Informe Financiero 2010 (inglés)

ManagementReport

F I N A N C I A L S T A T E M E N T 2 0 1 0 - M I N E R O S S . A .

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SHAREHOLDERS’ MEETINGMarch 2, 2011

Messrs. Shareholders:

We are pleased to present to your consideration the results and activities of fiscal year 2010:

I. EXTERNAL ISSUES

Price of gold and precious metals in general had a positive performance along the year 2010.Easy access to markets and the high number of financial vehicles to invest in these metals, together with increase in physical demand of gold in the world’s main markets (India and China) as well as lax monetary policies of the world’s economies, made the price of gold both positive and volatile last year.The price of gold fell to a minimum of USD 1,061.40 USD/

troy ounce in February, and reached a maximum historic price of USD 1,423.70/ troy ounce in December; price at year’s closing was USD 1,420.78/ troy ounce, nearly 29.5 % increase on opening, at USD 1,097.10/ troy ounce.In terms of offer, world production reached a new all-time record of 2,652.1 tons, a 2.65% increase; for third consecutive year, China consolidated itself as the world’s largest producer of gold.From the perspective of demand, gold for jewelry saw 8% increase along the September 2009 – September 2010 period. Demand from small investors grew 25% to 243 tons, mainly due to 44% increase in storage of gold ingots. Demand for industrial use recovered to pre-crisis levels by reaching nearly 110 tons, showing 13% increase between September 2009 and September 2010.Expectations for gold price behavior along 2011 are quite positive: increased income levels in China and India, together with their growing savings rates, the growing fiscal concerns currently affecting different economies and the strong monetary expansion proposed by the United States to boost growth and stimulate its economy’s price levels, are some of the factors that allow optimist predictions for the price of gold along 2011.

Management report

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M A N A G E M E N T R E P O R T 5

II. PRODUCTION The company produced 3,054 kilograms of fine gold in 2010, equivalent to 98,205 ounces and 9.57% up on 2009; this year’s figure includes 13,735 ounces from the subterranean operation at Mina La Ye. Additionally, the company produced 1,612 kilograms of silver.Total volume of alluvial deposits removed was 22,169,643 cubic meters, with 71,730 tons for operation at La Ye Mine.

III. HIGHLIGHTS

1. ILLEGAL MININGThe impact of illegal mining on the country, namely the environmental damage inflicted, and its funding of illegal groups, is well-known to everybody. Illegal mining is also detrimental to our operation, since it affects our reserves, with subsequent negative economic results, and in many cases it brings about deterioration of zones previously recovered by us.Even though the Government has finally decided to prosecute these illegal activities, real control remains elusive.

2. INTEGRAL MANAGEMENT SYSTEMThe Company intensely implements activities in order to keep its Quality, Industrial Safety, and Environment certifications, and also to frame in these disciplines all its ongoing exploration projects.

3. LABOR RELATIONSThe collective bargaining agreement entered into by the company and its workers will expire this coming April 30. Given the good relations we have with our worker community, we expect to close a fair negotiation that will allow us to go on with our growth plans.

4. RELATIONS WITH THE AUTHORITIESAs in previous years, we want to highlight the important support from the National Army, the Air Force, the Navy and the Police Department of Antioquia in the operations zone. Success in our exploration and mining efforts would be very difficult without it.Despite the enormous effort of the authorities to keep the zone under control, safety has deteriorated in the past few months due to the presence of illegal groups seeking control of territory. Along the year, three terrorist blasts on transport towers of our electric system disrupted around 60 work days, with subsequent repair costs, operation difficulties, and estimated production loss of 350 kilos of gold.


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5. RECONSTRUCTION OF DREDGESUpon investment of $20,594 million, dredges 3 and 11 re-entered operation in March. Reconstruction of dredge 5 is scheduled for this year, which will guarantee adequate and safe equipment for long-term planning.For some years now, our dredges have not had insurance coverage due to the inability to find it at a reasonable price; the company, therefore, provisions part of its earnings as reserves in order to protect its assets.

6. GROWTH GOALSWe completed our Company’s structural organization and planning of projects in diverse fields that will allow us to accomplish the Growth Plan we have designed.Even though they are not the only ones, we have devoted special effort and resources to exploration projects of new deposits, some of them quite promising, and we expect them to become new production centers. Along 2010, the Company’s Mining Business Unit invested around $ 25,000 million in exploration of seven projects with gold production potential located in Antioquia, Caldas, and Tolima Provinces; it also achieved consolidation of 136,000 hectares in 95 duly registered deeds of mining rights. Additionally, and in order to venture into the international arena, the Company visited 14 exploration projects in Peru, one in Ecuador, one in Panama, and one mining operation in Mexico, of which three can turn out to be of interest, and are being evaluated for possible investment in them.

7. LA YE MINEThe mine is located 3 kilometers from the Municipality of El Bagre in the jurisdiction of Zaragoza. At that location, we advanced in set-up of a processing plant with daily estimated production of 500 tons, through contract signed with firm FLSmidth. This plant should have reached its full production in the first few months of 2010, but due to design and construction flaws, it has been possible to stabilize production of only 350 tons daily. We are doing all pertinent work to reach compliance with the contract by the supplier as well as the internal work needed to reach the goal during 2011.

8. ATACO PROJECTWe keep on developing a series of actions toward completion of this project, and we expect to be granted

the corresponding license this year, given the advantages for the region from the presence of a company that develops its work respecting all regulation and complying with its social and environmental commitments beyond the dictum of law. 9. CROPSAs part of its ongoing compensation program in the municipalities of Lower Cauca River, in 2005, the Company started plantation of rubber in 100 hectares purchased to this end. Additionally to meaning future income to the Company, this project has become an agro-industrial laboratory and model to be replicated in areas suitable for this crop.Another 300 hectares purchased near the current plantation in 2010 are being planted, and their larger scale will allow larger returns.Construction of the processing plant will start in 2011, given that the first crop is expected soon.

10. SOCIAL RESPONSIBILITYIn keeping our commitment to the company’s Social Responsibility in its area of influence, and seeking the inhabitants’ well-being and the towns’ self-management abilities, we have developed a wide program spanning several fronts. The efforts of our team of experts in these areas are already bearing fruit, especially as regards to housing, health, education, and community management. The Sustainability Report attached shows our endeavors for 2010.

11. RECOGNITIONSWe are proud of the honors conferred to the Company in 2010 for its environmental protection efforts:Environmental Responsibility Award 2010, granted by Fundación Siembra Colombia and the British Embassy. VIDA Award 2010, granted by Corantioquia. Expofinca 2010 Award to the Best in Agriculture.

IV. ASSOCIATED COMPANIES

1. PROYECTO SABALETAS S.A.S.

Through this company, we have processed the slag of the old el Zancudo mine (Titiribí, Antioquia province),

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with the following results:Metric tons ground: 71,480Equivalent gold recovered: 192 ksSilver production: 3,398 ksTotal revenues: $17,735 millionNet income: $3,471 million

Accumulated material is practically depleted, and operation closing will take place this year.

2. UNIPALMA DE LOS LLANOS S.A.

MINEROS S.A. owns 17.4% stake at this corporation. In 2010 output was 50,260 tons of fruit; net income stood at $1,116 million.

3. OPERADORA MINERA S.A.S

This corporation was created by the Company for subterranean mining operations, and it currently generates 458 jobs. Operadora Minera S.A.S.’s workers union was established as a regional branch of Sintramienergética. On January 21 of 2011, we signed

with this organization the first collective bargain agreement to replace the labor contract we had with a considerable number of workers.Income, at $143 million, is reported as income from equity method in the balance sheet of MINEROS S.A.

4. EXPLORADORA MINERA S.A.S.

This company was created on March 15 of 2010, for exploration of diverse projects that may arise in any region of the country. It currently generates 189 direct jobs. Income, at $73 million, is reported as income from equity method in the income statement of MINEROS S.A.

V. FINANCIAL ANALYSIS

Sales, at $228,614 million were 21% higher than last year. Production was exported in its totality, for a net sum of USD 120.7 million. Average price for gold sold was USD 1,229.21 per ounce, 28% up on previous year’s figure. In pesos per gram, 10.73% increase was due to the Colombian peso revaluation.


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At $88,825 million, operating income was lower than in 2009, as a result of the above-mentioned problems in set-up of la Ye Mine, which did not yield expected production, and affected production costs, raising per-ounce cost considerably. At $91,870 million, net income was lower than in 2009, because a very important entry was included in 2009 showing special valuation of investment in shares, in compliance with regulation by the Financial Superintendency.

FINANCIAL REVENUESAt the end of the fiscal year, the company showed an investment portfolio worth $102,762 million, of which 10% corresponds to shares quoted in the Stock Exchange and investments in other corporations, 5% to investments abroad, and the remaining, to fixed-income securities in Colombia. Revenues from this activity included $13,519 million from sale of investments, ($11,865 million from the sale of Mineros Nacionales), $11,226 million of dividends, ($10,366 of Mineros Nacionales), and $4,267million from yield of fixed-income securities and foreign investments abroad.

EBITDA: $123,529 million equivalent to 54.03% of sales. EVA: EVA accumulated for the year stands at $33,053 million, 24.62%.

Equity: Shareholders’ equity increased 23% from $311,656 million to $380,534 million; corresponding intrinsic value per share including appreciation is $1,454.16.During the year, the stock of Mineros saw 40.36 % depreciation vis-à-vis 33.12% drop in the IGBC.

Indebtedness: Along 2010, the company kept external indebtedness levels at a minimum, using bank loans for routine treasury operations only.

- On December 28 of 2010, two contracts were signed with Leasing Bancolombia S.A., for expansion of Central Hidroeléctrica Providencia I and construction of Central Hidroeléctrica Providencia III, worth $12,000 and $58,000 (million pesos) respectively, for a duration of 144 months and an interest rate equivalent to DTF T.A., plus 3.25 points for both contracts.

