EXHIBIT 99.1

ST. JUDE RESOURCES LTD.

Consolidated Financial Statements

Years ended January 31, 2005 and 2004

Auditors’ Report
Consolidated Balance Sheets	1
Consolidated Statements of Operations and Deficit	2
Consolidated Statements of Cash Flows	3
Notes to Consolidated Financial Statements	4
Consolidated Schedule of Exploration Expenditures	19

REPORT OF INDEPENDENT AUDITOR

To the Directors of St. Jude Resources Ltd.

      We have audited the accompanying consolidated balance sheets of St. Jude Resources Ltd. as of January 31, 2005 and 2004 and the consolidated statements of operations and deficit and cash flows for the years then ended. 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 in accordance with Canadian generally accepted auditing standards and with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform an audit to obtain reasonable assurance whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.

      In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of St. Jude Resources Ltd. as of January 31, 2005 and 2004 and the results of its operations and its cash flows for each of the years then ended in accordance with Canadian generally accepted accounting principles.

      Canadian generally accepted accounting principles vary in certain significant respects from accounting principles generally accepted in the United States of America. Information relating to the nature and effect of such differences is presented in note 14 to the consolidated financial statements.

Chartered Accountants

Edmonton, Canada

May 13, 2005, except as to note 13 which is as of December 15, 2005

COMMENTS BY AUDITORS FOR U.S. READERS ON CANADA-U.S.

REPORTING DIFFERENCES

      In the United States, reporting standards for auditors require the addition of an explanatory paragraph (following the opinion paragraph) when there is a change in accounting principles that has a material effect on the comparability of the Company’s financial statements, such as the change described in note 1(j) to the consolidated financial statements as at January 31, 2005 and for the year then ended. Our report to the directors dated May 13, 2005, except for note 13, which is as of December 15, 2005, is expressed in accordance with Canadian reporting standards, which do not require a reference to such a change in accounting principles in the auditors’ report when the change is properly accounted for and adequately disclosed in the financial statements.

      In addition, in the United States, reporting standards for auditors require the addition of an explanatory paragraph (following the opinion paragraph) when the financial statements are affected by conditions and events that cast substantial doubt on the company’s ability to continue as a going concern, such as those described in the “Nature of Operations” note to the financial statements. Our report to the directors dated May 13, 2005, except for note 13, which is as of December 15, 2005, is expressed in accordance with Canadian reporting standards, which do not permit a reference to such events and conditions in the auditors’ report when these are adequately disclosed in the financial statements.

Chartered Accountants

Edmonton, Canada

May 13, 2005, except as to note 13 which is as of December 15, 2005

ST. JUDE RESOURCES LTD.

Consolidated Balance Sheets

(expressed in Canadian dollars)

January 31, 2005 and 2004

		2005			2004
					[Restated
					note 1(j)]
ASSETS
Current assets:
	Cash and cash equivalents (note 2)	$	2,804,714		$	16,692,878
	Short-term investments		7,000,774			—
	Accounts receivable		12,202			10,799
	Interest receivable		101,298			—
	Income taxes recoverable		838			11,160
	Prepaid expenses		3,581			3,581
			9,923,407			16,718,418
Mineral properties (note 3)			4,107,273			1,037,920
Equipment (note 4)			755,430			431,955
	Less accumulated amortization		(318,451	)		(203,898	)
			436,979			228,057
		$	14,467,659		$	17,984,395
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
	Accounts payable and accrued liabilities	$	339,700		$	556,325
Shareholders’ equity:
	Share capital (note 5)		52,179,628			48,585,601
	Contributed surplus (note 6)		5,599,929			4,365,625
	Deficit		(43,651,598	)		(35,523,156	)
			14,127,959			17,428,070
Nature of operations
Investment in i to i logistics inc. (note 7)
Commitments (note 8)
Subsequent events (note 13)
United States Generally accepted accounting principles (note 14)
		$	14,467,659		$	17,984,395

See accompanying notes to consolidated financial statements.

1

ST. JUDE RESOURCES LTD.

Consolidated Statements of Operations and Deficit

(expressed in Canadian dollars)

Year ended January 31, 2005 and 2004

		2005			2004
					[Restated —
					note 1(j)]
Expenses:
	Exploration	$	5,986,547		$	3,376,276
	Compensation [note 5(b)]		1,402,677			2,236,386
	Management fees (note 10)		216,667			210,000
	Wages and employee benefits		177,526			94,066
	Promotion and advertising		119,833			85,445
	Consulting fees (note 10)		102,214			132,132
	Professional fees		90,374			88,239
	Travel		69,041			51,967
	Office		64,579			58,733
	Rent		45,973			45,047
	Administration costs		44,202			51,535
	Investor communications		18,918			425,021
	Amortization		15,010			13,931
	Bank charges and interest		4,896			3,562
			8,358,457			6,872,340
Other income (expense):
	Interest		200,638			67,766
	Consulting revenue		—			74,840
	Write-down of investment in i to i logistics inc. (note 7)		—			(30,614	)
	Loan receivable recovery		—			38,831
	Foreign exchange gain (loss)		17,344			(36,072	)
			217,982			114,751
Net loss			(8,140,475	)		(6,757,589	)
Deficit, beginning of year [note 1(j)]			(35,523,156	)		(25,733,095	)
Share issuance (costs) recovered			12,033			(3,032,472	)
Deficit, end of year		$	(43,651,598	)	$	(35,523,156	)
Basic and diluted loss per common share		$	(0.215	)	$	(0.264	)
Weighted average number of common shares			37,876,598			25,578,845

See accompanying notes to consolidated financial statements.

2

ST. JUDE RESOURCES LTD.

Consolidated Statements of Cash Flows

(expressed in Canadian dollars)

Year ended January 31, 2005 and 2004

			2005			2004
						[Restated note 1(j)]
Cash provided by (used in):
Operations (note 12):
	Net loss		$	(8,140,475	)	$	(6,757,589	)
	Adjustment for:
		Amortization		15,010			13,931
		Amortization (schedule)		99,543			22,324
		Write-down of investment in i to i logistics inc. (note 7)		—			30,614
		Stock-based compensation		1,402,677			2,236,386
	Change in non-cash operating working capital:
		Accounts receivable		(1,403	)		6,367
		Interest receivable		(101,298	)		—
		Income taxes recovery		10,322			(11,160	)
		Prepaid expenses		—			(243	)
		Accounts payable and accrued liabilities		(216,625	)		414,934
		Income and capital taxes payable		—			(1,013	)
				(6,932,249	)		(4,045,449	)
Financing:
	Issue of common shares			1,145,654			20,241,989
	Share issuance (costs) recovered			12,033			(1,299,795	)
				1,157,687			18,942,194
Investments:
	Short-term investments			(7,000,774	)		—
	Additions to mineral properties			(789,353	)		(857,769	)
	Additions to equipment			(323,475	)		(213,717	)
	Advances to i to i logistics inc.			—			(23,861	)
				(8,113,602	)		(1,095,347	)
Increase (decrease) in cash				(13,888,164	)		13,801,398
Cash, beginning of year				16,692,878			2,891,480
Cash, end of year			$	2,804,714		$	16,692,878
Supplementary information:
	Non-cash investing and financing activities:
		Issued 950,000 common shares to acquire remainder of Benso concession, which is included with mineral properties	$	2,280,000		$	—

See accompanying notes to consolidated financial statements.

3

ST. JUDE RESOURCES LTD.

Notes to Consolidated Financial Statements

(expressed in Canadian dollars)

Years ended January 31, 2005 and 2004

Nature of operations:

      The Company is incorporated under the Canada Business Corporations Act. The Company’s principal operations consist of investments in mineral properties. The Company is in the process of exploring its properties and has not yet determined whether these properties contain reserves that are economically recoverable.

      The recoverability of acquisition costs for mineral properties is dependent upon the discovery of economically recoverable reserves, confirmation of the Company’s interest in the underlying claims, the ability of the Company to obtain the necessary financing to complete the development and future profitable production or proceeds from the disposition thereof.

