Title of Each Class	Name of Exchange on which Registered
Common Shares, No Par Value	AMEX

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

None

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

None

For annual reports, indicate by check mark the information filed with this Form:

Q    Annual information form                 Q     Audited annual financial statements

Indicate the 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:

74,927,393 Common Shares

Indicate by check mark whether the Registrant by filing the information contained in this Form is also thereby furnishing the information to the SEC pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934 (the "Exchange Act"). If "Yes" is marked, indicate the filing number assigned to the Registrant in connection with such rule.

Yes £         82-_____                                                     No Q

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act 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 Q                                                                              No £

CAUTIONARY NOTE TO UNITED STATES INVESTORS CONCERNING
ESTIMATES OF MEASURED, INDICATED AND INFERRED MINERAL RESOURCES

All resource estimates incorporated by reference in this annual report on Form 40-F (this "Annual Report") have been prepared in accordance with Canadian National Instrument 43-101 and the Canadian Institute of Mining and Metallurgy Classification System. These standards differ significantly from the requirements of the Securities and Exchange Commission (the "SEC"), and resource information incorporated by reference herein may not be comparable to similar information concerning U.S. companies.

Without limiting the foregoing, this Annual Report uses the terms "measured", "indicated" and "inferred" resources. United States investors are advised that, while such terms are recognized and required by Canadian securities laws, the SEC does not recognize them. Under United States standards, mineralization may not be classified as a "reserve" unless the determination has been made that the mineralization could be economically and legally produced or extracted at the time the reserve determination is made. United States investors are cautioned not to assume that all or any part of measured or indicated resources will ever be converted into reserves. Further, "inferred resources" have a great amount of uncertainty as to their existence and as to whether they can be mined legally or economically. It cannot be assumed that all or any part of the "inferred resources" will ever be upgraded to a higher category. Therefore, United States investors are also cautioned not to assume that all or any part of the inferred resources exist, or that they can be mined legally or economically. Accordingly, information concerning descriptions of mineralization and resources contained in this Annual Report may not be comparable to information made public by United States companies subject to the reporting and disclosure requirements of the SEC.

CAUTIONARY NOTE ON FORWARD LOOKING STATEMENTS

Certain statements included in this Annual Report and the exhibits hereto are forward-looking statements, which are made pursuant to the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. They include estimates and statements that describe the Registrant’s future plans, objectives and goals, including words to the effect that the Registrant or management expects a stated condition or result to occur. Wherever possible, words such as "anticipate", "may", "will", "expect", "believe", "plan" and other similar expressions have been used to identify these forward-looking statements. These statements reflect management’s beliefs and are based on information currently available to the Registrant’s management. Forward-looking statements involve significant risks, uncertainties and assumptions. Although the Registrant believes that these statements are based on reasonable assumptions, a number of factors could cause the actual results, performance or achievements of the Registrant to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. For a comprehensive review of risk factors, please refer to the section entitled "Risk Factors" in the Registrant’s Annual Information Form and the section entitled "Risks and Uncertainties" in the Registrant’s Management’s Discussion and Analysis of Financial Condition and Results of Operations, each included in this Annual Report. The Registrant disclaims any obligation to update or revise any forward-looking statements to reflect new events or circumstances, except as required by law. Readers are cautioned not to put undue reliance on these forward-looking statements.

A. Disclosure Controls and Procedures

Disclosure controls and procedures are defined by the SEC as those controls and other procedures that are designed to ensure that information required to be disclosed by the Registrant in reports filed or submitted by it under the Exchange Act, is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms.

The Registrant’s Chief Executive Officer and Chief Financial Officer have evaluated the Registrant’s disclosure controls and procedures as of the end of the period covered by this Annual Report and have determined that such disclosure controls and procedures were effective. See "Management’s Discussion and Analysis of Financial Condition and Results of Operations—Disclosure Controls and Procedures," included in Exhibit 1.2 to this Annual Report.

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

See "Management’s Discussion and Analysis of Financial Condition and Results of Operations—Internal Controls over Financial Reporting," included in Exhibit 1.2 to this Annual Report, and "Management’s Report on Internal Control over Financial Reporting," included in Exhibit 1.3 to this Annual Report.

C. Attestation Report of the Registered Public Accounting Firm

The attestation report of PricewaterhouseCoopers LLP is included in PricewaterhouseCoopers LLP’s report to the shareholders of the Registrant dated March 26, 2008, which accompanies the Registrant’s audited consolidated financial statements for the fiscal year ended December 31, 2007, filed as Exhibit 1.3 to this Annual Report.

D. Changes in Internal Control Over Financial Reporting

Since the most recent evaluation of the Registrant’s internal control over financial reporting, there have been no changes in the Registrant’s internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, the Registrant’s internal control over financial reporting.

E. Notice of Pension Fund Blackout Period

The Registrant was not required by Rule 104 of Regulation BTR to send any notice to any of its directors or executive officers during the fiscal year ended December 31, 2007.

F. Audit Committee Financial Expert

The board of directors of the Registrant has determined that the Chair of the Audit Committee, Dale C. Peniuk, qualifies as an "audit committee financial expert" within the meaning of General Instruction B(8)(b) of Form 40-F and is "independent" within the meaning of applicable SEC regulations and the listing standards of the American Stock Exchange ("AMEX").

The SEC has indicated that the designation of a person as an audit committee financial expert does not make such person an "expert" for any purpose, impose any duties, obligations or liability on such person that are greater than those imposed on members of the audit committee and the board of directors who do not carry this designation or affect the duties, obligations or liability of any other member of the audit committee or board of directors.

G. Code of Ethics

The Registrant has adopted a code of ethics, entitled "Policies and Procedures Manual – Code of Conduct," that applies to all directors, officers and employees. The Registrant’s code of ethics can be viewed on its website at http://www.corriente.com/corporate/corporate_corp_governance.php.

H. Principal Accountant Fees and Services

Audit Fees

The aggregate fees billed by PricewaterhouseCoopers LLP, the Registrant’s Independent Registered Chartered Accountants, for the fiscal years ended December 31, 2007 and 2006 for professional services rendered by PricewaterhouseCoopers LLP for the audit of the Registrant’s annual consolidated financial statements and internal control over financial reporting and services that are normally provided by PricewaterhouseCoopers LLP in connection with statutory and regulatory filings or engagements for such years were $173,021 and $77,831, respectively. No audit of internal control over financial reporting was performed or required for the fiscal year ended December 31, 2006.

Audit-Related Fees

The aggregate fees billed by PricewaterhouseCoopers LLP for the fiscal years ended December 31, 2007 and 2006 for assurance and related services rendered by it that are reasonably related to the performance of the audit or review of the Registrant’s financial statements and are not reported above as audit fees were $40,208 and $124,809, respectively. Professional services provided in 2007 included quarterly review of unaudited interim consolidated financial statements and in 2006 included review services and issue of comfort letters relating to the Registrant’s December 2005 and May 2006 short-form prospectuses, meetings and discussions regarding U.S. registration and review of interim financial statements for both the short-form prospectuses and U.S. registration, and internal controls and related compliance efforts.

Tax Fees

The aggregate fees billed by PricewaterhouseCoopers LLP for the fiscal years ended December 31, 2007 and 2006 for professional services rendered by it for tax compliance, tax advice, tax planning and other services were $109,050 and $60,192, respectively.

All Other Fees

The aggregate fees billed by PricewaterhouseCoopers LLP for the fiscal years ended December 31, 2007 and 2006 for services provided by PricewaterhouseCoopers LLP, other than the services reported in the preceding four paragraphs, were $82,609 and $Nil, respectively. Such services included: the auditing of certain tax information; review of certain internal financial models of the Registrant; and audit fees associated with the Arrangement. No services for other than reported in the preceding four paragraphs were performed or required for the fiscal year ended December 31, 2006.

Audit Committee Pre-Approval Policies and Procedures

All audit and non-audit services performed by the Registrant’s external auditor must be pre-approved by the audit committee of the Registrant.

I. Off-Balance Sheet Arrangements

The Registrant is not a party to any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on its financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that is material to investors.

J. Tabular Disclosure of Contractual Obligations

As of the fiscal year ended December 31, 2007, the Registrant had normal trade payables only, and does not have any future contractually committed calls on its cash.

K. Identification of the Audit Committee

The Registrant has a separately designated standing Audit Committee. The members of the Audit Committee are Dale C. Peniuk (Chair), Richard P. Clark, G. Ross McDonald and David G. Unruh. Each member of the Audit Committee is "independent" within the meaning of applicable SEC regulations and the listing standards of AMEX, and each is financially literate and financially sophisticated.

L. Critical Accounting Policies

See "Management’s Discussion and Analysis of Financial Condition and Results of Operations—Accounting Estimates, Policies and Standards," included in Exhibit 1.2 to this Annual Report.

M. AMEX Exemption

In connection with the Registrant’s initial application to list its common shares on AMEX in 2006, the Registrant requested, and was granted, a waiver, pursuant to the first paragraph of Section 110 of the AMEX Company Guide, from the quorum requirement set forth in Section 123 of the AMEX Company Guide. The exemption was granted on the basis that the Registrant’s existing quorum requirement complies with Canadian law and is consistent with Canadian business practices. Under the Registrant’s bylaws, the quorum requirement for the transaction of business at a meeting of shareholders is a minimum of two persons who are, or who represent by proxy, shareholders who, in the aggregate, hold at least 5% of the issued shares entitled to be voted at the meeting. The Registrant’s quorum requirements are not prohibited by the requirements of the Business Corporations Act (British Columbia) and the Registrant intends to continue to comply with the requirements of the Business Corporations Act (British Columbia). The rules of the Toronto Stock Exchange, upon which the common shares are also listed, do not contain a specific quorum requirement.

UNDERTAKING AND CONSENT TO SERVICE OF PROCESS

A. Undertaking

The Registrant undertakes to make available, in person or by telephone, representatives to respond to inquiries made by the SEC staff, and to furnish promptly, when requested to do so by the SEC staff, information relating to the securities in relation to which the obligation to file an annual report on Form 40-F arises or transactions in said securities.

B. Consent to Service of Process

The Registrant has previously filed with the SEC a Form F-X in connection with its common shares.

EXHIBITS

The following exhibits are filed as part of this Annual Report:

Number	Document
1.1	Annual Information Form for the year ended December 31, 2007
1.2	Management’s Discussion and Analysis of Financial Condition and Results of Operations for the year ended December 31, 2007
1.3	Audited Consolidated Financial Statements for the year ended December 31, 2007, prepared in accordance with Canadian generally accepted accounting principles and reconciled to United States generally accepted accounting principles in accordance with Item 17 of Form 40-F
23.1	Consent of PricewaterhouseCoopers LLP
23.2	Consent of John Drobe, P. Geo.
23.3	Consent of John Hoffert, P. Eng.
23.4	Consent of Robert Fong, P. Eng.
23.5	Consent of Jeremy P. Haile, P. Eng.
23.6	Consent of Joseph Rokosh, P. Eng.
31.1	Certification of CEO pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2	Certification of CFO pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1	Certification of CEO and CFO pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

SIGNATURE

Pursuant to the requirements of the Exchange Act, the Registrant certifies that it meets all of the requirements for filing on Form 40-F and has duly caused this annual report to be signed on its behalf by the undersigned, thereto duly authorized.

		CORRIENTE RESOURCES INC.
Dated: March 26, 2008	By:	/S/ DARRYL F. JONES
		By: Darryl F. Jones
		Title: Chief Financial Officer

EXHIBIT INDEX

Number	Document
1.1	Annual Information Form for the year ended December 31, 2007
1.2	Management’s Discussion and Analysis of Financial Condition and Results of Operations for the year ended December 31, 2007
1.3	Audited Consolidated Financial Statements for the year ended December 31, 2007, prepared in accordance with Canadian generally accepted accounting principles and reconciled to United States generally accepted accounting principles in accordance with Item 17 of Form 40-F
23.1	Consent of PricewaterhouseCoopers LLP
23.2	Consent of John Drobe, P. Geo.
23.3	Consent of John Hoffert, P. Eng.
23.4	Consent of Robert Fong, P. Eng.
23.5	Consent of Jeremy P. Haile, P. Eng.
23.6	Consent of Joseph Rokosh, P. Eng.
31.1	Certification of CEO pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2	Certification of CFO pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1	Certification of CEO and CFO pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

EX-1.1

ANNUAL INFORMATION FORM
FOR THE FISCAL YEAR ENDED
DECEMBER 31, 2007

March 26, 2008

TABLE OF CONTENTS

PRELIMINARY NOTES	1
GLOSSARY OF TERMS	2
CORPORATE STRUCTURE	4
GENERAL DEVELOPMENT OF THE BUSINESS	5
NARRATIVE DESCRIPTION OF THE BUSINESS	7
RISK FACTORS	19
CAPITAL STRUCTURE	24
DIVIDENDS	24
MARKET FOR SECURITIES	25
DIRECTORS AND OFFICERS	26
AUDIT COMMITTEE INFORMATION	28
LEGAL PROCEEDINGS AND REGULATORY ACTIONS	30
TRANSFER AGENTS AND REGISTRAR	30
MATERIAL CONTRACTS	30
INTERESTS OF EXPERTS	30
ADDITIONAL INFORMATION	30
SCHEDULE A – AUDIT COMMITTEE MANDATE

PRELIMINARY NOTES

Currency and Exchange Rates

This is the Annual Information Form (“AIF”) of Corriente Resources Inc. (“Corriente” or the “company”). All dollar amounts referred to in this AIF are Canadian dollars unless otherwise indicated. The company’s accounts are maintained in Canadian dollars. The company’s business activities are carried out through its subsidiaries in the Cayman Islands and Ecuador, and are conducted in both United States dollars and in the local currency in those jurisdictions. Unless otherwise indicated, Canadian dollar amounts have been converted in this annual information form at the rate of exchange for converting United States dollars into Canadian dollars in effect at December 31, 2007 as reported by the Bank of Canada, being 0.9913 (C$1.00 = US$1.0088).

The closing rate of exchange for converting United States dollars into Canadian dollars on March 26, 2008 as reported by the Bank of Canada was 0.9815 (C$1.00 = US$1.0188).

Cautionary Statement on Forward-Looking Statements

Certain statements included in this Annual Information Form contain forward-looking statements that relate to future events or Corriente's future performance. All statements other than statements of historical fact are forward-looking statements. These statements include, but are not limited to, statements concerning the future financial and operating performance of Corriente, its subsidiaries and its current and proposed mineral projects; the future prices of copper, gold and other precious and base metals; the estimation of mineral reserves and resources; the realization of mineral reserve estimates; the timing and amount of estimated future production; anticipated costs of production; anticipated working capital requirements; capital expenditures; costs and timing of mine development, processing facility construction and the development of new deposits; costs and timing of future exploration; requirements for additional capital; government regulation of mining operations; envi ronmental risks; reclamation expenses; title disputes or claims; limitation of insurance coverage; and the timing and possible outcome of pending litigation and regulatory matters.

Often, but not always, forward-looking statements can be identified by the use of words such as “plans”, “proposes”, “expects”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, or “believes” or variations (including negative variations) of such words and phrases, or state that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved.

Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Corriente to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, but are not limited to, general business and economic uncertainties; exploration and mining risks; uncertainties relating to surface rights; the actual results of current exploration activities; realization of resource estimates; ability to obtain financing; actual results of reclamation activities; the outcome of negotiations; conclusions of economic evaluations and studies; changes in project parameters and returns as plans continue to be refined; future prices of copper, gold, and other precious and base metals; increased competition in the mining industry for properties, equipment and qualified personnel; risks associated with environmental compliance and permitting, including those created by changes in environmental legislation and regulation; the risk of arbitrary changes in law; title risks; risks relating to repatriation of earnings; social and political risks associated with operations in foreign countries; the risk of loss of key personnel; significant fluctuations in the exchange rates for United States and Canadian currency; and delays in the completion of development and construction activities.  

The forward-looking statements contained herein are based on a number of assumptions that the company believes are reasonable, but may prove to be incorrect. These assumptions include, but are not limited to, assumptions that there is no material deterioration in general business and economic conditions; that there is no unanticipated fluctuation of interest rates and foreign exchange rates; that the supply and demand for copper and gold develop as expected; that we receive regulatory approvals for our exploration and development projects on a timely basis; that we are able to obtain financing for our development projects on reasonable terms; that engineering and construction timetables and capital costs for our development projects are not incorrectly estimated or affected by unforeseen circumstances; that our reserve estimates are within reasonable bounds of accuracy and that the geological, operational and price assumptions on which they are based are reasonable; and that we a re able to hire the personnel we need to carry out our business plan.

Page 1 of 37

The foregoing lists of factors and assumptions are not exhaustive. You should also consider carefully the matters discussed under the heading “Risk Factors” elsewhere in this AIF. Forward-looking statements contained herein are made as of the date hereof (or as of the date of a document incorporated herein by reference, as applicable). We undertake no obligation to update publicly or otherwise revise any forward-looking statements or the foregoing lists of factors and assumptions, whether as a result of new information, future events or results or otherwise, except as required by law. Because forward-looking statements are inherently uncertain, readers should not place undue reliance on them. The forward-looking statements contained herein are expressly qualified in their entirety by this cautionary statement.

Cautionary Note to U.S. Investors

All references to mineral reserves and resources contained in this AIF are determined in accordance with National Instrument 43-101 (“NI 43-101”) Standards of Disclosure for Mineral Projects, an instrument made under Canadian securities regulations. While the terms “mineral resource”, “measured mineral resource”, “indicated mineral resource” and “inferred mineral resource” are recognized and required by Canadian regulations, they are not defined or recognized by the U.S. Securities and Exchange Commission (“SEC”). As such, information contained in this AIF concerning descriptions of mineralization and resources, as determined in accordance with Canadian standards, may not be comparable to similar information made public by U.S. companies subject to the reporting and disclosure requirements of the SEC. “Indicated mineral resource” and “inferred mineral resource” have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of the mineral resources in these categories will ever be upgraded to a higher category of resource.

Qualified Person

John Drobe, P.Geo., the company’s Chief Geologist, is the Qualified Person as defined by NI 43-101 and is responsible for the preparation of the technical disclosure in this document, unless otherwise indicated.

Glossary of Terms

The following is a glossary of technical terms, which are used in this AIF:

anomaly/anomalous

Value higher or lower than the expected; outlining a zone of potential exploration interest but not necessarily of commercial significance

Au

Gold

chalcocite

Copper sulphide, Cu₂S

chalcopyrite

Copper sulphide, CuFeS₂

Cu

Copper

development

Preparation of a mineral deposit for commercial production including installation of plant and machinery and the construction of all related facilities

diamond drill

A type of rotary drill in which the cutting is done by abrasion rather than percussion. The cutting bit is set with diamonds and is attached to the end of long hollow rods through which water is pumped to the cutting face. The drill cuts a core of rock which is recovered in long cylindrical sections, an inch or more in diameter

exploration

The prospecting, diamond drilling and other work involved in searching for ore bodies

grade

The weight of valuable minerals in each tonne of ore

g/t

Grams per tonne

indicated mineral

resource

That part of a Mineral Resource for which quantity, grade or quality, densities, shape and physical characteristics, can be estimated with a level of confidence sufficient to allow the appropriate application of technical and economic parameters, to support mine planning and evaluation of the economic viability of the deposit. The estimate is based on detailed and reliable exploration and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes that are spaced closely enough for geological and grade continuity to be reasonably assumed

Page 2 of 37

inferred mineral

resource

That part of a Mineral Resource for which quantity and grade can be estimated on the basis of geological evidence and limited sampling 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. Due to the uncertainty which may attach to Inferred Mineral Properties, it cannot be assumed that all or any part of an Inferred Mineral Resource will be upgraded to an Indicated or Measured Mineral Resource as a result of continued exploration

k-silicate alteration

Alteration of rock typified by potassium-bearing minerals

mineralization

Rock containing an undetermined amount of minerals or metals

mineral property

A development or production property which contains an independently-confirmed Mineral Resource

mineral reserve

The economically mineable part of a Measured or Indicated Mineral Resource demonstrated by at least a preliminary feasibility study, which must include adequate information on mining, processing, metallurgical, economic and other relevant factors that demonstrate, at the time of reporting, that economic extraction can be justified. A Mineral Reserve includes diluting materials and allowances for losses that may occur when the material is mined  

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 a grade or quantity that it has reasonable prospects for economic extraction. The location, grade, geological characteristics and continuity of a Mineral Resource are known, estimated or interpreted from specific geological evidence and knowledge. Mineral Properties are sub-divided, in order of increasing geological confidence, into Inferred, Indicated and Measured categories. An Inferred Mineral Resource has a lower level of confidence than that applied to an Indicated Mineral Resource. An Indicated Mineral Resource has a higher level of confidence than an Inferred Mineral Resource but has a lower level of confidence than a Measured Mineral Resource

mining concession

A right to undertake mining activity for profit on another's real property. The boundaries of the concession area descend vertically.

Mo

Molybdenum

ore

A natural aggregate of one or more minerals which, at a specified time and place, may be mined, processed and sold at a profit, or from which some part may profitably be separated

oz/t

Troy ounces per short ton

percussion drill

A drill, which operates by having the drill bit fall with force onto the rock

porphyry copper

A copper deposit in which the mineralization occurs as discrete grains and veins throughout a large volume of rock

qualified person

An individual who (a) is an engineer or geoscientist with at least five years of experience in mineral exploration, mine development or operation or mineral project assessment, or any combination of those, (b) has experience relevant to the subject matter of the mineral project and the technical report, and (c) is a member in good standing of a recognized professional association of engineers and/or geoscientists

tonne

A metric tonne (2,204 pounds)

tpd

Tonnes per day

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CORPORATE STRUCTURE

Incorporation

Corriente Resources Inc. (“Corriente”) was incorporated under the Company Act (British Columbia) on February 16, 1983 under the name “Coronado Resources Inc.”.

On December 10, 1990 Coronado Resources Inc. consolidated its share capital on a three-for-one basis and changed its name to “Iron King Mines Inc.”.

On April 23, 1992 Iron King Mines Inc. consolidated its share capital on a three-for-one basis and changed its name to “Corriente Resources Inc.”.

On May 16, 1994, Corriente’s authorized capital was increased to 50,000,000 common shares without par value.

On May 10, 2004, Corriente’s authorized capital was increased to 100,000,000 common shares without par value.

On June 2, 2004, the company transitioned under the Business Corporations Act (British Columbia).

Effective June 18, 2007, Corriente’s authorized capital was increased to an unlimited number of common shares without par value, in connection with the Plan of Arrangement transaction which closed on that date (see “Plan of Arrangement” below).

Corriente’s principal, registered and records offices are located at Suite 520, 800 West Pender Street, Vancouver, British Columbia, V6C 2V6. Corriente also has administrative and operations offices in the Cayman Islands, B.V.I. and in Quito, Ecuador.

Intercorporate Relationships

As at December 31, 2007, Corriente had the following material direct and indirect wholly-owned subsidiaries: Ecuacorriente S.A.; Explorcobres S.A. (formerly Minera Curigem S.A.); Puertocobre S.A.; Corriente Caymans Transport Company; Corriente Caymans Copper Mining Company; and CTQ Management Inc. Each of these companies is incorporated in the jurisdiction shown after its name in the table below. All of these companies are sometimes collectively referred to hereafter as the “company” or “Corriente”.

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GENERAL DEVELOPMENT OF THE BUSINESS

Corriente is a Canadian-resident natural mineral resource company that since 1992 has been engaged, through its subsidiaries, in the acquisition, exploration and development of mineral properties, primarily in South America.

Until 2003, Corriente was principally an exploration company with a goal to acquire properties, to locate and confirm the existence of bodies of commercial ore on them, and to sell the properties to other entities for subsequent development. Over the past 10 years, Corriente exploration activities have included reviews of various properties in Argentina, Bolivia, Colombia, Ecuador, Peru, and Zambia. The prime commodities sought by Corriente have been copper and gold in projects already at the advanced drilling stage. In some cases, Corriente has taken on joint venture partners who have financed part or all of the exploration on the properties.

Since 2003, Corriente has been pursuing the exploration and development of its mining concessions in the Corriente Copper Belt (sometimes described in this AIF as the “CCB”) in southeastern Ecuador, most notably the Mirador and Panantza-San Carlos Projects, which are more fully described herein.

In October 1999 and April 2000, Corriente entered into joint venture agreements (“JV I” and “JVII”, respectively) with subsidiaries of BHP Billiton Plc. (“BHP Billiton”) pursuant to which Corriente could acquire an initial 70% interest in a large package of mineral exploration properties (the “Properties”), conditional upon the company undertaking and funding acceptable levels of exploration. The Properties had been identified by BHP Billiton in the course of their five-year grassroots exploration program in the Rio Zamora valley and are located in a general area of southeast Ecuador known as the Corriente Copper Belt.

Effective March 2000, certain exploration assistance agreements (known as the Program Management Agreements) between Corriente and Lowell Mineral Exploration Limitada Chile (“Lowell”) were replaced by a Royalty Agreement which entitled Lowell to a 10% royalty interest in the Properties.  

In January 2002, the company gave BHP Billiton notice of its intention to exercise Corriente’s option to acquire a majority interest in the Panantza project. This option allowed Corriente to acquire ownership of mineral resource deposits that are below the threshold of interest of BHP Billiton. Formal approval was granted in April 2002 for the transfer of the ownership of the Panantza concessions to Corriente. By the end of 2002, Corriente had repeated the same notice process to acquire title to the San Carlos (August 2002) and Mirador (December 2002) concessions within the Corriente Copper Belt. In each case, BHP Billiton chose to convert its back-in rights to a 2% net smelter royalty interest (NSR) in the Mirador, Panantza and San Carlos concessions with the company having the option to reduce this NSR to 1% for each of these mineral properties upon the payment of US$2 million (for each concession) to BHP Billiton. Additionally, and through various amendments to the earlie r-referenced agreements, the company issued common shares and warrants to BHP Billiton in 2002 and 2003. This allowed the company (and Lowell) to complete the acquisition of a 100% interest in the Properties.

In December 2003, Corriente granted Lowell an option to acquire a 100% interest in the Warintza project, located in southeast Ecuador. This option was subsequently exercised in June 2004, with Lowell swapping its 10% royalty interest in all of Corriente’s concessions in Ecuador (including Mirador, Panantza and San Carlos) in exchange for a 100% interest in the Warintza project. The Warintza project included four concessions totalling 20,000 hectares.

For 2004 and 2005, Corriente’s activities were focused on completing exploration programs at the company’s Mirador Norte, Panantza and San Carlos targets as well as geotechnical and development studies for the Mirador Project.

In December 2005, Corriente and BHP Billiton terminated their Global Exploration Alliance Agreement that was signed in December, 2001, so that Corriente management could singularly focus on development of Corriente’s Ecuador concessions. Additionally, an equity financing was completed in December 2005, which netted the company proceeds of approximately $27.9 million, for working capital purposes.

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During early 2006, delimiting work was focused on the mineralization of the Mirador Norte deposit to 100m drill spacing, with a total of 6780 metres in 39 core holes. A total of 2,149 samples from this drilling were assayed and accrued to the database with geological, geotechnical and geo-mechanical logging following the company’s standard QA/QC procedures and logging protocols. Together with additional results estimated from 68 diamond drill holes totalling over 13000 metres of coring, the company announced new resources for the Mirador Norte deposit via a corporate news release on November 14, 2006 (see www.sedar.com).

In May 2006, an equity financing was completed which netted the company proceeds of approximately $117.7 million, for working capital and Mirador Project development purposes.

In September 2006, the company’s directors reviewed the development status of the Mirador Project and approved management’s recommendation of the placement of orders for long lead-time equipment for the project. This equipment included the main components of the grinding circuit such as the SAG and ball mills. The company was working on an accelerated timeline that had an estimated completion date for the Mirador Project construction and start of production during the fourth quarter of 2008. These items were on the critical path to meet that deadline.

In November 2006, a series of protests took place in the Morona-Santiago and Zamora-Chinchipe provinces of Ecuador against extractive resource developments in general. After a number of ineffective negotiating sessions were held with the protesters, the Ministry of Mining and Petroleum (“MMP”, formerly called the Ministry of Energy and Mines) advised the company to temporarily suspend its Mirador Project fieldwork in order to secure the safety and security of local communities and supporters. This suspension was subsequently formalized in December 2006 by a suspension order from the Sub-Secretary of Environment’s office within the MMP.

Significant Events for the Year Ended December 31, 2007 (more fully described herein - see “Narrative Description of the Business”)

●

January – Mirador Project development timeline delayed as a result of the Corriente Board of Directors’ decision to move off of the previous accelerated Mirador Project development plan. This plan was based on having key permits and government agreements completed by January 2007

●

June – completion of the Plan of Arrangement spin-off of the Caya 36 and Piedra Liza gold target concessions to Q2 Gold Resources Inc.

●

October – work on the amendment of the Environmental Impact Assessment (“EIA”) for the Mirador Project resumed with the approval of the MMP

●

November – a Preliminary Assessment for the Panantza-San Carlos Project was completed and announced by the company. The company also disclosed that it intends to seek an investment partner who would work to advance Panantza–San Carlos Project, due to the very large size of this project

●

December – the EIA for the company’s Machala Port concentrate shipment facility was approved by the Ecuador Ministry of Environment

To date, Corriente controls 100% of all of its concessions in Ecuador subject to the 2% NSR to BHP Billiton. These concessions encompass approximately 62,000 hectares located within the Corriente Copper Belt.