Operating margin: 39% compared to 49% in 2009.Income gross margin was 41% compared to 61% in 2009.

This variation is accounted for by the greater value of Other Revenues in 2009 resulting from the appraisal of investment in MINEROS NACIONALES S.A.

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VI MISCELLANEOUS

A. Along the year 2010, the company conducted commercial operations with the following enterprises, in which some economic link exists with members of the Board of Directors or with the Company’s managers:Compañía de Seguros Colpatria: For insurance policies covering the company: $1,103 millionInsurance policies with Colpatria were contracted under optimal market conditions, upon quote from other insurance companies.Gold sales to C.I.J Gutiérrez for $32,904 million. The sale was made at market prices and conditions.Gold sales to C.I. Fundición Escobar for $10,307 million, at market prices and conditions.

B. No other operation with companies in which Board of Directors’ members or the company’s managers have direct or indirect economic interest was carried out along the year 2010.

C. In compliance with the provisions of Law 603/2000 amending article 47 of law 222 of 1995, the following observations are to be taken into account:Decision remains pending by Antioquia’s Administrative Tribunal on the process for nullity and redress filed by the Company against DIAN Resolution of 2003 that imposed on us payment of tax on gold corresponding to production between March and December of 1998. However, as explained in previous reports, the opinion on which DIAN grounded its request was declared null by the Administrative Supreme Court in September of 2006, giving the Company the reason to cancel this contingent liability.As of fiscal year 2011, no payer of income tax and surtaxes shall be entitled to special deduction for investment in real productive assets, which stands as an important figure for the Company given its future investment plans.Whoever has requested, prior to November 01 of 2010, legal stability agreements, including stabilization of this deduction, shall be able to subscribe legal stability agreements that will include this deduction. In these cases, term of legal stability for the special deduction cannot exceed three years. Mineros filed its legal stability agreement in November of 2009, but pronouncement by the corresponding committee is still pending.

D. Production planning for 2011 indicates output of 2,895 kilograms of alluvial fine gold and 861.62

kilograms of fine gold in La Ye Mine, for a total of 3,756.62 kilograms. Based on gold price outlook, and provided a stable exchange rate, the company’s economic results will comply with our shareholders’ expectations.

E. The managers and the Board of Directors certify full compliance by the company with all rules regarding intellectual property and copyrights.

F. The Corporation’s legal representative certifies that in 2010, the Management verified the correct operation of the systems for disclosure and control of financial information established in the company, in compliance with paragraph of Article 47 of Law 964 of 2005.

G. According to verification conducted by our legal counsels, the company faces no legal processes that may jeopardize its economic stability.This report contains, as a part of itself, the provisions of article 446 of the Code of Commerce. The books and reports mandated by Law have been made available to the honorable shareholders since convening date of this meeting.The Board of Directors and the Management want to thank the effort and dedication of our employees and workers to achieve the results we are reporting today.

Eduardo Pacheco CortésJosé Fernando Llano EscandónSantiago Vásquez HauptSantiago Perdomo MaldonadoMiguel Urrutia MontoyaAlberto Mejía HernándezÁlvaro Escobar Restrepo

BEATRIZ E. URIBE R.President

January 26, 2010

I N F O R M E F I N A N C I E R O 2 0 1 0 - M I N E R O S S . A .

Statutory Auditor s Report

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To the shareholders of MINEROS S.A.:

I have audited the balance sheets of MINEROS S.A. at

December 31, 2010 and 2009 and the corresponding

statements of income, of changes in shareholders’

equity, of changes in financial position, and of cash

flows for the years then ended, as well as the summary

of the main accounting policies and other explanatory

notes.

Management is responsible for the preparation and

correct presentation of the financial statements in

conformity with the accounting principles generally

accepted in Colombia. Such responsibility includes:

designing, implementing and maintaining an internal

control system adequate for the preparation and

presentation of the financial statements, free from

significant errors due to fraud or error, selecting

and applying appropriate accounting policies, and

establishing the accounting estimates that are

reasonable under the circumstances. My responsibility

is to audit said financial statements and express an

opinion thereon based on my audits.

I obtained the information necessary to comply with

my duties and carry out my work in accordance with

auditing standards generally accepted in Colombia.

Those standards require that I plan and perform the

audit to satisfy myself that the financial statements are

free from significant errors.

An audit of financial statements includes examining,

on a test basis, the evidence supporting the amounts

and disclosures included in the financial statements.

The audit procedures selected depend on the auditor’s

professional judgment, including an evaluation of the

risk of significant errors in the financial statements. In

evaluating the risk, the statutory auditor considers the

Company’s internal control relevant for the preparation

and reasonable presentation of the financial statements,

in order to design audit procedures appropriate to

the circumstances. An audit also includes evaluating

Shareholders’ MeetingMarch 2, 2011

Statutory Auditor s Report

S T A T U T O R Y A U D I T O R ´ S R E P O R T 13

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the accounting principles used and the significant

accounting estimates made by Management, as well

as evaluating the overall presentation of the financial

statements. I consider that my audits provide a

reasonable basis for the opinion which I express.

In my opinion, the aforementioned financial statements,

taken from the accounting books, present fairly, in every

significant aspect, the financial position of MINEROS

S.A. as of December 31, 2010 and 2009, the results of

its operations, the changes in its equity, the changes

in its financial position, and its cash flows for the years

then ended, in conformity with accounting principles

generally accepted in Colombia, applied on uniform

basis. Also, based on the scope of my audit, I report

that the Company’s books were kept in conformity

with legal requirements and accounting techniques;

the transactions recorded in the accounting books and

the administrators’ acts complied with the bylaws and

the decisions of the Shareholders’ Meeting and the

Board of Directors; the correspondence, the accounting

vouchers and the minutes books and share register

were properly kept and safeguarded; the management

report agrees with the basic financial statements; and

the Company is not in default with the contributions to

the Integral Social Security System.

My evaluation of the internal control carried out in

order to establish the scope of my audit tests did not

reveal that the Company had not followed adequate

measures with respect to internal control and the

preservation and custody of its assets and those of third

parties in its possession.

LINA MARÍA VELÁSQUEZ ÁLVAREZ

Statutory Auditor

T.P. 61321-T

Designated by Deloitte & Touche Ltda.

February 8, 2011

I N F O R M E F I N A N C I E R O 2 0 1 0 - M I N E R O S S . A .

Financial Statements

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Certification of financial statements

Asamblea General de AccionistasMarch 2 / 2011

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The undersigned, Legal Representative and Chief Accounting Officer of the company, under whose responsibility the financial statements were prepared, in compliance with the bylaws hereby declare that they have previously verified the assertions therein contained, and that they have been faithfully taken from the books.

In my capacity as Legal Representative of MINEROS S.A., and in compliance with Article 46 of Law 964 of 2005, I hereby certify that the general-purpose financial statements of this corporation as of December 31, 2010, and their corresponding notes, do not contain defects, inaccuracies or errors that prevent ascertaining the true financial position and operations of the company.

BEATRIZ E. URIBE R.President

HÉCTOR TRESPALACIOS T.Chief Accounting

Professional Card No. 32758-T

BEATRIZ E. URIBE R. President

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MINEROS S.A.Balance Sheets at December 31, 2010 and 2009

(Figures in thousands of Colombian pesos)


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MINEROS S.A.Balance Sheets at December 31, 2010 and 2009

(Figures in thousands of Colombian pesos)

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MINEROS S.A.INCOME STATEMENT

For the years ended December 31, 2010 and 2009(In thousands of Colombian Pesos, except net income per share)


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MINEROS S.ASTATEMENT OF CHANGES IN FINANCIAL POSITIONFor the years ended December 31, 2010 and 2009

(In thousands of Colombian pesos)


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MINEROS S.ASTATEMENT OF CASH FLOWS

For the years ended December 31, 2010 and 2009(In thousands of Colombian pesos)

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MINEROS S.A.FINANCIAL RATIOS (Thousands of Colombian Pesos)

December 2009December 2010


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EARNINGS FOR THE YEAR 2010 AMOUNT TO $ 91,869,936,933

IT IS PROPOSED THAT THEY BE DISTRIBUTED AS FOLLOWS:

YEAR’S NET INCOME

FOR A MONTHLY DIVIDEND OF $9.00 PER SHARE DURING THE APRIL 2011-MARCH 2012 PERIOD ON 261,687,402 OUTSTANDING SHARES

FOR AN EXTRA DIVIDEND OF $36.00 PER SHARE PAYABLEIN JULY OF 2011.

FOR CHARITIES

RESERVE FOR PROTECTION OF ASSETS

RESERVE FOR NEW PROJECTS

EQUAL AMOUNTS

$ 91,869,936,933

$ 91,869,936,933

$ 28,262,239,416

9,420,746,472

1,000,000,000

2,400,000,000

50,786,951,045

$ 91,869,936,933

Proposition regarding earnings distribution

MINEROS S.A.SHAREHOLDERS’ MEETINGMARCH 2 OF 2010

Dividend will be paid between the 10th and the 20th of each month. Dividend of the month will be paid to those registered in the shareholder register on the ex-dividend day of the same period, under the terms indicated in External Circular Letter No. 13 of 1998 and External Circular Letter No. 004 of 1999 of the Securities Superintendency (today, Financial Superintendency).

Notes to the financial Statements

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- NOTE 1 -COMPANY OPERATIONS

Mineros de Antioquia S.A. is a private corporation

established on November 14, 1974 by public deed No

6161 of the 4th Notary Public Office of Medellin for a

term of ninety-nine (99) years. According to decision of

the Regular Shareholders’ Meeting of March 17 of 2004,

minutes No. 43, the corporate name was changed to

MINEROS S.A. Such decision was formalized through

public deed No. 1038 of April 19 of 2004 of the 17th

Notary Public Office of Medellín.

The Company has as its purpose the conduction of

any type of business, activities, endeavors, acts and

contracts related to the mining industry in general,

of either precious metals, metallic and non-metallic

mineral substances or hydrocarbons.