      The viability of the projects and the ability for the Company to continue as a going concern are dependent on future financing. If financing is not achieved, the Company may not be able to meet its obligations as they become due. These financial statements have been prepared on the going concern basis that assumes continuity of operations and realization and settlement of liabilities in the normal course of business. A different basis of measurement may be appropriate if the going concern assumption does not prevail.

1. Significant accounting policies:

      These financial statements have been prepared in accordance with Canadian generally accepted accounting principles applied on consistent basis. The consolidated financial statements include the accounts of St. Jude Resources Ltd. and its subsidiaries. All inter-company transactions and balances have been eliminated on consolidation.

     (a)  Mineral properties:

      Mineral properties are carried at cost less the amount of government grants received. Cost includes the acquisition cost of the properties and claims and related exploration and development costs incurred subsequent to the determination of the feasibility of mining operations. The costs will be amortized on the unit-of-production basis once production commences or will be written off if the property is sold or if management believes it has incurred an impairment in value. The carrying values of the properties do not necessarily reflect their present or future values.

      Exploration costs are charged against income in the year in which they are incurred unless they relate to specific areas where feasibility of mining operations have been determined.

     (b)  Cash and cash equivalents:

      Cash and cash equivalents consist of cash on deposit with banks or highly liquid short-term interest-bearing securities with maturities at purchase dates of three months or less.

     (c)  Short-term investments:

      Interest-bearing securities having a term in excess of three months but less than one year are classified as short-term investments. Short-term investments are recorded at the lower of cost and market value.

4

ST. JUDE RESOURCES LTD.

Notes to Consolidated Financial Statements — (Continued)

(expressed in Canadian dollars)

Years ended January 31, 2005 and 2004

     (d)  Equipment:

      Equipment is recorded at cost. Amortization is provided using the following methods and annual rates:

Asset	Basis		Rate
Geophysical equipment		Straight line		3  Years
Office equipment		Declining balance		20	%
Computer hardware		Declining balance		30	%
Drilling equipment		Declining balance		20	%
Leasehold improvements		Straight line		5  Years
Exploration equipment		Declining balance		30	%
Vehicles		Declining balance		30	%

     (e)  Stock-based compensation plan:

      The Company has a stock option plan, which is described in [note 5(b)]. The Company accounts for all stock-based payments to non-employees and employees using the fair value based method. These employee awards are measured at fair value at the grant date and are recognized over the vesting period. Consideration paid by employees on the exercise of stock options is recorded as share capital.

      Under the fair value based method, stock-based payments to employees and non-employees are measured at the fair value of the consideration received, or the fair value of the equity instruments issued, or liabilities incurred, whichever is more reliably measurable. Compensation cost attributable to awards to employees that call for settlement in cash or other assets is measured at intrinsic value and recognized over the vesting period. Changes in intrinsic value between the grant date and the measurement date result in a change in the measure of compensation cost.

     (f)  Income taxes:

      The Company uses the asset and liability method of accounting for income taxes. Under the asset and liability method, future tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Future tax assets and liabilities are measured using enacted or substantively enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on future tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the date of enactment or substantive enactment.

     (g)  Foreign currency:

      Monetary items denominated in foreign currency are translated to Canadian dollars at exchange rates in effect at the balance sheet date. Revenues and expenses are translated at rates in effect at the time of the transactions. Foreign exchange gains and losses are included in income.

     (h)  Loss per share:

      Basic loss per share is computed by dividing net loss by the weighted average number of shares outstanding during the reporting period. Diluted earnings per share is computed similar to basic earnings per share except that the weighted average number of shares outstanding is increased to include additional shares from the assumed exercise of stock options, if dilutive. The number of additional shares is calculated by

5

ST. JUDE RESOURCES LTD.

Notes to Consolidated Financial Statements — (Continued)

(expressed in Canadian dollars)

Years ended January 31, 2005 and 2004

assuming that outstanding stock options were exercised and that the proceeds from such exercises were used to acquire shares of common stock at the average market price during the reporting period.

     (i)  Segment disclosures:

      During each of the years in the two-year period ended January 31, 2005, the Company operated a single segment — the acquisition, exploration and development of mineral properties.

     (j)  Change in accounting policy:

      During 2005, the Company changed its accounting policy with respect to accounting for exploration expenditures. In 2004 and prior periods, acquisition, exploration expenditures and capital equipment were capitalized to mineral properties. Under the new policy, exploration expenditures are expensed while acquisition expenditures are capitalized and capital equipment is included with equipment. This change has been applied retroactively and has increased the deficit as at January 31, 2003 by $14,853,035, increased the carrying value of equipment by $180,214 and increased the loss for the year ended January 31, 2004 by $3,376,276. This change has also increased loss per share by $0.132 for the year ended January 31, 2004.

     (k)  Asset retirement obligations:

      Effective February 1, 2004 the Company adopted the recommendations under section 3100, Asset Retirement Obligations, of the Canadian Institute of Chartered Accountants Handbook (“Section 3110”). Section 3110 applies to legal obligations associated with the retirement of long-lived assets that result from the acquisition, construction, development and/or normal operation of the assets.

      These recommendations require that the fair value of a liability for an asset retirement obligation be recorded in the period in which it is incurred. When the liability is initially recorded, the cost is capitalized by increasing the carrying amount of the long-lived asset. Upon settlement of the liability, a gain or loss is recorded.

      The adoption of this section had no material impact on these financial statements.

     (l)  Use of estimates:

      The preparation of financial statements in conformity with Canadian generally accepted accounting principles requires management to make estimates and assumptions that effect 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 areas requiring the use of management estimates are the valuation of provision for future income taxes and the fair value estimates of stock options issued in exchange for services. Actual amounts could differ from these estimates.

2. Cash and cash equivalents:

		2005		2004
Canadian:
	Cash and cash equivalents	$	2,641,960	$	16,689,420
U.S.:
	Cash (U.S. $131,316; $2,599 in 2004)		162,754		3,458
		$	2,804,714	$	16,692,878

6

ST. JUDE RESOURCES LTD.

Notes to Consolidated Financial Statements — (Continued)

(expressed in Canadian dollars)

Years ended January 31, 2005 and 2004

3. Mineral properties:

		Balance,				Balance,				Balance,
		January 31,		Acquisition		January 31,		Acquisition		January 31,
		2003		Expenditures		2004		Expenditures		2005
		[Restated				[Restated
		note 1(j)]				note 1(j)]
Hwini-Butre, Ghana:
	Acquisition costs	$	—	$	130,557	$	130,557	$	613,891	$	744,448
Benso, Ghana:
	Acquisition costs		85,350		628,720		714,070		2,280,000		2,994,070
Burkina Faso, West Africa:
	Acquisition costs		94,801		78,492		173,293		74,363		247,656
Shieni Hills, Ghana:
	Acquisition costs		—		20,000		20,000		—		20,000
Niger, West Africa:
	Acquisition costs		—		—		—		101,099		101,099
		$	180,151	$	857,769	$	1,037,920	$	3,069,353	$	4,107,273

     (a)  Hwini-Butre, Ghana:

      The company has an agreement with Hwini-Butre Minerals (the “HBM Vendor”), whereby St. Jude can earn up to a 65% interest by carrying out a fixed dollar amount of exploration (which has already been completed) and by making a U.S. $800,000 cash payment. The HBM Vendor retains a 25% participating interest however, if it elects not to participate in the development of the project after feasibility, then the HBM Vendor’s interest shall automatically be reduced to a 12.5% carried interest.

      The company has been advised that the HBM Vendor is involved in a legal dispute with the original Ghanaian entity through which the HBM Vendor acquired the property. If the original Ghanaian entity is successful in its dispute, St. Jude has a previous agreement with the original Ghanian entity, which is in good standing, wherein St. Jude has acquired an 80% interest, the original Ghanaian entity retains a 10% carried interest and the Government of Ghana has its standard 10% interest.