The CCB extends over a 20 by 80 kilometre area in southeast Ecuador and currently contains four identified copper and copper-gold porphyry deposits (called Mirador, Mirador Norte, Panantza and San Carlos), and six additional copper and copper-gold exploration targets (called Dolorosa, La Florida, San Luis, San Marcos, San Miguel and Sutzu).

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Summary of Measured, Indicated and Inferred Resources

Resource Estimates at 0.4% Copper Cut-off

Measured and Indicated Resources
Project		Category		Tonnes	Cu%	Cu (lbs)	Au (ppb)	Au oz	Ag ppm	Ag oz
Mirador		Measured		52,610,000	0.65	753,000,000	210	360,000	1.6	2,770,000
		Indicated		385,060,000	0.60	5,134,000,000	190	2,380,000	1.5	18,760,000
Sub-total Mirador				437,670,000	0.61	5,887,000,000	200	2,740,000	1.5	21,530,000
Mirador Norte		Indicated		171,410,000	0.51	1,921,000,000	89	489,000	-	-
Total Measured & Indicated				609,080,000	0.58	7,808,000,000	169	3,229,000	1.5	21,530,000
Inferred Resources
Project			Category	Tonnes	Cu%	Cu (lbs)
Mirador			Inferred	235,400,000	0.52	2,708,000,000	170	1,250,000	1.3	9,900,000
Mirador Norte			Inferred	45,820,000	0.51	513,000,000	68	101,000	-	-
Mirador/Mirador Norte						3,221,000,000
Panantza			Inferred*	463,000,000	0.66	6,688,000,000
San Carlos**			Inferred*	600,000,000	0.59	7,738,000,000
Sub-Total Panantza-San Carlos				1,063,000,000	0.62	14,426,000,000
				Tonnes	Cu%	Cu (lbs)		Au oz		Ag oz
	Total Inferred			1,344,220,000	0.60	17,647,000,000		1,351,000		9,900,000
* does not include copper oxide mineralized material that was previously included in resource estimate
** resources are calculated at 0.4% copper cut-off using data previously released in June 2001 at a 0.65% copper cut-off
The Qualified Person for the resource estimates quoted above is John Drobe, P.Geo, Corriente’s Chief Geologist.

NARRATIVE DESCRIPTION OF THE BUSINESS

CORRIENTE COPPER BELT

History and Development of the Corriente Copper Belt, Ecuador

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Ecuador

Ecuador is situated astride the equator on the north-western coast of South America. Quito, in the northern part of the country, is the capital city. After a long period of civilian-military governments, Ecuador had a democratic government from 1979 until late 1999, when popular unrest led to a military coup, after which the military commander appointed the previous Vice-President as the new President. That government took office in January 2000. New elections were held in November 2002 and a left-leaning populist President, Lucio Gutierrez, was sworn into office in January 2003. In April 2005,
Gutierrez fled Ecuador in the face of a populist uprising and lack of support from the military. As a result, (then) Vice-President Alfredo Palacio was sworn in as President.

In November 2006, Rafael Correa won the Ecuador Presidential run-off election over Alvaro Noboa but did not officially take office until January 15, 2007. During this transition period, the administration of President Alfredo Palacio experienced a number of indigenous protests in southeast Ecuador which eventually resulted in the suspension of the company’s exploration and development activities and a delay in the Mirador Project’s development timeline.  

Since President Correa’s January 15, 2007 inauguration, his administration has focused primarily on exacting electoral and governmental reforms. In April 2007, a National Referendum was held, which approved the creation of a Constitutional Assembly (which would replace Congress). On September 30, 2007, Constitutional Assembly elections were held in which President Correa’s Allianz Pias party had elected 80 of the 130 members of the Constitutional Assembly, thereby giving the President a clear majority in the Assembly.

Since obtaining an Assembly majority, the Correa Administration has moved to engage industry in dialogue regarding foreign investment in Ecuador. This dialogue includes plans to re-work oil and mining agreements in place with multi-national and state-owned companies, which could include new royalty and/or windfall profit tax rates for these sectors.

Recent announcements by the Correa Administration suggest that large-scale mining will play a significant role in the Government’s plans to grow the economy for the benefit of all of the people of Ecuador. The company is in continuous dialogue with the MMP and the Correa Administration towards establishing large-scale mining operations in the Corriente Copper Belt.

On January 25, 2008, the MMP followed through on the Government’s plans announced in November 2007 regarding inactive concessions and proclaimed the cancellation of 587 of the country’s over 4,000 mining concessions. None of Corriente’s mining concessions fall under the MMP’s definition of non-productive concessions, and all are in good standing. According to the current law, all mining projects in Ecuador have until March 31st to pay their entire annual concession fees in advance. After six months [by September], companies whose fees are in arrears face permanent revocation of their concessions at the hands of the MMP’s regional authorities, which collect the concession fees.

Based on discussions with the Government of Ecuador to date, management believes that the company’s Ecuador resources can be feasibly developed in the long-term. While management believes that the current investment and political climate in Ecuador will continue to stabilize, there can be no certainty that this will continue in the future.

Under Ecuador’s Tax Law, corporations (including foreign companies), are taxed at a fixed rate of 25% of net profits. There are currently no restrictions or withholding taxes on the repatriation of capital, dividends or profits. On December 17th, 2007, the Government of Ecuador announced its plans for imposing a tax on extraordinary revenues in the order of 70% upon those companies that have signed contracts with the State for the exploration and exploitation of natural resources. Such taxes would be payable when the companies achieve revenues generated from higher sales prices than the reference prices agreed in the respective contracts. The Government’s December 2007 Tax Bill containing this extraordinary revenue (otherwise known as a windfall profit) tax was approved by the Assembly on December 24, 2007. No reference prices have yet been established but if they are established consistent with how similar threshold prices have been established in the past for oil comp anies operating in Ecuador, the prices will reflect market prices in effect at the time of agreement.

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Mineral rights in Ecuador are acquired by mining concessions, title to which is universally valid and has exclusive rights equivalent to owning real property. Title to a mining concession is defensible against third parties, may be mortgaged, may be transferred by public deed and may be inherited. Holders of mining concessions are obliged to undertake environmental studies and formulate plans to minimize environmental damage resulting from their activities.

A mining concession may be obtained for a maximum area of 5,000 hectares and for a maximum term of 30 years, renewable for an additional 30 years. There is no limitation on the number of mining concessions a person or company may hold. Holders of mining concessions are required to pay annual fees and, once a property is in production, to file annual audit reports, in order to keep the concession in good standing. Title to a mining concession confers on the holder the right to explore, exploit, process, smelt, refine and trade all the mineral substances (except oil, gas and radioactive substances) lying within the perimeter of the concession as well as the right to use the surface of the land (subject to easements or arrangements with the land owner) and available water.

Location, Size and Access

The Corriente Copper Belt is located in the valley of the Rio Zamora in the Pangui region, Morona Santiago province, in southeast Ecuador, adjacent to the border with Peru. The area, centred about 340 kms south of Quito and 70 kms southeast of the city of Cuenca, consists of a total of 25 exploration concessions covering about 606 square kms. Access to the area is by road from the city of Cuenca, a regional centre with scheduled air service of less than one hour’s duration from the capital city of Quito. Alternatively, local air travel is possible to the town of Gualaquiza, which is within the Corriente Copper Belt. Road access from Cuenca to the village of Santiago de Panantza is via the towns of Gualaceo, Indanza and San Juan Bosco, mostly by reasonable-quality unsealed roads. The road distance is about 150 kms or about four hours’ travel. There is road access from Quito to Cuenca for the transport of samples or heavy equipment. Road access to the Panantza concessions was completed during 2001. The Mirador Project is accessed by a one-hour flight from Quito to Loja and then by road approximately 180 kms to the project site (which is about a five hour drive). The remaining concessions are accessed by mule track or by helicopter. Travel within the concessions is primarily by foot on jungle trails.

Acquisition of Mineral Properties

Corriente entered into an option agreement dated October 15, 1999 (“JV1”), as amended, with two subsidiaries of BHP Billiton, pursuant to which Corriente was granted the option to acquire a 70% interest in certain mineral exploration properties covering approximately 880 square kms in the Rio Zamora area on which BHP Billiton had conducted a five-year grassroots exploration program, during the course of which it had discovered a number of porphyry copper deposit clusters. The JV1 agreement currently includes 16 concessions covering a total of 57,660 hectares. The company has completed the required work program, expended the required exploration funds and issued to BHP Billiton all the securities required under the terms of this agreement. Corriente subsequently entered into a further agreement dated April 6, 2000 (“JV2”), as amended, with two subsidiaries of BHP Billiton, pursuant to which Corriente was granted the option to acquire a 70% interest in certain mineral exploration properties in the southern part of the Corriente Copper Belt, known as the Mirador property, representing the balance of the copper targets identified by BHP Billiton in the course of its exploration program in the Rio Zamora area. On signing of the option agreement, the Mirador property consisted of eight exploration concessions covering a total area of 22,880 hectares. Corriente has completed the required work program, expended the required exploration funds, and issued the securities required to be issued under the terms of this agreement.

Corriente was the operator of the properties covered by both agreements during the option period. For 2000 to 2002, Corriente engaged Lowell Mineral Exploration Limitada Chile (“Lowell”) to manage the exploration and development activities on the optioned properties. As compensation for the management services rendered by Lowell to Corriente in connection with the optioned properties, Corriente granted to Lowell the right to obtain a 10% royalty interest in Corriente’s properties covered by the two BHP Billiton joint ventures. In December 2003, Corriente granted Lowell an option to acquire a 100% interest in the Warintza project, Ecuador. This option was subsequently exercised in June 2003, with Lowell swapping its 10% interest in all of Corriente’s concessions in Ecuador (including Mirador, Mirador Norte, Panantza and San Carlos) in exchange for a 100% interest in the Warintza project. The Warintza project included four concessions totaling 20,000 hectares.

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Mirador Project

In late 2003 and early 2004, a total of about 3,000 kg of split diamond drill core was collected from 20 drill holes and shipped to SGS Lakefield Research in Lakefield, Ontario, for metallurgical testing. In addition, two whole-core metallurgical holes were drilled and collected specifically for comminution test work.

In October 2003, the company awarded a feasibility study for the Mirador Project to AMEC Americas Limited (“AMEC”). Pursuant to the AMEC Technical Services Agreement, the feasibility study addressed geotechnical, infrastructure (including processing, site development and support facilities), and financial analyses for the building of a 20,000 tpd mine and milling facility at the Mirador site. This capacity was later revised to 25,000 tpd.

On April 14, 2005, the company announced the results of a 25,000 tpd base-case feasibility study reflecting a 12 year mine life for the Mirador copper-gold deposit (titled “Mirador Copper Project – Feasibility Study Report and dated May 2005 ). See www.sedar.com for the contents of this report.  

On November 17, 2005, Corriente announced the results of an optimization study (titled “Update on Copper, Gold, and Silver Resources and Pit Optimizations Mirador Project, Ecuador, dated December 6, 2005, and revised May 18, 2006 to meet NI 43-101 format requirements only). This study was intended to optimize the economics of the 25,000 tpd starter project at Mirador that was the subject of the earlier-referenced May 2005 base-case feasibility study. In this regard, the main changes were the incorporation of the results of 52 new drill holes which were completed during the summer of 2005 and which among other factors led to the calculation of a new resource model which extended the Mirador deposit mine life to 38 years. Additionally, the economics of an expansion to a 50,000 tpd capacity were provided to show Mirador’s growth opportunities. See www.sedar.com for the contents of this report.  

On March 15, 2006, the company announced that its wholly-owned subsidiary, EcuaCorriente S.A. signed a Letter of Award with SNC-Lavalin Chile S.A., a member of the SNC-Lavalin Group of Companies of Canada, for full Engineering and Procurement Services for the start-up and expansion of the Mirador copper-gold mine.

Corriente announced on May 4, 2006 that the Mirador Project Environmental Impact Assessment (EIA) (submitted in December 2005) met all the legal requirements of the MMP and was approved. The EIA covered both the environmental aspects of proposed mining operations in Mirador and community and social plans associated with the same project. During the lengthy preparation of the EIA, the company worked closely with the MMP to ensure that the report met all required government guidelines and regulations. The Mirador EIA is one of the most comprehensive documents on social and environmental issues ever submitted to the MMP in Ecuador for a mining project. The submission of the EIA and subsequent approval followed an extensive consultation process with local communities carried out in late November and early December 2005. As a requirement of the MMP’s approval of the EIA, the company was required to fund a cash deposit in favour of the MMP as collateral against the company’s obligations under the EIA. The required security deposit amount is reviewed on an annual basis by the MMP and subject to adjustment as the project progresses to completion.

On July 10, 2006, the company announced that assays were received from a program of drilling at Mirador Norte, a newly discovered zone of porphyry copper mineralization located approximately 3 km northwest of the planned Mirador open pit. This drilling successfully outlined an approximate 1200 X 300 X 250 metre contiguous zone of copper mineralization above a 0.4% copper cutoff, exposed at the surface but open for expansion at depth and to the south.

The company announced on August 9, 2006, that management had completed an initial review of its Ecuador copper-gold concessions and identified two concession areas totaling 6,600 hectares containing encouraging gold targets that were not part of the copper development program within the Corriente Copper Belt. One of the concessions, the Caya 36 concession, is immediately adjacent to and formed part of the Mirador copper deposit land holdings. The second concession is approximately 50 km southwest of Mirador and is called the Piedra Liza concession. Within the Piedra Liza concession, four clusters of anomalous gold soil samples occur over a six kilometer trend that is on-strike and north of the Nambija area which has produced over three million ounces of gold by local estimates. See Disposition of Other Properties herein.

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In September 2006, Corriente’s directors reviewed the development status of the Mirador Project and approved management’s recommendation of the placement of orders for long lead-time equipment for the project. This equipment included the main components of the grinding circuit such as the SAG and ball mills. The company was working on an accelerated timeline that had an estimated completion date of the Mirador Project and start of production during the fourth quarter of 2008. These items were on the critical path to meet that deadline.

In September 2006, the company filed an amendment to the EIA (“EIAA”) to allow for mill, tailings and dump location changes to the original mine plan. Subsequent public consultations were successful. However, the EIAA was rejected by authorities in May 2007 and is currently being revised for re-submittal. As a result of subsequent discussions with the MMP, the company was successful in October 2007 in resuming fieldwork activities related to completion of an EIAA for the Mirador Project. The EIAA will incorporate engineering enhancements completed through 2007 on the Mirador Project.

For the company to receive a mine operating permit for the Mirador Project, approvals for the EIAA and construction and operating-related permit applications must be received from the MMP and other Ecuador governmental authorities during the course of development of the Mirador mine, prior to the beginning of mine operations.

On November 14, 2006, the company announced that it had received an independent resource assessment for its Mirador Norte copper deposit. These results were estimated from 68 diamond drill holes totaling over 13,000 metres of coring and are contained in the related technical report , titled “Update on the Copper, Gold, and Silver Resources and Pit Optimizations: Mirador and Mirador Norte Deposits – Mirador Project, Ecuador, dated November 30, 2006). See www.sedar.com for full details of this report.

In mid-November 2006, a series of protests began that were held in the Morona-Santiago and Zamora-Chinchipe provinces of Ecuador against resource development in general. After a number of ineffective negotiating sessions were held with the protesters, the MMP advised the company to temporarily suspend its Mirador Project fieldwork in order to secure the safety and security of local communities and supporters. This suspension was subsequently formalized in December 2006 by a suspension order from the Sub-Secretary of Environment’s office within the MMP covering the company’s Mirador and Panantza-San Carlos Projects’ concessions. To date, there has been no change in the status of this fieldwork suspension order.

On January 25, 2007, the company announced that there would be a delay in the planned start of production at Mirador from late 2008 to approximately mid-2009. This delay was largely due to adjustments to long lead-time equipment deliveries as a result of the decision to move off of the previous accelerated Mirador Project development plan.

This development plan was based on having key permits and government agreements completed by January 2007. Since these permit applications and agreements were still being processed and the company was restricted from resuming planned development activities at Mirador, the directors elected to minimize the company’s Mirador Project obligations by invoking the termination clauses of certain agreements with suppliers of key long lead-time components and engineering services to the Mirador Project, for which charges for work incurred of $2,951,000 ($US2,532,000) were accrued at December 31, 2006 and capitalized to mineral properties. The company was able to sell these partially completed assets to third parties in the first quarter of 2007 for net proceeds of $2,750,257 ($US2,382,000), which was received on April 13, 2007 and recorded as a recovery of mineral property expenditures.

In connection with this timeline extension, the company implemented a restructuring of its Ecuador operations to reduce the overall number of its employees while still maintaining a core group of technical and professional staff and increasing its governmental and community affairs activities.

As noted above, a technical report was issued in 2006 for Mirador Norte, which is located less than 1 km from the planned Mirador Project milling facility. Confirmation of such resources at Mirador Norte provides additional options for development at Mirador that includes access to higher-grade enriched material from the shallow parts of Mirador Norte and the flexibility of being able to shift production from one pit to another.

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In December 2007, Corriente announced that the Ministry of Environment (the “MOE”) had approved the EIA for the company’s port operation in Machala, which is designed to act as a shipping facility for copper concentrates sent to overseas smelters. The company owns a 27 hectare port site on the Santa Rosa Channel in Machala, which is connected to the Mirador Project by a 400 km paved highway. Receipt of the EIA is an important part of the overall Mirador Project approval process and provides the key access for a Pacific shipping route for the company’s copper concentrates. As a requirement of the MOE’s approval of the Machala Port EIA, the company was required to post a cash deposit as collateral in favour of the MMP against the company’s obligations under this EIA.

Despite the suspension of fieldwork activities at the Mirador Project site, the company was able to continue work in 2007 on enhancements to various engineering aspects of the Project as well as the amendment to the Mirador EIA. This additional engineering and feasibility work was recently completed, and the results will be announced in the second quarter of 2008. The related technical report will be filed on SEDAR within 45 days of the announcement of the report. This report will include a summary of the economic model for a first phase 30,000 tonne per day concentrator operation at Mirador.

After all necessary permits are received, project financing is in place, and a construction decision is made, it is Management’s opinion that it would take approximately 24 months to achieve commencement of production at Mirador.

Following below is a 3D representation of the company’s current view of the Mirador mine site when it is completed for the planned Stage 1 or 30,000 tonnes per day capacity. For Stage 2 or 60,000 tonnes per day capacity, additional tailings management facilities and access would be required.

Panantza – San Carlos Project

The Panantza and San Carlos Project concessions are located approximately 40 kms north of the Mirador Project. Corriente was approximately halfway through the first phase of a planned 16000 metres of drilling on the Panantza project when these activities were suspended as part of the Mirador Project suspension order referenced above. The drilling was the start of a planned two-year program to complete a feasibility study at Panantza and San Carlos, designed to incorporate the Panantza and San Carlos concessions into a single large copper development opportunity.

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Prior to 2006, Panantza was last drilled in late 2000. Results from this previous drilling at Panantza included holes PA013 with 299 metres of 0.76% copper, hole PA012 with 269 metres of 0.97% copper, and PA017 with 64 metres of 1.29% secondary copper at the surface followed by 383 metres of 0.75% copper.

In 2006, an additional 25 holes totalling 8400 metres were completed. Results include hole PA039 with 17 metres of 1.31% copper in a secondary copper horizon overlying 399 metres of 0.66% copper, hole PA041 with 443 metres of 0.60% copper, and hole PA052 with 276 metres of 0.77% copper.

Current inferred resources at Panantza have been recently estimated, including the 2006 drilling results. A new block-model based resource estimate, using a 0.4% copper cut-off, reports approximately 463 million tonnes grading 0.66% copper containing 6.7 billion pounds of copper. The 2006 drilling added close to a billion pounds of copper to the previous Panantza resource. Corriente will focus on converting most of this resource to the measured and indicated category during completion of the drill program.

One objective of the 2006 Panantza drilling program was to define the southern edge of the Panantza mineralization. However, rather than delineate the edge of the Panantza deposit, the 2006 results indicate the Panantza mineralization extends farther south than previously recognized. The southernmost holes drilled, PA033 and PA034, were both terminated in copper mineralization averaging over 0.8% Cu at the hole bottoms, at approximately 330 metres and 342 metres deep, respectively. The Panantza drill plan has now been expanded to complete additional holes to follow this mineralization to the south.

In addition, the deepest holes from this round of drilling (such as PA051) indicate that mineralization extends more than 200 metres deeper than previous drilling in the southwest portion of the deposit and mineralization remains open for further extension at depth. The deposit is also still open to the west.

San Carlos is believed to be the largest copper-molybdenum mineralized porphyry system in the CCB, with surface dimensions of about 2000 metres x 2500 metres. The mineralization has been tested with 25 diamond drill holes at variable spacing, drilled by BHP Billiton in 1997 and 1998. The current block-model based, inferred resource estimate based on these drill holes, using at a 0.4% copper cut-off, is 600 million tonnes grading 0.59% copper, containing 7.7 billion pounds of copper. The next phase of drilling will attempt to expand the resources and convert the bulk of the inferred resources to the measured and indicated categories.

A Preliminary Assessment Technical Report for a 90,000 tonne per day combined Panantza-San Carlos copper mining operation was completed and made available on SEDAR (www.sedar.com) in December 2007. Highlights from this study are:

•

Base Case Net Present Value ("NPV") after tax of US$ 676 million and an Internal Rate of Return ("IRR") of 15.1% (using metal prices of US$ 1.50/lb Cu, $7.50/oz Ag, $550/oz Au and $10.00/lb Mo, 8% discount rate, $75/tonne and $0.075/lb treatment and refining charges for Cu). Using US$ 2.00 copper, the after-tax NPV increases to US$ 1.718 billion and the IRR increases to 24.1%.

•

Average annual metal production over the first 10 years of approximately 418,000,000 lbs of copper, 22,800 oz gold, 1,110,000 oz silver and 2,800,000 lbs of Molybdenum.

•

The Report modeled a mine plan based on 678 million inferred tonnes at a grade of 0.62% Cu, 0.05g/t Au, 1.3 g/t Ag and 0.008% Mo with estimated recoveries of 91% Cu, 30% Au (Panantza only), 70% Ag, and 43% Mo.

•

The cost to produce a pound of payable copper, net of other metal credits, and inclusive of marketing, smelting and transportation costs over the Life of Mine, is estimated to be US$ 0.73/lb.

•

The Project would generate up to 2,000 jobs during the construction period and could create over five hundred direct and almost 4,000 indirect jobs during the estimated 20 year life.

•

Total estimated value of taxes, profit sharing and expenditures within Ecuador over the 20 year Project life is approximately US$ 6 billion.

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Management of the company feels that the Panantza-San Carlos concessions represent a rare opportunity to capitalize on six years of community work, project engineering and management development expertise that has been built around the company’s Mirador Project. This body of knowledge will significantly assist in the project development process and at the same time allow the company to take economic advantage of infrastructure that is being put in place for the Mirador mine. The Project has been recommended to proceed to the Feasibility Study stage, which has an estimated budget requirement of approximately $US12 Million. The work would include detailed diamond drilling at both deposits to fully delineate mineralization and provide core for metallurgical and geotechnical studies. This work is planned to extend over a two year period. In addition, a program of extensive community dialogue is planned to ensure that the voice of local residents is reflected in any planned devel opment ideas. Part of this dialogue will include several public consultations, which will form part of the ongoing permitting process. Fieldwork is not expected to start until the completion of negotiations with the Ecuador Government regarding the lifting of a suspension order that applies to the company’s Mirador, Panantza and San Carlos concessions.

Following below is a 3D representation of the company’s current view of the proposed Panantza – San Carlos mine site.

Exploration Targets

Other opportunities within the Corriente Copper Belt include the San Miguel-La Florida, San Luis, Sutzu, and San Marcos porphyry prospects, all of which are located within 10 to12 kilometres of the Panantza prospect, as well as the Dolorosa sediment-hosted copper prospect, located mid-way between the Panantza and Mirador properties.

The potential size of San Luis is about 170 x 350m based on the width of mineralized rock chip sampling and the associated soil anomaly. Continuous detailed rock sampling along the length of the anomaly returned about 230 metres of 0.76% Cu. A ground IP survey was run over San Luis and the anomaly coincided in size with the soil anomaly. No drilling has been carried out on this project.

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To the south, the San Miguel target is a 600 x 850 metre Cu-Mo soil anomaly with rock sample values to >1% Cu, but averaging 0.3% Cu over 300m along the east edge of the anomaly. The north and west area of the anomaly has had limited initial drilling and returned values to 0.50% Cu over 180 metres in SM001, 0.42% Cu over 155 metres in SM08, and 0.36% Cu over 193 metres in SM09. The zone continues northward into the La Florida prospect, where surface mineralization is higher grade but more structurally limited.

South of Panantza, Sutzu is a 1500 x 1500 metre soil Cu-Mo soil anomaly, with the Mo anomaly open to the SW. Semi-continuous rock sampling passing across the centre of the soil anomaly returned lower-grade (0.2%) copper. No drilling has previously been done on this target.

Adjacent and north of Sutzu is San Marcos, a 800 x 800 metre Cu-Mo soil anomaly with rock samples in stream cuts across this returning up to 0.5% Cu over 170 metres. No drilling has been done yet on this target. San Marcos is on strike and probably related to Sutzu mineralization, together with which it forms one of the larger mineralized zones in the district.

The Dolorosa prospect contains copper mineralization as chalcopyrite disseminated within coarse quartzite of the sandstone formation that overlies many of the copper porphyries in the belt.  Grab samples (20 centimetres) return values up to 3% copper, and mineralization exposed in cliffs extends across tens of metres of subhorizontal strata.

Disposition of Other Properties

Caya 36 (Tundayme)/Piedra Liza Gold Exploration Target Spin-off

In early 2007, Corriente engaged an independent consultant to complete a review of its Ecuador gold concession package totalling 6,600 hectares containing encouraging gold targets that were determined not to be part of the company’s foreseeable copper development programs within the Corriente Copper Belt. Following completion of this review and accompanying 43-101 Technical Report, the company proceeded with a distribution of ownership of these concession rights to existing shareholders of Corriente as at June 15, 2007by means of a Plan of Arrangement (the Arrangement.

The gold concessions include the Tundayme prospect, which is immediately adjacent to Corriente’s Mirador copper deposit land holdings and is approximately 15 kilometres from Aurelian Resources Inc.’s newly discovered Fruta del Norte gold zone. The Tundayme prospect has approximately 8 kilometres of north-south trending structures that extend along strike to the Mirador Project. This 8 km trend is oriented in the same direction as the Fruta del Norte mineralized trend and parts have had preliminary prospecting and soil sampling performed by Corriente. Further work is required to follow-up anomalous gold soil and rock samples from that initial work. Also included is a second set of concessions approximately 50 kms southwest of Mirador called the Piedra Liza prospect.

The Arrangement was approved by shareholders at the company’s May 24, 2007 Annual and Special General Meeting and closed on June 18, 2007. Under the Arrangement, which was also approved by the British Columbia Supreme Court, the company’s shareholders received shares of a new company, Q2 Gold Resources Inc. (“Q2 Gold”), which holds the gold properties, on the basis of one (1) Q2 Gold share for every three (3) common shares of Corriente held by them at the close of business on June 15, 2007.

In connection with the Arrangement and to assist Q2 Gold with its business objectives, Corriente and Q2 Gold entered into a secured, interest-bearing convertible loan agreement dated April 23, 2007 pursuant to which Corriente agreed to lend Q2 Gold up to $750,000 to be advanced in instalments (the “Loan”). As at December 31, 2007, $460,994, including accrued interest of $24,855, was owed by Q2 Gold to the company. The Loan principal and unpaid interest are due on the earlier of December 31, 2008 and the first date on which Q2 Gold obtains a prospectus filing receipt with respect to any of its securities in any province of Canada. At any time prior to maturity, Corriente can require Q2 Gold to convert, in whole or in part, the principal amount outstanding and accrued interest of the Loan into Q2 Gold Shares at a conversion price equal to $0.10 per share. Q2 Gold can repay any or all of the outstanding Loan at any time prior to maturity or conversion. The company believes the Arrangement and spin-off is not material to the company, therefore note disclosure of discontinued operations is not being presented.

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Full details of the transaction were included in the management information circular sent to shareholders in connection with the company’s May 24, 2007 Annual and Special General Meeting of shareholders, a copy of which is available at www.sedar.com.

Taca-Taca Property

During 2003, the company sold the shares of its wholly-owned subsidiaries, Corriente Argentina Inc. (Cayman) and Corriente Argentina S.A. (Argentina), including its 100% interest in the Taca-Taca property in Argentina. Pursuant to the original and subsequently amended sale agreement, the company received a total of US$50,000 and 400,000 equivalent shares of the purchaser. Should the Taca-Taca property achieve commercial production, the purchaser is obligated to pay the company a further US$1,000,000. During the course of 2006, the company sold the balance of the shares received for total net proceeds of $336,253.

Exploration History

Regional exploration was initiated in southeastern Ecuador by Gencor, a predecessor company of BHP Billiton, in mid-1994. In early 1995, six porphyry copper targets in the area were identified.