To comply with its corporate purpose, the Company’s

operation center is located in El Bagre (Antioquia

province) and its main administrative offices in

Medellín.

- NOTE 2 -ACCOUNTING POLICIES

ACCOUNTING POLICIES

The financial statements of MINEROS S.A. have been

prepared and presented according to accounting

principles generally accepted in Colombia, for which

purpose the Management has to make certain

estimates and assumptions in order to determine

the valuation of some of the individual entries in

the financial statements and to make the required

disclosures. Although they may differ in their final

effect, the Management considers that the estimates

and assumptions used were adequate under the

circumstances and that they agree with the accounting

principles generally accepted in Colombia. Certain

accounting principles applied by the Company could

disagree with the accounting principles generally

accepted in other countries.

The main accounting policies used by the Company

are:

MINEROS S.A

MINEROS S.A.

Notes to the financial statementsAt December 31 of 2010 and 2009( F i g u r e s i n t h o u s a n d s o f C o l o m b i a n p e s o s )

N O T E S T O T H E F I N A N C I A L S T A T E M E N T S 29

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.A.- Accounting system

The Company uses the accrual accounting system,

according to which revenues and expenditures

are recorded when incurred, regardless of whether

payment or collection has been in cash.

- Monetary unitAccording to legal provisions, the monetary unit used

by the Company for the Balance Sheet and Income

Statement accounts is the Colombian Peso.

- MaterialityThe Company’s policy for disclosing accounting

entries in its financial statements in order to determine

their materiality is based on the relative importance of

each sub-account with respect to the account group

to which it belongs. Accordingly, Balance Sheet

entries at December 31, 2010 representing 5% or more

of current assets, other assets, current liabilities, long-

term liabilities and equity are disclosed.

- InvestmentsInvestments are accounted at cost, which does not

exceed sale value. Based on External Circular Letter

11 of the Securities Superintendency (today Financial

Superintendency) of 1998, the Company classifies

investments as follows:

- Investments are classified as marketable and long-

term, according to the intention of realization.

Marketable investments are those easy to realize

within a term of up to three calendar years, and

for which, there is a serious intention of realization.

Long-term investments are those which are

seriously intended to be held for at least three

calendar years.

- Investments are classified as fixed-income and

variable-income, depending on the return they

generate.

- According to control, they are classified as

controlling and non-controlling, subject to the

provisions of the Colombian Code of Commerce.

- Based on the cause or reason motivating the

investment, they are voluntary or mandatory.

- Property, plant and equipmentThese are recorded at cost, which includes inflation

adjustments from January 1 of 1992 until December

31 of 2006.

Maintenance and repair expenditures that do not

increase the useful life of respective assets are recorded

as a charge in the income statement, as they are

incurred. Depreciation is calculated by the straight-line

method, based on the estimated useful life of assets,

using the following depreciation annual rates:

BUILDINGS AND CONSTRUCTIONS

5%

MACHINERY AND

EQUIPMENT

10%

ELECTRIC PLANTS AND NETWORKS

10%

FURNITURE AND

FIXTURES

10%

DREDGES

15%

TRANSPORTATION EQUIPMENT

20%

COMPUTER EQUIPMENT

20%

Given that the dredges work on a three-shift basis, the accelerated depreciation method provided for in Art. 140. of the

Fiscal Law is applied.

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- InventoriesInventories correspond to materials and consumables,

dredge maintenance materials, and others; they are

valued at the lowest between average cost and net

sale value. Materials in transit and workshop orders

under process are valued at their actual manufacturing

or acquisition costs.

- Deferred chargesAs provided by accounting and fiscal regulations,

amortization policies for deferred charges depend on

their nature, as follows:

a. Mining projects are amortized on the basis of the

deposit’s estimated exploitation time, starting on

the date when respective revenue starts. When

exploration investments result to be fruitless, they

are amortized in the same year when the project is

determined to be unviable.

b. Agricultural projects (rubber plantation and

bio-factory) are amortized along the estimated

cultivation time, upon conclusion of their non-

productive period.

c. All other deferred charges are accounted at cost;

amortization is carried out through the straight-

line method with periods ranging between one

and five years.

- Exchange differenceTransactions in foreign currency are recorded at the

applicable exchange rate in force on the date of the

transaction. Balances receivable, investments abroad,

financial liabilities and accounts payable are adjusted

monthly. The balances of such accounts at December

31, 2010 and 2008 were translated into Colombian

Pesos at the market representative rate for the end of

the month as certified by the Financial Superintendency

($1,913.98/US$ in 2010 and $2,044.23/US$ in 2009).

Exchange difference resulting from accounts payable

and foreign-currency liabilities used to purchase

inventories, deferred charges, and property, plant and

equipment are capitalized until the asset is in condition

of being used or disposed of. From that moment

on, the exchange difference is recorded against the

income statement of the period. All other exchange

gains and losses are recorded as financial revenue or

expense.

- Taxes, liens and dutiesIncome tax provision is determined on the basis of

commercial income, adequately relating the period’s

revenue to its corresponding costs and expenses, or,

on the basis of presumptive income on taxable equity,

in case it exceeds net taxable income.

- Labor liabilitiesLabor liabilities are accounted as provided by legal

regulations and binding collective bargaining

agreements.

Retirement pension liabilities payable by the Company

are determined based on actuarial studies as provided

by legal regulations.

Annual retirement pension provision is adjusted in a

rational and systematical way. Pension payments are

charged to the results of the year.

- Inflation adjustmentsLaw 1111 of 2006 and Regulatory Decree 1536 of 2007

respectively abolished the systems for integral inflation

adjustments for tax and for accounting matters,

starting January 1 of 2007.

Accordingly, accounting inflation adjustments to

non-monetary assets and liabilities accumulated until

December 31, 2006 are part of the balance of their

respective accounts for all accounting matters.

- Additional paid-in capitalThe excess of placed shares price over their par value

is recorded in the capital surplus account, additional

paid-in capital.


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- ReappraisalsThese correspond to differences between commercial

or cadastral appraisal and net book value of real estate

property. Such reappraisals are recorded in separate

assets and equity accounts as revaluation surplus,

which is not distributable. Loss of value of real estate

property is recorded through provision charged to the

period’s expenses.

Reappraisal of investments at December 31, 2010 and

2009 was conducted as established in circular letter

011 of 1998 of the Securities Superintendency (today,

Financial Superintendency) as follows:

- For tradable fixed-income investments, the latest

cost per books is recorded with a contra entry in

the income statement accounts.

- Tradable variable-income investments are valued

by affecting their latest cost recorded, with a contra

entry in the results of the period, recognizing the

revenue or expense produced depending on the

increase or decline of investment, respectively.

- Long-term investments of controlled companies

are accounted through the equity method.

- When the sale value of long-term investments of

non-controlled companies is higher than cost,

reappraisal for the period is recorded under assets

and revaluation surplus under equity. When the

sale value is lower than cost, the difference will

affect reappraisal and revaluation surplus, without

limitation upon the fact that their net balance

might be of a contrary nature.

In September of 2009, the Company hired commercial

appraisals of property, plant and equipment which

were conducted by Francisco Ochoa O. Propiedad

Raíz – Avalúos TIN 70.037.897-4, a firm with main

offices in the city of Medellín. Real estate property

was appraised using the comparative or market

method and cost or replacement method. In the

case of machinery and equipment, quotes for similar

machines and equipment were taken into account,

their original value was updated translating it into

United States Dollars on that date, and loss of value

factors due to old age and use were later applied; also

their current state was analyzed with technicians.

Both assets in depreciation process and fully

depreciated assets in use were appraised, with the

appreciation of the totally depreciated assets in use

recorded under memorandum accounts.

- Equity revaluationBalances at December 31, 2010 and 2009 correspond

to inflation adjustments to equity accounts until

December 31, 2006, minus the equity tax recorded in

compliance with Law 1111 of 2006.

According to current regulations, this balance cannot

be distributed as income until the Company is

liquidated or capitalized.

- Memorandum accountsControl memorandum accounts record financial

information for control, contingencies, and future

transactions commitments; fiscal memorandum

accounts record differences between accounting

values and values for fiscal matters.

- DonationsThe Company records donations against fiscal period

results or against occasional reserves established for

such purpose by the Shareholders’ Meeting.

- Net income per shareNet income per share is calculated on the weighted

average number of outstanding subscribed shares

during each period.

- Statement of cash flowsThe statement of cash flows was prepared by the

indirect method.

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- NOTE 3 -ACCOUNTS RECEIVABLE

At December 31, accounts receivable included:

(1) Corresponds to the debt balance paid in January of 2011 by the International Trading Company that appears below:

(2) Balances owed by the following foreign customers:

(3) Corresponds to both balance in the Company’s favor determined in private VAT calculations whose reimbursement requests were being processed at December 31, and to the discountable taxes non subject to VAT reimbursement with pending future periods compensations, as follows:

ITEM 2010 2009

National customers (1) $ 7,902,519 $ 6,491,617Foreign customers (2) 73,808 35,535Public entities (3) 3,745,168 4,869,039Related companies (4) 726,444 1,385,369Loans to associates 546,420 540,125Miscellaneous accounts receivable

290,110 390,228

Yields receivable (5) 3,002,916 928,662Other (6) 2,320,293 2,505,992

TOTAL $ 18.607.678 $ 17.146.567

2010 2009

C.I.J Gutiérrez y Cía S.A. (facturas 658 y 660)

$7.902.519 $6.491.617

2010 2009INTL Commodities INC – USA

$ 35.535

Argor Heraeus (Switzerland)

51.035 -

Metalor (Switzerland) 22.773 -

TOTAL $ 73.808 $ 35.535

PERIOD 2010 2009

July – August $ - $ 1,676,938

September – October 1,579,902 1,809,944

November – December 2,067,184 1,382,157

Discountable taxes to be compensated (exploration activities)

98,082 -

TOTAL $ 3,745,168 $ 4,869,039


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ITEM 2009Advance payments to suppliers $ 612.073 $ 558.313Advance payments to contractors 1.496.843 1.842.886 Other advance payments 211.377 104.793TOTAL $ 2.320.293 $ 2.505.992

ITEM 2010 2009Balance payable by Proyecto Sabaletas S.A.S., invoice 661, 2010 management services $ 241.955 $ -Balance payable by Operadora Minera S.A.S., invoice 662, 2010 management services 448.126 -Balance payable by Exploradora Minera S.A.S., invoice 663, 2010 management services 36.363 -Balance payable by Proyecto Sabaletas S.A.S., working capital loans. - 1.384.104Amount payable by Operadora Minera S.A.S. for reimbursement of minor expenses paid by it. - 1.265TOTAL $ 726.444 $ 1.385.369

(4) Balances owed by the following related companies:

(5) Shows financial yields from fixed-income investments and premiums paid in purchase process of these securities.