     (b)  Benso, Ghana:

      During the year ended January 31, 2004, the Company entered into agreement with Fairstar Explorations Inc. and Architect Co-Partners Inc. (“ACP”) to acquire 100% of the Benso property subject to the Government 10% carried interest. The Company acquired 100% of the shares of Fairstar Ghana Limited, the registered owner of the Benso prospecting license in exchange for cash payments, shares issued, and production royalties. The agreements were completed on February 26, 2004. Fairstar Explorations Inc. holds a 1.5% NSR royalty, which St. Jude has the option to purchase. St. Jude may purchase the first 0.5% for $1 million and the remaining 1% for $3 million, or if the feasibility study contemplates gold production of more than 3.5 million ounces of recoverable gold, the purchase price for the last 1% will increase to $5 million. ACP also holds a royalty of U.S. $1.00 per ounce of gold production, which St. Jude may repurchase for U.S. $500,000 at any time up to one year after commercial gold production commences. If more than 3 million ounces are mined from the Benso concession, ACP is entitled to a bonus payment of U.S. $2 million.

7

ST. JUDE RESOURCES LTD.

Notes to Consolidated Financial Statements — (Continued)

(expressed in Canadian dollars)

Years ended January 31, 2005 and 2004

     (c)  Burkina Faso, West Africa:

      On December 15, 2002, the Company entered into an agreement with Julien Birgui Ouedraogo for the right to prospect for gold and all other precious base minerals in respect of land situated in Burkina Faso, West Africa. The agreement gives the Company the right to acquire an 80% interest in the property for a purchase price of U.S. $300,000, to be paid in five annual installments of U.S. $60,000. A joint venture will be created and the shareholding in the joint venture company will reflect the respective interest of the parties as follows:

St. Jude Resources Ltd.	80%
Julien Birgui Ouedraogo	10%
Government of Burkina Faso (carried interest)	10%

      The Company has the further option to purchase the vendor’s 10% participating interest for a purchase price of U.S. $1 million at any time up to twelve months from the first commercial production of gold on the property, together with the issuance of a 5% net profits interest which shall be retained by the vendor. The Company has the option to acquire the vendor’s 5% net profit interest for the sum of U.S. $500,000. The Company may at any time before December 15, 2006 give formal notice to the vendor of its intent to abandon the property if it determines that the property does not contain an economically viable ore body without the requirement to make any of the remaining payments described above.

(d) Shieni Hills, Ghana:

      The Shieni Hills property consists of the Shieni Hills Gold Concession Reconnaissance License, which covers an area of 500 sq. km. in northeast Ghana. The government of Ghana has a 10% interest.

(e) Niger, West Africa:

      The Niger property consists the Deba and Tialkam prospecting permits, which cover an area of 1,800 sq. km. in West Niger. The government of Niger holds a 10% carried interest.

4. Equipment:

					2005
			Accumulated		Net Book
	Cost		Amortization		Value
Geophysical equipment	$	87,614	$	87,614	$	—
Office equipment		103,768		64,809		38,959
Computer hardware		52,054		28,839		23,215
Drilling equipment		15,896		11,939		3,957
Leasehold improvements		8,407		8,407		—
Exploration equipment		26,410		6,903		19,507
Vehicles		461,281		109,940		351,341
	$	755,430	$	318,451	$	436,979

8

ST. JUDE RESOURCES LTD.

Notes to Consolidated Financial Statements — (Continued)

(expressed in Canadian dollars)

Years ended January 31, 2005 and 2004

					2004
			Accumulated		Net Book
	Cost		Amortization		Value
					(Restated)
Geophysical equipment	$	87,614	$	87,614	$	—
Office equipment		80,118		57,401		22,717
Computer hardware		47,812		19,052		28,760
Drilling equipment		15,896		10,950		4,946
Leasehold improvements		8,407		8,407		—
Vehicles		192,108		20,474		171,634
	$	431,955	$	203,898	$	228,057

5.     Share capital:

(a) Issued shares:

			Number of
			Shares		Consideration
Authorized:
	Unlimited Class A common voting shares without par value
	Unlimited Class B common non-voting shares without par value
Issued:
	Class A common voting shares:
		Balance at January 31, 2003		22,374,992	$	28,087,572
		Private placement for cash, November 20, 2003		9,000,000		18,000,000
		Options exercised at various dates from February 10, 2003 to November 26, 2003		240,000		50,400
		Options exercised (note 6)		—		60,960
		Warrants exercised at various dates from May 28, 2003 to January 9, 2004 [note 5(c)]		4,527,185		2,191,589
		Warrants exercised (note 6)		—		195,080
		Balance, January 31, 2004		36,142,177		48,585,601
		Shares for acquisition of mineral property		950,000		2,280,000
		Options exercised at various dates from June 18, 2004 to December 21, 2004		250,000		197,750
		Options exercised (note 6)		—		157,114
		Warrants exercised at various dates from April 2, 2004 to November 19, 2004 [note 5(c)]		1,081,107		947,904
		Warrants exercised (note 6)		—		11,259
Balance, January 31, 2005				38,423,284	$	52,179,628

      During fiscal 2005 the company issued 950,000 common shares for the acquisition of the remaining of the Benso Concession. These shares were valued at the market price of the Company’s common shares at the acquisition date.

9

ST. JUDE RESOURCES LTD.

Notes to Consolidated Financial Statements — (Continued)

(expressed in Canadian dollars)

Years ended January 31, 2005 and 2004

      During fiscal 2004 the company completed a private placement of 9 million units at a price of $2.00 per unit for gross proceeds of $18 million. Each unit consisted of one common share, plus one half of one common share purchase warrant, with each full warrant entitling the holder to purchase one additional common share at $3.00 for a period of five years.

     (b) Options:

      The company has a formal stock option plan, which was amended during fiscal 2005. The amended stock option plan specifies the aggregate number of shares in respect of which options may be granted may not exceed 7,630,095. During fiscal 2004 the company approved the formal stock option plan, which specified that the aggregate number of shares in respect of which options may be granted may not exceed 4,611,524. Prior to that date, the company did not have a formal stock option plan. The Board of Directors makes a recommendation annually concerning any stock options to be granted to the employees and directors. Stock options require the approval of the regulators.

	Number of			Weighted Average
	Optioned Shares			Exercise Price
Outstanding, end of 2003		1,795,000		$	0.45
Exercised		(240,000	)		(0.21	)
Granted		1,850,000			1.80
Outstanding, end of 2004		3,405,000			1.20
Exercised		(250,000	)		(0.79	)
Granted		1,625,000			1.31
Outstanding, end of 2005		4,780,000			1.26

      All stock options granted are fully vested on the grant date.

      During the year, employees and directors of the Company exercised stock options for 250,000 (2004 – 240,000) common shares for aggregate cash consideration of $197,750 (2004 – $50,400).

      The following table summarizes information about the stock options outstanding at January 31, 2005:

	Weighted		Number of Options		Weighted
	Exercise		Outstanding and		Average
	Price		Exercisable		Remaining Life
Directors’ options	$	0.21		807,500		2.03 years
Directors’ options		1.80		800,000		3.75 years
Directors’ options		1.31		450,000		4.64 years
Employee options		0.21		232,500		2.03 years
Employee options		1.30		290,000		0.95 years
Employee options		1.80		1,050,000		3.75 years
Employee options		1.31		1,150,000		4.64 years
				4,780,000

10

ST. JUDE RESOURCES LTD.

Notes to Consolidated Financial Statements — (Continued)

(expressed in Canadian dollars)

Years ended January 31, 2005 and 2004

      The following table summarizes information about the stock options outstanding at January 31, 2004:

	Weighted		Number of Options		Weighted
	Exercise		Outstanding and		Average
	Price		Exercisable		Remaining Life
Directors’ options	$	0.21		807,500		3.04 years
Directors’ options		1.80		800,000		4.75 years
Employee options		0.21		232,500		3.04 years
Employee options		0.80		75,000		0.87 years
Employee options		0.70		150,000		0.39 years
Employee options		1.30		290,000		1.95 years
Employee options		1.80		1,050,000		4.75 years
				3,405,000

      During the year, compensation costs in the amount of $1,402,677 (2004 – $2,236,386) were recorded in the statement of operations for options granted to employees and directors.