In 1996, the San Carlos property was recognized as a large porphyry copper system, leading to the drilling of eight holes at the Kutucus skarn prospect and five holes at the San Carlos prospect in mid-1997. The San Carlos drilling intersected significant copper mineralization. Based on 25 core drill holes aggregating 6,185 meters on the San Carlos project, a potential resource of over one billion tonnes of low-grade primary copper mineralization (0.4% Cu) or 400 million tonnes at 0.7% Cu at a 0.5% cut-off in the Inferred Mineral Resource category was estimated. The company believes that there is potential for surface oxide copper mineralization as indicated by hole SC-07 (0-60 metres, vertical hole) assaying 0.7% Cu (in oxide) and hole SC-17 (6 - 93 metres, -60 degree hole) assaying 0.77% Cu (in oxide).

In total, BHP Billiton drilled 11 scout holes totaling 2,900 metres on the Panantza property. The drilling at Panantza was insufficient to define an inferred resource but has identified a significant exploration potential. For example, good surface oxide potential is shown by hole PA-03 (0-27 metres, vertical hole) of 1.3% Cu (in oxide) and hole PA-09 (0-60 metres -57 degree holes) of 1.15% Cu (in oxide).

The Warintza property was recognized as a large copper and molybdenum soil anomaly with a classic porphyry copper alteration signature in early 1999. Chip sampling carried out later that year by BHP Billiton outlined significant drill targets of copper mineralization with surface grades up to 1% copper.

The area of Mirador was recognized as a significant anomalous area during the original reconnaissance geological and geochemical surveys completed in November - December 1994. These surveys, which included 315 pan concentrates of stream sediments, defined an area roughly 50 sq kms in extent which gave anomalous values in Cu, Mo, Au, zinc and silver. At the time however, BHP Billiton was forced by border conflicts between Ecuador and Peru to concentrate its efforts in the north part of the Corriente Copper Belt. After a peace treaty ending the border conflict was signed by Peru and Ecuador in July 1999, BHP Billiton completed detailed follow-up surveys to better define the anomalous areas of the Mirador property. A total of 746 soil samples were collected along ridges and 219 rock chips were taken from outcrops found in drainages traversing the anomalous zones. This work, along with geological and alteration mapping, defined the Mirador (previously known as Wawayme) zone and the C hancho and Chancho Norte zones.

From 1994 through 1999, BHP Billiton spent approximately US$12 million on exploration of the Corriente Copper Belt.

Geology and Mineralization

Ecuador can be divided into three regions: the Coastal Plain, the Andean Cordillera and the Oriente or eastern Amazon basin. The Andean Cordillera comprises two parallel sub-ranges: the Cordillera Real and the Western Cordillera, which are separated by a high plateau, the Interandean Valley. The Corriente Copper Belt is located in the southeast portion of the Cordillera Real. Referred to as the sub-Andean zone, it straddles the border between Ecuador and Peru.

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The Cordillera Real comprises metamorphic rocks and intrusives, with ages ranging from Precambrian to Cretaceous. Metamorphic rocks attain grades up to greenschist and amphibolite facies.

During early Jurassic time, this area of Ecuador-Peru was the site of a basin where calcareous and clastic sediments were deposited as well as tuffs and lavas of andesitic to basaltic composition. At some stage during the Jurassic period, three large batholiths were emplaced along a rough N-NE axis: from north to south, the Rosa Florida along the Colombian border, the Abitagua, and the Zamora, which borders Peru. These batholiths are interpreted to be part of an island-arc sequence.

The Zamora Batholith is a composite, undeformed body of lower to mid Jurassic age which has a north-south extent of roughly 200 kms and is up to 50 kms wide. Three ages of magmatism corresponding to the Jurassic, Cretaceous, and Tertiary are thought to have occurred in the region of the Zamora Batholith. The Zamora Batholith contains phases or coeval bodies which vary in composition from hornblende quartz diorite and tonalite, to granodiorite and monzogranite. Various subvolcanic bodies of andesite and dacite are associated with the Zamora Batholith. The porphyry copper mineralized systems are all hosted by intrusives, breccias and subvolcanic bodies which intrude and are closely related in age to the Zamora Batholith. To the west of the Batholith is the thrusted metamorphic belt of the Cordillera Real, with contemporaneous volcanic and sedimentary rocks to the east.

The mineral deposits encountered in the Corriente Copper Belt display many of the characteristics of calcalkaline type porphyry copper systems. Sulfides occurring principally in the form of pyrite and chalcopyrite are widely distributed in low concentrations through large volumes of rock. The porphyry deposits in the Corriente Copper Belt appear to be of Middle Jurassic age. The San Carlos deposit has been dated at 154 million years.

San Carlos and the other seven porphyry copper prospects identified in southeast Ecuador are centered on multiphase monzogranite to granodiorite porphyry stocks within the Zamora Batholith with associated K-silicate alteration and principally chalcopyrite mineralization. Intermediate argillic and less widespread sericitic alteration overprints the K-silicate alteration, but does so erratically.

Exploration Activities

Corriente started work on the Corriente Copper Belt in December 1999 with preparations to drill the first of the untested porphyry targets at Warintza. Between January and April 2000, 2378 metres were drilled at Warintza in a series of 16 holes. Drill results from the Warintza project, released on May 2, 2000, confirmed the presence of a high-grade (>1% Copper) supergene blanket and the local presence of high grade (>1% Copper) primary sulphide mineralization. A number of holes had grades greater than 1% copper with a best intersection of 82 metres at 1.37% copper in hole 1. The secondary copper mineralization appears to average approximately 40 metres thick and occurs at a depth generally between 50 to 100 metres.

The company then moved on to scout drilling at the Mirador property. Between May and August 2000, 5654 metres were drilled in a series of 32 holes to test the Mirador system. The best assay interval was in hole 35 with 263 metres of 0.98% copper equivalent. Mirador appears to be a conventional porphyry copper-gold system with classic high-level alteration features such as abundant silicification and brecciation.

In October and November 2000, Corriente drilled 17 holes totalling 5262 metres to test the Panantza project, located in the central part of the Corriente Copper Belt, close to the San Carlos property. Interpretation indicates that Panantza has a well-developed high-grade core (approximately 300 metres by 300 metres and extending below the deepest hole at 448 metres) surrounded by a much larger area of intermediate-grade mineralization. Drill holes within the high-grade core show relatively consistent strong copper numbers such as in hole PA-12 with 300 metres of 1% copper equivalent and hole PA-17 which intersected 64 metres of 1.31% copper equivalent followed by 384 metres of 0.83% copper equivalent. All of the holes drilled within the high-grade core were stopped in mineralization because of depth limitations of the drilling equipment and remain open at depth. Results from the exploration work accomplished during 2001 clearly confirmed the change in status of the Corriente Copper Belt from purely an exploration play to that of both exploration and development. Over 12000 metres of drilling were completed during 2001 and two separate scoping studies analysed the economics of resource development at the Panantza/San Carlos and Mirador Projects.

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The Ecuador work program during 2002 saw the completion of 10 holes totalling 2738 metres of core on the Mirador target. Metallurgical testwork carried out by an independent company was completed during the year using samples from the Mirador, Panantza and Warintza deposits. The test work established that the copper mineralization responds well to conventional processing techniques with excellent recoveries of copper and, in the case of Mirador, of gold as well. Independent resource calculations for Panantza indicated an inferred resource of 148 million tonnes of 0.82% copper and 0.1 g/t gold and, for Mirador, 182 million tonnes of 0.76% copper and 0.22 g/t gold. The drilling program at Mirador established the general margins of the deposit and provided additional evidence that the mineralization continues at depth beyond Corriente’s deepest drilling.

During 2003, the Ecuador work program completed drilling on seven holes totalling 2113 metres of core on the Mirador target. Such activities were dependent upon the availability of cash resources and requirements of the BHP Billiton joint venture agreements.

The company’s 2004 exploration program completed drilling on 25, 9 and 10 holes totalling 5812, 1207 and 1853 metres of core on the Mirador Norte, Panantza and San Miguel targets, respectively. Results were received from drilling at the Mirador Norte property, which is a copper deposit located approximately 3 km north of the Mirador copper-gold project. Drilling result highlights include 31 metres of 1.15% copper and 99 metres of 0.98% copper (including 24 metres of 1.56% copper). The main focus of the drilling at Mirador Norte was to identify higher grade, near surface zones, usually related to secondary enrichment of copper. The high-grade zones could provide an opportunity to enhance the economics of operations at the nearby Mirador Project, which has been the subject of several resource and feasibility studies.

For 2005, drilling was limited to the Mirador Project mine area for geotechnical and development study purposes.

In 2006, an additional 25 holes totalling 8400 metres were completed. Results include hole PA039 with 17 metres of 1.31% copper in a secondary copper horizon overlying 399 metres of 0.66% copper, hole PA041 with 443 metres of 0.60% copper, and hole PA052 with 276 metres of 0.77% copper. One purpose of this drilling was to define the southern edge of Panantza’s mineralization. However, rather than delineate the edge of the Panantza deposit, the most recent results indicate the Panantza mineralization extends farther south than previously recognized. The southernmost holes drilled, PA033 and PA034, were both terminated in copper mineralization averaging over 0.8% Cu at the hole bottoms, at approximately 330 metres and 342 metres deep respectively. The Panantza drill plan has now been expanded to complete additional holes to follow this mineralization to the south.

In addition, the deepest holes from this round of drilling (such as PA051) indicate mineralization extends more than 200 metres deeper than previous drilling in the southwest portion of the deposit and mineralization remains open for further extension at depth. The deposit is also still open to the south and west.

San Carlos is a large copper-molybdenum mineralized porphyry system with surface dimensions of about 2000 metres x 2500 metres. The mineralization has been tested with 25 diamond drill holes at variable spacing. The current inferred resource estimate based on these drill holes is 657 million tonnes at 0.61% copper, calculated at a 0.4% copper cut-off.

The company feels that Panantza-San Carlos concessions represent a rare opportunity to capitalize on six years of community work, project engineering and management development that has been built around the nearby Mirador Project. This body of knowledge will significantly assist in the project development process and at the same time allow the company to take economic advantage of infrastructure that is being put in place for the Mirador Project.

Community Relations

The company has designed and implemented its community relations (“CR”) plans after identifying the local communities most impacted by the future mining activities and their respective needs. The company’s CR plans focus on the critical needs of the communities and are regularly reviewed to ensure appropriateness and effectiveness.

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The company continues to be committed to local communities in all aspects of its mining and economic development activities.  In 2007, the company had active initiatives and provided financial resources in the areas of education, employment, health, building assistance, environmental preservation, and cultural and economic development programs.

Personnel

Beginning in the second quarter of 2006, the company began hiring key management and technical staff for its Ecuador operating group, focused on the development and operations of the company’s Mirador Project. While on the accelerated development timelines, the company was able to virtually complete the hiring of its senior management staff in Ecuador, all of whom were focused on the development and operations of the company’s Mirador Project.

In connection with the Mirador Project timeline extension referenced above, on February 23, 2007, the company implemented a restructuring of its Ecuador operations to reduce the number of its employees while still maintaining a core group of technical and professional staff. Reflecting these initial and subsequent personnel changes for 2007, the company recorded severance expenses of approximately $1.25 million for the year ended December 31, 2007.

As at December 31, 2007, the company had 74 employees, as shown in the table below. This represents a reduction of 43 employees from December 31, 2006, virtually all of whom had worked at or in support of development of the Mirador Project. Reductions associated with the Mirador Project and other fieldwork activities were partly offset by the hiring of additional personnel for our Community and Government Relations teams. Going forward, management expects that these teams, as well as those devoted to the Mirador EIAA, will be further expanded

Personnel Classification	Canada	Ecuador	Total
	2007			2006
Senior management	3	15	18	24
Technical and Admin	5	45	50	65
Labor	0	6	68	28
	8	66	74	117

Social and Environmental Policies

The company has adopted a written Health, Safety, Environment and Community policy, which sets out the guidelines that it will follow in its implementation of responsible environmental stewardship and contributions to an enhanced standard of living and improved health and safety in the communities in which it operates.

RISK FACTORS

Companies operating in the mining industry face many and varied kinds of risks. While risk management cannot eliminate the impact of all potential risks, the company strives to manage such risks to the extent possible and practical. Following are the risk factors which the company’s management believes are most important in the context of the company’s business. It should be noted that this list is not exhaustive and that other risk factors may apply. An investment in the company may not be suitable for all investors.

Foreign Country and Political Risk

The mineral properties on which the company is actively pursuing its exploration and development activities are all located in Ecuador, South America. As a result, the company is subject to certain risks, including currency fluctuations and possible political or economic instability in Ecuador, which may result in the impairment or loss of mineral concessions or other mineral rights. In recent history, Ecuador has undergone numerous political changes at the presidential and congressional levels.

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Also, mineral exploration and mining activities may be affected in varying degrees by political instability and government regulations relating to the mining industry. Any changes in regulations or shifts in political attitudes are beyond the control of the company and may adversely affect its business. Exploration may be affected in varying degrees by government regulations with respect to restrictions on future exploitation and production, price controls, export controls, foreign exchange controls, income taxes, expropriation of property, environmental legislation and mine and/or site safety.

In November 2006, Rafael Correa won the Ecuador Presidential run-off election over Alvara Noboa but did not officially take office until January 15, 2007. During this transition period, the administration of President Alfredo Palacio experienced a number of indigenous protests in southeast Ecuador which eventually resulted in the suspension of the company’s exploration and development activities (see “Mirador Project”) and a delay in the Mirador Project’s development timeline.  

Since President Correa’s January 15, 2007 inauguration, his administration focused primarily on exacting electoral and governmental reforms. In April 2007, a National Referendum was held, which approved the creation of a Constitutional Assembly (which would replace Congress). On September 30, 2007, Constitutional Assembly elections were held in which President Correa’s Allianz Pias party had elected 80 of the 130 members of the Constitutional Assembly, thereby giving the President a clear majority in the Assembly.

Since obtaining an Assembly majority, the Correa Administration has moved to engage industry in dialogue regarding foreign investment in Ecuador. This dialogue includes plans to re-work oil and mining agreements in place with multi-national and state-owned companies, which could include new royalty and/or windfall profit tax rates for these sectors.

Recent announcements by the Correa Administration suggest that large-scale mining will play a significant role in the Government’s plans to grow the Ecuador economy for the benefit of all of its people. The company is in continuous dialogue with the MMP and the Correa Administration towards establishing large-scale mining operations in the Corriente Copper Belt.

While management believes that the current political climate in Ecuador will stabilize, there can be no certainty that this will be the case in the near future.

To mitigate such risk, the company funds its Ecuador operations on an as-needed basis and works closely with federal and territorial governments and community groups. The company does not presently maintain political risk insurance for its foreign exploration and development projects.

Exploration and Mining Risks

The business of exploring for minerals and mining involves a high degree of risk. Due in some cases to factors that cannot be foreseen, only a small proportion of the properties that are explored are ultimately developed into producing mines. There is no assurance that the company’s mineral exploration activities will result in any discoveries of new bodies of commercial ore. At present, only the company’s Mirador Project property has proven or probable reserves while any planned exploration programs for the company’s other properties are exploratory searches for proven or probable reserves. The mining areas presently being assessed by the company may not contain economically recoverable volumes of minerals or metals.

The operations of the company may be disrupted by a variety of risks and hazards which are beyond the control of the company, including labour disruptions, the inability to obtain suitable or adequate machinery, equipment or labour and other risks involved in the conduct of exploration programs. Once economically recoverable volumes of minerals are found, substantial expenditures are required to establish reserves through drilling, to develop metallurgical processes, to develop the mining and processing facilities and infrastructure at any site chosen for mining. Although substantial benefits may be derived from the discovery of a major mineralized deposit, no assurance can be given that minerals will be discovered in sufficient quantities or have sufficient grade to justify commercial operations or that funds required for development can be obtained on a timely basis.

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The economics of developing copper, gold and other mineral properties is affected by many factors including the cost of operations, variations of the grade of ore mined, fluctuations in the price of minerals produced, costs of processing equipment and such other factors as government regulations, including regulations relating to environmental protection. In addition, the grade of mineralization ultimately mined may differ from that indicated by drilling results and such differences could be material. Depending on the price of copper or other minerals produced, which have fluctuated widely in the past, the company may determine that it is impractical to commence or continue commercial production.

An additional project risk relating to the company’s development of its Mirador and Panantza-
San Carlos projects includes the current high demand for major components and resources utilized in a mine’s construction and operation, including equipment, parts and qualified employees. These same conditions may also adversely impact the mine’s construction schedule if an inordinate demand on metals causes shortages or cost increases.

Surface Rights and Access

Although the company acquires the rights to some or all of the minerals in the ground subject to the tenures that it acquires, or has a right to acquire, in most cases it does not thereby acquire any rights to, or ownership of, the surface to the areas covered by its mineral tenures. In such cases, applicable mining laws usually provide for rights of access to the surface for the purpose of carrying on mining activities, however, the enforcement of such rights can be costly and time consuming. In areas where there are no existing surface rights holders, this does not usually cause a problem, as there are no impediments to surface access. However, in areas where there are local populations or land owners, it is necessary, as a practical matter, to negotiate surface access. There can be no guarantee that, despite having the legal right to access the surface and carry on mining activities, the company will be able to negotiate a satisfactory agreement with any such existing landowne rs/occupiers for such access, and therefore it may be unable to carry out mining activities. In addition, in circumstances where such access is denied, or no agreement can be reached, the company may need to rely on the assistance of local officials or the courts in such jurisdiction.

Estimates of Mineral Properties and Production Risks

The mineral resource estimates disclosed by the company are estimates only, and no assurance can be given that any proven or probable reserves will be discovered or that any particular level of recovery of minerals will in fact be realized or that an identified reserve or resource will ever qualify as a commercially mineable (or viable) deposit which can be legally and economically exploited. In addition, the grade of mineralization which may ultimately be mined may differ from that indicated by drilling results and such differences could be material. Production can be affected by such factors as permitting regulations and requirements, weather, earthquakes, fire, environmental factors, unforeseen technical difficulties, unusual or unexpected geological formations and work interruptions. Consequently, the company’s estimated mineral resources should not be interpreted as assurances or evidence of commercial viability or potential or of the profitability of any future operati ons.

Financing Risks

The company has limited financial resources, has no source of operating cash and cash equivalents flow and has no assurance that additional funding will be available to it for further exploration and development of its projects. Further exploration and development of one or more of the company’s properties will be dependent upon the company’s ability to obtain financing through joint venturing, equity or debt financing or other means. Although the company has been successful in the past in obtaining financing through the sale of equity securities, there can be no assurance that the company will be able to obtain adequate financing in the future or that the terms of such financing will be favourable. Failure to obtain such additional financing could result in delay or indefinite postponement of further exploration and development of its projects. Additional funds raised by the company through the issuance of equity or convertible debt securities will cause the company
46;s current stockholders to experience dilution. Such securities may grant rights, preferences or privileges senior to those of the company’s common stockholders. The company does not have any contractual restrictions on its ability to incur debt and expects to incur significant amounts of indebtedness to finance development of its Mirador Project. Any such indebtedness could contain covenants which would restrict the company’s operations.

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Limited Experience with Development-Stage Mining Operations

The company has no previous experience in placing mineral properties into production and its ability to do so will be dependent upon using the services of appropriately experienced personnel or entering into agreements with other major resource companies or contractors that can provide such expertise. There can be no assurance that the company will have available to it the necessary expertise when and if it places its mineral properties into production.

Base Metals Prices

The principal activity of the company is the exploration and development of copper-gold mineral properties. The mineral exploration and development industry in general is intensely competitive and there is no assurance that, even if commercial quantities of proven and probable reserves are discovered, a profitable market may exist for the sale of the same. Factors beyond the control of the company may affect the marketability of any substances discovered. Base metals prices have fluctuated widely, particularly in recent years. The feasible development of such properties is highly dependent upon the price of copper and, to a lesser extent, gold. A sustained and substantial decline in commodity copper prices could result in the write-down, termination of exploration and development work or loss of its interests in identified mineral properties.

Competition

The company competes with many companies that have substantially greater financial and technical resources for the acquisition of mineral properties and mining and processing equipment, the securing of engineering services and the recruitment and retention of qualified employees and consultants.

Environmental and other Regulatory Requirements

The activities of the company are subject to environmental regulations promulgated by government agencies from time to time. Environmental legislation generally provides for restrictions and prohibitions on spills, releases or emissions of various substances produced in association with certain mining industry operations, such as seepage from tailings disposal areas, which would result in environmental pollution. A breach of such legislation may result in imposition of fines and penalties. In addition, certain types of operations require the submission and approval of environmental impact assessments. Environmental legislation is evolving in a manner which means stricter standards, and enforcement, fines and penalties for non-compliance are more stringent. Environmental assessments of proposed projects carry a heightened degree of responsibility for companies and directors, officers and employees. The cost of compliance with changes in governmental regulations has a potential to reduce the profitability of operations.

Companies engaged in exploration and development activities generally experience increased costs and delays as a result of the need to comply with applicable laws, regulations and permits. There can be no assurance that all permits which the company may require for exploration and development of its properties will be obtainable on reasonable terms or on a timely basis, or that such laws and regulations would not have an adverse effect on any project that the company may undertake.

The company believes it is in substantial compliance with all material laws and regulations which currently apply to its activities. However, there may be unforeseen environmental liabilities resulting from exploration and/or mining activities and these may be costly to remedy. Failure to comply with applicable laws, regulations, and permitting requirements may result in enforcement actions thereunder, 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 exploration operations may be required to compensate those suffering loss or damage by reason of the exploration activities and may have civil or criminal fines or penalties imposed for violations of applicable laws or regulations and, in particular, environmental laws.

Amendments to current laws, regulations and permits governing operations and activities of exploration companies, or more stringent implementation thereof, could have a material adverse impact on the company and cause increases in expenditures and costs or require abandonment or delays in developing new mining properties. Corriente’s policy is to abide by the regulations and requirements of Ecuador and the company’s EIA.

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Infrastructure

Mining, development and exploration activities depend, to one degree or another, on adequate infrastructure. Reliable roads, bridges, power sources and water supply are important determinants which affect capital and operating costs. The lack of availability on acceptable terms or the delay in the availability of any one or more of these items could prevent or delay development of the company’s projects. If adequate infrastructure is not available in a timely manner, there can be no assurance that the development of the company’s projects will be commenced or completed on a timely basis, if at all; the company’s operations will achieve anticipated results; or the construction costs and ongoing operating costs associated with the development of the company’s advanced-stage exploration projects will not be higher than anticipated. In addition, unusual or infrequent weather phenomena, sabotage, community, government or other interference in the maintenance or pro vision of such infrastructure could adversely affect the company’s operations and profitability.

Uninsured or Uninsurable Risks

The company may become subject to liability for pollution or hazards against which it cannot insure or  may elect not to insure where premium costs are disproportionate to the company’s perception of the relevant risks. The payment of such insurance premiums and of such liabilities would reduce the funds available for exploration, development and production activities.

Title Matters

Title to and the area of mining concessions may be disputed. Although the company has taken steps to verify the title to mineral properties in which it has an interest in accordance with industry standards for the current stage of exploration of such properties, these procedures do not guarantee the company’s title. Property title may be subject to unregistered prior agreements or transfers and title may be affected by undetected defects or the rights of indigenous peoples.

Repatriation of Earnings

Currently there are no restrictions on the repatriation from Ecuador of earnings to foreign entities. However, there can be no assurance that restrictions on repatriation of earnings from Ecuador will not be imposed in the future.

Foreign Subsidiaries

The company conducts operations through foreign subsidiaries and substantially all of its assets are held in such entities. Accordingly, any limitation on the transfer of cash or other assets between the parent corporation and such entities, or among such entities, could restrict the company’s ability to fund its operations efficiently. Any such limitations, or the perception that such limitations may exist now or in the future, could have an adverse impact on the company’s valuation and stock price.

Dependence on Key Personnel

The company’s development to date has largely depended on, and in the future will continue to depend on, the efforts of key management, project management and operations personnel. Loss of any of these people could have a material adverse effect on the company and its business. The company has not obtained and does not intend to obtain key-person insurance in respect of any officers or other employees.

Share Price Fluctuations

In recent years, the securities markets have experienced a high level of price and volume volatility, and the market price of securities of many companies, particularly those considered development-stage companies such as the company, have experienced wide fluctuations in price which have not necessarily been related to the underlying asset values or prospects of such companies. Price fluctuations will continue to occur in the future.

No Dividends

The company has no history of earnings from operations and, due to the nature of its business, there can be no assurance that the company will ever be profitable. Investors cannot expect to receive a dividend on their investment in the company in the foreseeable future, if ever. Investors should not expect to receive any return on their investment in the company’s securities other than possible capital gains.

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Currency Risk

As at December 31, 2007, the company’s expenditures are predominantly made in U.S. dollars and any future equity raised is expected to be predominantly in Canadian dollars. The company conducts the majority of its business in Ecuador, which uses the U.S. dollar as its primary economic currency. Future project development expenditures are expected to be paid in US dollars. As such, the company is subject to risk due to fluctuations in the exchange rates for the U.S. and Canadian dollar. The company has a practice of not entering into foreign currency hedging. Beginning in 2007, the company began maintaining balances in Canadian and US dollars in a proportion related to the magnitude of future mineral property, plant and equipment, and administrative expenditures, and the jurisdictions in which such expenditures will likely be made.

A breakdown by currency of the company’s cash and cash equivalents at year-end was as follows:

		December 31, 2007		December 31, 2006
Canadian dollar	$	15,210,692	$	125,063,312
U.S. dollar	US$	78,746,484	US$	1,756,794
December 31 closing exchange rate (Cdn$ to US$)		0.9913		1.1654

CAPITAL STRUCTURE

Corriente’s authorized capital consists of an unlimited number of common shares without par value. Each holder of common shares is entitled to receive notice of and to attend any meetings of the shareholders of the company and is entitled to one vote in respect of each common share held at such time. Each holder of common shares is entitled to receive dividends, if any, as and when declared by our Board of Directors. Holders of common shares are entitled to participate equally in any distribution of our net assets upon liquidation, dissolution or winding-up. There are no pre-emptive, retraction, surrender, redemption, repurchase for cancellation or conversion rights attaching to the common shares.

DIVIDENDS

The company has not paid any dividends on its common shares since its incorporation. The company has no present intention of paying dividends on its common shares, as it anticipates that all available funds will be invested to finance the growth of its business.

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MARKET FOR SECURITIES

The company’s common shares are listed and posted for trading on the Toronto Stock Exchange under the symbol CTQ, the American Stock Exchange under the symbol ETQ and on the Frankfurt, Munich and Berlin stock exchanges in Germany, under the symbol CRB. The WKN number is 871 464 and the ISIN number is CA22027E1025.

The Toronto Stock Exchange reported the following price ranges and volumes traded in respect of the company’s shares in each month of the fiscal year ended December 31, 2007:

Month	High	Low	Volume
January 2007	$4.29	$2.80	4,823,379
February 2007	$3.23	$2.46	3,971,904
March 2007	$3.64	$2.55	5,423,010
April 2007	$4.19	$3.15	7,825,834
May 2007	$4.40	$3.32	5,823,403
June 2007	$4.47	$3.40	2,823,528
July 2007	$5.95	$4.10	7,174,483
August 2007	$5.80	$3.73	4,110,240
September 2007	$5.05	$4.12	2,081,886
October 2007	$5.85	$4.21	2,757,997
November 2007	$5.80	$4.30	3,563,047
December 2007	$5.55	$4.66	2,089,524

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 The American Stock Exchange reported the following price ranges ($US) and volumes traded in respect of the company’s shares in each month of the fiscal year ended December 31, 2007:

Month	High	Low	Volume
January 2007	$3.60	$2.41	2,884,600
February 2007	$2.74	$2.08	1,148,950
March 2007	$3.18	$2.20	1,818,300
April 2007	$3.81	$2.75	1,657,000
May 2007	$3.99	$3.18	1,708,500
June 2007	$4.20	$3.21	1,241,100
July 2007	$5.59	$3.80	2,209,900
August 2007	$5.51	$3.50	2,028,300
September 2007	$5.10	$3.93	1,040,300
October 2007	$6.25	$4.27	1,721,500
November 2007	$6.20	$4.30	1,651,400
December 2007	$5.70	$4.70	1,445,640

DIRECTORS AND OFFICERS

The names and municipalities of residence, offices held with the company and principal occupations of the directors and executive officers of the company, all of whom are resident in Canada, are as follows:

Listing of Directors and Officers

Name, Municipality of Residence and Position with the company	Director Since	Principal Occupation During Previous Five Years
KENNETH R. SHANNON Surrey, British Columbia Chief Executive Officer and Director	January 8, 1992	Chief Executive Officer of the company; geologist
DANIEL A. CARRIERE Vancouver, British Columbia Senior Vice-President	N/A	Senior Vice-President of the company, January 2004 to present; President, Carriere Financial Services (private consulting company), 1990 to December 2003
DARRYL F. JONES Surrey, British Columbia Corporate Secretary and Chief Financial Officer	N/A	Chief Financial Officer and Corporate Secretary of the company, January 2004 to present; President, Excape, Inc. (private U.S. holding company), August 2002 to December 2004
RICHARD P. CLARK(1) (2) (3) North Vancouver, British Columbia Director	July 30, 1996	President, Red Back Mining Inc., June 2000 to present

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Name, Municipality of Residence and Position with the company	Director Since	Principal Occupation During Previous Five Years
DAVID G. UNRUH (1) (2) (3*) West Vancouver, British Columbia Director	January 4, 2006	Retired since June 2005. Non-executive Vice Chair of both Westcoast Energy Inc. and Union Gas Limited, April 2003 to June 2005; Senior Vice President and General Counsel, Duke Energy Gas Transmission Corporation, March 2002 to April 2003; Senior Vice President, Law and Corporate Secretary, Westcoast Energy Inc., 1993 to March 2002. Director of Ontario Power Generation Inc. since November 2004. Director of Union Gas Limited since January 1, 1998. Director of Pacific Northern Gas Ltd. since March 21, 2002
ANTHONY F. HOLLER (2*) (3) Vancouver, British Columbia Chairman and Director	September 10, 2003	Non-executive Chairman of the company since May 2006; Chief Executive Officer and Director of ID Biomedical Corporation, 1988 to December 2005
G. ROSS MCDONALD  (1) (3) North Vancouver, British Columbia Director	January 7, 2004	Chartered accountant in public practice with Smythe Ratcliffe Chartered Accountants, Vancouver, BC.; former Chief Financial Officer of the company, 1997 to January 2004
DALE C. PENIUK (1*) West Vancouver, British Columbia Director	September 8, 2006	Chartered Accountant, Self-employed financial consultant, March 2006 to present; Assurance Partner, KPMG LLP Chartered Accountants, 1996 to February 2006

(1)

Member of the Audit Committee

(2)

Member of the Compensation Committee

(3)

Member of the Corporate Governance and Nominating Committee

*

Committee Chair

All of the above directors stand for election at each annual general meeting of the company. The present term of office of each of the directors will expire at the company’s annual general meeting in May 2008.