(6) Corresponds to third parties’ balances at December 31 for different items related to the normal development of the Company’s business, as follows:

- During fiscal year:

a. The Company did not deem necessary to establish provisions for doubtful accounts to protect likely loss contingency from commercial accounts receivable.

b. In 2010, no accounts receivable were written off.c. There are no accounts receivable more than one year overdue.

ITEM 2010 2009

Participation in trust estates with trust companies (1) $ 1.754.338 $ 2.500.000Trust funds administered by brokerage firms (on demand) 2.001.091 1.297.824CDT Multibanca Colpatria 6.256.139 1.500.000CDT Leasing Bancolombia S.A. 1.000.000 500.000Other CDs 23.075.023 6.299.000Public bonds – local currency 10.500.000 4.000.000Private bonds – local currency 18.571.270 4.567.265Public bonds – foreign currency - 204.423Treasuries – TES 22.862.447 1.000.000Funding operations (Treasuries –TES–) - 160.154Shares in local corporations (2) 9.936.187 56.289.854Shares in foreign corporations (3) 520.726 397.971Other investments abroad (4) 4.244.593 1.299.713Other investments (5) 2.173.275 46.745Subtotal 102.895.089 80.062.949Provision for loss of value of investments in shares of local corporations (118.458) (169.724)Provision for loss of value of investments in shares of foreign corporations (14.518) (32.451)TOTAL $ 102.762.113 $ 79.860.774

- NOTE 4 -MARKETABLE SECURITIES

At December 31, marketable securities included:

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(1) Corresponds to the rights owned at December 31 in P195 Grupo Contempo Ltda. (Oficinas Oxo – Bogotá) Trust Estate in Fidubogotá S.A. Along 2010, $313,173 was received from this Trust Estate as refunded contributions.

(2) An important reduction in shares of national corporations, as compared to previous year, was due to sale of Mineros Nacionales S.A. on February 15 of 2010 (See notes 15 and 19).

At December of 31 of 2010, the Company had as marketable securities the following investments in shares of Colombian corporations:

* Recorded at purchase price, because of their loss of value.

At December of 31 of 2009, the Company had as marketable securities the following investments in shares of Colombian corporations:

ISSUER No. SHARE (UNITS)

Market value(BOOK VALUE)

Ecopetrol S.A. 165.200 $ 672.402Pacific Rubiales Energy 11.910 751.866Conconcreto S.A. 13.153 22.107Colinversiones S.A. * 74.637 452.385Grupo Aval S.A. 202.061 346.329Tablemac S.A. 10.000.000 96.800Banco Popular S.A. 95.729 57.438Cementos Argos S.A. * 99.900 1.156.314Isagen S.A. 384.000 1.006.721Fogansa S.A. * 175.000 350.000ISA S.A 60.300 852.277Corficolombiana S.A. 15.017 532.049Suramericana de Inversiones S.A. 30.900 1.166.246Helm Bank S.A. 658.000 303.266Banco de Bogotá S.A. 7.700 446.310Bancolombia S.A. 17.000 502.222Grupo Nacional de Chocolates S.A. 37.679 1.019.334Banco de Occidente S.A. 5.367 202.121TOTAL $ 9.936.187

ISSUER NUMBER OF SHARES (UNITS)

PURCHASE PRICE

MARKET VALUE APPRECIAT.(LOSS OF VALUE)

Mineros Nacionales S.A. 203.362 $ 15.531.859 $ 53.127.343 $ 37.595.484Eternit S.A. 1.896 1.878 3.104 1.226Grupo Aval S.A. 650.000 309.199 492.843 183.644Cementos Argos S.A. 50.000 507.274 541.129 33.855ISA S.A 63.500 23.270 45.255 21.985Corficolombiana S.A. 16.975 210.838 394.152 183.314Suramericana de Inversiones S.A. 12.500 165.477 305.528 140.051Banco de Bogotá S.A. 15.000 312.544 507.000 194.456Grupo Nacional de Chocolates S.A. 25.000 317.238 523.500 206.262SUB – TOTAL $ 17.379.577 $ 55.939.854 $ 38.560.277Fogansa S.A. 175.000 350.000 180.276 (169.724)TOTAL $ 17.729.577 $ 56.120.130 $ 38.390.553


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In compliance with the provisions of Circular Letter 11 of 1998 of the Securities Superintendency (today Financial Superintendency), the Company recorded the respective appreciation (loss of value) of variable-income investments affecting the latest investment cost recorded, increasing (decreasing) their amount, with the fiscal year’s results affected as a contra account. With respect to investments in shares of corporations owned at December 31, the following values corresponding to appreciation (loss of value) were recorded as revenues (expenses).

a. Reappraisals

b. Loss of value

ISSUER 2010 2009

Ecopetrol S.A. $ 154.855 $ -Pacific Rubiales Energy 203.546 -Conconcreto S.A. 4.811 -Tablemac S.A. 3.125 -Grupo Aval S.A. 73.510 183.644Banco Popular S.A. 4.603 -Cementos Argos .S.A - 33.855ISAGEN S.A. 95.475 -ISA S.A. 24.838 21.985Corficolombiana S.A. 179.612 183.314Suramericana de Inversiones S.A. 286.403 140.051Helm Bank S.A. 14.699 -Banco de Bogotá S.A. 102.528 194.456Grupo Nacional de Chocolates S.A. 167.461 206.262Banco de Occidente 7.683 -Mineros Nacionales S.A. - 37.595.484Eternit S.A. - 1.226

TOTAL $ 1.323.149 $ 38.560.277

ISSUER 2010 2009

Cementos Argos S.A. $ 8.157 $ -Fogansa S.A. 87.643 169.724Colinversiones S.A. 20.615 -Bancolombia S.A. 2.043 -

TOTAL $ 118.458 $ 169.724

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To comply with the provisions of the Financial Superintendency regarding disclosures, the following is additionally informed with regard to such investments for the year 2010:

The following was disclosed at December 31 of 2009 regarding marketable securities.

ISSUER PARTICIPATION%

ECONOMIC ACTIVITY

DIVIDENDS RECEIVED

Thousands of $

Ecopetrol S.A. 0.0004% Hydrocarbons $ 8.190Pacific Rubiales Energy Corp. 0.0045% Hydrocarbons 313Grupo Aval S.A. 0.0014% Finance 18.959Conconcreto S.A. 0.0046% Construction 1.161Cementos Argos S.A. 0.0087% Cement 8.128Colinversiones S.A. 0.0104% Electric Power 91ISA S.A. 0.0054% Energy Transmission 3.193Isagen S.A. 0.0141% Energy Generation 11.875Corficolombiana S.A. 0.0089% Finance 21.564Tablemac S.A. 0.0394% Wood 3.850Suramericana de Inversiones S.A. 0.0067% Investments 11.045Banco Popular S.A. 0.0012% Finance -Fogansa S.A. 0.3140% Cattle -Helm Bank S.A. 0.1162% Finance 7.520Banco de Bogotá S.A. 0.0032% Finance 22.308Bancolombia S.A. 0.0033% Finance -Grupo Nacional de Chocolates S.A. 0.0087% Food 14.283Banco de Occidente S.A. 0.0039% Finance 539

ISSUER PARTICIPATION %

ECONOMIC ACTIVITY DIVIDENDS RECEIVED

(Thousands of $)

Mineros Nacionales S.A. 94.5% Mining $ -Grupo Aval S.A. 0.0047%. Finance 23.288Cementos Argos S.A. 0.0043.% Cement 1.947ISA S.A. 0.0003% Energy Transmission 9.462Corficolombiana S.A. 0.0106% Finance 20.349Suramericana de Inversiones S.A. 0.0027% Investments 4.056Fogansa S.A. 0.3140% Cattle -Banco de Bogotá S.A. 0.0063% Finance 20.850Grupo Nacional de Chocolates S.A. 0.057% Food 8.629Eternit S.A. 0.0049% Construction Materials -


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ISSUER NO. SHARES

COST THOUSANDS OF

$

MARKET VALUE

APPRECIATION(LOSS OF VALUE)

Merrill Lynch & Co. Inc. 2.769 $ 129.624 $ 115.106 $ (14.518)Petrominerales Ltd 6.150 391.102 391.102 -TOTAL NET $ 520.726 $ 506.208 ($ 14.518)

ISSUER No. SHARES

COST THOUSANDS of $

MARKET VALUE

APPRECIATION (LOSS OF VALUE)

Pacific Rubiales Energy Corp. 8.660 $ 205.633 $ 259.526 $ 53.893Merrill Lynch & Co. Inc. 2.709 138.445 105.994 (32.452)TOTAL $ 344.078 $ 365.520 $ 21.441

ISSUER PARTICIPATION %

ECONOMIC ACTIVITY

DIVIDENDS RECEIVED

(Thousands of $)

Merrill Lynch & Co. Inc. N.A. Finance $ 8.197Petrominerales Ltd. N.A. Hydrocarbons -

(3) Shares in foreign corporations

At December of 2010, MINEROS S.A. had in their investment portfolio the following investments in shares of foreign corporations:

Investments in shares abroad:

a. Were purchased in Dollars in the stock exchanges of different cities of the United States, and their cost was translated into Colombian Pesos at December 31 of 2010, at the Market Representative Rate.

b. Their market-price re-appraisal was based on the closing price at the corresponding stock exchange on the last business day of 2010.

c. Additionally, the following information is disclosed:

At December of 2009, MINEROS S.A. had in their investment portfolio the following investments in shares of foreign corporations:

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(4) Other Investments abroad

These are Exchange Traded Funds –ETF– established overseas, that replicate, in general terms, an international financial asset and are traded in stock exchanges as follows:

(5) Other investments Include the following:

The Company’s management considers that adequate investment portfolio diversification exists in order to reduce financial risk.