      The following weighted average assumptions were used for the Black-Scholes valuation of stock options granted during each year:

	2005		2004
Risk-free interest rate		3.96%		3.2% – 4.1%
Expected life		5 years		2 – 5 years
Annualized volatility		79%		81% – 83%
Dividend rate		0.00%		0.00%
Weighted average fair value of options granted	$	0.86	$	1.44

     (c) Warrants:

      Warrants issued which are still outstanding at January 31, 2005 are as follows:

					Price
			Number of		Per
	Expiry Date		Shares		Share
Agent compensation warrants		November 20, 2005		900,000		2.00
Share purchase warrants		November 20, 2008		4,500,000		3.00

      Warrants issued which are still outstanding at January 31, 2004 are as follows:

					Price
			Number of		Per
	Expiry Date		Shares		Share
Share purchase warrants		May 28, 2004		39,000	$	0.28
Share purchase warrants		June 3, 2004		945,968		0.90
Share purchase warrants		June 4, 2004		73,334		0.90
Agent compensation warrants		December 3, 2004		22,805		0.86
Agent compensation warrants		November 20, 2005		900,000		2.00
Share purchase warrants		November 20, 2008		4,500,000		3.00

11

ST. JUDE RESOURCES LTD.

Notes to Consolidated Financial Statements — (Continued)

(expressed in Canadian dollars)

Years ended January 31, 2005 and 2004

      During the year, 1,058,302 (2004 – 4,156,750) share purchase warrants and 22,805 (2004 – 370,435) agent compensation warrants were exercised to acquire 1,081,107 (2004 – 4,527,185) common shares for total cash consideration of $947,904 (2004 – $2,191,589)

      During the year, fair value in the amount of nil (2004 – $1,732,677) was charged as share issue costs to deficit with respect to the issued agent compensation warrants. The fair value related to these warrants was calculated using the Black-Scholes option pricing model using the same assumptions as those described for options in note 5(b) above.

     (d) Loss per share:

      For 2005 and 2004, the diluted loss per share is the same as basic loss per share as the effect of the exercise of all outstanding options and warrants on loss per share would be anti-dilutive. The effect of stock options and warrants upon the basic average number of common shares outstanding would increase the average number of shares outstanding by 1,054,856 (2004 – 1,607,535) such that the diluted average number of common shares outstanding is 38,931,454 (2004 – 27,186,380).

6. Contributed surplus:

	2005			2004
Opening balance	$	4,365,625		$	652,602
Options granted [note 5(b)]		1,402,677			2,236,386
Warrants granted [note 5(c)]		—			1,732,677
Options exercised		(157,114	)		(60,960	)
Warrants exercised		(11,259	)		(195,080	)
Ending balance	$	5,599,929		$	4,365,625

7. Investment in i to i logistics inc.:

      The January 31, 2004 consolidated financial statements of the Company reflect the operations of its 51% subsidiary, i to i logistics inc., to July 31, 2003. Segmented disclosures for the subsidiary were not presented in prior years as the results of i to i logistics inc. were not significant to the consolidated financial statements to warrant separate disclosure. On July 31, 2003, the Company’s investment in shares of the subsidiary were surrendered to i to i logistics inc. for nil proceeds and subsequently cancelled. Accumulated losses of the subsidiary recorded in the consolidated financial statements to January 31, 2003 were $462,525. Losses for the period February 1, 2003 to July 31, 2003 included in the January 31, 2004 year’s operations were $4,332.

12

ST. JUDE RESOURCES LTD.

Notes to Consolidated Financial Statements — (Continued)

(expressed in Canadian dollars)

Years ended January 31, 2005 and 2004

      Immediately following the cancellation of the surrendered shares, the Company exchanged its advances receivable from the previous subsidiary, in the amount of $497,420, for a 25% equity interest. The series of transactions have been reflected in the financial statements as follows:

Initial investment in shares	$	51
Outstanding advances receivable at July 31, 2003		497,420
Accumulated losses to July 31, 2003		(466,857	)
Investment in i to i logistics inc. at July 31, 2003		30,614
Write down of investment in i to i logistics inc		(30,614	)
Balance, January 31, 2004 and 2005	$	—

8. Commitments:

      (a) On September 1, 2003, the Company entered into a three-year operating lease for premises. Minimum annual lease payments under the lease are as follows:

2006	$	28,647
2007		16,709
	$	45,356

      (b) On July 1, 2002 the Company renewed a five-year agreement with Bluestar Management Inc., a company owned by the President of St. Jude Resources Ltd., for management services for $17,500 per month to November 30, 2004. Commencing December 1, 2004 services are acquired for $20,833 per month to July 2007.

      (c) On January 24, 2005, the Company entered into a six-month Financial Advisory Agreement with Salman Partners and Haywood Securities Inc. to provide services relating to raising funds for the Company. The terms of the agreement call for a non-refundable financial advisory fee of $25,000 payable on the signing of the agreement, a monthly financial advisory fee of $10,000 and 5% of gross proceeds, in a reducing scale, on funds raised pursuant to the Financial Advisory Agreement.

13

ST. JUDE RESOURCES LTD.

Notes to Consolidated Financial Statements — (Continued)

(expressed in Canadian dollars)

Years ended January 31, 2005 and 2004

9. Future income taxes:

      Income tax expense differs from the amount computed by applying the combined federal and provincial income tax rate of 33.57% (2004 – 35.6%) to pre-tax loss as a result of the following:

		2005			2004
					[Restated
					note 1(j)]
Loss before income taxes		$	(8,140,475	)	$	(6,757,589	)
Expected income tax recovery at basic rate		$	(2,732,759	)	$	(2,405,702	)
Unrealized foreign exchange loss (gain)			(5,822	)		12,155
Non-deductible compensation expense for tax purposes			470,879			796,153
Non-deductible meals and entertainment expenses			—			538
Loss on consolidated subsidiary			—			(164,659	)
Write-off of 51% of subsidiary accounts receivable			—			177,100
Share issue costs incurred in year			—			(1,079,560	)
Impact of non-capital losses that expired in year			81,273			132,687
Impact of 10.1 asset addition variance			7,724			—
Change in enacted tax rates			591,760			880,568
Other			—			(9,315	)
Increase in valuation allowance provided with respect to future tax assets arising in current year:
	Mineral properties		1,596,197			659,463
	Equipment		28,054			(68,450	)
	Non-capital losses		295,316			344,652
	Capital losses		(39,909	)		(86,329	)
	Cumulative eligible capital		(48	)		(94	)
	Share issue costs		(292,665	)		810,793
		$	—		$	—

14

ST. JUDE RESOURCES LTD.

Notes to Consolidated Financial Statements — (Continued)

(expressed in Canadian dollars)

Years ended January 31, 2005 and 2004

      The tax effects of temporary differences that give rise to significant portions of the future tax assets and liabilities are presented below:

			2005			2004
						[Restated
						note 1(j)]
Future tax assets:
	Excess tax basis over net book value of:
		Mineral properties	$	8,261,472		$	6,665,275
		Equipment		75,011			46,957
	Non-capital loss carry-forward			2,286,960			1,991,644
	Capital loss carry-forward			659,983			699,892
	Share issue costs			680,383			973,048
	Cumulative eligible capital			793			841
Total gross future assets				11,964,602			10,377,657
Less valuation allowance				(11,964,602	)		(10,377,657	)
Net future tax asset			$	—		$	—

      The Company and its subsidiaries have accumulated non-capital losses carried forward for income tax purposes of $6,812,511 (2004 – $5,594,506), which can be applied against future years’ taxable income. These losses will expire as follows:

2005	$	567,807
2006		508,661
2007		568,590
2008		295,864
2009		681,424
2010		921,906
2011		1,808,153
2012		1,460,106
	$	6,812,511

      The Company has accumulated capital losses carried forward for income tax purposes of $3,931,980 (2004 – $3,931,980) which can be applied against future years’ taxable capital gains.