Shareholdings of Directors and Officers

To the knowledge of the company, as of the date hereof, all directors and executive officers of the company, as a group, beneficially own or exercise control or direction over, directly or indirectly, 8,583,541 common shares, or approximately 11% of the company’s issued and outstanding shares.

Corporate Cease Trade Orders or Bankruptcies

To the knowledge of the company, no director or executive officer of the company or shareholder holding a sufficient number of securities of the company to affect materially the control of the company is, or within the 10 years prior to the date hereof has been, a director, chief executive officer or chief financial officer of any other company that:  (i) was the subject of a cease trade order or similar order, or an order that denied the other issuer access to any exemptions under Canadian securities legislation, for a period of more than 30 consecutive days (an “Order”) that was issued while the director or executive officer was acting in the capacity of a director, chief executive officer or chief financial officer; (ii) was subject to an Order issued after the director, chief executive officer or chief financial officer ceased to act in that capacity and which resulted in an event that occurred while that person was acting in that capacity.

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To the knowledge of the company, no director or executive officer or shareholder holding a sufficient number of securities of the company to affect materially the control of the company is, or within the 10 years prior to the date hereof has been, a director, chief executive officer or chief financial officer of any other company that became bankrupt, made a proposal under any legislation relating to bankruptcy or insolvency or was subject to or instituted any proceedings, arrangement or compromise with creditors or had a receiver, receiver manager or trustee appointed to hold its assets.

Penalties or Sanctions

To the knowledge of the company, no director or officer of the company or shareholder holding a sufficient number or securities of the company to affect materially the control of the company has been subject to any penalties or sanctions imposed by a court relating to Canadian securities legislation or by a Canadian securities regulatory authority or has entered into a settlement agreement with a Canadian securities authority, or has had any other penalties or sanctions imposed by a court or regulatory body that would likely be considered important to a reasonable investor in making an investment decision.

Personal Bankruptcies

To the knowledge of the company, no director or officer of the company or shareholder holding a sufficient number or securities of the company to affect materially the control of the company, or a personal holding company of any such person, has, during the 10 years prior to the date hereof, become bankrupt, made a proposal under any legislation relating to a bankruptcy or insolvency, or was subject to or instituted any proceedings, arrangement or compromise with creditors, or had a receiver, receiver manager or trustee appointed to hold such person’s assets.

AUDIT COMMITTEE INFORMATION

Charter of the Audit Committee

The mandate of Corriente’s audit committee is attached as Schedule A to this Annual Information Form.

Composition of the Audit Committee

The audit committee presently consists of Dale C. Peniuk (Chair), Richard P. Clark, G. Ross McDonald and David G. Unruh.

The board of directors of Corriente has determined, in accordance with Multilateral Instrument 52-110 – Audit Committees of the Canadian Securities Administrators (“MI 52-110”), that each member of the audit committee is both financially literate and independent.

Relevant Education and Experience

The education and experience of each member of the audit committee that is relevant to the performance of his responsibilities as an audit committee member is described below:

Dale C. Peniuk

Until March 2006, Mr. Peniuk was an assurance partner with KPMG’s Vancouver office specializing in the mining area and the leader of KPMG’s Vancouver office mining industry group. He was the lead audit engagement partner for a number of KPMG’s Vancouver mining company clients. In addition to his expertise with Canadian GAAP and reporting standards, he has significant experience dealing with US GAAP and International Financial Reporting Standards.  He also has been actively involved in the corporate finance area for his clients, including assistance with financings, due diligence on potential merger and acquisition opportunities and divestiture transactions. Mr. Peniuk is a member in good standing of the Institute of Chartered Accountants of BC.

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Richard P. Clark

Mr. Clark is the President and Chief Executive Officer of Red Back Mining Inc., the shares of which are listed on the Toronto Stock Exchange. He earned a Bachelor of Arts degree and a Bachelor of Laws degree from the University of British Columbia and practiced mining and securities law in Vancouver from 1987 to 1993 before leaving the practice of law to become actively involved in the management of mineral exploration and development companies.

G. Ross McDonald

Mr. McDonald is a Chartered Accountant in public practice with Smythe Ratcliffe Chartered Accountants, Vancouver, BC. Previously, Mr. McDonald was a sole practitioner, providing accounting, audit and tax services to a number of Vancouver mining company clients over the past 30 years. Mr. McDonald is a member in good standing of the Institute of Chartered Accountants of BC.

David G. Unruh

Mr. Unruh earned a Bachelor of Arts degree in 1966 and a Bachelor of Laws in 1970 from the University of Manitoba. Mr. Unruh joined Westcoast Energy Inc. as Senior Vice President, Law and Corporate Secretary in 1993 and continued in that role until March 14, 2002. From March 15, 2002 until his retirement on April 1, 2003, he was Senior Vice President and General Counsel for Duke Energy Gas Transmission's North American operations following which from April 1, 2003 to June 30, 2005 he became non-executive Vice Chair of both Westcoast Energy Inc. and Union Gas Limited. He is a Director of Union Gas Limited, Ontario Power Generation Inc., and Pacific Northern Gas Ltd.

Pre-Approval Policies and Procedures

The audit committee must pre-approve all non-audit services to be provided to the company by its external auditors. The audit committee may delegate that authority to any member of the committee, provided that a report on any such pre-approval is made to the committee at its next scheduled meeting.

External Auditor Service Fees

The following table sets forth, by category, the fees billed by PricewaterhouseCoopers LLP, Corriente’s auditors, for the years ended December 31, 2007 and 2006:

Fee Category	Fees Billed
	2007	2006
Audit fees (1)	$ 173,021	$ 77,831
Audit-related fees (2)	40,208	124,809
Tax fees (3)	109,050	60,192
All other fees (4)	82,609	–
Total	$ 404,888	$ 262,832

⁽¹⁾ The aggregate fees billed by PricewaterhouseCoopers LLP, the company’s Independent Registered Chartered Accountant, for  the fiscal years ended December 31, 2007 and 2006 for professional services rendered by PricewaterhouseCoopers LLP for the audit of the company’s annual consolidated financial statements and internal control over financial reporting,  and services that are normally provided by PricewaterhouseCoopers LLP in connection with statutory and regulatory filings or engagements for such years were $173,021 and $77,831, respectively. No audit of internal control over financial reporting was performed or required for the fiscal year ended December 31, 2006.

⁽²⁾ The aggregate fees billed by PricewaterhouseCoopers LLP for the fiscal years ended December 31, 2007 and 2006 for assurance and related services rendered by it that are reasonably related to the performance of the audit or review of the company's financial statements and are not reported above as audit fees were $40,208 and $124,809, respectively.  Professional services provided in 2007 included quarterly review of unaudited interim consolidated financial statements and in 2006 included review services and issue of comfort letters relating to the company’s December 2005 and May 2006 short-form prospectuses, meetings and discussions regarding US registration and review of interim financial statements for both the short-form prospectuses and US registration, and internal controls and related compliance efforts.

⁽³⁾ The aggregate fees billed by PricewaterhouseCoopers LLP for the fiscal years ended December 31, 2007 and 2006 for professional services rendered by it for tax compliance, tax advice, tax planning and other services were $109,050 and $60,192, respectively.

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⁽⁴⁾ The aggregate fees billed by PricewaterhouseCoopers LLP for the fiscal years ended December 31, 2007 and 2006 for services provided by PricewaterhouseCoopers LLP, other than the services reported in the preceding four paragraphs, were $82,609 and $Nil, respectively. Such services included: the auditing of certain tax information; review of certain internal financial models of the company; and audit fees associated with the Arrangement. No services for other than reported in the preceding three paragraphs were performed or required for the fiscal year ended December 31, 2006.

LEGAL PROCEEDINGS AND REGULATORY ACTIONS

The company is not the subject of, or party to, any legal proceedings that may be considered material to the company, and it is not and has not been subject to any penalties or sanctions imposed by a court or a securities regulatory authority.

TRANSFER AGENT AND REGISTRAR

The transfer agent and registrar for the company’s shares is Computershare Investor Services Inc. through its offices located in Vancouver, British Columbia, Toronto, Ontario and Denver, Colorado.

MATERIAL CONTRACTS

There are no contracts that may be considered material to the company, other than contracts entered into in the ordinary course of business, that have been entered into by the company in the past fiscal year or that have been entered into by the company in a previous fiscal year and are still in effect.

INTERESTS OF EXPERTS

The auditors of the company are PricewaterhouseCoopers LLP, Chartered Accountants, of Vancouver, British Columbia. PricewaterhouseCoopers LLP, Chartered Accountants, report that they are independent of the company in accordance with the rules of professional conduct in British Columbia, Canada.

ADDITIONAL INFORMATION

Additional information, including directors’ and officers’ remuneration and indebtedness, principal holders of the company’s securities, securities authorized for issuance under equity compensation plans and interests of insiders in material transactions, if applicable, is contained in the company’s information circular in connection with the company’s upcoming annual general meeting to be held May 28, 2008, a copy of which will be filed on SEDAR at www.sedar.com in April 2008.

Additional financial information is available in the company’s audited financial statements and accompanying management’s discussion and analysis for the fiscal year ended December 31, 2007, a copy of which has been filed on SEDAR at www.sedar.com. For copies of documents, please contact the company at 520 – 800 West Pender Street, Vancouver, British Columbia, V6C 2V6, telephone (604) 687-0449, fax (604) 687-0827.

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SCHEDULE A

AUDIT COMMITTEE MANDATE

The Board has established an Audit Committee (the “Committee”) to assist the Board in fulfilling its oversight responsibilities regarding the integrity of the company’s accounting, financial reporting, internal controls, disclosure controls, and legal and regulatory compliance.

1.

Membership

1.1

The Committee will have a minimum of three members, including the Chair of the Committee.  The Board will appoint and remove the members of the Committee by a majority vote.  The members will sit on the Committee at the pleasure of the Board.

1.2

The Board will appoint the Chair of the Committee from the Committee’s members by a majority vote.  The Chair of the Committee will hold such position at the pleasure of the Board.

1.3

Each member of the Committee will be a director of the company who has been determined by the Board:

(a)

to be independent of management and of any direct or indirect material business or other relationship with the company that could interfere with his or her exercise of independent judgment or his or her ability to act in the best interests of the company; and

(b)

to satisfy all the tests for independence (or available exemptions) under applicable laws and rules binding on the company from time to time, including the applicable rules of any stock exchange on which the company’s shares are listed or the securities regulatory authority that the company is governed by.

1.4

All members of the Committee will be financially literate, meaning that each of them will have the ability to read and understand fundamental financial statements, including a balance sheet, income statement and cash flow statement, that present a breadth and level of complexity of accounting issues that are generally comparable to the breadth and complexity of the issues that could reasonably be expected to be raised by the company’s financial statements.

1.5

Notwithstanding section 1.4, a director who is not financially literate may be appointed to the Committee provided that he or she becomes financially literate within a reasonable period of time following his or her appointment.

1.6

At least one member of the Committee shall be an “audit committee financial expert” within the meaning of applicable rules of the Securities and Exchange Commission and National Instrument 52-110 of the Canadian Securities Administrators.

2.

Meeting

2.1

The Committee will meet at least once each quarter and otherwise as necessary.  Any member of the Committee may call meetings of the Committee.

2.2

All directors of the company, including management directors, may attend meetings of the Committee, provided that no director may vote at such meetings or be counted as part of the quorum if he or she is not a member of the Committee.

2.3

Notwithstanding section 2.2, the Committee will, as part of each regularly scheduled meeting or as deemed appropriate by the Committee, hold an in-camera session with the external auditors without management or management directors present.  The Committee may hold other in-camera sessions with or without such members of management present as the Committee deems appropriate.

2.4

The Corporate Secretary or his or her nominee will act as Recording Secretary to the Committee, and will keep minutes of all meetings of the Committee, including all resolutions passed by the Committee.

2.5

The Committee will report to the Board on its meetings and each member of the Board will have access to the minutes of the Committee’s meetings.

2.6

The Chair of the Committee will ensure that the external auditors of the company receive notice of every meeting of the Committee.  The external auditors may request that a meeting of the Committee be called by notifying the Chair of the Committee of such request.

2.7

The quorum necessary for the transaction of business at Committee meetings will be a majority of the members of the Committee.  A quorum, once established, is maintained even if members of the Committee leave the meeting prior to its conclusion.

3.

Duties

The Board hereby delegates to the Committee the following duties to be performed by the Committee on behalf of and for the Board:

Financial Reporting

3.1

Prior to public disclosure, the Committee will review and recommend to the Board for

approval:

(a)

the annual audited consolidated financial statements of the company and accompanying management’s discussion and analysis;

(b)

the unaudited interim consolidated financial statements of the company and accompanying management’s discussion and analysis;

(c)

earnings press releases and earnings guidance, if any;

(d)

the company’s Annual Information Form and Annual Report on Form 20-F;

(e)

any management information circular issued by the company; and

(f)

any prospectus or registration statement filed by the company.

3.2

In its review of the financial statements, the Committee will focus on:

(a)

the quality and appropriateness of accounting and reporting practices and principles and any changes thereto;

(b)

major estimates or judgments, including alternative treatments of financial information discussed by management and the external auditors, the results of such discussions and the treatments preferred by the external auditors;

(c)

material financial risks, transactions, adjustments, compliance with loan agreements, and off-balance sheet transactions and structures;

(d)

related-party transactions;

(e)

compliance with accounting standards;

(f)

compliance with legal and regulatory requirements; and

(g)

disagreements with management.

3.3

The Committee will satisfy itself that adequate procedures are in place for the review of the company’s public disclosure of financial information extracted or derived from the company’s financial statements, other than the public disclosure referred to in section 0, and will periodically assess the adequacy of those procedures.

External Auditors

3.4

The external auditors will report directly to the Committee.  The Committee will:

(a)

select the external auditors to be recommended to shareholders for approval, for the purpose of preparing or issuing an auditor’s report or performing other audit, review or attest services for the company and approve all audit engagement fees and terms, taking care to ensure that in the opinion of the Committee, the audit fees charged by the external auditors with respect to the audit are appropriate in relation to the work required to support an audit opinion, without regard to fees that are paid or payable or might be paid to the external auditors for other services;

(b)

oversee the work of the external auditors and review and approve the annual audit plan of the external auditors, including the scope of the audit to be performed.  The Committee will discuss with the external auditors and management the adequacy and effectiveness of the disclosure controls and internal controls over financial reporting of the company and elicit recommendations for the improvement of such controls or particular areas where new or more detailed controls or procedures are desirable.  Particular emphasis will be given to the adequacy of internal controls to prevent or detect any payments, transactions or procedures that might be deemed illegal or otherwise improper;

(c)

meet regularly with the external auditors without management present and ask the external auditors to report any significant disagreements with management regarding financial reporting, the resolution of such disagreements and any restrictions imposed by management on the scope and extent of the audit examinations or interim reviews conducted by the external auditors;

(d)

pre-approve all audit, audit-related and permitted non-audit services to be provided to the company or any of its subsidiaries by the external auditors, in accordance with applicable securities laws;

(e)

annually review the qualifications, expertise and resources and the overall performance of the external audit team and, if necessary, terminate the external auditors or cause the rotation of the audit partner in charge of the engagement;

(f)

at least annually, obtain and review a report by the external auditors describing the audit firm’s internal quality-control procedures, any material issues raised by the most recent internal quality control review, peer review or review by an auditor oversight body of the firm, or by any inquiry or investigation by governmental or professional authorities within the preceding five years respecting one or more independent audits carried out by the firm and any steps taken to deal with such issues, and all relationships between the external auditors and the company;

(g)

annually assess and confirm the independence of the external auditors and require the external auditors to deliver a report to the Committee regarding its independence, such report to include disclosure regarding all engagements (and fees related thereto) by the company and relationships which may affect the objectivity or independence of the external auditors;

(h)

actively engage in a dialogue with the external auditors with respect to any disclosed relationships or services that may impact the objectivity and independence of the external auditor and for taking appropriate action for overseeing the independence of the external auditor;

(i)

review post-audit management letters containing recommendations of the external auditors, and management’s response to such letters;

(j)

review reports of the external auditors; and

(k)

pre-approve the hiring of employees and former employees of current and former auditors.

Notwithstanding section 3.4 above, the Committee may delegate the pre-approval of audit, audit-related and non-audit services to any one member of the Committee, provided that a report on any such pre-approval is made to the Committee at the Committee’s first scheduled meeting following the pre-approval.

Whistleblower, Ethics and Internal Controls Complaint Procedures

3.5

The Committee will ensure that the company has in place adequate procedures for:

(a)

the receipt, retention and treatment of complaints received by the company regarding accounting, internal accounting controls, or auditing matters; and

(b)

the confidential, anonymous submission by employees of the company of concerns regarding questionable accounting or auditing matters.

Accounting and Financial Management

3.5

The Committee will review:

(a)

with management and the external auditors, the company’s significant accounting policies and practices, including any changes from preceding years and any proposed changes for future years;

(b)

with management and the external auditors, emerging accounting issues and their potential impact on the company’s financial reporting;

(c)

significant judgments, assumptions and estimates made by management in preparing financial statements;

(d)

the evaluation by management of the adequacy and effectiveness of the company’s disclosure controls and internal controls over financial reporting;

(e)

the evaluation by the external auditors of management’s internal control systems, management’s responses to any identified deficiencies or weaknesses, and any special audit steps adopted in light of material deficiencies or weaknesses;

(f)

all alternative treatments of financial information discussed by the external auditors and management, the results of such discussions, and the treatments preferred by the external auditors;

(g)

the effect of off-balance sheet transactions or structures on the financial statements;

(h)

any errors or omissions in, and any required restatement of, the financial statements for preceding years;

(i)

all significant tax issues;

(j)

all material contingent liabilities and related-party transactions;

(k)

management’s approach to safeguarding corporate assets and information systems, the adequacy of staffing of key financial functions, and plans for improvements; and\

(l)

internal interim and post-implementation reviews of major capital projects.

Legal/Regulatory Matters and Ethics

3.7

The Committee will review:

(a)

with management, the external auditors and legal counsel, any litigation, claim or other contingency, including any tax assessment, that could have a material effect upon the financial position or operating results of the company;

(b)

annually, management’s relationships with regulators, and the accuracy and timeliness of filings with regulatory authorities;

(c)

annually, the ethics policy, management’s approach to business ethics and corporate conduct and the program used by management to monitor compliance with the policy; and

(d)

review and approve all related party transactions with any director, executive officer, holder of 5% or more of the company’s voting securities or any family member of the foregoing persons.

Risk Management

3.8

The Committee will:

(a)

consider management reports on the insurance coverage of the company;

(b)

consider management reports on financial risk management, including derivative exposure and policies;

(c)

review other risk management matters as from time to time the Committee may consider suitable or the Board may specifically direct.

Other

3.9

The Committee will review:

(a)

the expenses of the Chief Executive Officer;

(b)

the proposed disclosure concerning the Committee to be included in the company’s Annual Information Form or any management information circular;

(c)

the disclosure policy of the company; and

(d)

at least once annually, the adequacy of these Terms of Reference and the Committee’s performance, and report its evaluation and any recommendations for change to the Corporate Governance Committee.

3.10

The Committee will oversee the company’s design and evaluation of the effectiveness of:

(a)

disclosure controls and procedures; and

(b)

internal controls over financial reporting.

3.11

The Committee will also have such other duties and responsibilities as are delegated to it from time to time by the Board.

4.

Matters For Which the Committee is Not Responsible

The Committee is not responsible for those matters which are the responsibility of management or the external auditors including, without limitation:

(a)

planning and conducting the external audit;

(b)

ensuring that the financial statements of the company have been prepared in accordance with generally accepted accounting principles;

(c)

ensuring that the financial statements of the company and the other financial information of the company contained in regulatory filings and other public disclosure of the company fairly present in all material respects the financial condition, results of operations and cash flows of the company;

(d)

ensuring the adequacy of the company’s disclosure controls and procedures structure, internal control over financial reporting structure and the financial risk management systems of the company; and

(e)

ensuring compliance with applicable laws and regulations.

5.

Authority

The Committee, in fulfilling its mandate, will have the authority to:

(a)

engage and set compensation for independent counsel and other advisors;

(b)

communicate directly with the Chief Executive Officer, Chief Financial Officer, external auditors and the company’s legal counsel;

(c)

delegate tasks to Committee members or subcommittees of the Committee; and

(d)

obtain from the company appropriate funding as determined by the Committee to carry out its duties, including: for the payment of compensation of the company’s external auditors for the purpose of issuing an audit report or performing other audit services; compensation of counsel and other advisors; and other administrative expenses of the Committee.

This mandate supersedes and replaces all prior terms of reference pertaining to the Committee and was adopted by a resolution of the Board effective December 12, 2007.

/s/ Darryl F. Jones
____________________
Darryl F. Jones
Corporate Secretary

EX-1.2

CORRIENTE RESOURCES INC.

MANAGEMENT’S DISCUSSION & ANALYSIS

For the Year Ended December 31, 2007
(Expressed in Canadian dollars unless otherwise noted)

March 26, 2008

Management’s Discussion and Analysis supplements, but does not form part of, the audited consolidated financial statements of Corriente Resources Inc. ("Corriente" or "the company") and the notes thereto for the fiscal year ended December 31, 2007. Consequently, the following discussion and analysis of the financial condition and results of operations for Corriente should be read in conjunction with the audited consolidated financial statements for the years ended December 31, 2007, 2006 and 2005 and related notes thereto, which are prepared in accordance with Canadian generally accepted accounting principles ("Canadian GAAP"). The accounting policies have been consistently followed in preparation of these financial statements, except that the company has adopted the guidelines governed by Sections 1530, 3855 and 3865 of the CICA Handbook, "Comprehensive Income", "Financial Instruments – Recognition and Measurement" and "Hedges", respectively, commencing January 1, 2007.

All dollar amounts referenced, unless otherwise indicated, are expressed in Canadian dollars.

The above-referenced financial statements and other information, including the company’s Annual Information Form, can be found on SEDAR at www.sedar.com and on EDGAR at www.sec.gov. The company’s shares are listed on the Toronto Stock Exchange (under the symbol "CTQ") and on the American Stock Exchange (under the symbol "ETQ").

Cautionary Statement on Forward-Looking Statements

This Management's Discussion and Analysis ("MD&A") contains forward-looking statements that relate to future events or Corriente's future performance. All statements other than statements of historical fact are forward-looking statements. These statements include, but are not limited to, statements concerning the future financial and operating performance of Corriente, its subsidiaries and its current and proposed mineral projects; the future price of copper, gold and other precious and base metals; the estimation of mineral reserves and resources; the realization of mineral reserve estimates; the timing and amount of estimated future production; anticipated costs of production; working capital requirements; capital and exploration expenditures; costs and timing of mine development, processing facility construction and the development of new deposits; costs and timing of future exploration; requirements for additional capital; government regulation of mining operations; environmental risks; reclamation expenses; title disputes or claims; limitation of insurance coverage; and the timing and possible outcome of pending litigation and regulatory matters.

Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "proposes", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" or variations (including negative variations) of such words and phrases, or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved.

Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Corriente to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, but are not limited to, general business and economic uncertainties; exploration and mining risks; uncertainties relating to surface rights; the actual results of current exploration activities; realization of resource estimates; ability to obtain financing; actual results of reclamation activities; the outcome of negotiations; conclusions of economic evaluations and studies; changes in project parameters and returns as plans continue to be refined; future prices of copper, gold, and other precious and base metals; increased competition in the mining industry for properties, equipment and qualified personnel; risks associated with environmental compliance and permitting, including those created by changes in environmental legislation and regulation; the risk of arbitrary changes in law; title risks; risks relating to repatriation of earnings; social and political risks associated with operations in foreign countries; the risk of loss of key personnel; significant fluctuations in the exchange rates for United States and Canadian currency; and delays in the completion of development and construction activities.

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The forward-looking statements contained herein are based on a number of assumptions that the company believes are reasonable, but may prove to be incorrect. These assumptions include, but are not limited to, assumptions that there is no material deterioration in general business and economic conditions; that there is no unanticipated fluctuation of interest rates and foreign exchange rates; that the supply and demand for copper and gold develop as expected; that the company receives regulatory approvals for its exploration and development projects on a timely basis; that the company is able to obtain financing for the company’s development projects on reasonable terms; that engineering and construction timetables and capital costs for the company’s development projects are not incorrectly estimated or affected by unforeseen circumstances; that the company’s reserve estimates are within reasonable bounds of accuracy and that the geological, operational and price assumptions on which they are based are reasonable; and that the company is able to hire the personnel it needs to carry out its business plan.

The foregoing lists of factors and assumptions are not exhaustive. You should also consider carefully the matters discussed under the heading "Risk Factors" elsewhere in this this MD&A. Forward-looking statements contained herein are made as of the date hereof (or of the date of a document incorporated herein by reference, as applicable). The company undertakes no obligation to update publicly or otherwise revise any forward-looking statements or the foregoing lists of factors and assumptions, whether as a result of new information, future events or results or otherwise, except as required by law. Because forward-looking statements are inherently uncertain, readers should not place undue reliance on them. The forward-looking statements contained herein are expressly qualified in their entirety by this cautionary statement.

Cautionary Note to U.S. Investors

All references to mineral reserves and resources contained in this MD&A are determined in accordance with National Instrument 43-101 ("NI 43-101") Standards of Disclosure for Mineral Projects, an instrument made under Canadian securities regulations. While the terms "mineral resource", "measured mineral resource", "indicated mineral resource" and "inferred mineral resource" are recognized and required by Canadian regulations, they are not defined or recognized by the U.S. Securities and Exchange Commission ("SEC"). As such, information contained in this MD&A concerning descriptions of mineralization and resources, as determined in accordance with Canadian standards, may not be comparable to similar information made public by U.S. companies subject to the reporting and disclosure requirements of the SEC. "Indicated mineral resource" and "inferred mineral resource" have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of the mineral resources in these categories will ever be upgraded to a higher category of resource.

Significant Events during the Year Ended December 31, 2007

• January – Mirador Project development timeline extended

• June – completion of Plan of Arrangement spin-off of gold exploration targets to Q2 Gold Resources Inc.

• October – work on the amendment of the Environmental Impact Assessment ("EIA") for the Mirador Project resumed

• November – a Preliminary Assessment was completed for the Panantza-San Carlos Project

• December – Machala Port EIA approved by the Ecuador Ministry of Environment

John Drobe, P.Geo., the company’s Chief Geologist, is the Qualified Person as defined by NI 43-101 and responsible for the preparation of the technical disclosure in this document, unless otherwise noted.

General Corporate

Corriente is a Canadian-based junior resource company engaged in the exploration and development of copper-gold mineral properties located primarily in the Rio Zamora copper porphyry district (known as the "Corriente Copper Belt"), in the Morona-Santiago and Zamora-Chinchipe provinces of Ecuador. Under various agreements signed with certain subsidiaries of BHP Billiton Plc ("BHP Billiton"), the company has earned a 100% interest in certain mineral property concessions in the Corriente Copper Belt, the most advanced of which are the Mirador Project and the Panantza-San Carlos Project. The concessions acquired from BHP Billiton are subject to a 2% Net Smelter Royalty ("NSR") payable to BHP Billiton, although the company has the option to reduce the NSR to 1% for the Mirador, Panantza and San Carlos mineral properties upon the payment of US$2 million to BHP Billiton for each such property.

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As a key milestone in the development of a large scale responsible mining sector in Ecuador, the company is in negotiations with the Ministry of Mining and Petroleum ("MMP", formerly called the Ministry of Energy and Mines) on a development and investment framework for its mining projects in Ecuador. Efforts to complete this framework are expected to be completed later in 2008.

The principles for development of these projects will be investment in the earth, following the practices of modern responsible mining. Responsible mining will provide a balance between protection for the environment, which is crucial to the people of Ecuador, and jobs and infrastructure development, which are also critically important for this region.

Corriente controls a 100% interest in approximately 62,000 hectares located within the Corriente Copper Belt (the "Belt"). The company has identified four copper and copper-gold porphyry deposits in the Belt: Mirador; Mirador Norte; Panantza; and San Carlos. Corriente continues to move towards construction of a 30,000 tonne per day starter project at its Mirador-Mirador Norte copper-gold project (the "Mirador Project") Additionally, a Preliminary Assessment for a 90,000 tonne per day combined Panantza-San Carlos copper mining operation was completed and made available on SEDAR in December 2007.