Cost of investment in dollars is represented at the Market Representative Rate certified by the Financial Superintendency on December 31 of 2010. Appreciation of investment in each Fund is established at fiscal month closing on the basis of the market price for the respective index.

At December 31 of 2009, Exchange Traded Funds –ETF– established overseas, that replicate, in general terms, an international financial asset and are traded in stock exchanges as follows:

FUND NUMBER OF

UNITS

PURCHASE PRICE MARKET VALUE

APPRECIAT.(LOSS OF VALUE)

Financial Sector SPDR (XLI) 5.566 $ 153.097 $ 169.919 $ 16.822Market Vectors ETF TR Brazil 667 70.923 73.636 2.713Vanguard INTL Equity 7.207 574.183 658.390 84.207Ishares Xinhua China 25 (FXI) 1.714 130.460 141.359 10.899Ishares S& P Latin América 40 (ILF) 762 65.335 78.552 13.217SPDR S&P 500 ETF TR. 6.600 1.529.270 1.588.509 59.239Ishares MSCI Emerging MKT (EEM) 16.826 1.366.595 1.534.228 167.633TOTAL $ 3.889.863 $ 4.244.593 $ 354.730

FUND NUMBER OF SHARES

PURCHASE PRICE MARKET VALUE

APPRECIAT. (LOSS OF VALUE)

Financial Sector SPDR (XLI) 5.566 163.515 163.846 331Vanguard INTL Equity 7.207 613.257 642.496 29.239Ishares Xinhua China 25 (FXI) 1.514 122.524 130.793 8.269Ishares S& P Latin América 40 (ILF) 1.348 122.606 131.691 9.085Ishares S& P Europa 350 (IEV) 1.559 122.618 124.164 1.546Ishares MSCI Emerging MKT (EEM) 1.258 102.194 106.723 4.529

TOTAL $ 1.246.714 $ 1.299.713 $ 52.999

DETAIL 2010 2009

Money market accounts (US$ 40,531.52) abroad. $ 77.576 $ 35.067Balance of overnight operations in Bancolombia Miami 95.699 -Grupo Inversiones Suramericana Commercial papers 2.000.000 -

Tax refund certificates CERT - 11.678

TOTAL $ 2.173.275 $ 46.745


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ASSET 2010 2009

Land $ 1.407.388 $ 1.296.064Mining properties 2.655.348 2.655.348Buildings and miscellaneous constructions 12.146.210 9.138.346Machinery and equipment 145.587.726 119.213.978Electric plants and networks 48.391.053 16.702.615Furniture and fixtures 717.095 322.526

Transport equipment 6.636.182 5.390.075

IT equipment 959.076 941.079

Machinery and equipment under assembly 4.063.565 45.824.393

Constructions in progress 1.391.154 257.202

Other 852 852

Subtotal $ 223.955.649 $ 201.742.478

Less: Accumulated depreciation (102.094.295) (81.922.815)

Accumulated depletion (2.655.348) (2.655.348)

TOTAL $ 119.206.006 $ 117.164.315

ASSET

ADJUSTED COST

ADJUSTED DEPRECIATION AND/

OR DEPLETION

Appraisal APPRECIATION (LOSS OF VALUE)

Land $ 1.407.388 $ - $ 6.134.480 $ 4.727.092Mining properties 2.655.348 2.655.348 N.A. -Buildings and miscellaneous constructions

12.146.210 2.361.694 13.562.192 3.777.676

Machinery and equipment 145.587.726 79.559.670 100.070.085 34.042.029Electric plants and networks 48.391.053 14.760.720 39.661.531 6.031.198Furniture and fixtures 717.095 203.919 N.A. -

Transport equipment 6.636.182 4.418.178 2.921.085 703.081

IT equipment 959.076 789.262 N.A. -

Machinery and equipment under assembly

4.063.565 - N.A. -

Constructions in progress 1.391.154 - N.A. -

Other assets 852 852 N.A. -

T O T A L $223.955.649 $ 104.749.643 $ 49.281.076

- NOTE 5 - PROPERTY, PLANT AND EQUIPMENT

At December 31, this account included:

At December 31, 2010 and 2009, no restrictions or encumbrances affect the Company’s above-mentioned assets.

Assets with their respective adjusted cost, accumulated adjusted depreciation, sale value and associated appreciation

and loss of value are detailed as follows:

December 2010

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December 2009ASSET COST ADJUSTED

DEPRECIATION AND/OR DEPLETION

APPRAISAL APPRECIATION (LOSS OF VALUE)

Land $ 1.296.064 $ - $ 5.408.128 $ 4.112.064Mining properties 2.655.348 2.655.348 N.A. -Buildings and miscellaneous constructions

9.138.346 1.858.387 10.305.075 3.025.116

Machinery and equipment 119.213.978 64.972.280 73.744.497 19.502.799Electric plants and networks 16.702.615 10.800.359 10.766.161 4.863.905Furniture and fixtures 322.526 153.194 N.A. -

Transport equipment 5.390.075 3.444.354 3.463.950 1.518.229

IT equipment 941.079 693.389 N.A. -

Machinery and equipment under assembly

45.824.393 - N.A. -

Constructions in progress 257.202 - N.A. -

Other assets 852 852 N.A. -

T O T A L $ 201.742.478 $ 84.578.163 $ 33.022.113

ITEM 2010 2009

Housing loans $ 5.482.647 $ 5.058.987Vehicle loans 101.383 79.103TOTAL $ 5.584.030 $ 5.138.090

ITEM 2010 2009

Materials and consumables $ 19.852.844 $ 17.649.552Materials in transit 2.948.047 3.136.429Workshop orders under process 2.198.615 1.161.840Other 221.490 233.563TOTAL $ 25.220.996 $ 22.181.384

La Ye mine entered operation in May of 2010, representing an investment of $ 65,797,257, as follows: Processing plant

$30,989,074, and mine set-up $34,808,182.

- NOTE 6 - LONG-TERM ACCOUNTS RECEIVABLE

Balances payable by the Company’s workers from loans granted for periods longer than one year, as follows:

- NOTE 7-

INVENTORIES



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CORPORATION PARTICIPATION %

NO.SHARES

ADJUSTED COST

SALE VALUE OR PAR VALUE

APPRECIAT. (LOSS OF

VALUE)

Sabaletas E.U. Project: 100% 337.000 $ 10.128.208 $ 10.128.208 $ Plantaciones Unipalma de los Llanos S.A.

17.74%493.214.074 6.213.743 15.684.208 9.470.465

Exploradora Minera S.A.S 100% 20.000 273.657 273.657 -Operadora Minera S.A.S. 100% 20.000 394.671 394.671 -Club de Banqueros (right) N.A. N.A. 4.500 N.A. -

Sub-Total $ 17.014.779 $ 26.480.744 $ 9.470.465

Promotora de Proyectos S.A. 1.60% 60.302 80.091 12.989 (67.102)

Subtotal: $ 80.091 $ 12.989 $ (67.102)

TOTAL $ 17.094.870 $ 26.493.733 $ 9.403.363

CORPORATION PARTICIPATION %

NO.SHARES

ADJUSTED COST

SALE VALUE OR PAR VALUE

APPRECIAT. (LOSS OF

VALUE)

Proyecto Sabaletas S.A.S. 100% 337.000 $ 6.663.747 $ 6.663.747 $ -

Plantaciones Unipalma de los Llanos S.A.

17.74% 493.214.074 6.213.743 15.881.493 9.667.750

Operadora Minera S.A.S. 100% 20.000 251.297 251.297 -

Subtotal: $13.128.787 $ 22.796.537 $ 9.667.750

Promotora de Proyectos S.A. 1.68% 60.302 80.091 17.789 (62.302)

TOTAL $ 13.208.878 $ 22.814.326 $ 9.605.448

CORPORATION ECONOMIC ACTIVITY

ACCRUED INCOME2010

(thousands of pesos)

ACCRUED INCOME2009

(thousands of pesos)Unipalma de Los Llanos S.A. Agroindustria $ 650.531 $ 649.063Operadora Minera S.A.S. Minería 143.375 51.296Proyecto Sabaletas S.A.S. Minería 3.471.365 2.583.882Exploradora Minera S.A.S. Minería 73.657 -Promotora de Proyectos S.A. Inversionista - -

- NOTE 8 - LONG-TERM INVESTMENTS

A diciembre 31 de 2010, las inversiones permanentes se descomponían así:

At December 31, 2009, long-term investments included:

As provided in Second Title, Chapter I, number 1.8 of External Circular Letter 02 of 1998 of the Securities Superintendency

(today, Financial Superintendency), the following is added regarding long-term investments:

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The Company does not consider redemption of

permanent investments within the three (3) calendar

years following the closing date of the Financial

Statements.

According to the provisions of Joint Circular Letter

009 of the Superintendency of Corporations and 013

of the Securities Superintendency (today Financial

Superintendency), and D.R. 2649/93, investments in

subordinates where the parent company owns over 50%

of capital must be recorded through the equity method

and their financial statements must be consolidated.

- PROYECTO SABALETAS S.A.S.

Proyecto Sabaletas S.A.S.