10. Related party transactions:

      During fiscal 2005, the Company paid management fees of $216,667 (2004 $210,000) to Bluestar Management Inc., a company controlled by the President of St. Jude Resources Ltd.

      During fiscal 2005, the Company paid consulting fees of $32,000 to W.K. Mining services, a company controlled by a director of the Company.

      These transactions are in the normal course of operations and are measured at the exchange amount of consideration established and agreed to by the related parties.

15

ST. JUDE RESOURCES LTD.

Notes to Consolidated Financial Statements — (Continued)

(expressed in Canadian dollars)

Years ended January 31, 2005 and 2004

11. Financial assets and financial liabilities:

      The carrying values of cash and cash equivalents, short term investment, interest receivable, accounts receivable and accounts payable and accrued liabilities approximates their fair values due to the relatively short periods to maturity of the instruments.

      The Company operates in various foreign jurisdictions and is exposed to foreign exchange fluctuations, primarily on the U.S. dollar. The Company does not use derivative financial instruments to mitigate its risk on foreign exchange fluctuations.

12. Supplementary information to the statements of cash flows:

	2005		2004
Interest received	$	200,638	$	67,766
Income and capital taxes paid		—		12,173
Income and capital taxes refunded		10,322		—

13. Subsequent events:

      Subsequent to January 31, 2005, the Company:

      (a) Issued 1,261,700 common shares upon the exercise of 730,000 directors’ stock options and 531,700 employee stock options for aggregate cash considerations of $720,427.

      (b) Issued 900,000 common shares for proceeds of $1,800,000 pursuant to exercise of Agent compensation warrants.

      (c) acquired Crew Gold Corporation’s remaining 25% interest in the Hwini-Butre concession by issuing 2,995,000 common shares of the company with a deemed value of CDN $5,960,050. These shares are subject to a four month statutory hold period, after which time, one third of these shares will be subject to a hold period spanning an additional 12 months.

      (d) acquired the remaining 10% interest in the Hwini-Butre concession for US $2 million from B.D. Goldfields Ltd., the original Ghanaian vendor of the project. These funds will be paid In four installments of $500,000 over an 18-month period. The first installment of $500,000 was made during September 2005.

      (e) disposed of certain non-core assets, namely:

      i) The company, under an agreement dated August 22, 2005, sold its remaining interest in i to i logistics inc. for CDN $50,000 to Michael Docherty and Associates.

      ii) The company sold its 100% interest in the Uchi Lake property located in Ontario to Dollard Mines Ltd. (“Dollard”) for CDN $10,000, together with a 1% net smelter return (“NSR”) back to St. Jude. Dollard has the option to re-purchase the NSR for CDN $1 million until September 15, 2009. Dollard is a company controlled by St. Jude’s President Michael A. Terrell.

      (f) entered into an arrangement agreement with Golden Star Resources Ltd., whereby Golden Star Resources Ltd. will acquire all of the outstanding shares of the company on the basis of 0.72 of a Golden Star common share for every St. Jude common share. The Boards of Directors of both companies and St. Jude’s shareholders have approved the transaction, completion of which is conditional on receipt of requisite regulatory and court approvals as well as satisfaction of other customary conditions.

16

ST. JUDE RESOURCES LTD.

Notes to Consolidated Financial Statements — (Continued)

(expressed in Canadian dollars)

Years ended January 31, 2005 and 2004

14. Differences Between Canadian and United States Generally Accepted Accounting Principles:

      These consolidated financial statements have been prepared in accordance with Canadian GAAP, which differs in certain respect from US GAAP. The material differences between Canadian and US GAAP affecting the company’s consolidated financial statements are:

	Year Ended			Year Ended
Consolidated Balance Sheet	January 31, 2005			January 31, 2004
Short-term investments, Canadian GAAP	$	7,000,774			—
Fair value adjustment on investments available for sale(a)		(12,702	)		—
Short-term investments, US GAAP	$	6,988,072			—
Mineral properties, Canadian GAAP	$	4,107,273		$	1,037,920
Write-down of mineral properties		—			—
Mineral properties, US GAAP	$	4,107,273		$	1,037,920
Deficit, Canadian GAAP	$	(43,651,598	)	$	(35,523,156	)
Write-down of mineral properties		—			—
Deficit, US GAAP	$	(43,651,598	)	$	(35,523,156	)
Accumulated other comprehensive income, US GAAP	$	12,702			—

	Year Ended			Year Ended
Consolidated Statements of Operation and Deficit	January 31, 2005			January 31, 2004
Net loss following Canadian GAAP	$	(8,140,475	)	$	(6,757,589	)
Net effect of write-down of mineral properties		—			—
Net loss under US GAAP	$	(8,140,475	)	$	(6,757,589	)
Other comprehensive income (loss)		(12,702	)		—
Comprehensive loss under US GAAP	$	(8,153,177	)	$	(6,757,589	)
Loss per share under US GAAP	$	(0.22	)	$	(0.26	)
Weighted average number of shares outstanding		37,876,598			25,578,845

	Year Ended			Year Ended
Consolidated Statements of Cash Flows	January 31, 2005			January 31, 2004
Cash flows used in operating activities, Canadian GAAP	$	(6,932,249	)	$	(4,045,449	)
Adjustments to restate to US GAAP		—			—
Cash flows used in operating activities, US GAAP	$	(6,932,249	)	$	(4,045,449	)
Cash flows used in investing activities, Canadian GAAP	$	(8,113,602	)	$	(1,095,347	)
Adjustment to restate to US GAAP		—			—
Cash flows provided by (used in) operating activities, US GAAP	$	(8,113,602	)	$	(1,095,347	)

17

ST. JUDE RESOURCES LTD.

Notes to Consolidated Financial Statements — (Continued)

(expressed in Canadian dollars)

Years ended January 31, 2005 and 2004

(a)

Under United States GAAP, the Company’s short term investments are considered available for sale securities and are reported at fair values, with unrealized gains and losses reported in other comprehensive income for the period.

(b)

Under Canadian GAAP, acquisition costs related to mineral properties and mineral interests are capitalized in addition to the annual license fees payable to maintain the mineral properties. Under United States GAAP, annual license fees are not capitalized but are expensed as incurred. During 2005 the Company retroactively changed its accounting policy with respect to accounting for exploration expenditures as disclosed in note 1(j). As a result of the change in accounting principles for Canadian GAAP purposes no difference exists with respect to the accounting principles applied.

18

ST. JUDE RESOURCES LTD.

Consolidated Schedule of Exploration Expenditures

(expressed in Canadian dollars)

January 31, 2005 and 2004

	Hwini-Butre		Benso		Shieni-Hills		Burkina Faso		Niger		2005 Total
Amortization	$	36,245	$	49,150	$	—	$	14,148	$	—	$	99,543
Consulting/personnel		507,519		329,735		37,196		203,209		12,812		1,090,471
Consumable field equipment		23,308		5,832		1,163		3,215		—		33,518
Drilling		357,351		1,647,858		—		1,489,501		112,182		3,606,892
Geochemical surveys		8,315		1,559		4,604		—		—		14,478
Geological mapping		23,566		30,511		—		—		—		54,077
Geophysical surveys		—		—		—		25,256		—		25,256
Line cutting and clearing		7,251		18,559		378		—		—		26,188
Soil sampling, trenching and pitting		12,282		24,341		47,714		17,617		—		101,954
Support services		331,453		388,856		47,715		80,772		18,229		867,025
Heap leach plant deposit		—		—		—		67,145		—		67,145
Total expenditures		1,307,290		2,496,401		138,770		1,900,863		143,223		5,986,547
Balance, January 31, 2004		11,901,552		4,996,484		36,969		1,294,306		—		18,229,311
Balance, January 31, 2005	$	13,208,842	$	7,492,885	$	175,739	$	3,195,169	$	143,223	$	24,215,858

	Hwini-Butre		Benso		Shieni-Hills		Burkina Faso		Niger		2004 Total
Amortization	$	4,154	$	11,229	$	—	$	6,941	$	—	$	22,324
Consulting/personnel		64,791		261,711		—		105,177		—		431,679
Consumable field equipment		—		2,063		—		1,559		—		3,622
Drilling		111,385		920,085		—		816,038		—		1,847,508
Geochemical surveys		—		—		—		—		—		—
Geological mapping		—		49,550		—		—		—		49,550
Geophysical surveys		—		—		—		—		—		—
Line cutting and clearing		—		36,437		3,606		27,714		—		67,757
Soil sampling, trenching and pitting		—		91,406		—		259		—		91,665
Support services		92,155		526,140		33,363		210,513		—		862,171
Heap leach plant deposit		—		—		—		—		—		—
Total expenditures		272,485		1,898,621		36,969		1,168,201		—		3,376,276
Balance, January 31, 2003		11,629,067		3,097,863		—		126,105		—		14,853,035
Balance, January 31, 2004	$	11,901,552	$	4,996,484	$	36,969	$	1,294,306	$	—	$	18,229,311

19

INDEX TO FINANCIAL STATEMENTS OF

ST. JUDE RESOURCES LTD.