The company’s executive head office is located in Vancouver, Canada while its Ecuador operations are run from its office located in Quito, Ecuador. The company also has camp locations at the company’s major projects in Ecuador. With the exception of short-term operational requirements for its Ecuador operations, funds have been maintained and controlled in Vancouver, both in Canadian and US dollars. In addition to its core staff located in Vancouver and Quito, the company engages consultants as necessary, to provide geological, mine development and construction consulting, design, engineering and other services. Overhead costs and efficiencies in Ecuador continue to compare favourably with other South American exploration areas. At December 31, 2007, the company had 77 employees (2006 – 108).

At present, only the company’s Mirador Project property has proven or probable reserves while any planned exploration programs for the company’s other properties are exploratory searches for proven or probable reserves.

Mirador Project

Extension of Development Timeline, Suspension of Field Work and Updated Technical Report

In September 2006, Corriente’s directors reviewed the development status of the Mirador Project and approved management’s recommendation of the placement of orders for long lead-time equipment for the project. This equipment included the main components of the grinding circuit such as the SAG and ball mills. The company was working on an accelerated timeline that had an estimated completion date of the Mirador Project and start of production during the fourth quarter of 2008. These items were on the critical path to meet that deadline.

In November 2006, a series of protests began that were held in the Morona-Santiago and Zamora-Chinchipe provinces of Ecuador against resource development in general. After a number of ineffective negotiating sessions were held with the protesters, the MMP advised the company to temporarily suspend its Mirador Project fieldwork in order to secure the safety and security of local communities and supporters. This suspension was subsequently formalized in December 2006 by a suspension order from the Sub-Secretary of Environment’s office within the MMP. To date, there has been no change in the status of this suspension order.

On January 25, 2007, the company announced that there would be a delay in the planned start of production at Mirador from late 2008 to approximately mid-2009. This delay was largely due to adjustments to long lead-time equipment deliveries as a result of the decision to move off of the previous accelerated Mirador Project development plan. This accelerated plan was based on having key permits and government agreements completed by January 2007. Since these permit applications and agreements were still being processed and the company was restricted from resuming planned development activities at Mirador, the company’s directors elected to minimize the Mirador Project obligations. This decision resulted in the termination clauses of certain agreements with suppliers of key long lead-time components to the Mirador Project to be invoked, for which charges for work incurred of $2,951,000 (US$2,532,000) were accrued at December 31, 2006 and capitalized to mineral properties. The company was able to sell these partially completed assets to third parties in the first quarter of 2007 for net proceeds of $2,750,000 (US$2,382,000), which was received on April 13, 2007 and recorded as a recovery of mineral property expenditures.

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In connection with this timeline extension, the company implemented a restructuring of its Ecuador operations to reduce the overall number of its employees while still maintaining a core group of technical and professional staff and increasing its governmental and community affairs activities. The company recorded severance expenses of approximately $1.25 million in 2007 in connection with this restructuring.

Despite the suspension of fieldwork activities at the Mirador Project site, the company was able to continue work in 2007 on enhancements to various engineering aspects of the Project. This additional engineering and feasibility work was recently completed, and the results will be announced in the second quarter of 2008. The related technical report will be filed on SEDAR within 45 days of the announcement of the report. This report will include a summary of the economic model for a first phase 30,000 tonne per day concentrator operation at Mirador.

After all necessary permits are received, project financing is in place, and a construction decision is made, it is Management’s opinion that it would take approximately 24 months to achieve commencement of production at Mirador.

Mirador Norte is located less than 1 km from the planned Mirador Project milling facility. Confirmation of resources at Mirador Norte provides additional options for the development of Mirador, including access to higher-grade enriched material from the shallow parts of Mirador Norte and the flexibility of being able to shift production from one pit to another.

The resources that have been identified for the Mirador Project are summarized below:

Table of Resources 0.4% Copper Cut-off

Measured and Indicated Resources
					Au		Ag
Project	Category	Tonnes	Cu%	Cu (lbs)	(ppb)	Au oz	(ppm)	Ag oz
Mirador	Measured	52,610,000	0.65	753,000,000	210	360,000	1.6	2,770,000
	Indicated	385,060,000	0.60	5,134,000,000	190	2,380,000	1.5	18,760,000
Measured & Indicated		437,670,000	0.61	5,887,000,000	200	2,740,000	1.5	21,530,000
Mirador
Norte	Indicated	171,410,000	0.51	1,921,000,000	89	489,000	-	-
Total Measured & Indicated		609,080,000	0.58	7,808,000,000	169	3,229,000	1.5	21,530,000

Inferred Resources
					Au		Ag
Project	Category	Tonnes	Cu%	Cu (lbs)	(ppb)	Au oz	(ppm)	Ag oz
Mirador	Inferred	235,400,000	0.52	2,708,000,000	170	1,250,000	1.3	9,900,000
Mirador Norte	Inferred	45,820,000	0.51	513,000,000	68	101,000	-	-
Total Inferred				3,221,000,000

The Qualified Person under NI 43-101 for the resource estimates quoted above is John Drobe, P.Geo, Chief Geologist.

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Environmental Impact Assessment ("EIA")

On May 4, 2006, Corriente announced that the Mirador Project’s EIA was approved by the MMP.

The EIA covered both the environmental aspects of proposed mining operations in Mirador and community and social plans associated with the same project. During the lengthy preparation of the EIA, the company worked closely with the MMP to ensure that the report met all required government guidelines and regulations. The Mirador EIA is one of the most comprehensive documents on social and environmental issues ever submitted to the MMP in Ecuador for a mining project. The submission of the EIA and subsequent approval followed an extensive consultation process with local communities carried out in late November and early December 2005.

As a requirement of the MMP’s approval of the EIA, the company was required to post US$3,019,539 (Cdn.$ equivalent at December 31, 2007 – $2,993,269; December 31, 2006 – $3,518,971) in favour of the MMP as a security deposit against the company’s obligations under the EIA. The required security deposit amount is reviewed on an annual basis by the MMP and is expected to be subject to adjustment as the project progresses to completion.

In September 2006, the company filed an amendment to the EIA ("EIAA") to allow for mill, tailings and dump location changes to the original mine plan. Subsequent public consultations were successful. However, the EIAA was rejected by authorities in May 2007 and is currently being revised for re-submittal. As a result of subsequent discussions with the MMP, the company was successful in October 2007 in resuming fieldwork activities related to completion of an EIAA for the Mirador Project. The EIAA will incorporate engineering enhancements completed through 2007 on the Mirador Project.

For the company to receive a mine operating permit for the Mirador Project, approvals for the EIAA and construction and operating-related permit applications must be received from the MMP and other Ecuador governmental authorities during the course of development of the Mirador mine, prior to the beginning of mine operations.

In December 2007, Corriente announced that the Ministry of Environment (the "MOE") in Ecuador approved the EIA for the company’s port operation in Machala, which is designed to act as a shipping facility for copper concentrates sent to overseas smelters. The company owns a 27 hectare port site on the Santa Rosa Channel in Machala, which is connected to the Mirador Project by a 400 km paved highway. Receipt of the EIA is an important part of the overall Mirador Project approval process and provides the key access for a Pacific shipping route for the company’s copper concentrates. As a requirement of the MOE’s approval of the Machala Port EIA, the company was required to post US$288,000 (Cdn.$ equivalent at December 31, 2007 – $285,494) in favour of the MMP as a security deposit against the company’s obligations under this EIA.

Community Relations and Sustainable Development

The company has designed and implemented a number of community relations ("CR") plan strategies after identifying local and regional communities’ needs as well as the related impacts of the company’s future mining activities on these communities. The company’s CR plans focus on the critical needs of the local and regional communities and federal government and are regularly reviewed to ensure appropriateness and effectiveness.

The company continues to be committed to local communities in all aspects of its mining and economic development activities. Since 2004, the company has actively initiated and provided financial, equipment and manpower resources in the areas of education, employment, health, building assistance, environmental preservation and cultural and economic development programs.

Sustainable development is a process that aims to maintain and improve the quality of life not only for the present generation in areas and communities in which the company works but also for future generations. It involves the integration of three main components: environmental protection, social sustainability and economic sustainability.

Corriente’s approach to business and sustainable development involves implementing strategies beneficial to the community, environment and the country and its economy. The company’s commitment and obligation to these strategies extend beyond standard compliance with national and international guidelines and involve building relationships based on honesty, openness and mutual trust. This is the essence of Corriente’s community relations and sustainable development theme: "El Trato Justo" or "A Fair Deal"

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Reflecting the above, the company incurred deferred development costs for the Mirador Project of $14,962,299 (2006 – $20,417,923) for the year ended December 31, 2007, including $3,688,621 (2006 – $8,518,162) for the three-month period ended December 31, 2007.

Plan of Arrangement – spin-off of gold exploration targets

On April 3, 2007, the company announced that its directors had approved the spin-off of the company’s Caya 36 (Tundayme) and Piedra Liza gold properties into a new company, by means of a Plan of Arrangement (the "Arrangement").

The Arrangement was approved by shareholders at the company’s May 24, 2007 Annual and Special General Meeting and closed on June 18, 2007. Under the Arrangement, which was also approved by the British Columbia Supreme Court, the company’s shareholders received shares of a new private company, Q2 Gold Resources Inc. ("Q2 Gold") which holds the gold properties, on the basis of one (1) Q2 Gold share for every three (3) common shares of Corriente held by them at the close of business on June 15, 2007.

In connection with the Arrangement and to assist Q2 Gold with its business objectives, Corriente and Q2 Gold entered into a secured, interest-bearing convertible loan agreement dated April 23, 2007 pursuant to which Corriente agreed to lend Q2 Gold up to $750,000 to be advanced in instalments (the "Loan"). As at December 31, 2007, $460,994, including accrued interest of $24,855, was owed by Q2 Gold to the company. The Loan principal and unpaid interest are due on the earlier of December 31, 2008 and the first date on which Q2 Gold obtains a prospectus filing receipt with respect to any of its securities in any province of Canada. At any time prior to maturity, Corriente can require Q2 Gold to convert, in whole or in part, the principal amount outstanding and accrued interest of the Loan into Q2 Gold Shares at a conversion price equal to $0.10 per share. Q2 Gold can repay any or all of the outstanding Loan at any time prior to maturity or conversion. The company believes the Arrangement and spin-off is not material to the company, therefore note disclosure of discontinued operations is not being presented.

Full details of the transaction were included in the Management Information Circular sent to shareholders in connection with the company’s May 24, 2007 Annual and Special General Meeting of shareholders that is available on SEDAR.

Panantza – San Carlos Project

The Panantza and San Carlos Project concessions are located approximately 40 km north of the Mirador Project. Corriente was approximately halfway through the first phase of a planned 16000 metres of drilling on the Panantza project when these activities were suspended as part of the Mirador Project suspension order referenced above. The drilling was the start of a planned two-year program to complete a feasibility study at Panantza and San Carlos, designed to incorporate the Panantza and San Carlos concessions into a single large copper development opportunity.

Prior to 2006, Panantza was last drilled in late 2000. Results from this previous drilling at Panantza included hole PA013 with 299 metres of 0.76% copper, hole PA012 with 269 metres of 0.97% copper, and hole PA017 with 64 metres of 1.29% secondary copper at the surface followed by 383 metres of 0.75% copper.

In 2006, an additional 25 holes totalling 8400 metres were completed. Results include hole PA039 with 17 metres of 1.31% copper in a secondary copper horizon overlying 399 metres of 0.66% copper, hole PA041 with 443 metres of 0.60% copper, and hole PA052 with 276 metres of 0.77% copper.

Current inferred resources at Panantza have been recently estimated, including the 2006 drilling results. A new block-model based resource estimate, using a 0.4% copper cut-off, reports approximately 463 million tonnes grading 0.66% copper containing 6.7 billion pounds of copper. The 2006 drilling added close to a billion pounds of copper to the previous Panantza resource. Corriente will focus on converting most of this resource to the measured and indicated category during completion of the drill programme.

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One objective of the 2006 Panantza drilling program was to define the southern edge of the Panantza mineralization. However, rather than delineate the edge of the Panantza deposit, the 2006 results indicate the Panantza mineralization extends farther south than previously recognized. The southernmost holes drilled, PA033 and PA034, were both terminated in copper mineralization averaging over 0.8% Cu at the hole bottoms, at approximately 330 metres and 342 metres deep respectively. The Panantza drill plan has now been expanded to complete additional holes to follow this mineralization to the south.

In addition, the deepest holes from this round of drilling (such as PA051) indicate that mineralization extends more than 200 metres deeper than previous drilling in the southwest portion of the deposit and mineralization remains open for further extension at depth. The deposit is also still open to the west.

San Carlos is believed to be the largest copper-molybdenum mineralized porphyry system in the Belt, with dimensions of about 2000 metres x 2500 metres. The mineralization has been tested with 25 diamond drill holes at variable spacing, drilled by BHP Billiton in 1997 and 1998. The current block-model based, inferred resource estimate based on these drill holes, using at a 0.4% copper cut-off, is 600 million tonnes grading 0.59% copper, containing 7.7 billion pounds of copper. The next phase of drilling will attempt to expand the resources and convert the bulk of the inferred resources to the measured and indicated categories.

A Preliminary Assessment Technical Report for a 90,000 tonne per day combined Panantza-San Carlos copper mining operation was completed and made available on SEDAR in December 2007. Highlights from this study are:

• Base case Net Present Value ("NPV") after tax of US$676 Million and an Internal Rate of Return ("IRR") of 15.1% (using metal prices of US$1.50/lb Cu, US$7.50/oz Ag, US$550/oz Au and US$10.00/lb Mo, 8% discount rate, US$75/tonne and US $0.075/lb treatment and refining charges for Cu). Using US$2.00 copper, the after-tax NPV increases to US$1.718 Billion and the IRR increases to 24.1%.

• Average annual metal production over the first 10 years of approximately 418,000,000 lbs of copper, 22,800 oz gold, 1,110,000 oz silver and 2,800,000 lbs of molybdenum.

• The Report modeled a mine plan based on 678 million inferred tonnes at a grade of 0.62% Cu, 0.05g/t Au, 1.3 g/t Ag and 0.008% Mo with estimated recoveries of 91% Cu, 30% Au (Panantza only), 70% Ag and 43% Mo.

• The cost to produce a pound of payable copper, net of other metal credits, and inclusive of marketing, smelting and transportation costs over the life of mine, is estimated to be US$0.73/lb.

• The Project would generate up to 2,000 jobs during the construction period and could create over five hundred direct and almost 4,000 indirect jobs during the estimated 20 year life.

• Total estimated value of taxes, profit sharing and expenditures within Ecuador over the twenty year Project life is approximately US$6 Billion.

Management of the company feels that the Panantza-San Carlos concessions represent a rare opportunity to capitalize on six years of community work, project engineering and management development expertise that has been built around the company’s Mirador Project. This body of knowledge will significantly assist in the project development process and at the same time allow the company to take economic advantage of infrastructure that is being put in place for the Mirador mine. The Project has been recommended to proceed to the Feasibility Study stage, which has an estimated budget requirement of approximately US$12 Million. The work would include detailed diamond drilling at both deposits to fully delineate mineralization and provide core for metallurgical and geotechnical studies. This work is planned to extend over a two year period. In addition, a program of extensive community dialogue is planned to ensure that the voice of local residents is reflected in any planned development ideas. Part of this dialogue will include several public consultations, which will form part of the on-going permitting process. Fieldwork is not expected to start until the completion of negotiations with the Ecuador government regarding the lifting of a suspension order that applies to the company’s Mirador, Panantza and San Carlos concessions.

Following is a summary Table of Resources setting out the company’s mineral property resources for its Panantza-San Carlos concession blocks in the Corriente Copper Belt.

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Table of Resources 0.4% Copper Cut-off

Inferred Resources
Project	Category	Tonnes	Cu%	Cu (lbs)
Panantza	Inferred*	463,000,000	0.66	6,688,000,000
San Carlos**	Inferred*	600,000,000	0.59	7,738,000,000
	Total Panantza-San Carlos	1,063,000,000	0.62	14,426,000,000
* does not include copper oxide mineralized material that was previously included in resource estimate
** resources are calculated at 0.4% copper cut-off using data previously released in June 2001 at a 0.65% copper cut-off
The Qualified Person for the resource estimates quoted above is John Drobe, P.Geo, Chief Geologist, Corriente Resources Inc.

On January 31, 2008, the company announced that it had started the process of contacting interested parties to become strategic partners in the development of the Panantza – San Carlos Project in southeast Ecuador. To assist in this process, Corriente has engaged the advisory services of Citigroup and Canaccord Adams to secure a majority partner for the Panantza – San Carlos Project. With estimated capital costs in the order of US$1.3 billion, this project is better suited for advancement by a large company having the financial and technical resources required to fast-track its development to production. Bringing on a majority partner for Panantza – San Carlos will allow Corriente to maintain its focus on the Mirador Project.

During the year ended December 31, 2007, the company incurred exploration and development costs of $1,180,939 (2006 – $2,478,768) for the Panantza-San Carlos project, including $258,634 (2006 – $762,113) in the fourth quarter of 2007. The company focused its development efforts for the Panantza-San Carlos Project on its community relations programs in the district, review of the status of all exploration-based EIAs and associated audits and the completion of the Preliminary Assessment.

Other Exploration Projects and Machala Port

For the year ended December 31, 2007, expenditures to develop the company’s concentrate shipping port facility in Machala, Ecuador totalled $231,407 (2006 – $147,113), including $153,239 in the fourth quarter of 2007 (2006 – $118,032). For the year ended December 31, 2007, expenditures to purchase the port facility totalled $Nil (2006 – $1,588,160).

For the year ended December 31, 2007, deferred exploration costs of $98,767 (2006 – $38,045) were attributed to the company’s remaining copper exploration targets in the Corriente Copper Belt, comprised of the La Florida, San Luis, San Marcos, San Miguel, Sutzu and Dolorosa concessions, including $68,131 (2006 – $19,270) for the fourth quarter of 2007.

Financial Results of Operations

All of the financial information referenced below is expressed in Canadian dollars (unless otherwise noted) and has been prepared in accordance with Canadian GAAP.

Financial Data for Last Eight Quarters
Three-month period ended	Dec-07	Sep-07	Jun-07	Mar-07	Dec-06	Sep-06	Jun-06	Mar-06
Total revenues (000’s)	$ 0	$ 0	$ 0	$ 0	$ 0	$ 0	$ 0	$ 0
General and
administrative expenses	$ 961	$ 877	$ 973	$ 687	$ 617	$996	$ 878	$ 458
Other expenses
(income)	$ (560)	$ 4,555	$ 6,600	$ 919	$ (1,503)	$ (1,474)	$ (1,105)	$ (270)
Loss (earnings) (000’s)	$ 401	$ 5,432	$ 7,573	$ 1,606	$ (886)	$ (478)	$ (227)	$ 188
Basic and diluted loss
(earnings) per share	$ 0.01	$ 0.07	$ 0.10	$ 0.02	$ (0.01)	$ (0.01)	$ 0.00	$ 0.00

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As the company has not had any revenue-producing mineral properties, no mining revenues have been recorded to date. The losses in 2007 were primarily due to foreign exchange losses attributable to the company’s funds being held in US dollars and the significant drop in $C:$US exchange rates. The earnings generated in the last two quarters of 2006 were the result of significant interest income from the investment of the proceeds of the company’s May 2006 public offering. For the second quarter of 2006, the company realized a gain on the receipt and sale of shares received from prior years’ asset sales.

In recent years, the company’s losses largely reflect the impact of foreign exchange losses on holdings of US dollars and the timing of the recording of non-cash stock-based compensation expenses attributable to the Black-Scholes Option Pricing Model calculation of the fair value of stock options vested, offset by interest income earned from cash and cash equivalents on hand.

In periods of loss, basic and diluted loss per share are the same because the effect of potential issuances of shares under options and warrants would be anti-dilutive.

Results for the quarter ended December 31, 2007

During the quarter ended December 31, 2007, the company’s efforts were primarily concentrated on completing the preliminary assessment for the Panantza-San Carlos project, ongoing negotiations with the Ecuador government to lift the suspension of exploration and development activities at the company’s project locations, obtaining approval on the Machala Port EIA and resuming work on the Mirador Project EIAA.

During the fourth quarter of 2007, the company’s cash and cash equivalents balance decreased by $4,410,431, predominantly due to development and exploration costs in Ecuador. The company recorded a net loss in the fourth quarter of 2007 of $400,692 (2006 – income of $885,340), primarily due to management fees, wages, benefits & stock-based compensation costs of $394,103, severance costs at the company’s Mirador operations of $381,233, a foreign exchange loss of $318,936 due to continued weakening of the US dollar and legal and accounting fees in the fourth quarter totalling $274,026, reflecting costs regarding compliance with increased regulatory requirements for the current year, partially offset by the earning of $1,089,878 in interest income and a $110,824 gain on proceeds received on an asset previously written off.

Results for the year ended December 31, 2007

Financial Data for Last Three Fiscal Years
Fiscal year ended	Dec 31-07	Dec 31-06	Dec 31-05
Total revenues (000’s)	$ 0	$ 0	$ 0
Loss (income) before extraordinary items (000’s)	$ 15,012	$ (1,403)	$ 3,344
Loss (income) (000’s)	$ 15,012	$ (1,403)	$ 3,344
Basic and diluted loss (income) per share	$ 0.20	$ (0.02)	$ 0.07
Cash and cash equivalents (000’s)	$ 93,272	$ 127,110	$ 32,441
Total assets (000’s)	$ 178,025	$ 195,997	$ 67,100
Total long-term liabilities (000’s)	$ 0	$ 0	$ 0
Total shareholders’ equity (000’s)	$ 176,147	$ 188,737	$ 66,124
Cash dividends declared per share	$ 0.00	$ 0.00	$ 0.00

For the year ended December 31, 2007, the company had a net loss of $15,011,973 (or $0.20 per share), compared with earnings of $1,403,028 (or $0.02 per share) for 2006 and a loss of $3,344,139 or $0.07 per share in 2005.

Strengthening of the Canadian dollar from US$0.8581 at December 31, 2006 to US$0.9913 at December 31, 2007 accounted for almost all of the loss in 2007, as the company’s foreign exchange loss increased to $15,538,886 in 2007 compared to a foreign exchange gain of $58,667 in 2006 (2005 – foreign exchange loss of $9,379).

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Administration expenses increased to $3,498,060 for 2007 (2006 – $2,949,131, 2005 – $2,639,979). Most of this increase was due to an increase of legal and accounting costs (increased in 2007 by $277,993), due mostly to costs related to the Arrangement and work regarding compliance with increased regulatory requirements and an increase in estimated audit fees for the current year. Management fees, wages & benefits increased by $149,787 (including $131,517 for non-cash stock-based compensation) to $1,608,536 in 2007 (2006 – $1,458,749, 2005 - $1,811,185) due to increased staffing costs. Also incurred during 2007 were severance costs totalling $1,256,626 (2006 and 2005 – $Nil) due to a restructuring of the company’s Ecuador operations (see Mirador Project). Consultants fees (included in Other) totaling $91,561 in 2007 (2006 – $33,615, 2005 – $Nil) increased due to project evaluation work performed throughout the year.

For the year ended December 31, 2007, the estimated fair value of the granted options which vested during the year totalled $1,829,296 (2006 – $1,192,942; 2005 - $1,224,274), of which $699,251 (2006 – $567,734; 2005 – $1,224,274) is included in management fees, wages, benefits & stock-based compensation and $1,130,045 (2006 – $625,208; 2005 – $Nil) is included in mineral properties. These amounts reflect the fair value of stock options expensed or capitalized as calculated using the Black-Scholes Option Pricing Model.

In November 2007, the company experienced an accidental loss of its construction barge during a period of unseasonably high Zamora River water levels that had not been seen in over 30 years. The company has received confirmation from its insurance company that the insurance claim made will be paid in full to the company in March 2008. The carrying value of the barge has been written down from $1,401,529 to $611,853 as at December 31, 2007. Costs associated with the reconstruction of the barge will be added to the barge’s carrying value after reconstruction is completed. The related shoreline and barge facilities remain intact.

The company operates within a single operating segment, which is the exploration and development of copper-gold mineral properties. The company’s mineral property interests are in Ecuador, South America, as set out in note 3 of the financial statements.

With the exception of severance costs of $1,256,626 (2006 – $Nil; 2005 – $Nil) in relation to a restructuring and general exploration costs of $Nil (2006 – $37,616; 2005 – $38,535) incurred by the company’s Ecuador operations, the consolidated statements of loss for the years ended December 31, 2007, 2006 and 2005 reflect the Canadian operations.

Share Capital

Outstanding Share Data

The company’s authorized capital consists of an unlimited number (2006 – 100,000,000) of common shares without par value.

As at March 26, 2008, there were 74,937,393 issued and outstanding common shares, and options to purchase an aggregate of 2,892,500 common shares, of which 1,365,005 had vested in accordance with the vesting provisions discussed below:

Incentive Stock Option Plan

Under the company’s Incentive Stock Option Plan (the "Plan"), the number of shares that may be reserved for grant under the Plan is a rolling maximum of 10% of the number of common shares actually outstanding immediately prior to the grant of any particular option.

The exercise price established for options granted under the Plan is equal to the closing market price of the company’s shares on the Toronto Stock Exchange on the trading day immediately prior to the grant of the option.

Options granted generally have expiry dates five years from the date of grant and the following vesting provisions:

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• Options granted to executive officers, directors and other head office personnel vest on the basis of 1/16th of the total each quarter (from grant date), with such vesting being accelerated based on a change in control of Corriente or the attainment of clearly identified milestones, as determined by the company’s directors.

• Options granted to Corriente subsidiary personnel vest on a cumulative basis of 50% of the total granted after 12 months from the grant date, 75% of the total granted after 18 months from the grant date and 100% of the total granted after 24 months from grant date, with such vesting being accelerated based on a change in control of Corriente, as determined by the company’s directors.

The following summarizes the stock options granted in 2007:

Date of grant	Date of expiry	Exercise	Recipients	Granted
		Price
January 1, 2007	January 1, 2012	$4.10	Executive officers	290,000
June 1, 2007	June 1, 2012	$3.66	Directors	125,000
July 12, 2007	July 12, 2012	$4.90	Subsidiary personnel	380,000
July 12, 2007	July 12, 2012	$4.90	Head office personnel	67,500
			Total	862,500

Subsequent to December 31, 2007 the company granted 320,000 options to certain executive officers and other employees at an exercise price of $5.41.

The following is a summary of stock option transactions during 2007:

	Number of	Weighted average
	options	exercise price
Balance at December 31, 2006	2,435,000	$4.05
Granted in 2007	862,500	4.45
Exercised in 2007	(175,000)	3.38
Expired in 2007	(175,000)	3.32
Forfeited/cancelled in 2007	(245,000)	4.91
Balance at December 31, 2007	2,702,500	$4.19

Of the 862,500 options granted in 2007, 73,280 had vested and 15,000 had been forfeited or cancelled as at December 31, 2007. As at December 31, 2007, 1,322,966 of the company’s 2,702,500 outstanding stock options had vested in accordance with the above-referenced vesting provisions.

Related party transactions

Included in management fees and interest income are $60,000 (2006 – $Nil) and $24,855 (2006 – $Nil), respectively, for the year ended December 31, 2007 in respect of administrative services provided by Corriente to Q2 Gold, which has a common Board of Directors and common Officers.

The foregoing related party transactions are recorded at the exchange amount which is the amount of consideration paid or received as established and agreed to between the parties.

At December 31, 2007, a convertible loan in the amount of $460,994 (2006 – $Nil) was due from Q2 Gold.

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Liquidity and Capital Resources

Generally, a non-GAAP financial measure is a numerical measure of a company’s performance, financial position or cash and cash equivalents flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with generally accepted accounting principles ("GAAP"). Working capital calculations or changes are not measures of financial performance (nor do they have standardized meanings) under either Canadian GAAP or U.S. GAAP. In evaluating these measures, readers should consider that the methodology applied in calculating such measures may differ among companies and analysts.

Working capital (defined as current assets minus current liabilities) as at December 31, 2007 was $92,193,439, compared to $120,064,518 at December 31, 2006. A foreign exchange loss due to a strengthening of the Canadian dollar subsequent to the conversion to US dollars of most of the company’s cash and cash equivalents, accounted for $15.5 million of the working capital decrease.

The main cash and cash equivalents flows applied to investing activities during the year ended December 31, 2007 were for mineral property expenditures mainly associated with the development of the Mirador Project of $18,544,827 (2006 – $21,553,066, 2005 – $8,642,746 ), and payments to acquire plant and equipment of $1,473,248 (2006 – $1,882,845, 2005 – $154,859). As a requirement of the MMP of Ecuador to approve the Mirador Project’s Environmental Impact Assessment ("EIA"), the company was required in 2006 to post a deposit of US$3,019,539 ($2,993,269) in favour of the MMP as security against the company’s obligations under the Mirador EIA. A similar EIA security deposit in favour of the MMP of US$288,000 ($285,494) was required in 2007 against the company’s obligation under the Machala Port EIA.

The company has no significant financial or other instruments as at December 31, 2007, except that its short-term investments are invested in overnight bank deposits with R1-High investment ratings (DBRS) and as they mature daily, are easily liquidated. The company has no investments in asset-backed commercial paper.