Proyecto Sabaletas S.A.S. was initially incorporated

as one-person concern through private document

subscribed on January 2 of 2008, filed with the

Medellín Chamber of Commerce on January 15 of 2008

under No. 389. The Company was transformed into a

simplified joint stock company (S.A.S.) through private

document of April 2 of 2009 filed with the Medellín

Chamber of Commerce on May 13 of the same year

under No. 6038. Its corporate purpose is to invest,

directly or through contributions to corporations of

any nature, in activities of preservation, exploration,

exploitation, industrialization or development in any

form, of renewable and non-renewable resources.

The financial situation of the Proyecto Sabaletas S.A.S.

at December 31 of 2010 and 2008 was as follows:

The value of the investment in Proyecto Sabaletas S.A.S.,

where the Company owns 100% of shares was recorded

in the years 2010 and 2009 by the equity method,

generating an increase in investment of $3,471,365

($2,583,882 in 2009) originated in the year’s results.

- OPERADORA MINERA S.A.S.

Operadora Minera S.A.S. was incorporated through

private document on March 10 of 2009, filed with the

Medellin Chamber of Commerce on April 2 of 2009

under No. 4129. Its corporate purpose is to carry out

any licit civil or commercial act, especially activities

of preservation, exploration, export, industrialization,

or development in any form, of renewable and non-

renewable resources.

The financial situation of the company at December 31

was as follows:

The value of the investment in Operadora Minera S.A.S.,

where the Company owns 100% of shares was recorded

in 2010 and 2009 by the equity method, generating an

increase in investm

2010 2009

Assets $ 12.586.627 $ 9.416.713Liabilities 2.458.419 2.752.966Equity Capital stock 3.370.000 3.370.000Reserves 3.286.846 702.961Revaluation surplus - 6.904Year’s results 3.471.365 2.583.882

2010 2009

Assets $ 2.146.341 $ 968.860Liabilities 1.751.670 717.563Equity Capital stock 200.000 200.000 Reserves 51.296 - Year’s results 143.375 51.296


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- EXPLORADORA MINERA S.A.S.

Exploradora Minera S.A.S

Exploradora Minera S.A.S. was incorporated through

private document on March 15 of 2010, filed with the

Medellin Chamber of Commerce on April 6 of same

year under No. 5067. Its corporate purpose is to carry

out any licit civil or commercial act, especially mining

exploration activities. The financial situation of the

company at December 31 of 2010 was as follows:

The value of the investment in Exploradora Minera

S.A.S., where the Company owns 100% of shares was

recorded in 2010 by the equity method, generating

an increase in investment of $73,656 originated in the

year’s results.

Assets $ 481.234Liabilities 207.578Equity Capital stock 200.000 Year’s results 73.656

- NOTE 9 - OTHER ASSETS


ASSET TYPE 2010 2009

Financial leasing contracts:

Net fixed assets (vehicles) acquired through financial leasing with Leasing Bancolombia $ 108.488 $ 75.954

Projects:

Amount invested in exploration to determine possible economically exploitable gold deposits. (1) 42.277.150 55.838.214

Costs and expenses incurred in rubber plantation and bio-factory projects on the Company’s land. 2.759.607 2.464.256

Corresponds to balance to be amortized of exploration, development , and pre-operating expenses of the La Ye mine (entering operation in May 2010)

22.644.402 -

TOTAL $ 67.789.647 $ 58.378.424

(1) At December 31, the amounts invested in mining projects are as follows:

ITEM 2010 2009

La Ye Mine $ - $ 36.382.718El Bagre District 18.096.893 9.433.589Caldas Province Projects 3.050.715 -Nechí Project 4.861.959 2.959.742Tolima Project 4.221.024 2.184.499Remedios Project 5.058.721 1.814.804Join Venture Anglo Gold Guamocó 2.492.124 1.389.671Amalfi Project 2.617.956 906.518Santa Elena (Bolivar Province)Project 1.851.954 -Other mining projects 25.804 766.673TOTAL $ 42.277.150 $ 55.838.214

In the year 2010, the Company carried to the period’s results $1,827,910 of economically non-exploitable mining projects ($3,911,944 in 2009).

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RECEIVED FROM FOR 2010 2009

Mineros Nacionales S.A. Real property leasing $ - $ 41.533Mineros Nacionales S.A. Technical Services - 55.417

Mineros Nacionales S.A. Participation in stand-by letter of credit fees - 34.204

Mineros Nacionales S.A. Financial yields - 86.319Mineros Nacionales S.A. Recoveries and realizations - 11.147Proyecto Sabaletas S.A.S. Financial yields 3.848 99.683Proyecto Sabaletas S.A.S. Servicios de administración 230.434 -Operadora Minera S.A.S. Servicios de administración 426.786 -Operadora Minera S.A.S. Rendimientos financieros - 932Exploradora Minera S.A.S Servicios de administración 34.632 -

PAID TO FOR 2010 2009

Mineros Nacionales S.A. Participation in gold price hedge contracts $ - $ 2.010

Mineros Nacionales S.A. Services - 956

Proyecto Sabaletas S.A.S. Purchase of supplies - 20.889

Operadora Minera S.A.S. Operation services for La Ye Mine 12.925.685 4.035.250

Exploradora Minera S.A.S Exploration services for several projects 1.352.563 -

Accounts receivable 2010 2009

Balance payable by Proyecto Sabaletas S.A.S. (See Note 3) $ 241.955 $ 1.384.104Balance payable by Operadora Minera S.A.S. (See Note 3) 448.126 1.265Balance payable by Exploradora Minera S.A.S. (See Note 3) 36.363 _TOTAL ACCOUNTS RECEIVABLE $ 726.444 $ 1.385.369

- NOTE 10 -

TRANSACTIONS WITH RELATED PARTIES

At December 31, transactions with related companies included:

As provided in First Title, Chapter III, number 1 of External Circular Letter 02 of 1998 of the Securities Superintendency (today, Financial Superintendency), it is also disclosed that:

a. In the years 2010 and 2009, the following transactions were carried out with related corporations and/or subsidiaries:

b. The previously described operations were conducted under normal market conditions and no differences

existed with respect to the general terms applicable to similar operations carried out with third parties.

In MINEROS S.A., some of the entries paid to Operadora Minera S.A.S. and Exploradora Minera S.A.S. were

recorded as increased value of the respective project.


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ASSET TYPEPROPERTY, PLANT AND EQUIPMENT

2010 2009

Land $ 4.727.092 $ 4.112.064Buildings 3.777.676 3.025.116Machinery and equipment 34.042.029 19.502.799River equipment 176.611 71.780Transport equipment 526.470 1.446.449Aqueducts, plants and networks 6.031.198 4.863.905SUBTOTAL $ 49.281.076 $ 33.022.113Marketable investments

Rights in trust estates (PA Grupo Comtempo Oficinas Oxo) 2.331.012 402.186

Long-term investmentsInvestments in corporations - Net (See Note 8) 9.403.363 9.605.449SUBTOTAL 11.734.375 10.007.635TOTAL RE-APPRAISALS $ 61.015.451 $ 43.029.748

ITEM 2010 2009

Credit cards $ 18.120 $ 24.585Financial leasing contracts (1) 69.053 52.093TOTAL FINANCIAL LIABILITIES $ 87.173 $ 76.678

- NOTE 11- RE-APPRAISALS

As provided in Decree 2649 of 1993, the Company has recorded the following amounts as re-appraisals in assets and

equity accounts:

- NOTE 12 -

FINANCIAL LIABILITIES

At December 31, financial liabilities included:

c. Outside commercial operations carried out with corporations where some economic link exists with

members of the Company’s Board of Directors, indicated in the management reports, no other mercantile

operations were carried out with legal representatives or corporations where any of the previously

mentioned is the beneficial owner of 10% or more of the total outstanding shares of MINEROS S.A.

(1) At December 31 of 2010, financial leasing contracts No. 103632 and 108668 with Leasing Bancolombia S.A. for purchase of two vehicles, as follows:

CONTRACT INSTALLMENTS BALANCE EXPIRES PENDING INSTALLMENTS

PURCHASE OPTION

RATE ACCRUED INTEREST

No. 103632 52 16.977 Ene 3/2014 36 849 11.08% E.A 4.091No. 108668 60 52.076 Marzo 15/2015 51 595 17% E.A. 3.451TOTALES $ 69.053 $ 1.444 $ 7.542

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At December 31 of 2009, financial leasing contract No. 103632 with Leasing Bancolombia S.A. for purchase of one vehicle, as follows:

CONTRACT INSTALLMENTS BALANCE EXPIRES PENDING INSTALLMENTS

PURCHASE OPTION

RATE ACCRUED INTEREST

No. 103632 52 52.093 Ene 3/2014 48 849 11.08% E.A 8.060TOTAL $ 52.093 $ 849 $ 8.060

SUPPLIER 2010 2009

Distracom y Cia. Ltda. $ 684.495 $ 111.302Industria Militar 328.369 -Calle Toro Arles 137.367 -Distribuidora de Químicos Ind. S.A. 135.627 80.174Eduardoño S.A. 100.711 -Sait S.A. 90.340 -Forjas Bolívar S.A. 88.173 -Atlas Copco Colombia Ltda. 83.620 -Organización Terpel S.A. 71.312 50.937Sandvik Colombia S.A.S 70.813 -Metalúrgica Esp. de Colombia S.A. 62.598 -Ambientes Elect. Seguros Ing. S.A.S. 61.929 -Icobandas S.A. 58.126 -Iberoandina de Químicos S.A. 58.137 -Eléctricas de Medellín Ltda. 57.989 -Asteco S.A. 56.369 58.460Equielect Ltda. 55.217 -Luís A. Manjarres – Maquinamos 54.340 62.899Shell Colombia S.A. 51.506 67.952Grainger Colombia S.A.S. 51.438 -Comercializadora S y E y Cía. S.A. - 55.253Chevron Petroleum Company - 52.115Hidromecánica Ltda. - 63.826Induelectro Ltda. - 59.888Melexa S.A. - 310.110P.A. Fiduciaria Colpatria - 84.330Tabsucol Ltda. - 104.255Taesmet Ltda. - 97.382Torhefe S.A. - 78.221Other suppliers with individual balances of less than $50,000 1.182.126 1.282.592 T O T A L $ 3.540.602 $ 2.619.696