Unaudited Consolidated Financial Statements for the six and three month periods ended July 31, 2005 and 2004 21

20

ST. JUDE RESOURCES LTD.

Consolidated Balance Sheets

(expressed in Canadian dollars)

			July 31, 2005			January 31, 2005
			(Unaudited)
			(Restated)
ASSETS
Current assets:
	Cash and cash equivalents		$	1,042,193		$	2,804,714
	Short-term investments			5,333,875			7,000,774
	Accounts receivable			25,967			12,202
	Interest receivable			71,121			101,298
	Income taxes recoverable			838			838
	Prepaid expenses			3,581			3,581
				6,477,575			9,923,407
	Mineral properties (note 3)			4,147,378			4,107,273
	Equipment			760,210			755,430
		Less accumulated amortization		(381,480	)		(318,451	)
				378,730			436,979
			$	11,003,683		$	14,467,659
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities:
	Accounts payable and accrued liabilities		$	1,132,999		$	339,700
Shareholders’ Equity:
	Share capital (note 4)			52,775,523			52,179,628
	Contributed surplus (note 5)			5,306,341			5,599,929
	Deficit			(48,211,180	)		(43,651,598	)
				9,870,684			14,127,959
			$	11,003,683		$	14,467,659

See accompanying notes to consolidated interim financial statements.

21

ST. JUDE RESOURCES LTD.

Consolidated Statements of Operations and Deficit

(expressed in Canadian dollars)

			Three Months Ended July 31						Six Months Ended July 31
			2005			2004			2005			2004
			(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)
									(Restated)
Expenses:
		Exploration expense (schedule 1)	$	1,970,586		$	2,179,513		$	4,107,762		$	3,612,748
		Management fees		62,500			52,500			125,000			105,000
		Wages and benefits		47,185			37,587			95,007			61,927
		Consulting fees		48,000			24,000			91,000			68,714
		Professional fees		63,389			15,436			78,965			16,088
		Office		23,877			13,129			40,823			29,852
		Administration		27,148			26,973			34,281			36,226
		Rent		11,752			11,654			23,130			22,923
		Promotion and advertising		3,306			27,174			22,089			73,778
		Travel		131			42,662			7,744			62,118
		Amortization		3,332			3,429			6,663			6,494
		Investor communication		1,346			3,905			3,290			8,989
		Bank charges and interest		1,395			1,276			2.982			2,395
				2,263,947			2,439,238			4,638,736			4,107,252
Income:
	Interest			43,013			34,939			97,565			60,263
	Foreign exchange gain/ (loss)			(16,631	)		5,013			(18,411	)		7,661
				26,382			39,952			79,154			67,924
Net loss				(2,237,565	)		(2,399,286	)		(4,559,582	)		(4,039,328	)
Deficit, beginning of period				(45,973,615	)		(37,163,198	)		(43,651,598	)		(35,523,156	)
Share issue costs recovered				—			12,033			—			12,033
Deficit, end of period			$	(48,211,180	)	$	(39,550,451	)	$	(48,211,180	)	$	(39,550,451	)
Loss per share, basic and diluted			$	(0.06	)	$	(0.06	)	$	(0.12	)	$	(0.11	)
Weighted average number of common shares				39,319,324			37,773,843			39,261,386			37,391,558

See accompanying notes to consolidated interim financial statements.

22

ST. JUDE RESOURCES LTD.

Consolidated Statements of Cash Flows

(expressed in Canadian dollars)

			Three Months						Six Months
			Ended July 31						Ended July 31
			2005			2004			2005			2004
			(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)
									(Restated)
Cash provided by (used in):
Operations:
	Net loss		$	(2,237,565	)	$	(2,399,286	)	$	(4,559,582	)	$	(4,039,328	)
	Adjustment for non-cash items:
		Amortization		3,332			3,429			6,663			6,494
		Amortization Exploration (schedule 1)		28,861			24,700			56,366			46,397
		Foreign exchange (gain)/ loss		16,631			(5,013	)		18,411			(7,661	)
	Change in non-cash operating working capital:
		Accounts receivable		(14,059	)		984			(13,765	)		(4,028	)
		Interest receivable		48,758			(334,777	)		30,177			(334,777	)
		Income taxes recoverable		—			—			—			(930	)
		Prepaid expenses		—			—			—			(67,145	)
		Accounts payable and accrued liabilities		82,245			582,096			793,299			709,823
				(2,071,797	)		(2,127,867	)		(3,668,431	)		(3,691,155	)
Investments:
	Short-term investments			1,605,631			(6,870,000	)		1,666,899			(6,870,000	)
	Additions to mineral properties			(40,105	)		(299,255	)		(40,105	)		(513,628	)
	Additions to equipment			—			(26,674	)		(4,780	)		(176,951	)
				1,565,526			(7,195,929	)		1,622,014			(7,560,579	)
Financing:
	Issuance of class “A” shares			—			1,024,292			302,307			1,033,292
	Share issue costs recovery			—			12,033			—			12,033
				—			1,036,325			302,307			1,045,325
Foreign exchange gain/(loss) on cash held in foreign currency				(16,631	)		5,013			(18,411	)		7,661
Increase/(decrease) in cash and cash equivalents				(522,902	)		(8,282,458	)		(1,762,521	)		(10,198,748	)
Cash and cash equivalents, beginning of period				1,565,095			14,776,588			2,804,714			16,692,878
Cash and cash equivalents, end of period			$	1,042,193		$	6,494,130		$	1,042,193		$	6,494,130
Supplementary Information:
	Interest paid			—			—			—			—
	Interest received		$	91,771		$	34,939		$	127,742		$	60,263
	Taxes paid			—			—			—		$	930
Non-cash investing and financing activities:
	Issued 950,000 common shares to acquire remainder of Benso concession, which is included with mineral properties			—			—			—		$	2,080,500

See accompanying notes to consolidated interim financial statements.

23

ST. JUDE RESOURCES LTD.

Notes to Consolidated Interim Financial Statements

For the Six and Three Month Periods Ended July 31, 2005

(expressed in Canadian dollars)

1. Nature of operations:

      The company is incorporated under the Canada Business Corporations Act. The company’s principal operations consist of investments in mineral properties. The company is in the process of exploring its properties and has not yet determined whether these properties contain reserves that are economically recoverable.

      The recoverability of acquisition costs for mineral properties is dependent upon the discovery of economically recoverable reserves, confirmation of the company’s interest in the underlying claims, the ability of the company to obtain the necessary financing to complete the development and future profitable production or proceeds from the disposition thereof.

      The viability of the projects and the ability for the company to continue as a going concern are dependent on future financing. If financing is not achieved, the company may not be able to meet its obligations as they become due. These financial statements have been prepared on the going concern basis that assumes continuity of operations and realization and settlement of liabilities in the normal course of business. A different basis of measurement may be appropriate if the going concern assumption does not prevail.