At March 26, 2008, the company had 74,937,393 (December 31, 2007 – 74,927,393) common shares issued and oustanding (fully diluted – 77,829,893 and 77,629,893, respectively).

Historically, the company’s capital requirements have been met by equity subscriptions. While the company’s current working capital is considered sufficient to fund the company’s administrative overhead for the next several years, substantial capital is required to complete the company’s Mirador Project and other Corriente Copper Belt resource developments. Actual funding requirements may vary from those planned due to a number of factors, including the progress of exploration and project development activity and foreign exchange fluctuations.

Accounting Estimates, Policies and Standards

When a new Canadian accounting standard is released, the Chief Financial Officer undertakes a review and evaluation to determine if it is applicable. If there is any uncertainty in its applicability, Corriente solicits the input of its professional advisors and the Audit Committee. If the new standard is applicable to Corriente, it is then analyzed and summarized in a manner that effectively documents and evaluates the impact on Corriente, and to determine the immediate action, if any, Corriente would need to undertake in order to comply with the new standard. Quarterly, the documented standards are reviewed, and updated as required, to ensure that a standard is still applicable, and that Corriente remains in compliance.

The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates and assumptions are used in determining possible impairment of mineral property costs, the fair values of stock options and financial instruments, asset retirement obligations and future income tax assets. The company evaluates its estimates on an on-going basis and bases them on various assumptions that are believed to be reasonable under the circumstances. The company’s estimates form the basis for making judgments about the carrying value for assets and liabilities that are not readily apparent from other sources. Actual results may differ from those estimates.

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Should the company be unable to meet its ongoing obligations, the realizable value of its assets may decline materially from current estimates.

The details of the company’s significant accounting policies are presented in note 2 of the company’s audited consolidated financial statements for the year ended December 31, 2007, which can be found on SEDAR. The following policies are considered by management to be essential to understanding the processes and reasoning that go into the preparation of the company’s financial statements and the uncertainties that could have a bearing on its financial results.

Mineral Properties

The company capitalizes all costs related to investments in mineral property interests on a property-by-property basis. Such costs include mineral property acquisition costs and exploration and development expenditures. The company also capitalizes the costs for future income taxes related to mineral property costs that will not be eligible for deduction against future taxable income.

The amounts shown for mineral properties represent costs incurred to date and do not necessarily reflect present or future values.

Mineral property expenditures will be amortized over the useful lives of the properties upon commencement of commercial production or written down to fair value if the properties are abandoned, become impaired or the claims allowed to lapse.

During the period, the capitalized costs are reviewed on a property by property basis to consider whether there are any conditions that may indicate impairment. When the carrying value of a property exceeds its net recoverable amount estimated by quantifiable evidence of an economic geological resource or reserve, joint venture expenditure commitments or the company’s assessment of its ability to sell the property for an amount less than the deferred costs, the property is written down to its fair value to recognize the impairment.

Asset impairment

When events or changes in circumstances indicate that the carrying amounts of the related mineral properties, plant and equipment may not be recoverable, management of the company reviews and evaluates the carrying value of each mineral property for impairment. If the total estimated future cash flows on an undiscounted basis are less than the carrying amount of the asset, an impairment loss is measured and assets are written down to fair value which is normally the discounted value of future cash flows. Where estimates of future net cash flows are not available and where other conditions suggest impairment, management assesses whether carrying value can be recovered by considering alternative methods of determining fair value. When it is determined that a mineral property is impaired, it is written down to its estimated fair value in accordance with the Canadian Institute of Chartered Accountants ("CICA") Handbook Section 3063 "Impairment of Long-Lived Assets".

Stock-based Compensation

The company accounts for stock options at fair value pursuant to CICA Handbook section 3870, which established standards for the recognition, measurement and disclosure of stock-based compensation and other stock-based payments. Management is required to make significant estimates about future volatility and the period in which stock options will be exercised. The selection of the estimated volatility figure, and the estimate of the period in which an option will be exercised can have a significant impact on the costs recognized for stock based compensation. The estimates concerning volatility are made with reference to historical volatility, which is not necessarily an accurate indicator of volatility which will be experienced in the future. The exercise of options may occur at times different than those estimated, or options may expire unexercised. Compensation expense for options granted is determined based on estimated fair values of the options at the time of grant using the Black-Scholes option pricing model, the assumptions of which can be found in note 6 (c) of the company’s consolidated financial statements for the year ended December 31, 2007. The cost of options granted to directors, employees and non-employees is recognized over the vesting period of the respective options in accordance with Section 3870 and is either expensed or capitalized to mineral properties for grants to individuals working directly on mineral projects.

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Environmental protection practices

The company is subject to the laws and regulations relating to environmental matters in all jurisdictions in which it operates, including provisions relating to property reclamation, discharge of hazardous material and other matters. The company may also be held liable should environmental problems be discovered that were caused by former owners and operators of its properties and properties in which it has previously had an interest.

The company conducts its mineral exploration and development activities in compliance with applicable environmental protection legislation. The company is not aware of any existing environmental problems related to any of its current or former properties that may result in material liability to the company.

Off-balance sheet arrangements

The company has not entered into any off-balance sheet arrangements such as obligations under certain guarantee contracts, retained or contingent interests in assets transferred to an unconsolidated entity, obligations under derivative instruments that are classified as equity or obligations under material variable interests in unconsolidated entities that conduct certain activities such as financing, liquidity, market risk or credit support.

New Accounting Policies

Effective January 1, 2007, the company adopted the guidelines governed by Sections 1530, 3855 and 1506 of the CICA Handbook, "Comprehensive Income", "Financial Instruments – Recognition and Measurement" and "Accounting Changes" and EIC-160, "Stripping Costs Incurred in the Production Phase of a Mining Operation".

Other Comprehensive Income (Section 1530) is the change in a company’s net assets that results from transactions, events and circumstances from sources other than the company’s shareholders and includes items that would not normally be included in net earnings such as unrealized gains or losses on available-for-sale investments. Other comprehensive income includes the holding gains and losses from available-for-sale securities that are not included in net income (loss) until realized.

Investments classified as available for sale are reported at fair market value (or marked to market) based on quoted market prices with unrealized gains or losses excluded from earnings and reported as other comprehensive income or loss. Investments subject to significant influence are accounted for using the equity method and not adjusted to fair market value. At December 31, 2007 the company has no investments designated as available for sale. The adoption of Section 1530, Comprehensive Income, did not impact the consolidated balance sheet of the company as at January 1, 2007.

Financial Instruments – Recognition and Measurement (Section 3855) requires that all financial assets, except those classified as held to maturity, and derivative financial instruments, must be measured at fair value on initial recognition. Subsequent measurement depends on the classification of the instrument. All financial liabilities must be measured at fair value when they are classified as held for trading, otherwise, they are measured at amortized cost. Investments classified as available-for-sale are reported at fair market value (or marked to market) based on quoted market prices with unrealized gains or losses excluded from earnings and reported as other comprehensive income or loss. Investments subject to significant influence are not adjusted to fair value.

The company’s cash balances have been classified as held-for-trading and are recorded at fair value. The company’s cash equivalent balances, which consist of overnight term deposits, have been classified as held-to-maturity and are recorded at amortized cost. The convertible loan receivable (from Q2 Gold) has been classified as a receivable and recorded at amortized cost.

Derivatives embedded in other financial instruments or other host contracts are treated as separate derivatives when the risks and characteristics are not closely related to those of the host contracts and the host contracts are not measured at fair value with changes in fair value recognized in profit or loss.

Any derivatives are recorded on the balance sheet at fair value. Mark-to-market adjustments on these instruments are included in loss (earnings) for the period. The company had no material derivatives at December 31, 2007. The company does not have any derivative financial instruments at December 31, 2007 or 2006.

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All other financial instruments have been recorded at cost. Transaction costs incurred to acquire financial instruments are included in the underlying balance. Regular-way purchases and sales of financial assets are accounted for on the trade date.

The adoption of Section 3855 did not impact the consolidated balance sheet of the company as at January 1, 2007.

Accounting Changes (Section 1506), establishes standards and new disclosure requirements for the selection and reporting of changes in accounting policies and estimates and the reporting of error corrections. It clarifies that a change in accounting policy can be made only if it is a requirement under Canadian GAAP or if it provides reliable and more relevant financial statement information. Voluntary changes in accounting policies require retrospective application to prior period financial statements, unless the retrospective effects of the changes are impracticable to determine, in which case the retrospective application may be limited to the assets and liabilities of the earliest period practicable with a corresponding adjustment made to opening retained earnings. This Section is effective for fiscal years beginning on or after January 1, 2007. The adoption of this new accounting policy did not have a material impact on the consolidated financial statements.

In March 2006, the CICA issued EIC-160, "Stripping Costs Incurred in the Production Phase of a Mining Operation" that is effective for fiscal years beginning on or after July 1, 2006. EIC-160 requires the costs associated with the removal of overburden and other mine waste materials that are incurred in the production phase of mining operations be charged to income in the period in which they are incurred, except when the costs represent betterment to the mineral property. Stripping costs represent betterment to the mineral property when the stripping activity provides access to reserves that will be produced in future periods and that would otherwise not have been accessible without the stripping activity. When stripping costs are deferred in relation to betterment, the costs are amortized to operations over the reserve accessed by the stripping activity using the units of production method. This Abstract has been adopted by the company as of January 1, 2007 and the adoption of this new accounting policy did not have a material impact on the consolidated financial statements.

Recent Accounting Pronouncements Issued But Not Implemented

On December 1, 2006, the CICA issued three new accounting standards: Handbook Section 1535, "Capital Disclosures", Handbook Section 3862 "Financial Instruments – Disclosures", and Handbook Section 3863, "Financial Instruments – Presentation". These standards are effective for interim and annual consolidated financial statements for the company’s reporting period on January 1, 2008.

Section 1535 establishes standards for 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.

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.

In March 2007, the CICA issued the new Handbook Section 3031, "Inventories", which will replace Section 3030, "Inventories." The new Section mentions that inventories shall be measured at the lower of cost and the net realizable value. It provides guidelines on determining cost, prohibiting going forward the use of the last-in, first-out method (LIFO), and requires the reversal of a previous write-down when the value of inventories increases. The new standard will apply to interim and annual financial statements relating to fiscal years beginning on or after January 1, 2008.

CICA Handbook Section 1400, "General Standards on Financial Statement Presentation", has been amended to include requirements to assess and disclose an entity’s ability to continue as a going concern. The changes are effective for interim and annual financial statements beginning on or after January 1, 2008.

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Effective January 1, 2009, for the company, Section 3064 replaces Handbook Section 3062, "Goodwill and Intangible Assets" and establishes revised standards for the recognition, measurement, presentation and disclosure of goodwill and intangible assets. The new standard also provides guidance for the treatment of preproduction and start-up costs and requires that these costs be expensed as incurred.

The company is currently assessing the impact of these new accounting standards on its consolidated financial statements.

Disclosure Controls and Procedures

Management is responsible for establishing and maintaining disclosure controls and procedures and internal control over financial reporting for the company. Corriente has daily, weekly, monthly and annually-applied procedures that, when considered in the aggregate and in conjunction with current internal controls, are considered to be effective disclosure controls. In addition, Corriente has created a Corporate Disclosure Committee (the "CD Committee"), comprised of the Chief Executive Officer, Senior Vice-President and Chief Financial Officer. The CD Committee supplements these periodic processes.

Disclosure controls and procedures have been developed to ensure that material information relating to Corriente and its subsidiaries is made known to management by others within those entities, particularly within a period in which a disclosure report is being prepared. These involve:

• identification of continuous disclosure requirements under securities laws, rules and policies applicable to Corriente.

• identification of the individuals responsible for preparing reportable information and individuals, whether internal or external, responsible for reviewing reports or portions of reports to verify disclosure made with respect to their areas of responsibility or expertise.

• establishment of timetables for the preparation and adequate review of reportable information.

• procedures for obtaining sign-off on disclosure of reportable information and receipt of written consents from experts whose reports are included or referred to in any disclosure.

•  procedures for the identification and timely reporting to the CD Committee of information which may constitute material information or which may constitute a material change to previously disclosed material information, including the identification of individuals who are likely to learn first about events outside the control of Corriente that may give rise to material information.

• procedures for the identification and reporting to the Audit Committee of any fraud, whether or not material, that involves management or other employees who have a significant role in Corriente’s internal controls.

• ensuring the procedures are followed with respect to the release of each disclosure made in writing and for the review of any disclosure made orally.

• ongoing evaluation of Corriente's disclosure controls and procedures.

Corriente and its subsidiaries are relatively small in size and operate in a very integrated management environment. That is, senior management is in constant contact with many of Corriente’s staff, suppliers, regulators and the like on an ongoing and detailed basis. This allows one or more of senior management to be in a position where they will be aware of material events or information. While senior management may not be aware of all things at all times, it believes that the probability of a material event or material information being missed or not being disclosed on a timely basis is very small.

Based upon its evaluation, management has determined that as at December 31, 2007, the company’s disclosure controls and procedures were effective and provided reasonable assurance regarding the reliability of financial reporting and the preparation of its annual filings for external purposes in accordance with Canadian and US GAAP.

Internal Controls Over Financial Reporting ("ICFR")

Management has designed, established and is maintaining a system of ICFR to provide reasonable assurance that the financial information disclosed in this MD&A and the related financial statements was prepared by the company for external purposes is reliable and has been recorded, processed, summarized and reported to the company’s Board of Directors and Audit Committee in an accurate and timely manner in accordance with Canadian GAAP and reconciled to U.S. GAAP on an annual basis.

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The Chief Executive Officer and the Chief Financial Officer have evaluated whether there were any changes to the company’s ICFR during the most recent interim period ended December 31, 2007 that have materially affected, or are reasonably likely to materially affect the company’s ICFR. No such changes were identified from their evaluation.

Based upon its assessment and those criteria, management concluded that the company’s internal control over financial reporting was effective as of December 31, 2007.

Corporate Governance

Management of the company is responsible for the preparation and presentation of the annual and interim consolidated financial statements and notes thereto and the accompanying MD&A and other information contained therein. Additionally, it is management’s responsibility to ensure the company complies with the laws and regulations applicable to its activities.

The company’s management is accountable to the Board of Directors ("directors"), each member of which is elected annually by the shareholders of the company. The directors are responsible for reviewing and approving the annual and interim consolidated financial statements and the MD&A.

Responsibility for the review and approval of the company’s quarterly unaudited interim consolidated financial statements and related MD&A is delegated by the directors to the Audit Committee, which is comprised of four directors, all of whom are independent of management.

The auditors are appointed annually by the shareholders to conduct an audit of the company’s annual consolidated financial statements in accordance with generally accepted auditing standards in Canada and the standards of the Public Company Accounting Oversight Board in the United States. The auditors have complete access to the Audit Committee to discuss audit, financial reporting and other related matters resulting from the annual audit as well as to assist the members of the Audit Committee in discharging their corporate governance responsibilities. Additionally, the Audit Committee pre-approves all audit and non-audit services provided by the company’s auditors.

Corriente’s corporate governance policies are described on the company’s website (www.corriente.com) and in its Management Information Circular prepared for the May 2007 Annual and Special General Meeting of shareholders, which is available for review on SEDAR. The disclosure statement included therein was prepared by the company’s Corporate Governance and Nominating Committee and approved by the directors. An updated version of that material will be included in the Information Circular for the company’s May 2008 Annual General Meeting and be available for review on SEDAR in April 2008.

Risk Factors

Companies operating in the mining industry face many and varied kinds of risks. While risk management cannot eliminate the impact of all potential risks, the company strives to manage such risks to the extent possible and practical. Following are the risk factors which the company’s management believes are most important in the context of the company’s business. It should be noted that this list is not exhaustive and that other risk factors may apply. An investment in the company may not be suitable for all investors.

Foreign Country and Political Risk

The mineral properties on which the company is actively pursuing its exploration and development activities are all located in Ecuador, South America. As a result, the company is subject to certain risks, including currency fluctuations and possible political or economic instability in Ecuador, which may result in the impairment or loss of mineral concessions or other mineral rights. In recent history, Ecuador has undergone numerous political changes at the presidential and congressional levels. Also, mineral exploration and mining activities may be affected in varying degrees by political instability and government regulations relating to the mining industry. Any changes in regulations or shifts in political attitudes are beyond the control of the company and may adversely affect its business. Exploration may be affected in varying degrees by government regulations with respect to restrictions on future exploitation and production, price controls, export controls, foreign exchange controls, income taxes, expropriation of property, environmental legislation and mine and/or site safety.

In November 2006, Rafael Correa won the Ecuador Presidential run-off election over Alvara Noboa but did not officially take office until January 15, 2007. During this transition period, the administration of

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President Alfredo Palacio experienced a number of indigenous protests in southeast Ecuador which eventually resulted in the suspension of the company’s exploration and development activities (see "Mirador Project") and a delay in the Mirador Project’s development timeline.

Since President Correa’s January 15, 2007 inauguration, his administration focused primarily on exacting electoral and governmental reforms. In April 2007, a National Referendum was held, which approved the creation of a Constitutional Assembly (which would replace Congress). On September 30, 2007, Constitutional Assembly elections were held in which President Correa’s Allianz Pias party had elected 80 of the 130 members of the Constitutional Assembly, thereby giving the President a clear majority in the Assembly.

Since obtaining an Assembly majority, the Correa Administration has moved to engage industry in dialogue regarding foreign investment in Ecuador. This dialogue includes plans to re-work oil and mining agreements in place with multi-national and state-owned companies, which could include new royalty and/or windfall profit tax rates for these sectors.

Recent announcements by the Correa Administration suggest that large-scale mining will play a significant role in the Government’s plans to grow the Ecuador economy for the benefit of all of its people. The company is in continuous dialogue with the MMP and the Correa Administration towards establishing large-scale mining operations in the Corriente Copper Belt.

While management believes that the current political climate in Ecuador will stabilize, there can be no certainty that this will be the case in the near future.

To mitigate such risk, the company funds its Ecuador operations on an as-needed basis and works closely with federal and territorial governments and community groups. The company does not presently maintain political risk insurance for its foreign exploration and development projects.

Exploration and Mining Risks

The business of exploring for minerals and mining involves a high degree of risk. Due in some cases to factors that cannot be foreseen, only a small proportion of the properties that are explored are ultimately developed into producing mines. There is no assurance that the company’s mineral exploration activities will result in any discoveries of new bodies of commercial ore. At present, only the company’s Mirador Project property has proven or probable reserves while any planned exploration programs for the company’s other properties are exploratory searches for proven or probable reserves. The mining areas presently being assessed by the company may not contain economically recoverable volumes of minerals or metals.

The operations of the company may be disrupted by a variety of risks and hazards which are beyond the control of the company, including labour disruptions, the inability to obtain suitable or adequate machinery, equipment or labour and other risks involved in the conduct of exploration programs. Once economically recoverable volumes of minerals are found, substantial expenditures are required to establish reserves through drilling, to develop metallurgical processes, to develop the mining and processing facilities and infrastructure at any site chosen for mining. Although substantial benefits may be derived from the discovery of a major mineralized deposit, no assurance can be given that minerals will be discovered in sufficient quantities or have sufficient grade to justify commercial operations or that funds required for development can be obtained on a timely basis. The economics of developing copper, gold and other mineral properties is affected by many factors including the cost of operations, variations of the grade of ore mined, fluctuations in the price of minerals produced, costs of processing equipment and such other factors as government regulations, including regulations relating to environmental protection. In addition, the grade of mineralization ultimately mined may differ from that indicated by drilling results and such differences could be material. Depending on the price of copper or other minerals produced, which have fluctuated widely in the past, the company may determine that it is impractical to commence or continue commercial production.

An additional project risk relating to the company’s development of its MIrador and Panantza-San Carlos projects includes the current high demand for major components and resources utilized in a mine’s construction and operation, including equipment, parts and qualified employees. These same conditions may also adversely impact the mine’s construction schedule if an inordinate demand on metals causes shortages or cost increases.

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Surface Rights and Access

Although the company acquires the rights to some or all of the minerals in the ground subject to the tenures that it acquires, or has a right to acquire, in most cases it does not thereby acquire any rights to, or ownership of, the surface to the areas covered by its mineral tenures. In such cases, applicable mining laws usually provide for rights of access to the surface for the purpose of carrying on mining activities, however, the enforcement of such rights can be costly and time consuming. In areas where there are no existing surface rights holders, this does not usually cause a problem, as there are no impediments to surface access. However, in areas where there are local populations or land owners, it is necessary, as a practical matter, to negotiate surface access. There can be no guarantee that, despite having the legal right to access the surface and carry on mining activities, the company will be able to negotiate a satisfactory agreement with any such existing landowners/occupiers for such access, and therefore it may be unable to carry out mining activities. In addition, in circumstances where such access is denied, or no agreement can be reached, the company may need to rely on the assistance of local officials or the courts in such jurisdiction.

Estimates of Mineral Resources and Production Risks

The mineral resource estimates disclosed by the company are estimates only, and no assurance can be given that any proven or probable reserves will be discovered or that any particular level of recovery of minerals will in fact be realized or that an identified reserve or resource will ever qualify as a commercially mineable (or viable) deposit which can be legally and economically exploited. In addition, the grade of mineralization which may ultimately be mined may differ from that indicated by drilling results and such differences could be material. Production can be affected by such factors as permitting regulations and requirements, weather, earthquakes, fire, environmental factors, unforeseen technical difficulties, unusual or unexpected geological formations and work interruptions. Consequently, the company’s estimated mineral resources should not be interpreted as assurances or evidence of commercial viability or potential or of the profitability of any future operations.

Financing Risks

The company has limited financial resources, has no source of operating cash and cash equivalents flow and has no assurance that additional funding will be available to it for further exploration and development of its projects. Further exploration and development of one or more of the company’s properties will be dependent upon the company’s ability to obtain financing through joint venturing, equity or debt financing or other means. Although the company has been successful in the past in obtaining financing through the sale of equity securities, there can be no assurance that the company will be able to obtain adequate financing in the future or that the terms of such financing will be favourable. Failure to obtain such additional financing could result in delay or indefinite postponement of further exploration and development of its projects. Additional funds raised by the company through the issuance of equity or convertible debt securities will cause the company’s current stockholders to experience dilution. Such securities may grant rights, preferences or privileges senior to those of the company’s common stockholders.

The company does not have any contractual restrictions on its ability to incur debt and expects to incur significant amounts of indebtedness to finance development of its Mirador Project. Any such indebtedness could contain covenants which would restrict the company’s operations.

Limited Experience with Development-Stage Mining Operations

The company has no previous experience in placing mineral properties into production and its ability to do so will be dependent upon using the services of appropriately experienced personnel or entering into agreements with other major resource companies or contractors that can provide such expertise. There can be no assurance that the company will have available to it the necessary expertise when and if it places its mineral properties into production.

Base and Precious Metals Prices

The principal activity of the company is the exploration and development of copper-gold mineral properties. The mineral exploration and development industry in general is intensely competitive and there is no assurance that, even if commercial quantities of proven and probable reserves are discovered, a profitable market may exist for the sale of the same. Factors beyond the control of the company may affect the marketability of any substances discovered. Base and precious metals prices have fluctuated widely, particularly in recent years. The feasible development of such properties is highly dependent upon the price of copper and, to a lesser extent, gold. A sustained and substantial decline in commodity copper prices could result in the write-down, termination of exploration and development work or loss of its interests in identified mineral properties.

Page 19 of 22

Competition

The company competes with many companies that have substantially greater financial and technical resources for the acquisition of mineral properties and mining and processing equipment, the securing of engineering services and the recruitment and retention of qualified employees and consultants.

Environmental and other Regulatory Requirements

The activities of the company are subject to environmental regulations promulgated by government agencies from time to time. Environmental legislation generally provides for restrictions and prohibitions on spills, releases or emissions of various substances produced in association with certain mining industry operations, such as seepage from tailings disposal areas, which would result in environmental pollution. A breach of such legislation may result in imposition of fines and penalties. In addition, certain types of operations require the submission and approval of environmental impact assessments. Environmental legislation is evolving in a manner which means stricter standards, and enforcement, fines and penalties for non-compliance are more stringent. Environmental assessments of proposed projects carry a heightened degree of responsibility for companies and directors, officers and employees. The cost of compliance with changes in governmental regulations has a potential to reduce the profitability of operations.

Companies engaged in exploration and development activities generally experience increased costs and delays as a result of the need to comply with applicable laws, regulations and permits. There can be no assurance that all permits which the company may require for exploration and development of its properties will be obtainable on reasonable terms or on a timely basis, or that such laws and regulations would not have an adverse effect on any project that the company may undertake.

The company believes it is in substantial compliance with all material laws and regulations which currently apply to its activities. However, there may be unforeseen environmental liabilities resulting from exploration and/or mining activities and these may be costly to remedy. Failure to comply with applicable laws, regulations, and permitting requirements may result in enforcement actions thereunder, 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 exploration operations may be required to compensate those suffering loss or damage by reason of the exploration activities and may have civil or criminal fines or penalties imposed for violations of applicable laws or regulations and, in particular, environmental laws.

Amendments to current laws, regulations and permits governing operations and activities of exploration companies, or more stringent implementation thereof, could have a material adverse impact on the company and cause increases in expenditures and costs or require abandonment or delays in developing new mining properties.

Corriente’s policy is to abide by the regulations and requirements of Ecuador and the company’s EIA’s.

Infrastructure

Mining, development and exploration activities depend, to one degree or another, on adequate infrastructure. Reliable roads, bridges, power sources and water supply are important determinants which affect capital and operating costs. The lack of availability on acceptable terms or the delay in the availability of any one or more of these items could prevent or delay development of the company’s projects. If adequate infrastructure is not available in a timely manner, there can be no assurance that the development of the company’s projects will be commenced or completed on a timely basis, if at all; the company’s operations will achieve anticipated results; or the construction costs and ongoing operating costs associated with the development of the company’s advanced-stage exploration projects will not be higher than anticipated. In addition, unusual or infrequent weather phenomena, sabotage, community, government or other interference in the maintenance or provision of such infrastructure could adversely affect the company’s operations and profitability.

Page 20 of 22

Uninsured or Uninsurable Risks

The company may become subject to liability for pollution or hazards against which it cannot insure or may elect not to insure where premium costs are disproportionate to the company’s perception of the relevant risks. The payment of such insurance premiums and of such liabilities would reduce the funds available for exploration, development and production activities.

Title Matters

Title to and the area of mining concessions may be disputed. Although the company has taken steps to verify the title to mineral properties in which it has an interest in accordance with industry standards for the current stage of exploration of such properties, these procedures do not guarantee the company’s title. Property title may be subject to unregistered prior agreements or transfers and title may be affected by undetected defects or the rights of indigenous peoples.

Repatriation of Earnings

Currently there are no restrictions on the repatriation from Ecuador of earnings to foreign entities. However, there can be no assurance that restrictions on repatriation of earnings from Ecuador will not be imposed in the future.

Foreign Subsidiaries

The company conducts operations through foreign subsidiaries and substantially all of its assets are held in such entities. Accordingly, any limitation on the transfer of cash or other assets between the parent corporation and such entities, or among such entities, could restrict the company’s ability to fund its operations efficiently. Any such limitations, or the perception that such limitations may exist now or in the future, could have an adverse impact on the company’s valuation and stock price.

Dependence on Key Personnel

The company’s development to date has largely depended on, and in the future will continue to depend on, the efforts of key management, project management and operations personnel. Loss of any of these people could have a material adverse effect on the company and its business. The company has not obtained and does not intend to obtain key-person insurance in respect of any officers or other employees.

Share Price Fluctuations

In recent years, the securities markets have experienced a high level of price and volume volatility, and the market price of securities of many companies, particularly those considered development-stage companies such as the company, have experienced wide fluctuations in price which have not necessarily been related to the underlying asset values or prospects of such companies. Price fluctuations will continue to occur in the future.

No Dividends

The company has no history of earnings from operations and, due to the nature of its business, there can be no assurance that the company will ever be profitable. Investors cannot expect to receive a dividend on their investment in the company in the foreseeable future, if ever. Investors should not expect to receive any return on their investment in the company’s securities other than possible capital gains.

Currency Risk

As at December 31, 2007, the company’s expenditures are predominantly made in US dollars and any future equity raised is expected to be predominantly in Canadian dollars. The company conducts the majority of its business in Ecuador, which uses the U.S. dollar as its primary economic currency. Future project development expenditures are expected to be paid in US dollars. As such, the company is subject to risk due to fluctuations in the exchange rates for the US and Canadian dollar. The company has a practice of not entering into foreign currency hedging. Beginning in 2007, the company began maintaining balances in Canadian and US dollars in a proportion related to the magnitude of future mineral property, plant and equipment, and administrative expenditures, and the jurisdictions in which such expenditures will likely be made.

Page 21 of 22

A breakdown by currency of the company’s cash and cash equivalents at year-end was as follows:

		December 31,		December 31,
		2007		2006
Canadian dollar	$	15,210,692	$	125,063,312
US dollar	US$	78,746,484	US$	1,756,794
Closing exchange rate (Cdn$ to US$)		0.9913		1.1654

Page 22 of 22

EX-1.3

Corriente Resources Inc.
(A Development Stage Enterprise)

Consolidated Financial Statements
As at December 31, 2007 and 2006 and for the
years ended December 31, 2007, 2006 and 2005
(expressed in Canadian dollars)

Management’s Responsibility for Financial Reporting

The accompanying consolidated financial statements of Corriente Resources Inc. ("the company") have been prepared by management in accordance with accounting principles generally accepted in Canada, and within the framework of the summary of significant accounting policies in these consolidated financial statements.