- NOTE 13 - SUPPLIERS

Corresponde a obligaciones por concepto de adquisición de bienes para el desarrollo de las operaciones relacionadas

con la actividad minera; a diciembre 31 los principales saldos a favor de proveedores eran los siguientes:


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C O N C E P T O 2010 2009

FL Smidth Minerals S.A.C. (2) $ 1.727.189 $ 1.930.193Retenciones en la fuente por pagar (3) 1.645.113 2.000.389Compañías Vinculadas (1) 1.114.500 463.883Retenciones y aportes de nómina 1.078.673 1.487.892Anglo Gold Ashanti Colombia S.A. 806.269 832.814Seguros 213.184 166.126Perfotec S.A.S. 208.818 -Mensula S.A. 154.047 -Sodexo Colombia S.A. 120.247 281.937Seguridad de Occidente Ltda. 102.434 -García G. Luis F. 99.000 -Seguridad e Higiene Construc. S.A.S. 79.954 -Construc. Civiles Acabados Portugales S.A.S. 78.513 -Servicios Ambientales y Geográficos S.A. 61.151 145.265Aguado P. Carmen E. 60.610 -Designe Ltda. 56.735 -Integral S.A. 52.800 -Depositarios 49.910 129.636Corporación IPS Cruz Blanca - 80.389Cummins de los Andes S.A. - 108.125Forjas Bolívar S.A. - 68.774Helicentro Ltda. - 106.504Hernández R. Emilia - 55.603Industrias Astivik S.A. - 314.865Indústrias Ceno S.A. - 150.800Outsourcing Hidraulic Systems Ltda. - 149.501P.C. Mejía S.A. - 104.795Teckbox Ltda. - 61.424

Other suppliers with individual balances of less than $50,000 1.855.876 965.318

T O T A L $ 9.565.023 $ 9.604.233

- NOTE 14 -

CUENTAS POR PAGAR

Corresponde a obligaciones a corto plazo por distintos conceptos, originadas en el giro normal de los negocios de la

Compañía, así:

(1) Balance in favor of Operadora Minera S.A.S. for services rendered in the mining exploitation of the La Ye Mine and Cordero projects in the municipality of Zaragoza for $697,015, and in favor of Exploradora Minera S.A.S. for mining exploration services of stages III, IV and V described in ANS for $417,485

(2) Balance corresponding to payable invoices for purchase and installation of equipment for setup of La Ye Mine; final amount is being determined by the contractor.

(3) Corresponds to the balance of tax statements of the months of August, October and November ($1,037,572) and December of 2010 ($602,947) for income tax, stamp tax and sales tax (regular and simplified regimes) withholding. This amount will be set off with the credit balance of sales tax bimonthly statements 05 and 06 of 2010. It additionally includes turnover tax withholding for last two months of 2010 ($4,594).

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- NOTE 15 - TAXES, LIENS AND DUTIES

The balance of this account included:

Law 1111 of 2006 (articles 25 through 30) created the equity tax for certain taxpayers for fiscal years 2007 to 2010. For the year 2010, MINEROS S.A. determined in its private equity tax calculation a tax for this concept for $1,241,370 (same amount for 2009).

The Company is subject to income tax at a nominal rate of 33%, applicable to taxable income

Effective tax rates stood at 24.60% for the year 2010 and 16.38% for the year 2009, due to the permanent differences between commercial income and net taxable income. Below is a summary of the main entries to reconciliate commercial income and net taxable income, as well as accounting equity and fiscal equity.

ITEM 2010 2009

Tax provision $ 29.967.672 $ 22.466.776Less - advance income tax paid 13.668.865 8.465.960Less - withholding tax 689.748 524.381Less – industrial machinery VAT discount 54.167 1.076.276Add – provision of prior years 544.031 1.046.148 T O T A L $ 16.098.923 $ 13.446.307

ITEM 2010 2009

Per books pre-tax income $ 121.837.609 $ 137.143.156

Menos: Profit from the sale of shares of Mineros Nacionales S.A. (windfall profit)

(11.865.591) -

Income from the sale of sharesLess: Revenues not constituting income or windfall profit (13.245.528) (2.056.428)

Revenues not earned from equity method (3.688.396) 2.635.179

Recovery of provisions not requested as fiscal deduction - (1.814.143)

Revenues from re-appraisal of shares (1.677.880) (39.061.436)

Deductions for new rubber plantations (Article 157, Fiscal Law) - (303.321)

Donations paid against reserve that constitute fiscal deduction (1.000.000) (603.796)

Plus: Non-deductible expenses 3.031.012 79.274

NET INCOME $ 93.391.226 $ 90.748.127

Less: Special 30% deduction (40% in 2009) for investment in income-producing assets - Article 8 of Law 1111 of 2006.

(9.869.633) (22.666.986)

NET TAXABLE INCOME $ 83.521.593 $ 68.081.141

33% income tax on net taxable income 27.562.125 22.466.766

Plus: Tax on windfall profits 2.405.547 -

TOTAL INCOME TAX AND SURTAX PROVISION $ 29.967.672 $ 22.466.766

a. Reconciliation between commercial income and net taxable income


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- NOTE 16 -

LABOR LIABILITIES

At December 31, labor liabilities included:

Current liabilities show the net balance payable by the Company for income tax, after discounting tax withholding applied to the Company, self-withholding for financial yields in the year 2010, and the advanced payment of the same year.

The Company’s income tax and surtax returns for fiscal

years 2008 and 2009 are still pending revision by tax authorities, who have two (2) years to do so, given that for such fiscal years the Company was not covered by the audit benefit provided for in article 28 of Law 863 of 2003, since it requested special 40% deduction on investment in real productive fixed assets established in article 8 of Law 1111 of 2006.

ITEM 2010 2009

Severance payments $ 2.034.529 $ 2.068.796Interest on severance payments 236.087 232.260Vacations 706.431 644.488Salaries payable 299.744 6.082TOTAL $ 3.276.791 $ 2.951.626

Sale of shares $ 64.992.935Less: Fiscal cost of shares (57.703.398)Windfall profit taxable at 33% $ 7.289.537

Difference between per-books equity and fiscal equity 2010 2009

Per books shareholders’ equity $ 380.534.221 $ 311.656.590

Plus: Liabilities not fiscally recognized 544.031 -

Land fiscal adjustment 744.077 -Loss of value provision - 202.175Intangibles appraisal (mining concessions - Article 75, Fiscal Law)

- 32.650.056

Investments fiscal adjustment 2.331.012 3.213.290

Less: Appreciation of property, plant and equipment not fiscally recognized

(61.015.451) (43.029.748)

FISCAL TAXABLE EQUITY $ 323.137.890 $ 304.692.363

* Supplementary tax on windfall profit generated from sale of the 203,362 shares owned in subordinate Mineros Nacionales S.A.S., was determined as follows:

b. Reconciliation between accounting equity and fiscal equity

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- NOTE 17 - DIVIDENDS

The balance at December 31 corresponds to:

- NOTE 18 -

OTHER LIABILITIES

For 2009, corresponded to advanced payment received

from Medoro Resources Colombia Inc., under the shares

purchase agreement subscribed on October 1 of 2009

for purchase of 100% of shares owned by MINEROS S.A.

in subsidiary Mineros Nacionales S.A. The transaction

closed legally and ownership transfer to the new

shareholders took place on February 15, 2010.

- NOTE 19 -

RETIREMENT PENSIONS

The retirement pensions currently under the

responsibility of MINEROS S.A. correspond to those

workers, who on the date of the ISS transfer Resolution

(November of 1997), had expectations to qualify for

the special retirement pension agreed in the Collective

Bargaining Agreement (18 years of service, 47 years of

age), and therefore, the recognition date depended on

the worker’s will, or to those workers, who on the date of

the same Resolution were not active Company workers,

and had retired with the expectation of retirement

pension, with only the age requirement pending.

Fiscal regulation is used as the basis for recording

of retirement pensions. The Company has carried

out actuarial calculations for retirement pensions on

the basis of the technical parameters determined in

Decree 2498/88. These parameters were modified as

of 1998 upon issuance of Regulatory Decree 1517/98

(Paragraph 1, article 1), by article 1 of Decree 2783 of

December 20 of 2001, by article 1 of Regulatory Decree

51 of 2003, and recently, by article 1 of Decree 4565 of

December 7 of 2010, distributing the percentage to

amortize actuarial calculation up to the year 2029 in a

linear form. At December 31 of 2010, the accumulated

amortized percentage of the actuarial calculation

stands at 55.97% (51.97% at December 31/09).

ITEM 2010 2009

Regular dividends declared (1) $ 6.280.498 $ 5.613.195Former periods dividends 395.036 388.587Accrued dividends payable 93.424 -TOTAL $ 6.768.958 $ 6.001.782

(1) According to Minutes No. 49 of the Shareholder’s Meeting of March 17 of 2010, the proposal for payment of dividends was approved. Monthly dividend is $8 per share on total 261,687,402 outstanding shares, for a monthly value of $2,093,499,216 for the April-2009-March-2010 period, payable between the 10th and the 20th day of each month. Shareholders registered in the shareholder register on the ex-dividend day of the same period, are entitled to the month’s dividend, under the terms indicated in External Circular Letter No 13 of 1998, and Circular Letter No. 004 of 1999 of the Securities Superintendency (today Financial Superintendency).

$25,121,990 thousand was appropriated from earnings of the year 2009 for payment of dividends.

For the current fiscal year, $18,841,492 thousand has been paid corresponding to April to December.


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- NOTE 20 - EQUITY

a. Capital

Pubic deed 1030 of April 13 of 2005 of Notary Public Office 17 of Medellin formalized Minutes 44 of the Regular Shareholders’ Meeting of March 18 of 2005, where the authorized capital of $200,000 thousand was divided into 400,000,000 common shares, each with a par value of fifty cents ($0.50). Of these shares, 317,906,252 had been subscribed and paid for at December 31 of 2010 and 2009.