2. Basis of Presentation:

      a) The financial statements as at July 31, 2005 and for the three and six months ended July 31, 2005 and 2004 are unaudited; however, such financial statements reflect all adjustments that are, in the opinion of management, necessary for the fair presentation of the results for the interim periods presented. The interim unaudited consolidated financial statements of St. Jude Resources Ltd. do not contain all the disclosure required by Canadian generally accepted accounting principles for annual financial statements and should be read in conjunction with the annual audited financial statements for the year ended January 31, 2005. These interim consolidated financial statements have been prepared based on the same accounting policies and methods as those used in the January 31, 2005 accounts.

      The comparative figures of the July 31, 2004 quarter have been restated to reflect the change in accounting policy effected at January 31, 2005 for exploration expenditures. Under the new accounting policy, exploration expenditures are expensed as they are incurred.

      b) For the six months ended July 31, 2005, the company has restated its interim financial statements to reflect the expensing of $18,517 previously capitalized as a prepaid expense, and a reclassification of $2.5 million from cash and cash equivalents to short-term investments. The notes to the July 31, 2005 interim financial statements were restated for the inclusion of concerns about the company’s ability to continue as a going concern and additional subsequent events disclosure.

3. Mineral Properties:

Acquisition costs:	Hwini-Butre		Benso		Shieni Hills		Burkina Faso		Niger		Total
Balance, January 31, 2005	$	744,448	$	2,994,070	$	20,000	$	247,656	$	101,099	$	4,107,273
Incurred during the period		—		—		18,372		—		21,733		40,105
Balance, July 31, 2005	$	744,448	$	2,994,070	$	38,372	$	247,656	$	122,832	$	4,147,378

24

ST. JUDE RESOURCES LTD.

Notes to Consolidated Interim Financial Statements — (Continued)

For the Six and Three Month Periods Ended July 31, 2005

(expressed in Canadian dollars)

4. Share Capital:

     a) Issued shares:

		Number of shares		Consideration
Authorized:
	Unlimited Class A common voting shares without par value Unlimited Class B common voting shares without par value (continued — next page)
Issued:
	Class A common voting shares:
	Balance January 31, 2004		36,142,177	$	48,585,601
	Shares for acquisition of mineral property		950,000		2,280,000
	Exercise of employee stock options		250,000		197,750
	Allocation from contributed surplus upon exercise of stock options		—		157,114
	Exercise of warrants		1,081,107		947,904
	Allocation from contributed surplus upon exercise of warrants		—		11,259
	Balance January 31, 2005		38,423,284		52,179,628
	Exercise of employee and directors stock options		891,700		293,627
	Allocation from contributed surplus upon exercise of stock options		—		285,233
	Exercise of warrants		4,340		8,680
	Allocation from contributed surplus upon exercise of warrants		—		8,355
	Balance July 31, 2005		39,319,324		52,775,523

     b)  Options:

      During the period, employee and director stock options were exercised for 891,700 common shares, for aggregate cash consideration of $293,627. As at July 31, 2005 following incentive stock options were outstanding:

	Number of Options			Weighted Average Exercise Price
Outstanding January 31, 2005		4,780,000		$	1.26
Exercised		(891,700	)		(0.329	)
Balance July 31, 2005		3,888,300		$	1.47

25

ST. JUDE RESOURCES LTD.

Notes to Consolidated Interim Financial Statements — (Continued)

For the Six and Three Month Periods Ended July 31, 2005

(expressed in Canadian dollars)

      The following table summarizes incentive stock options outstanding at July 31, 2005:

			Number of Options
			Outstanding and		Average Remaining
	Exercise Price		Exercisable		Life in Years
Directors’ options	$	0.21		77,500		1.54
Directors’ options	$	1.80		800,000		3.25
Directors’ options	$	1.31		450,000		4.15
Employee options	$	0.21		167,500		1.54
Employee options	$	1.30		290,000		0.45
Employee options	$	1.80		1,050,000		3.25
Employee options	$	1.31		1,053,300		4.15
				3,888,300

c) Warrants:

      During the period, 4,340 agent compensation warrants were exercised to acquire 4,340 common shares, for a total cash consideration of $8,680. As at July 31, 2005, the following share purchase warrants were outstanding:

					July 31, 2005		January 31, 2005
			Exercise		Number of		Number of
	Expiry Date		Price		Shares		Shares
Agents compensation warrants		November 20, 2005	$	2.00		895,660		900,000
Share purchase warrants		November 20, 2008	$	3.00		4,500,000		4,500,000
Total						5,395,660		5,400,000

5. Contributed Surplus:

	July 31, 2005			January 31, 2005
Opening Balance	$	5,599,929		$	4,365,625
Options granted		—			1,402,677
Warrants granted		—			—
Options exercised		(285,233	)		(157,114	)
Warrants exercised		(8,355	)		(11,259	)
Ending balance	$	5,306,341		$	5,599,929

6. Related Party Transactions:

      Related party transactions not disclosed elsewhere in these financial statements, for the six month period ended July 31, 2005 are as follows:

      a) A total of $125,000 was paid for management services to Bluestar Management Inc, a company controlled by the President and C.E.O of the company.

26

ST. JUDE RESOURCES LTD.

Notes to Consolidated Interim Financial Statements — (Continued)

For the Six and Three Month Periods Ended July 31, 2005

(expressed in Canadian dollars)

      b) A total of $20,000 was paid to WK Mining Services, a company controlled by a director of the company for consulting fees for work provided on exploration projects charged to exploration expenditures.

7. Differences Between Canadian and United States Generally Accepted Accounting Principles:

      These consolidated financial statements have been prepared in accordance with Canadian GAAP, which differs in certain respect from US GAAP. The material differences between Canadian and US GAAP affecting the company’s consolidated financial statements are:

	Year Ended			Year Ended			Six Months Ended
Consolidated Balance Sheet	January 31, 2005			January 31, 2004			July 31, 2005
Short-term investments, Canadian GAAP	$	7,000,774			—		$	5,333,875
Fair value adjustment on investments available for sale(a)		(12,702	)		—			(838	)
Short-term investments, US GAAP	$	6,988,072			—		$	5,333,037
Mineral properties, Canadian GAAP	$	4,107,273		$	1,037,920		$	4,147,378
Write-down of mineral properties(b)		—			—			(40,105	)
Mineral properties, US GAAP	$	4,107,273		$	1,037,920		$	4,107,273
Deficit, Canadian GAAP	$	(43,651,598	)	$	(35,523,156	)	$	(48,211,180	)
Write-down of mineral properties		—			—			(40,105	)
Deficit, US GAAP	$	(43,651,598	)	$	(35,523,156	)	$	(48,251,285	)
Accumulated other comprehensive income, US GAAP	$	12,702			—		$	838

	Year Ended			Year Ended			Six Months Ended
Consolidated Statements of Operation and Deficit	January 31, 2005			January 31, 2004			July 31, 2005
Net loss following Canadian GAAP	$	(8,140,475	)	$	(6,757,589	)	$	(4,559,582	)
Net effect of write-down of mineral properties		—			—			(40,105	)
Net loss under US GAAP	$	(8,140,475	)	$	(6,757,589	)	$	(4,599,687	)
Other comprehensive income (loss)		(12,702	)		—			11,864
Comprehensive loss under US GAPP	$	(8,153,177	)	$	(6,757,589	)	$	(4,587,823	)
Loss per share under US GAAP	$	(0.22	)	$	(0.26	)	$	(0.12	)
Weighted average number of shares outstanding		37,876,598			25,578,845			39,261,386

27

ST. JUDE RESOURCES LTD.

Notes to Consolidated Interim Financial Statements — (Continued)

For the Six and Three Month Periods Ended July 31, 2005

(expressed in Canadian dollars)

	Year Ended			Year Ended			Six Months Ended
Consolidated Statements of Cash Flows	January 31, 2005			January 31, 2004			July 31, 2005
Cash flows used in operating activities, Canadian GAAP	$	(6,932,249	)	$	(4,045,449	)	$	(3,668,431	)
Adjustments to restate to US GAAP		—			—			(40,105	)
Cash flows used in operating activities, US GAAP	$	(6,932,249	)	$	(4,045,449	)	$	(3,708,536	)
Cash flows used in investing activities, Canadian GAAP	$	(8,113,602	)	$	(1,095,347	)	$	1,622,014
Adjustment to restate to US GAAP		—			—			40,105
Cash flows provided by (used in) operating activities, US GAAP	$	(8,113,602	)	$	(1,095,347	)	$	1,662,119

(a)

Under United States GAAP, the Company’s short term investments are considered available for sale securities and are reported at fair values, with unrealized gains and losses reported in other comprehensive income for the period.