A system of internal accounting control is maintained by management in order to provide reasonable assurance that assets are safeguarded and that transactions are properly recorded and executed in accordance with management’s authorization. This system includes established policies and procedures, the selection and training of qualified personnel and an organization providing for appropriate delegation of authority and segregation of responsibilities.

The Audit Committee of the Board of Directors meets periodically with management and the company’s independent auditors to review the scope and results of their annual audit and to review the consolidated financial statements and related financial reporting and control matters prior to submitting the consolidated financial statements to the Board of Directors for approval.

The consolidated financial statements have been audited by PricewaterhouseCoopers LLP on behalf of the shareholders and their report follows.

"Kenneth R. Shannon"	"Darryl F. Jones"
President & Chief Executive Officer	Chief Financial Officer
Vancouver, British Columbia
March 26, 2008

Management’s Report on Internal Control over Financial Reporting

The management of Corriente Resources Inc. is responsible for establishing and maintaining adequate internal control over financial reporting. The United States Securities and Exchange Act of 1934 in Rule 13a-15(f ) and 15d-15(f ) defines this as a process designed by, or under the supervision of, the company’s principal executive and principal financial officers and effected by the company’s board of directors, management and other personnel, 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 and includes those policies and procedures that:

• Pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company;

• Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and

• Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the company’s assets that may have a material effect on the financial statements.

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

Management assessed the effectiveness of the company’s internal control over financial reporting as at December 31, 2007. In making this assessment, the company’s management used the criteria, established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

Based upon this assessment, management concluded that the company’s internal control over financial reporting was effective as at December 31, 2007.

The effectiveness of the company’s internal control over financial reporting as at December 31, 2007 has been audited by PricewaterhouseCoopers LLP, our independent auditors, as stated in their report which appears herein.

"Kenneth R. Shannon"	"Darryl F. Jones"
President & Chief Executive Officer	Chief Financial Officer
Vancouver, British Columbia
March 26, 2008

Independent Auditors’ Report

To the Shareholders of Corriente Resources Inc.

We have completed an integrated audit of Corriente Resources Inc.’s 2007 consolidated financial statements and of its internal control over financial reporting as at December 31, 2007, and audits of its 2006 and 2005 consolidated financial statements. Our opinions, based on our audits, are presented below.

Consolidated financial statements

We have audited the accompanying consolidated balance sheets of Corriente Resources Inc. as at December 31, 2007 and 2006, and the related consolidated statements of changes in shareholders’ equity, statements of loss, comprehensive loss and deficit and statements of cash flows for each of the years in the three year period ended December 31, 2007. These financial statements are the responsibility of the company’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits of the company’s financial statements in accordance with Canadian generally accepted auditing standards and the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform an audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit of financial statements includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. A financial statement 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 December 31, 2007 and December 31, 2006, and the results of its operations and its cash flows for each of the years in the three year period ended December 31, 2007, in accordance with Canadian generally accepted accounting principles.

Internal control over financial reporting

We have also audited Corriente Resources Inc.’s internal control over financial reporting as at December 31, 2007, based on criteria established in Internal Control - Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission ("COSO"). The company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying "Management’s Report on Internal Control over Financial Reporting". Our responsibility is to express an opinion on the effectiveness of the company’s internal control over financial reporting based on our audit.

We conducted our audit of internal control over financial reporting in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. An audit of internal control over financial reporting includes obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we consider necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

A company’s internal control over financial reporting is a process designed 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. A company’s internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. 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 the policies or procedures may deteriorate.

In our opinion, the company maintained, in all material respects, effective internal control over financial reporting as at December 31, 2007, based on criteria established in Internal Control — Integrated Framework issued by the COSO.

"PricewaterhouseCoopers LLP"

Chartered Accountants
Vancouver, British Columbia
March 26, 2008

Corriente Resources Inc.
(a development stage enterprise)
Consolidated Balance Sheets
As at December 31, 2007 and 2006
(expressed in Canadian dollars)
		2007		2006
Assets
Current assets
Cash and cash equivalents	$	93,272,082	$	127,110,679
Accounts receivable and prepayments		338,859		213,856
Convertible loan (note 3)		460,994		–
		94,071,935		127,324,535
Long-term assets
Mineral properties (note 3)		77,778,685		61,249,060
Plant and equipment (note 4)		1,914,221		2,490,457
Other assets (note 5)		4,260,397		4,933,384
		83,953,303		68,672,901
TOTAL ASSETS	$	178,025,238	$	195,997,436
Liabilities
Current liabilities
Accounts payable relating to mineral properties	$	1,656,158	$	6,448,508
Other accounts payable and accrued liabilities		222,338		263,871
Accounts payable relating to plant and equipment		-		547,638
		1,878,496		7,260,017
Shareholders’ Equity
Share capital (note 6 (b))		234,437,635		233,552,783
Options (note 6 (c))		3,736,352		2,584,710
Contributed surplus		1,378,499		993,697
Deficit		(63,405,744)		(48,393,771)
		176,146,742		188,737,419
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	178,025,238	$	195,997,436
Nature of operations – note 1
Commitments – note 3

Approved by the Board of Directors
"Kenneth Shannon"	Director	"Anthony Holler"	Director

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

Corriente Resources Inc.

(a development stage enterprise)

Consolidated Statements of Changes in Shareholders’ Equity

For the years ended December 31, 2007, 2006 and 2005

(expressed in Canadian dollars)

Common Shares

Estimated Fair Value

Number

Share Capital

Options

Share Purchase Warrants

Contributed Surplus

Deficit

Total Shareholder's Equity

Balance at December 31, 2004

45,421,393

83,525,397

$

1,655,163

$

96,455

$

930,660

$

(46,452,660)

$

39,755,015

Common shares issued for cash pursuant to private placements, net of issue costs

7,605,000

27,853,364

–

–

–

–

27,853,364

Common shares issued for cash pursuant to exercise of options (note 6 (c))

475,000

435,250

–

–

–

–

435,250

Common shares issued for cash pursuant to exercise of warrants

250,000

200,000

–

–

–

–

200,000

Fair value of options exercised (note 6 (c))

–

257,189

(257,189)

–

–

–

–

Fair value of warrants exercised

–

96,455

–

(96,455)

–

–

–

Stock based compensation expense on unexercised options (note 6 (c))

–

–

1,224,274

–

–

–

1,224,274

Loss for the year ended December 31, 2005

–

–

–

–

–

(3,344,139)

(3,344,139)

Balance at December 31, 2005

53,751,393

112,367,655

2,622,248

–

930,660

(49,796,799)

66,123,764

Common shares issued for cash pursuant to private placements, net of issue costs

19,231,000

117,662,735

–

–

–

–

117,662,735

Common shares issued for cash pursuant to exercise of options (note 6 (c))

1,770,000

2,354,950

–

–

–

–

2,354,950

Fair value of options exercised (note 6 (c))

–

1,167,443

(1,167,443)

–

–

–

–

Fair value of options forfeited (note 6 (c))

–

–

(63,037)

–

63,037

–

–

Stock based compensation on unexercised options (note 6 (c))

–

–

1,192,942

–

–

–

1,192,942

Income for the year ended December 31, 2006

–

–

–

–

–

1,403,028

1,403,028

Balance at December 31, 2006

74,752,393

233,552,783

2,584,710

–

993,697

(48,393,771)

188,737,419

Stock based compensation on unexercised options (note 6 (c))

–

–

1,829,296

–

–

–

1,829,296

Common shares issued for cash pursuant to exercise of options

175,000

592,000

–

–

–

–

592,000

Fair value of options exercised (note 6 (c))

–

292,852

(292,852)

–

–

–

–

Fair value of options expired (note 6 (c))

(277,180)

277,180

–

Fair value of vested options forfeited (note 6 (c))

–

–

(107,622)

–

107,622

–

–

Loss for the year ended December 31, 2007

–

–

–

–

–

(15,011,973)

(15,011,973)

Balance at December 31, 2007

74,927,393

234,437,635

$

3,736,352

$

–

$

1,378,499

$

(63,405,744)

$

176,146,742

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

Corriente Resources Inc.

(a development stage enterprise)

Consolidated Statements of Loss, Comprehensive Loss and Deficit

For the years ended December 31, 2007, 2006 and 2005

(expressed in Canadian dollars)

		2007		2006		2005
Administration
Management fees, wages, benefits & stock-based compensation	$	1,608,536	$	1,458,749		1,811,185
Legal, accounting and regulatory		1,007,207		729,214		205,285
Corporate development and shareholder expenses		517,537		473,799		435,596
Office and related		245,466		234,463		172,617
Other		119,314		52,906		15,296
		3,498,060		2,949,131		2,639,979
Other expenses (income)
Foreign exchange loss (gain) (note 11)		15,538,886		(58,667)		9,379
Interest income		(5,110,775)		(3,994,855)		(209,422)
Severance costs		1,256,626		–		–
Gain on sale of assets		(110,824)		–		(1,970,320)
Management fees (note 7)		(60,000)		–		–
(Gain) loss on sale of marketable securities (note 11)		–		(336,253)		96,877
General exploration		–		37,616		38,535
Write-down of deferred power project costs		–		–		2,739,111
		11,513,913		(4,352,159)		704,160
Loss (earnings) and comprehensive loss (earnings) for the year		15,011,973		(1,403,028)		3,344,139
Deficit – beginning of year		48,393,771		49,796,799		46,452,660
Deficit – end of year	$	63,405,744	$	48,393,771		49,796,799
Loss (earnings) per share
Basic and diluted	$	0.20	$	(0.02)	$	0.07
Weighted average number of shares outstanding
Basic and diluted		74,844,105		66,603,215		45,825,859

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

Corriente Resources Inc.

(a development stage enterprise)

Consolidated Statements of Cash Flows

For the years ended December 31, 2007, 2006 and 2005

(expressed in Canadian dollars)

		2007		2006	2005
Cash flows from (applied to) operating activities
(Loss) / earnings for the period	$	(15,011,973)	$	1,403,028	(3,344,139)
Items not affecting cash
Stock-based compensation		699,251		567,734	1,224,274
Depreciation		27,753		19,291	15,296
Interest (note 3)		(24,855)		–	–
Loss (gain) on sale of marketable securities		–		(336,253)	96,877
Write-down of deferred power project costs		–		–	2,739,111
Gain on sale of assets		–		–	(1,882,000)
Changes in non-cash working capital
Accounts receivable and prepayments		(133,313)		(57,040)	(61,483)
Accounts payable and accrued liabilities		320,006		(325,827)	54,244
		(14,123,131)		1,270,933	(1,157,820)
Cash flows from (applied to) investing activities
Mineral property costs		(18,544,827)		(21,553,066)	(8,642,746)
Payments to acquire plant and equipment		(1,473,248)		(1,882,845)	(154,859)
Convertible loan, net of interest (note 3)		(436,139)		–	–
Other assets (note 5)		240,208		(3,518,971)	–
Cash balance of spun-off company (note 3)		(93,460)		–	–
Proceeds from sale of marketable securities		–		336,253	2,339,123
Deferred power project costs		–		–	(1,034,449)
Deposit		–		–	–
		(20,307,466)		(26,618,629)	(7,492,931)
Cash flows from (applied to) financing activities
Proceeds from issuance of share capital, net of issue costs		592,000		120,017,685	28,488,614
Repayment of long-term debt		–		–	–
		592,000		120,017,685	28,488,614
Increase (decrease) in cash and cash equivalents		(33,838,597)		94,669,989	19,837,863
Cash and cash equivalents – beginning of year		127,110,679		32,440,690	12,602,827
Cash and cash equivalents – end of year	$	93,272,082	$	127,110,679	32,440,690

Supplemental cash flow information (note 10)

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

Corriente Resources Inc.

(a development stage enterprise)

Notes to Consolidated Financial Statements

December 31, 2007, 2006 and 2005

(expressed in Canadian dollars)

1Nature of operations

Corriente Resources Inc. and its subsidiaries (collectively, "Corriente" or "the company") are engaged in the exploration and development of mineral properties in Ecuador, South America. The company considers itself to be a development stage enterprise.

The business of mining and exploring for minerals involves a high degree of risk and there can be no assurance that current exploration and development programs will result in profitable mining operations. The recoverability of amounts shown for mineral properties is dependent upon the discovery of economically recoverable reserves, receipt of necessary permits and regulatory approvals, the ability of the company to obtain financing to complete its development and future profitable operations or sale of the properties. The investment in and expenditures on mineral properties comprise a significant portion of the company’s assets.

2Significant accounting policies

Basis of presentation

These consolidated financial statements have been prepared in accordance with generally accepted accounting principles ("GAAP") in Canada, which as described in note 12, differ in certain respects from GAAP in the United States of America.

Basis of consolidation

The consolidated financial statements include the accounts of the company, its subsidiaries, all of which are wholly-owned, and any variable interest entities ("VIEs") where the company is the primary beneficiary. The company has determined that it does not have any VIEs as at December 31, 2007 and 2006. All significant inter-company balances have been eliminated.

Mineral properties

The company capitalizes all costs related to investments in mineral property interests on a property-by-property basis. Such costs include mineral property acquisition costs, exploration and development expenditures. The company also capitalizes the costs for future income taxes related to mineral property costs that will not be eligible for deduction against future taxable income.

The amounts shown for mineral property acquisition costs and deferred exploration expenditures represent costs incurred to date and do not necessarily reflect present or future values.

Mineral property expenditures will be amortized over the useful lives of the properties upon commencement of commercial production or written down to fair value if the properties are abandoned, become impaired or the claims allowed to lapse.

The acquisition of title to mineral properties is a complicated and uncertain process. The company has taken steps, in accordance with industry standards, to verify mineral properties in which it has an interest. Although the company has made efforts to ensure that legal title to its properties is properly recorded in the name of the company, there can be no assurance that such title will ultimately be secured.

1

Corriente Resources Inc.

(a development stage enterprise)

Notes to Consolidated Financial Statements

December 31, 2007, 2006 and 2005

(expressed in Canadian dollars)

Plant and equipment

Plant and equipment is stated at cost. Depreciation of plant and equipment is provided on a declining-balance basis over their estimated useful lives at annual rates of between 5% and 100%, commencing when the related asset is available for use.

Asset impairment

When events or changes in circumstances indicate that the carrying amounts of the related mineral properties, plant and equipment may not be recoverable, management of the company reviews and evaluates the carrying value of each asset for impairment. If the total estimated future cash flows on an undiscounted basis are less than the carrying amount of the asset, an impairment loss is measured and assets are written down to fair value which is normally the discounted value of future cash flows. Where estimates of future net cash flows are not available and where other conditions suggest impairment, management assesses whether carrying value can be recovered by considering alternative methods of determining fair value. When it is determined that an asset is impaired, it is written down to its estimated fair value in accordance with the Canadian Institute of Chartered Accountants ("CICA") Handbook Section 3063 "Impairment of Long-Lived Assets".

Management’s estimates of mineral prices, mineral resources, foreign exchange, production levels and operating, capital and reclamation costs are subject to risks and uncertainties that may affect the determination of the recoverability of deferred mineral property costs. Although management has made its best estimate of these factors, it is possible that material changes could occur that may adversely affect management’s estimate of the net cash flows to be generated from its properties.

Cash and cash equivalents

Cash and cash equivalents comprise cash on deposit with banks and highly liquid short-term interest bearing investments with a term to maturity at the date of purchase of 90 days or less from the date of acquisition.

Marketable securities

Marketable securities are recorded at their fair value on the date of receipt and are classified as available-for-sale or held for trading. The fair value of the securities is adjusted at each subsequent balance sheet date and the resulting unrealized gains or losses are included in other comprehensive income or net income for the period.

Foreign currency translation

As at December 31, 2007, the Canadian dollar is the functional currency of the company.

The company’s subsidiaries are considered integrated foreign operations and their financial statements are translated into Canadian currency, the parent company’s functional currency, using the temporal method. Monetary assets and liabilities are translated at the exchange rate in effect at the balance sheet date; non-monetary items are translated at historical exchange rates; revenue and expense items are translated at the average rate of exchange for the period, except for depreciation, which is translated at the same rate as the assets to which they relate. Translation gains and losses are reflected in the company’s reported income or loss for the period.

2

Corriente Resources Inc.

(a development stage enterprise)

Notes to Consolidated Financial Statements

December 31, 2007, 2006 and 2005

(expressed in Canadian dollars)

Income taxes

Income taxes are calculated using the asset and liability method. Temporary differences arising from the difference between the tax basis of an asset or liability and its carrying amount on the balance sheet are used to calculate future income tax liabilities or assets. Future income tax assets and liabilities are measured using tax rates and laws that are expected to apply when the temporary differences are expected to reverse. Assets are recognized only to the extent it is more likely than not that they will be realized. A valuation allowance is provided against future income tax assets to the extent it is considered not likely that the future income tax assets will be realized.

Loss (earnings) per share

Loss (earnings) per share is presented for basic and diluted loss (income). Basic loss (earnings) per share is computed by dividing income or loss by the weighted average number of outstanding common shares for the year. The computation of diluted earnings per share reflects the dilutive effect of the exercise of stock options and warrants outstanding as at year-end using the treasury stock method. In years of loss, basic and diluted loss per share are the same because the effect of potential issuances of shares under options and warrants would be anti-dilutive.

Use of estimates

The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates and assumptions are used in determining possible impairment of mineral property costs, the fair values of stock options and financial instruments, asset retirement obligations and future income tax assets. The company evaluates its estimates on an on-going basis and bases them on various assumptions that are believed to be reasonable under the circumstances. The company’s estimates form the basis for making judgments about the carrying value for assets and liabilities that are not readily apparent from other sources. Actual results may differ from those estimates. Should the company be unable to meet its ongoing obligations, the realizable value of its assets may decline materially from current estimates.

Stock-based compensation plan

The company has a stock-based compensation plan as described in note 6 (c).

The company applies the fair value method of accounting for all stock options granted pursuant to CICA Handbook Section 3870, which established standards for the recognition, measurement and disclosure of stock-based compensation and other stock-based payments. Under this method, stock-based compensation on options granted to employees, directors and consultants is recorded as an expense or capitalized to mineral properties (for grants to individuals working directly on mineral projects) over the vesting period of the respective options, ranging from terms of up to 48 months, based on the estimated fair value at the measurement date using the Black-Scholes Option Pricing Model.

Asset retirement obligations

The company accounts for asset retirement obligations ("ARO") by recognizing the fair value of a liability for an ARO in the period in which it is incurred if a reasonable estimate of fair value can be made. The associated asset retirement costs are recorded to the capitalized carrying amount of the related long-lived asset. The company has determined that it has no material ARO’s at December 31, 2007 and 2006.

3

Corriente Resources Inc.

(a development stage enterprise)

Notes to Consolidated Financial Statements

December 31, 2007, 2006 and 2005

(expressed in Canadian dollars)

Comparative figures

Certain comparative figures have been reclassified to conform to the presentation adopted in the current period.

The company has adopted the following CICA standards effective January 1, 2007:

Financial instruments

CICA Section 3855, Financial Instruments - Recognition and Measurement, requires that all financial assets, except those classified as held to maturity, and derivative financial instruments be measured at fair value on initial recognition. Subsequent measurement depends on the classification of the instrument. All financial liabilities must be measured at fair value when they are classified as held for trading; otherwise, they are measured at amortized cost. Investments classified as available-for-sale are reported at fair market value (or marked to market) based on quoted market prices with unrealized gains or losses excluded from earnings and reported as other comprehensive income or loss. Investments subject to significant influence are not adjusted to fair value.

The company’s cash balances have been classified as held-for-trading and are recorded at fair value. The company’s cash equivalent balances, which consist of overnight term deposits, have been classified as held-to-maturity and are recorded at amortized cost. The convertible loan receivable (note 3) has been classified as a receivable and recorded at amortized cost.

Derivatives embedded in other financial instruments or other host contracts are treated as separate derivatives when the risks and characteristics are not closely related to those of the host contracts and the host contracts are not measured at fair value, with changes in fair value recognized in loss (earnings) for the period.

Any derivatives are recorded on the balance sheet at fair value. Mark-to-market adjustments on these instruments are included in loss (earnings) for the period. The company does not have any material derivative financial instruments at December 31, 2007 or 2006.

All other financial instruments have been recorded at amortized cost. Transaction costs incurred to acquire or issue financial instruments are included in the underlying balance.

The adoption of CICA Section 3855 did not impact the consolidated balance sheet of the company as at January 1, 2007.

Comprehensive income

Other comprehensive income is the change in the company’s net assets that results from transactions, events and circumstances from sources other than the company’s shareholders and includes items that would not normally be included in net earnings such as unrealized gains or losses on available-for-sale investments. Other comprehensive income includes the holding gains and losses from available-for-sale securities that are not included in net income (loss) until realized.

Investments classified as available for sale are reported at fair market value (or marked to market) based on quoted market prices with unrealized gains or losses excluded from earnings and reported as other comprehensive income or loss. At December 31, 2007, the company had no investments designated as available for sale.

4

Corriente Resources Inc.

(a development stage enterprise)

Notes to Consolidated Financial Statements

December 31, 2007, 2006 and 2005

(expressed in Canadian dollars)

The adoption of CICA Section 1530, Comprehensive Income, did not impact the consolidated balance sheet of the company as at January 1, 2007.

Stripping costs

In March 2006, the CICA issued EIC-160, "Stripping Costs Incurred in the Production Phase of a Mining Operation" that is effective for fiscal years beginning on or after July 1, 2006. EIC-160 requires the costs associated with the removal of overburden and other mine waste materials that are incurred in the production phase of mining operations be charged to income in the period in which they are incurred, except when the costs represent betterment to the mineral property. Stripping costs represent betterment to the mineral property when the stripping activity provides access to reserves that will be produced in future periods and that would otherwise not have been accessible without the stripping activity. When stripping costs are deferred in relation to betterment, the costs are amortized to operations over the reserves accessed by the stripping activity using the units of production method. This Abstract has been adopted by the company as of January 1, 2007 and the adoption of this new accounting policy did not impact the consolidated financial statements.

Accounting changes

CICA Handbook Section 1506, "Accounting Changes", establishes standards and new disclosure requirements for the reporting of changes in accounting policies and estimates and the reporting of error corrections. It also clarifies that a change in accounting policy can be made only if it is a requirement under Canadian GAAP or if it provides reliable and more relevant financial statement information. Voluntary changes in accounting policies require retrospective application to prior period financial statements, unless the retrospective effects of the changes are impracticable to determine, in which case the retrospective application may be limited to the assets and liabilities of the earliest period practicable with a corresponding adjustment made to opening retained earnings. This Section is effective for fiscal years beginning on or after January 1, 2007.

Recent Accounting Pronouncements Issued But Not Implemented

On December 1, 2006, the CICA issued three new accounting standards: Handbook Section 1535, "Capital Disclosures", Handbook Section 3862 "Financial Instruments – Disclosures", and Handbook Section 3863, "Financial Instruments – Presentation". These standards are effective for interim and annual consolidated financial statements for the company’s reporting periods beginning on January 1, 2008.

Section 1535 establishes standards for 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.

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.

In March 2007, the CICA issued the new Handbook Section 3031, "Inventories", which will replace Section 3030, "Inventories." The new Section mentions that inventories shall be measured at the lower of cost and the net realizable value. It provides guidelines on determining cost, prohibiting going forward the use of the last-in, first-out method (LIFO), and requires the reversal of a previous write-down when the value of inventories increases. The new standard will apply to interim and annual financial statements relating to fiscal years beginning on or after January 1, 2008.

5

Corriente Resources Inc.

(a development stage enterprise)

Notes to Consolidated Financial Statements

December 31, 2007, 2006 and 2005

(expressed in Canadian dollars)

CICA Handbook Section 1400, "General Standards on Financial Statement Presentation", has been amended to include requirements to assess and disclose an entity’s ability to continue as a going concern. The changes are effective for interim and annual financial statements beginning on or after January 1, 2008.

Effective January 1, 2009, Section 3064 replaces Handbook Section 3062, "Goodwill and Intangible Assets" and establishes revised standards for the recognition, measurement, presentation and disclosure of goodwill and intangible assets. The new standard also provides guidance for the treatment of pre-production and start-up costs and requires that these costs be expensed as incurred.

The company is currently assessing the impact of these new accounting standards on its consolidated financial statements.

3 Mineral properties

Corriente Copper Belt, Ecuador

Under various agreements signed and completed with certain Ecuadorian subsidiaries of BHP Billiton Plc ("BHP Billiton"), the company has earned a 100% interest in BHP Billiton’s mineral properties located in the Rio Zamora copper porphyry district (the Corriente Copper Belt) in Ecuador. This required the issue of shares to BHP Billiton and the expenditure of exploration funds under the terms of these agreements. Additionally, these mineral properties are subject to a 2% Net Smelter Royalty ("NSR") payable to BHP Billiton, though the company has options to reduce the NSR to 1% for the Mirador/Mirador Norte, Panantza and San Carlos mineral properties upon the payment of US$2 million to BHP Billiton for each such option exercised.

6

Corriente Resources Inc.

(a development stage enterprise)

Notes to Consolidated Financial Statements

December 31, 2007, 2006 and 2005

(expressed in Canadian dollars)

Following is a summary of the company’s deferred mineral property expenditures.

	(1)		(2)	Total
	Mirador/	Panantza/	Other
	Mirador	San Carlos
	Norte
Balance December 31, 2004	19,884,240	3,544,096	1,791,875	25,220,211
Property acquisition	386,955	–	–	386,955
Deferred exploration and development costs	8,412,692	160,627	25,470	8,598,789
Balance December 31, 2005	28,683,887	3,704,723	1,817,345	34,205,955
Property acquisition	2,313,836	59,260	1,588,160	3,961,256
Deferred exploration and development costs	20,417,923	2,478,768	185,158	23,081,849
Balance December 31, 2006	51,415,646	6,242,751	3,590,663	61,249,060
Property acquisition	50,106	25,185	–	75,291
Deferred exploration and development costs – net of tax and recoveries	14,962,299	1,180,939	583,570	16,726,808
Plan of Arrangement – spin-off of gold exploration targets	–	–	(272,474)	(272,474)
Balance December 31, 2007	66,428,051	7,448,875	3,901,759	77,778,685

(1) on January 25, 2007, the company announced that it was extending the Mirador/Mirador Norte Project development timeline as key permits and government agreements had not been received consistent with the accelerated project plan. This decision also resulted in the termination clauses of certain agreements with suppliers of key long lead-time components to the Mirador project to be invoked, for which charges for work incurred of $2,951,000 ($US2,532,000) were accrued at December 31, 2006. The company was able to sell the related partially completed assets to third parties in the first quarter of 2007 for net proceeds of $2,750,257 ($US2,382,000), which was received on April 13, 2007 and reflected as a recovery in mineral properties.

7

Corriente Resources Inc.

(a development stage enterprise)

Notes to Consolidated Financial Statements

December 31, 2007, 2006 and 2005

(expressed in Canadian dollars)

(2) At December 31, 2007, the balance is comprised of the Dolorosa, La Florida, San Luis, San Marcos, San Miguel and Sutzu copper exploration targets in the Corriente Copper Belt, and expenditures to develop the company’s concentrate shipping port facility in Machala, Ecuador.

Other

In 2003, the company sold the shares of its wholly-owned subsidiaries, Corriente Argentina Inc. (Cayman) and Corriente Argentina S.A. (Argentina), including its 100% interest in the Taca-Taca property in Argentina. Pursuant to the original and subsequently amended sale agreement, the company received a total of US$50,000 and 400,000 equivalent shares of the purchaser. Should the Taca-Taca property achieve commercial production, the purchaser is obligated to pay the company a further US$1,000,000. During the course of 2004 to 2006, the company sold the shares received (note 11 (c)).

Plan of arrangement – spin-off of gold exploration targets

On April 3, 2007, the company announced that its Board of Directors had approved the spin-off of the company’s Caya 36 (Tundayme) and Piedra Liza gold assets into a new company, by means of a Plan of Arrangement (the "Arrangement").

The Arrangement was approved by shareholders at the company’s May 24, 2007 Annual and Special General Meeting and closed on June 18, 2007. Under the Arrangement, which was also approved by the British Columbia Supreme Court, the company’s shareholders received shares of a new private company, Q2 Gold Resources Inc. ("Q2 Gold") which holds the gold assets, on the basis of one (1) Q2 Gold share for every three (3) common shares of Corriente held by them at the close of business on June 15, 2007. The company believes the Arrangement and spin-off is not material to the company, therefore note disclosure on discontinued operations is not being presented.

The Arrangement was accounted for by the company at the time of the transaction by showing a recovery of mineral property costs of $272,474, a reduction of cash of $93,460 and the creation of a Convertible Loan of $365,934.

Advances to Q2 Gold

In connection with the Arrangement and to assist Q2 Gold with its business objectives, Corriente and Q2 Gold entered into a collaterzalized, interest-bearing convertible loan agreement dated April 23, 2007 pursuant to which Corriente agreed to lend Q2 Gold up to $750,000 to be advanced in instalments (the "Loan").

As at December 31, 2007, a total of $460,994 was owed by Q2 Gold to the company, consisting of $436,139 of principal and $24,855 of accrued interest. The Loan principal and unpaid interest are due on the earlier of December 31, 2008 and the first date on which Q2 Gold obtains a prospectus filing receipt with respect to any of its securities in any province of Canada. At any time prior to maturity, Corriente can require Q2 Gold to convert, in whole or in part, the principal amount outstanding and accrued interest of the Loan into Q2 Gold Shares at a conversion price equal to $0.10 per share. Q2 Gold can repay any or all of the outstanding Loan at any time prior to maturity or conversion. The company believes the conversion feature of the Loan is not material, therefore note disclosure on the embedded derivative is not being presented.

8

Corriente Resources Inc.

(a development stage enterprise)

Notes to Consolidated Financial Statements

December 31, 2007, 2006 and 2005

(expressed in Canadian dollars)

4 Plant and equipment

						2007						2006
				Accumulated						Accumulated
		Cost		Depreciation		Net		Cost		Depreciation		Net
Computer equipment	$	891,032	$	477,166	$	413,866	$	792,580	$	262,782	$	529,798
Construction barge and related facilities		640,128		28,275		611,853		1,401,529		–		1,401,529
Software fees and licences		406,317		299,588		106,729		–		–		–
Office furniture and equipment		394,684		111,548		283,136		253,473		74,519		178,954
Vehicles		382,724		127,054		255,670		290,950		69,634		221,316
Communications equipment		252,583		60,795		191,788		117,471		18,853		98,618
Field equipment		91,288		40,109		51,179		88,041		27,799		60,242
	$	3,058,756	$	1,144,535	$	1,914,221	$	2,944,044	$	453,587	$	2,490,457

5Other assets

The following table summarizes information about other assets as at December 31:

		2007		2006
EIA security deposits	$	3,278,763	$	3,518,971
Insurance proceeds receivable on loss of barge		723,547		–
Advances on mineral property expenditures		258,087		1,414,413
	$	4,260,397	$	4,933,384

As a requirement of the Ministry of Mines and Petroleum ("MMP", formerly called the Ministry of Energy and Mines) of Ecuador to approve the Mirador project’s Environmental Impact Assessment ("EIA"), the company was required to post a deposit of US$3,019,539 ($2,993,269) in favour of the MMP as security against the company’s obligations under the Mirador EIA. A similar EIA security deposit in favour of the MMP of US$288,000 ($285,494) was required as security against the company’s obligations under the Machala Port EIA.

In November 2007, the company experienced an accidental loss of its construction barge. The company has received confirmation from its insurance company that the insurance claim made will be paid in full to the company in March 2008. The carrying value of the barge has been written down from $1,401,529 to $611,853 as at December 31, 2007. Costs associated with the reconstruction of the barge will be added to the barge’s carrying value after reconstruction is completed. The related shoreline and barge facilities remain intact.

Advances on mineral property expenditures include payments to contractors and suppliers made pursuant to supply agreements prior to the contracted goods and services being provided.

9

Corriente Resources Inc.

(a development stage enterprise)

Notes to Consolidated Financial Statements

December 31, 2007, 2006 and 2005

(expressed in Canadian dollars)

6Share capital

a)

Authorized

Unlimited (2006 – 100,000,000) common shares, without par value

b)

Issued

See Consolidated Statements of Changes in Shareholders’ Equity.

On December 29, 2005, the company completed a public offering of 7,605,000 common shares at $3.95 per share pursuant to a short form prospectus dated December 19, 2005 to raise gross proceeds of $30,039,750 before issue costs of $2,186,386.

On May 25, 2006, the company completed a public offering of 19,231,000 common shares at $6.50 per share pursuant to a short form prospectus dated May 18, 2006 to raise gross proceeds of $125,001,500 before issue costs of $7,338,765.

c)

Stock options

The company has in place an incentive stock option plan dated November 1996, last amended April 18, 2006 (the "Option Plan") for directors, officers, employees and consultants to the company and its subsidiaries. The Option Plan provides that the directors of the company may grant options to purchase common shares on terms that the directors may determine, within the limitations of the Option Plan. The number of common shares available for the grant of options under the Option Plan and all other share compensation arrangements of the company is set at a rolling maximum number that shall not be greater than 10% of the company’s current outstanding share capital at any given time. The exercise price of each option cannot be lower than the closing market price of the shares on the trading day immediately prior to the date of grant of the option. As at December 31, 2007, options to purchase a total of 2,702,500 (2006 – 2,435,000; 2005 – 2,855,000) shares were outstanding, 1,322,966 (2006 – 1,208,436; 2005 – 2,855,000) of which were vested.

Effective February 1, 2006, stock options granted have the following vesting provisions:

• Options granted to executive officers, directors and other head office personnel vest on the basis of 1/16th of the total each quarter (from grant date), with such vesting being accelerated based on a change in control of Corriente or the attainment of clearly identified milestones, as determined by the company’s Directors.

• Options granted to subsidiary personnel vest on a cumulative basis of 50% of the total granted after 12 months from the grant date, 75% of the total granted after 18 months from the grant date and 100% of the total granted after 24 months from grant date, with such vesting being accelerated based on a change in control of Corriente, as determined by the company’s Directors.

For the year ended December 31, 2007, the estimated fair value of the granted options which vested during the year totalled $1,829,296 (2006 – $1,192,942; 2005 - $1,224,274), of which $699,251 (2006 – $567,734; 2005 – $1,224,274) is included in management fees, wages, benefits & stock-based compensation and $1,130,045 (2006 – $625,208; 2005 – $Nil) is included in mineral properties.

10

Corriente Resources Inc.

(a development stage enterprise)

Notes to Consolidated Financial Statements

December 31, 2007, 2006 and 2005

(expressed in Canadian dollars)

Non-cash stock-based compensation expense for options is determined based on estimated fair values of the options at the time of grant, the cost of which is recognized over the vesting period, which ranges from two years to four years, of the respective options and grants. The fair value of the stock options is estimated using the Black-Scholes Option Pricing Model with the following assumptions:

	2007	2006	2005
Risk-free interest rate	3.95–4.66%	3.87–4.16%	2.95–3.19%
Expected dividend yield	-	-	-
Expected stock price volatility	60 –62%	62 –67%	68 –71%
Expected option life in years	3	3	3

Option pricing models require the input of highly subjective assumptions including expected price volatility. Changes in the subjective input assumptions can materially affect the fair value estimate.

The estimated fair value assigned to the stock options exercised during the years ended December 31, 2007, 2006 and 2005 was recorded to share capital and the estimated fair value assigned to the stock options that expired or were forfeited during the years ended December 31, 2007 and 2006 was recorded to contributed surplus. The estimated fair value assigned to the stock options that were both vested and forfeited during the years ended December 31, 2007, 2006 and 2005 were included in management fees, wages, benefits & stock-based compensation or mineral properties.

The following table summarizes information about options granted during the twelve months ended December 31, 2007:

		Number of	Exercise Price
Expiry dates	Optionees	options	$
January 1, 2012	Executive officers	290,000	4.10
June 1, 2012	Directors	125,000	3.66
July 12, 2012	Employees	447,500	4.90
Total granted		862,500

11

Corriente Resources Inc.

(a development stage enterprise)

Notes to Consolidated Financial Statements

December 31, 2007, 2006 and 2005

(expressed in Canadian dollars)

A summary of changes to stock options outstanding and exercisable is as follows:

			2007			2006			2005
			Weighted	Weighted					Weighted
			average			average			average
	Number of		exercise	Number of		exercise	Number of		exercise
	options		price	options		price	options		price
Options outstanding – beginning of year	2,435,000	$	4.05	2,855,000	$	1.89	2,390,000	$	1.46
Granted	862,500		4.45	1,375,000		5.05	940,000		2.49
Exercised	(175,000)		3.38	(1,770,000)		1.33	(475,000)		0.92
Expired	(175,000)		3.32	–		–	–		–
Forfeited/cancelled	(245,000)		4.91	(25,000)		5.35	–		–
Options outstanding – end of year	2,702,500	$	4.19	2,435,000	$	4.05	2,855,000	$	1.89
Options outstanding and vested – end of year	1,322,966	$	3.60	1,208,436	$	3.05	2,855,000	$	1.89

The following table summarizes information about stock options outstanding and exercisable at December 31, 2007:

		Outstanding						Exercisable
		Number of			Weighted	Number of			Weighted
		options		Weighted	average	options		Weighted	average
Year	Range of	outstanding		average	remaining	exercisable		average	remaining
of	exercise	at		exercise	contractual	at		exercise	contractual
Grant	prices	December		price	life (years)	December		price	life (years)
		31, 2007				31, 2007
2005	$ 2.15 – 2.99	735,000	$	2.55	0.6	735,000	$	2.55	0.6
2006	4.50 – 5.50	1,120,000		5.07	3.4	514,686		5.04	3.4
2007	3.66 – 4.90	847,500		4.44	4.3	73,280		4.04	4.1
		2,702,500	$	4.19	2.9	1,322,966	$	3.60	1.9

12

Corriente Resources Inc.

(a development stage enterprise)

Notes to Consolidated Financial Statements

December 31, 2007, 2006 and 2005

(expressed in Canadian dollars)

7Related party transactions and balances

Included in management fees and interest income are $60,000 (2006 – $Nil; 2005 – $Nil) and $24,855 (2006 – $Nil; 2005 – $Nil), respectively, for the year ended December 31, 2007 in respect of administrative services provided by Corriente to Q2 Gold, which has a common Board of Directors and common Officers.

The foregoing related party transactions are recorded at the exchange amount which is the amount of consideration paid or received as established and agreed to between the parties.

At December 31, 2007, a convertible loan in the amount of $460,994 (2006 – $Nil) was due from Q2 Gold.

8Income taxes

The reconciliation of income taxes attributable to continuing operations computed at statutory rates to the income tax expense/(recovery) is as follows:

		2007	2006	2005
Canadian statutory tax rates		34.12%	34.12%	34.12%
Income tax expense / (recovery) computed at Canadian statutory rates	$	(5,122,085)	478,713	(1,141,020)
Difference in foreign tax rates		509,582	(113,278)	(438,922)
Permanent differences		239,756	197,838	420,027
Non-taxable portion of capital gains		2,613,752	–	–
Change in valuation allowance		(346,188)	1,478,665	963,386
Items deductible for tax not recognized in earnings		–	(2,503,987)	(745,995)
Impact of change in tax rates applied to opening future tax assets		1,024,405	–	–
Expired tax losses		255,758	–	–
Differences in prior year tax returns filed		825,020	462,049	942,524
Income tax expense (recovery)	$	–	–	–

13

Corriente Resources Inc.

(a development stage enterprise)

Notes to Consolidated Financial Statements

December 31, 2007, 2006 and 2005

(expressed in Canadian dollars)

The significant components of the company’s future income tax assets and liabilities are as follows:

		2007		2006		2005
Future income tax assets
Losses carried forward	$	1,665,797	$	2,244,769	$	2,348,685
Mineral properties		1,282,933		2,529,734		2,730,220
Share issuance costs		1,638,309		2,506,445		726,515
Plant and equipment and other		2,425,563		77,842		74,705
		7,012,602		7,358,790		5,880,125
Valuation allowance		(7,012,602)		(7,358,790)		(5,880,125)
	$	–	$	–		–

At December 31, 2007, the company has Canadian losses for tax purposes of approximately $5.8 million which expire on various dates to 2027.

9Segmented information

The company operates within a single operating segment, which is the exploration and development of copper-gold mineral properties. The company’s mineral property interests are in Ecuador, South America, as set out in note 3.

Geographic segmentation of the company’s assets is as follows:

	2007			2006
	Canada	Ecuador	Total	Canada	Ecuador	Total
Cash and cash equivalents	$ 93,028,030	$ 244,052 $	93,272,082	$126,295,568	$ 815,111	$127,110,679
Accounts receivable and prepayments	338,859	–	338,859	213,856	–	213,856
Convertible loan	460,994	–	460,994
Mineral properties	–	77,778,685	77,778,685	–	61,249,060	61,249,060
Plant and equipment	122,528	1,791,693	1,914,221	73,142	2,417,315	2,490,457
Other assets	–	4,260,397	4,260,397	–	4,933,384	4,933,384
	$ 93,950,411	$ 84,074,827	$ 178,025,238	$126,582,566	$ 69,414,870	$195,997,436

With the exception of severance costs in relation to restructuring of $1,256,626 (2006 – $Nil; 2005 – $Nil) and general exploration costs of $Nil (2006 – $37,034; 2005 – $Nil) incurred by the company’s Ecuador operations, the consolidated statements of loss for the years ended December 31, 2007, 2006 and 2005 reflect the Canadian operations.

14

Corriente Resources Inc.

(a development stage enterprise)

Notes to Consolidated Financial Statements

December 31, 2007, 2006 and 2005

(expressed in Canadian dollars)

10Supplemental cash flow information

Cash and cash equivalents at December 31 comprise the following:

		2007		2006
Cash on hand and balances with banks	$	334,770	$	1,778,235
Short-term investments, with maturity dates less than 90 days at acquisition		92,937,312		125,332,444
	$	93,272,082	$	127,110,679

At December 31, 2007, the company’s short-term investments are invested in overnight bank deposits with R1-High investment ratings (DBRS) that are easily liquidated, as they mature daily. The company has no investments in asset-backed commercial paper.

During the years ended December 31, 2007, 2006 and 2005, the company conducted non-cash operating, investing and financing activities as follows:

		2007		2006		2005
Depreciation included in mineral properties	$	710,299	$	152,455	$	54,658
Loss on disposal of plant and equipment capitalized to mineral properties	$	40,247	$	33,897	$	86,038
Insurance claim related to plant and equipment	$	(723,547)	$	–	$	–
Stock-based compensation included in mineral properties	$	1,130,045	$	625,208	$	–
Change in other assets and accounts payable and accrued liabilities relating to mineral properties	$	(3,636,023)	$	4,678,479	$	202,303
Change (decrease) in accounts payable and accrued liabilities relating to plant and equipment	$	(1,271,185)	$	547,638	$	–
Recovery of mineral property costs from the Arrangement	$	(272,474)	$	–	$	–
Marketable securities received from sale of subsidiary company	$	–	$	–	$	1,882,000

15

Corriente Resources Inc.

(a development stage enterprise)

Notes to Consolidated Financial Statements

December 31, 2007, 2006 and 2005

(expressed in Canadian dollars)

11Financial instruments

(a)

Fair Values

Canadian GAAP requires that the company disclose information about the fair value of its financial assets and liabilities. Fair value estimates are made at the balance sheet date, based on relevant market information and information about the financial instrument. These estimates are subjective in nature and involve uncertainties in significant matters of judgment and therefore cannot be determined with precision. Cash balances are recorded at fair value and cash equivalents, which consist of overnight term deposits, are carried at amortized cost, which approximates fair value. The carrying amounts for accounts receivable, convertible loan, accounts payable relating to mineral properties, accounts payable relating to plant and equipment and other accounts payable and accrued liabilities on the balance sheet approximate fair value because of the short-term nature of these instruments. Management believes the carrying value of the EIA security deposits and insurance claim receivable (note 5) approximate fair value due to their short-term nature.

The company does not have any material derivative financial instruments at December 31, 2007 or 2006.

(b)

Currency Risk

As at December 31, 2007, the company’s expenditures are predominantly in U.S. dollars and any future equity raised is expected to be predominantly in Canadian dollars. The company conducts the majority of its business in Ecuador, which uses the U.S. dollar as its primary economic currency. Future project development expenditures are expected to be paid in U.S. dollars.

As such, the company is subject to risk due to fluctuations in the exchange rates for the U.S. and Canadian dollar. The company has a practice of not entering into foreign currency hedging. Beginning in 2007, the company began maintaining balances in Canadian and U.S. dollars in a proportion related to the magnitude of future mineral property, plant and equipment, and administrative expenditures, and the jurisdictions in which they will likely be made.

A breakdown by currency of the company’s cash and cash equivalents, at year-end was as follows:

		2007		2006
Canadian dollar	$	15,210,692	$	125,063,312
U.S. dollar	US$	78,746,484	US$	1,756,794
December 31 closing exchange rate (Cdn$ to US$)		0.9913		1.1654

(c)

Other

The company held no marketable securities during 2007. During 2006, the company sold all of its remaining marketable securities for net proceeds of $336,253 (2005 - $2,339,123), realizing a gain of $336,253 (2005 - loss of $96,877).

16

Corriente Resources Inc.

(a development stage enterprise)

Notes to Consolidated Financial Statements

December 31, 2007, 2006 and 2005

(expressed in Canadian dollars)

12Reconciliation to U.S. Generally Accepted Accounting Principles ("GAAP")

The consolidated financial statements have been prepared in accordance with Canadian GAAP, which differs in certain respects from those applicable in the United States ("U.S. GAAP") and from practices prescribed by the United States Securities and Exchange Commission ("SEC"). Significant measurement differences that materially affect the company’s consolidated financial statements for the years ended December 31, 2007, 2006 and 2005 are as follows:

a)

Mineral exploration expenditures

As described in note 2, Canadian GAAP allows for the deferral of mineral exploration expenditures. Under U.S. GAAP, the company capitalizes acquisition costs and expenses exploration costs as incurred for unproven mineral properties. When proven and probable reserves are determined for a property and a positive feasibility study has been prepared, subsequent development costs of the property would be capitalized.

During the year ended December 31, 2007, mineral exploration expenditures under Canadian GAAP of $272,474 were transferred to Q2 Gold in exchange for a convertible loan receivable recorded by the company on completion of the Arrangement described in note 3. For U.S. GAAP purposes, the mineral exploration expenditures transferred to Q2 Gold were previously expensed and the company therefore recognized a recovery of mineral exploration expenditures during the year ended December 31, 2007 of $272,474.

b)

Available-for-sale securities

Prior to the adoption of CICA Sections 3855 and 1530 on January 1, 2007, marketable securities under Canadian GAAP were carried at the lower of cost and quoted market value. Under U.S. GAAP, these investments would be categorized as available-for-sale securities carried at fair value with unrealized gains and losses temporarily recorded in a separate component of shareholders’ equity until the investment was sold, abandoned or impaired. Effective January 1, 2007, this difference in accounting treatment has been eliminated due to the company’s adoption of CICA Section 3855 and CICA Section 1530.

c)

Uncertainty in Income Taxes

Effective January 1, 2007, the company adopted FASB Interpretation No. 48, Accounting for Uncertainty in Income Taxes ("FIN 48"). FIN 48 prescribes a recognition and measurement model for tax positions taken or expected to be taken in a tax return, and provides guidance on the de-recognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. The adoption of FIN 48 had no impact on the company’s consolidated financial statements.

17

Corriente Resources Inc.

(a development stage enterprise)

Notes to Consolidated Financial Statements

December 31, 2007, 2006 and 2005

(expressed in Canadian dollars)

Had the company followed U.S. GAAP, certain items in the financial statements would have been reported as follows:

Statements of Loss and Deficit

		Years ended December 31,
		2007		2006		2005
Loss (income) under Canadian GAAP		15,011,973	$	(1,403,028)	$	3,344,139
Adjustment to reconcile to U.S. GAAP:
Mineral exploration costs (a)		14,866,174		24,670,009		8,598,789
Loss under U.S. GAAP		29,878,147		23,266,981		11,942,928
Change in unrealized gain on available-for-sale securities (b)		–		–		41,000
Comprehensive loss under U.S. GAAP		29,878,147	$	23,266,981	$	11,983,928
Basic and diluted loss per share under U.S. GAAP		0.40	$	0.35	$	0.26
Weighted average number of shares outstanding		74,844,105		66,603,215		45,825,859
Balance Sheets
		December 31,		December 31,
Total assets under Canadian GAAP	$	178,025,238	$	195,997,436
Adjustment to reconcile to U.S. GAAP:
Mineral exploration costs (a)		(67,690,426)		(52,824,252)
Total assets under U.S. GAAP	$	110,334,812	$	143,173,184
Shareholders’ equity under Canadian GAAP	$	176,146,742	$	188,737,419
Adjustment to reconcile to U.S. GAAP:
Mineral exploration costs (a)		(67,690,426)		(52,824,252)
Total shareholders’ equity under U.S. GAAP	$	108,456,316	$	135,913,167
Statements of Cash Flows
		Years ended December 31
		2007		2006		2005
Cash from (applied to) operating activities under Canadian GAAP		(14,123,131)	$	1,270,933	$	(1,157,820)
Adjustment to reconcile to U.S. GAAP:
Mineral exploration costs (a)		(16,881,376)		(19,179,970)		(8,255,790)
Cash from (applied to) operating activities under U.S. GAAP		(31,004,507)	$	(17,909,037)	$	(9,413,610)
Cash from (applied to) investing activities under Canadian GAAP		(20,307,466)	$	(26,618,629)	$	(7,492,931)
Adjustment to reconcile to U.S. GAAP:
Mineral exploration costs (a)		16,881,376		19,179,970		8,255,790
Cash from (applied to) investing activities under U.S. GAAP		(3,426,090)	$	(7,438,659)	$	762,859

18

Corriente Resources Inc.

(a development stage enterprise)

Notes to Consolidated Financial Statements

December 31, 2007, 2006 and 2005

(expressed in Canadian dollars)

13Recent Accounting Pronouncements

a)

Recent Canadian Accounting Pronouncements

i)

International Financial Reporting Standards ("IFRS")

In January 2006, the CICA Accounting Standards Board ("AcSB") published a new strategic plan for the direction of accounting standards in Canada and the expected convergence with IFRS by the end of 2011. On February 13, 2008, the AcSB confirmed 2011 as the official changeover date for publicly listed Canadian companies to start using IFRS. The transition will affect interim and annual financial statements relating to fiscal years beginning on or after January 1, 2011. The impact of the transition to IFRS on the company's consolidated financial statements has not yet been determined.

b)

Recent U.S. Accounting Pronouncements

i)

SFAS No. 157 - Fair Value Measurements ("SFAS 157")

In September 2006, the FASB issued SFAS No. 157 "Fair Value Measurements", which defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. FAS 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007, and interim periods within those fiscal years, and is applicable to the company beginning in the first quarter of 2008. Earlier application is encouraged, provided that the reporting entity has not yet issued financial statements for that fiscal year or an interim period within that fiscal year. Prospective application is required for the company. The company is currently evaluating the impact of FAS 157.

ii)

SFAS No. 159 - The Fair Value Option for Financial Assets and Financial Liabilities ("SFAS 159")

SFAS No. 159 permits entities to choose to measure many financial instruments and certain other items at fair value. Most of the provisions of SFAS 159 apply only to entities that elect the fair value option. SFAS No. 159 is effective for fiscal years beginning after November 15, 2007. Management is analyzing the requirements of this new standard and believes that its adoption will not have any significant impact on the company's financial statements.

iii)

SFAS No. 141R, Business Combinations ("SFAS 141R")

In November 2007, the FASB issued SFAS 141R which establishes principles and requirements for how the acquirer of a business recognizes and measures in its financial statements the identifiable assets acquired, the liabilities assumed, and any non-controlling interest in the acquiree. SFAS 141R also provides guidance for recognizing and measuring the goodwill acquired in the business combination and determines what information to disclose to enable users of the financial statements to evaluate the nature and financial effects of the business combination. SFAS 141R is effective for fiscal years beginning on or after December 15, 2008. Management is analyzing the requirements of this new standard and believes that its adoption will not have an impact on the company's financial statements.

iv)

SFAS No. 160, Noncontrolling Interests in Consolidated Financial Statements ("SFAS 160")

In November 2007, the FASB issued SFAS 160, Noncontrolling Interests in Consolidated Financial Statements, an amendment of ARB No. 51. SFAS 160 will change the accounting and reporting for minority interests, which will be recharacterized as noncontrolling interests and classified as a component of equity. SFAS 160 is effective for fiscal years beginning on or after December 15, 2008. SFAS 160 requires retroactive adoption of the presentation and disclosure requirements for existing minority interests. All other requirements of SFAS 160 will be applied prospectively. Management is currently evaluating the requirements of FAS No. 160 and believes that its adoption will not have any impact on the company's financial statements.

19

EX-23.1

CONSENT OF INDEPENDENT AUDITORS

We hereby consent to the use of our Report in this Annual Report on Form 40-F of Corriente Resources Inc. dated March 26, 2008 accompanying the consolidated financial statements, which appears in the Annual Report on Form 40F.

"/S/ PricewaterhouseCoopers LLP"

Chartered Accountants
Vancouver, British Columbia
March 26, 2008

EX-23.2

Consent of John Drobe

Reference is made to the Panantza & San Carlos Copper Project Preliminary Assessment Report, dated October 30, 2007 (collectively, the "Technical Report").

The undersigned hereby consents to references to its name and references to and excerpts from the Technical Report in the Annual Report on Form 40-F of Corriente Resources Inc. to be filed with the United States Securities and Exchange Commission.

Dated this _25^th_ day of March 2008.

/s/ John Drobe

John Drobe, P.Geo.

EX-23.3

Consent of John Hoffert

Reference is made to the Panantza & San Carlos Copper Project Preliminary Assessment Report, dated October 30, 2007 (collectively, the "Technical Report").

The undersigned hereby consents to references to its name and references to and excerpts from the Technical Report in the Annual Report on Form 40-F of Corriente Resources Inc. to be filed with the United States Securities and Exchange Commission.

Dated this 27^th day of March 2008.

/s/ John Hoffert

John Hoffert, P.Eng.

EX-23.4

Consent of Robert Fong

Reference is made to the Panantza & San Carlos Copper Project Preliminary Assessment Report, dated October 30, 2007, and the Mirador Feasibility Study, dated February 29, 2008 (collectively, the "Technical Reports").

The undersigned hereby consents to references to its name and references to and excerpts from the Technical Reports in the Annual Report on Form 40-F of Corriente Resources Inc. to be filed with the United States Securities and Exchange Commission.

Dated this 26^th day of March 2008.

/s/ Robert Fong

Robert Fong, P.Eng

EX-23.5

Consent of Jeremy P. Haile

Reference is made to the Panantza & San Carlos Copper Project Preliminary Assessment Report, dated October 30, 2007, and the Mirador Feasibility Study, dated February 29, 2008 (collectively, the "Technical Reports").

The undersigned hereby consents to references to its name and references to and excerpts from the Technical Reports in the Annual Report on Form 40-F of Corriente Resources Inc. to be filed with the United States Securities and Exchange Commission.

Dated this 27^th day of March 2008.

/s/ Jeremy P. Haile

Jeremy P. Haile, P.Eng

EX-23.6

Consent of Joseph Rokosh

Reference is made to the Panantza & San Carlos Copper Project Preliminary Assessment Report, dated October 30, 2007, and the Mirador Feasibility Study, dated February 29, 2008 (collectively, the "Technical Reports").

The undersigned hereby consents to references to its name and references to and excerpts from the Technical Reports in the Annual Report on Form 40-F of Corriente Resources Inc. to be filed with the United States Securities and Exchange Commission.

Dated this 28^th day of March 2008.

/s/ Joseph Rokosh

Joseph Rokosh, P.Eng.

EX-31.1

Exhibit 31.1

Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Kenneth R. Shannon, certify that:

1.

I have reviewed this annual report on Form 40-F (this "Report") of Corriente Resources Inc. (the "Registrant");

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 Registrant as of, and for, the periods presented in this Report;

4.

The Registrant's other certifying officer 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 Registrant 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 Registrant, 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;

c.

Evaluated the effectiveness of the Registrant'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 Registrant’s internal control over financial reporting that occurred during the period covered by this Report that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and

5.

The Registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant’s auditors and the audit committee of the Registrant’s board of directors (or persons performing the equivalent functions):

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 Registrant’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 Registrant’s internal control over financial reporting.

Date:	March 26, 2008	/S/ KENNETH R. SHANNON
		By:	Kenneth R. Shannon
		Title:	Chairman and Chief Executive Officer

EX-31.2

Exhibit 31.2

Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Darryl F. Jones, certify that:

1.

I have reviewed this annual report on Form 40-F (this "Report") of Corriente Resources Inc. (the "Registrant");

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 Registrant as of, and for, the periods presented in this Report;

4.

The Registrant's other certifying officer 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 Registrant 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 Registrant, 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;

c.

Evaluated the effectiveness of the Registrant'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 Registrant’s internal control over financial reporting that occurred during the period covered by this Report that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and

5.

The Registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant’s auditors and the audit committee of the Registrant’s board of directors (or persons performing the equivalent functions):

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 Registrant’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 Registrant’s internal control over financial reporting.

Date:	March 26, 2008	/S/ DARRYL F. JONES
		By:	Darryl F. Jones
		Title:	Chief Financial Officer

EX-32.1

Exhibit 32.1

Certification of CEO and CFO
Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the annual report of Corriente Resources Inc. (the "Registrant") on Form 40-F for the year ended December 31, 2007, as filed with the Securities and Exchange Commission on the date hereof (the "Report"), Kenneth R. Shannon, as Chief Executive Officer of the Registrant, and Darryl F. Jones, as Chief Financial Officer of the Registrant, each hereby certifies, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, to the best of his knowledge, that:

(1)

The 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 Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

/S/ KENNETH R. SHANNON
By:	Kenneth R. Shannon
Title:	Chief Executive Officer
March 26, 2008
/S/ DARRYL F. JONES
By:	Darryl F. Jones
Title:	Chief Financial Officer
March 26, 2008

This certification accompanies the Report pursuant to § 906 of the Sarbanes-Oxley Act of 2002 and shall not, except to the extent required by the Sarbanes-Oxley Act of 2002, be deemed filed by the Registrant for purposes of §18 of the Securities Exchange Act of 1934, as amended.