(b)

Under Canadian GAAP, acquisition costs related to mineral properties and mineral interests are capitalized in addition to the annual license fees payable to maintain the mineral properties. Under United States GAAP, annual license fees are not capitalized but are expensed as incurred. During 2005 the Company retroactively changed its accounting policy with respect to accounting for exploration expenditures as disclosed in note 1(j). As a result of the change in accounting principles for Canadian GAAP purposes, $4,107,762 of a Canadian/US GAAP difference with respect to exploration expenses has been eliminated.

8. Subsequent Events: Subsequent to July 31, 2005, the company:

      a) acquired Crew Gold Corporation’s remaining 25% interest in the Hwini-Butre concession by issuing 2,995,000 common shares of the company with a deemed value of CDN $5,960,050. These shares are subject to a four month statutory hold period, after which time, one third of these shares will be subject to a hold period spanning an additional 12 months.

      b) acquired the remaining 10% interest in the Hwini-Butre concession for US $2 million from B.D. Goldfields Ltd., the original Ghanaian vendor of the project. These funds will be paid in four instalments of $500,000 over an 18 month period. The first installment of $500,000 was made during September 2005.

      c) disposed of certain non-core assets, namely:

      i) The company, under an agreement dated August 22, 2005, sold its remaining interest in i to i logistics inc. for CDN $50,000 to Michael Docherty and Associates.

      ii) The company sold its 100% interest in the Uchi Lake property located in Ontario to Dollard Mines Ltd. (“Dollard”) for CDN $10,000, together with a 1% net smelter return (“NSR”) back to St. Jude. Dollard has the option to re-purchase the NSR for CDN $1 million until September 15, 2009. Dollard is a company controlled by St. Jude’s President Michael A. Terrell.

      d) entered into an arrangement agreement with Golden Star Resources Ltd., whereby Golden Star Resources Ltd. will acquire all of the outstanding shares of the company on the basis of 0.72 of a Golden Star common share for every St. Jude common share. The Boards of Directors of both companies and St.

28

ST. JUDE RESOURCES LTD.

Notes to Consolidated Interim Financial Statements — (Continued)

For the Six and Three Month Periods Ended July 31, 2005

(expressed in Canadian dollars)

Jude’s shareholders have approved the transaction, completion of which is conditional on receipt of requisite regulatory and court approvals as well as satisfaction of other customary conditions.

      e) issued 895,660 common shares of the company for proceeds of $1,791,320 pursuant to the exercise of agents’ warrants.

      f) issued 370,000 common shares of the company for proceeds of $426,800 pursuant to the exercise of employee stock options.

SCHEDULE 1

Exploration Expenditures — Three Months Ended July 31, 2005

	Hwini-Butre		Benso		Shieni Hills		Burkina Faso		Niger		Other		Total
Amortization	$	20,319	$	2,540	$	2,540	$	2,408	$	1,054	$	—	$	28,861
Consulting/personnel		161,681		23,532		15,361		127,452		58,929		1,675		388,630
Consumable field equipment		11,607		2,202		2,202		37,594		—		—		53,605
Drilling		464,623		2,858		2,858		565,014		219,400		—		1,254,753
Geochemical surveys		7,559		944		945		—		—		—		9,448
Line cutting & clearing		697		87		88		—		—		—		872
Soil sampling, trenching & pitting		21,652		1,439		1,439		—		—		—		24,530
Support services		92,001		14,970		11,049		53,693		37,339		835		209,887
Total expenditures		780,139		48,572		36,482		786,161		316,722		2,510		1,970,586
Balance, April 30, 2005		13,954,341		7,678,608		242,882		3,869,940		587,641		19,622		26,353,034
Balance, July 31, 2005	$	14,734,480	$	7,727,180	$	279,364	$	4,656,101	$	904,363	$	22,132	$	28,323,620

Exploration Expenditures — Three Months Ended July 31, 2004

	Hwini-Butre		Benso		Shieni Hills		Burkina Faso		Niger		Other		Total
Amortization	$	4,233	$	16,930	$	—	$	3,537	$	—	$	—	$	24,700
Consulting/personnel		54,601		79,525		4,654		41,874		—		—		180,654
Consumable field equipment		—		2,085		—		—		—		—		2,085
Drilling		5,256		874,944		—		845,814		—		—		1,726,014
Geological mapping		—		—		—		—		—		—		—
Line cutting & clearing		1,101		14,669		—		—		—		—		15,770
Soil sampling, trenching & pitting		—		3,274		2,075		39		—		—		5,388
Support services		36,415		151,198		9,826		27,463		—		—		224,902
Total expenditures		101,606		1,142,625		16,555		918,727		—		—		2,179,513
Balance, April 30, 2004		11,969,396		5,761,586		107,353		1,824,211		—		—		19,662,546
Balance, July 31, 2004	$	12,071,002	$	6,904,211	$	123,908	$	2,742,938	$	—	$	—	$	21,842,059

29

ST. JUDE RESOURCES LTD.

Notes to Consolidated Interim Financial Statements — (Continued)

For the Six and Three Month Periods Ended July 31, 2005

(expressed in Canadian dollars)

SCHEDULE 1

Exploration Expenditures — Six Months Ended July 31, 2005

	Hwini-Butre		Benso		Shieni Hills		Burkina Faso		Niger		Other		Total
Amortization	$	39,330	$	3,969	$	6,074	$	4,884	$	2,109	$	—	$	56,366
Consulting/personnel		311,169		46,489		38,583		242,683		102,937		2,780		744,641
Consumable field equipment		23,943		2,972		4,511		48,215		—		—		79,641
Drilling		806,655		152,881		11,388		1,049,595		595,005		—		2,615,524
Geochemical surveys		26,161		2,107		4,433		—		—		—		32,701
Line cutting & clearing		2,603		206		445		—		—		—		3,254
Soil sampling, trenching & pitting		102,549		2,213		4,700		6,771		—		—		116,233
Support services		213,228		23,458		33,491		108,784		61,089		835		440,885
Permit fee		—		—		—		—		—		18,517		18,517
Total expenditures		1,525,638		234,295		103,625		1,460,932		761,140		22,132		4,107,762
Balance, January 31, 2005		13,208,842		7,492,885		175,739		3,195,169		143,223		—		24,215,858
Balance, July 31, 2005	$	14,734,480	$	7,727,180	$	279,364	$	4,656,101	$	904,363	$	22,132	$	28,323,620

Exploration Expenditures — Six Months Ended July 31, 2004

	Hwini-Butre		Benso		Shieni Hills		Burkina Faso		Niger		Other		Total
Amortization	$	7,865	$	31,458	$	—	$	7,074	$	—	$	—	$	46,397
Consulting/personnel		74,171		165,590		9,506		120,847		—		—		370,114
Consumable field equipment		2,746		2,343		—		3,215		—		—		8,304
Drilling		6,470		1,309,150		—		1,269,740		—		—		2,585,360
Geological mapping		23,566		23,566		—		—		—		—		47,132
Line cutting & clearing		1,200		17,425		—		—		—		—		18,625
Soil sampling, trenching & pitting		2		19,863		46,946		5,617		—		—		72,428
Support services		53,430		338,332		30,487		42,139		—		—		464,388
Total expenditures		169,450		1,907,727		86,939		1,448,632		—		—		3,612,748
Balance, January 31, 2004		11,901,552		4,996,484		36,969		1,294,306		—		—		18,229,311
Balance, July 31, 2004	$	12,071,002	$	6,904,211	$	123,908	$	2,742,938	$	—	$	—	$	21,842,059

30