At December 31 of 2010 and 2009, reserve for repurchase of shares totals $11,191,283 thousand.

At December 31 of 2010 and 2009, total 56,218,850 repurchased shares stand at $5,611,007 (no repurchase of own shares took place along the years 2010 or 2009).

In accordance with article 396 of the Colombian Code of Commerce, as long as these shares remain the property of the corporation, the rights inherent to them shall be suspended.

b. Legal reserve Colombian law requires the Company to transfer at

least 10% of annual net income to a legal reserve until the balance of the reserve is equal to 50% of subscribed capital. Such reserve cannot be distributed but can be used to absorb losses. At December 31 of 2010 and 2009, the reserve balance equals $79,477 thousand or 50% of subscribed and paid-in capital.

c. Equity revaluation and additional paid-in capital Equity revaluation ($35,191,596) and additional paid-in capital ($1,551,099) cannot be distributed as earnings but are susceptible of tax-free capitalization.

Decline in equity revaluation account with respect to December 31 of 2009 is explained by the equity tax calculated for tax year 2010 (paragraph, article 25, Law 1111/06, for $1,241,369.

Other reserves In 2010, $2,400,000 thousand of earnings of 2009 were appropriated for asset protection, $33,485,208 thousand for new projects, and $39,061,436 thousand to establish special reserve for re-appraisal of marketable investments (article 1, DR 2336/95). In this way, accumulated reserve balance stands at $185,166,909 thousand and at $110,220,265 thousand for 2009.

ITEM 2010 2009

Pension liabilities according to actuarial estimates $ 1.228.128 $ 1.168.365

Less: Retirement pension provision recorded by the Company (687.418) (607.232)

Retirement pensions to be provided in the next 30 years 540.710 561.133

TOTAL $ 540.710 $ 561.133

Pension appropriations $ 80.186 $ 100.796Pension payments 151.952 148.299

TOTAL $ 232.138 $ 249.095

At December 31, retirement pensions included:

As of December 31, the value carried to expenses breaks down as follows:

Pension liabilities correspond to seventeen (17) people at December 31 of 2009 (2009 people at December 31 of 2008).

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- NOTE 21-

MEMORANDUM ACCOUNTS

Correspond to the following items and amounts:

- NOTE 22 - OPERATING REVENUES

Amounts received and/or accrued as a result of the

activities developed in compliance with its corporate

purpose through delivery of goods proper to the

mining activity. In order to comply with the provisions

of Number 2, of Article 117 of Regulatory Decree

2649/93, regarding disclosure of revenue received

from main customers, or from official entities, or from

exports, 24.44% of precious metal output (gold, silver)

was sold to Argor Heraeus S.A. (Switzerland), 22.44% to

Metalor (USA), 34.17% to INTL Commodities Inc. (USA),

14.39% to C.I.J. Gutiérrez y Cía S.A. (Colombia), 4.51% to

C.I. Fundicion Escobar S.A. (Colombia) and 0.05%% to

C.I. Dhows Congo S.A. (Colombia).

MEMORANDUM ACCOUNTS 2010 2009

Difference between per-books income and fiscal income $ 38.316.016 $ 69.062.015Difference between per-books equity and fiscal equity 57.396.331 6.964.227Special 30% (40% in 2009) deduction on investment in real productive fixed assets - Article 8, Law 1111/06

9.869.633 22.666.986

Sub-Total Fiscal Memorandum Accounts 105.581.980 98.693.228Infrastructure leasing contracts pending execution (1) 70.000.000 -

Contingent liabilities for ongoing labor claims. 200.000 238.975

Banco Santander stand-by letter of credit (US$ 2,500,000) 4.784.950 5.110.575Retirement pensions policy reserve 6.762.621 6.334.570

Appreciation of fully depreciatedproperty, plant and equipment (2)

85.654.933 -

TOTAL MEMORANDUM ACCOUNTS $ 272.984.484 $ 110.377.348

(1) Corresponds to infrastructure leasing contracts No. 119709 and 119710 subscribed on December 28 of 2010 with Leasing Bancolombia S.A. for expansion of Central Hidroeléctrica Providencia I and construction of Central Hidroeléctrica Providencia III, worth $12,000,000 and $58,000,000,000 respectively, for a duration of 144 months and an interest rate equivalent to DTF T.A., plus 3.25 points for both contracts.

(2) In accordance with the provisions of Communication No. 2010045038-011 of August 13 of 2010 of the Financial Superintendency regarding recording of this kind of appreciations.


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- NOTE 23 -

NON-OPERATING REVENUES AND EXPENDITURES

As of December 31, these accounts included:

NON-OPERATING REVENUES 2010 2009

Income from the sale of investments $ 13.518.895 $ 1.365.930Dividends 11.225.720 861.513Gold price hedge contracts 5.606.175 4.168.850Income from equity method 3.688.396 2.635.179Financial yields 3.659.027 3.846.248Exchange difference 1.950.972 2.779.647Revenues from re-appraisal of shares 1.677.880 39.061.436Recoveries and realizations 1.206.566 1.274.172Services 1.190.405 406.217Other financial yields 511.380 344.706Indemnities 492.781 122.972Rentals 58.717 87.827UVR accounts adjustment 96.565 3.480Income from the sale of fixed assets 70.504 -Recovery of provisions 69.199 1.814.143Sale of agricultural products 52.082 -TOTAL NON-OPERATING REVENUES $ 45.075.264 $ 58.772.320

NON-OPERATING EXPENDITURES 2010 2009

Exchange difference $ 2.615.312 $ 5.116.828Amortization of mining projects 2.573.980 3.911.944Fees of sale of Mineros Nacionales S.A. 2.351.719 -Other expenses 1.743.856 546.551Premiums paid in options 1.318.843 2.250.924Commissions 496.021 392.671Aids and charities (2) 480.407 262.355Investments loss of value 432.489 53.644Loss in securities trading (1) 26.338 745.904Interest and financial expenses 23.847 84.294TOTAL NON-OPERATING EXPENDITURES $ 12.062.812 $ 13.365.115

TOTAL REVENUES AND EXPENDITURES NON OPERATING – NET

$ 33.012.452 $ 45.407.205

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(1) Loss on securities trading

(2) Aids and charities

ENTITY 2010 2009

CEMEX $ - $ 151.894BBVA - 141.196Halliburton - 79.233United Health Group - 73.386Toyota Motors - 65.478Altria Group - 64.419American Express - 51.587Petrobras - 32.745Banco Colpatria - 15.067J.P. Morgan - 14.325Pepsico - 10.925Goldman Sachs - 10.514Tidis – Tes - 6.735Minor balances 26.338 28.400TOTAL $ 26.338 $ 745.904

ENTITY 2010 2009

Antioquia Chess League $ 82.340 $ 43.374Operation Smile Colombia Foundation 55.000 31.846MINEROS S.A.Foundation 50.000 -Colombia Humanitaria 50.000 -Museo de Antioquia 50.000 -Profamilia 42.000 -Corp. Santa Fe de Antioquia Film Festival 30.000 -Secretos para Contar Foundation 26.610 24.531Fundación para el Progreso de Antioquia –Proantioquia: 18.114 -Comité Rehabilitación Antioquia 11.622 -Nechí Municipality 4.800 14.400Corporación Excelencia en la Justicia 7.500 7.000Corporación Prodeminas - 16.000Social Promotion University Camps - 15.029Botanical Garden Foundation - 30.000TOTAL $ 480.407 $ 262.355


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ENTITY TYPE OF OPERATION VALOR NOMINAL USD

CANTIDAD ONZAS AU

BBVA Foreign Exchange Hedges (Collars)

4.200.000

Banco ColpatriaForeign Exchange Hedges (Collars)

6.100.000

Banco de Bogotá Foreign Exchange Hedges (Collars)

10.950.000

INTL Commodities (USA)Gold price hedges (put options)

12.000

INTL Commodities (USA)Gold price hedges (call options)

_ 12.000

TOTAL USD 21.250.000 24.000

ENTITY TYPE OF OPERATION NOMINAL VALUE US$

GOLD OUNCES

Bancolombia Foreign Exchange Hedges (options structure) 12.495.000

Helm Bank Foreign Exchange Hedges (options structure) 6.490.000

Banco de Bogotá Foreign Exchange Hedges (options structure) 4.575.000

Banco de Occidente Foreign Exchange Forwards 20.405.000

Banco Santander Foreign Exchange Forwards 7.000.000

INTL Commodities (USA) Gold price Hedges (options hedge) 18.000

INTL Commodities (USA) Gold price forwards _ 3.000

TOTAL USD 50.965.000 21.000

- NOTE 24 - SPECIAL COMMITMENTS – FUTURE OPERATIONS

As provided in No. 17 of article 115 of Regulatory Decree 2649/93, the operations of futures on financial assets executed

by the Company with different entities, valid as of December 31 of 2010, are listed below:

At December 31 of 2009, these operations included:

With respect to these operations of futures, we inform that:

a. Operations corresponding to currency hedges (collars) were hired at different floor (call) and ceiling (put) prices.

b. Gold price hedges structured as options were hired at different floor (call) and ceiling (put) prices.

c. In accordance with the terms of the respective hedge negotiations, at December 31 of 2010, the Company had neither rights nor obligations with respect to these contracts, given that operation compliance is agreed upon on different dates of the year 2011.

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- NOTE 25 - SUBSEQUENT EVENTS

As of fiscal year 2011, no payer of income tax and

surtaxes shall be entitled to special deduction for

investment in real productive assets, which stands as

an important figure for the Company, given its future

investment plans.

Whoever has requested, prior to November 1 of 2010,

legal stability agreements, including stabilization of

this deduction, shall be able to subscribe legal stability

agreements that will include such deduction. In these

cases, term of legal stability for the special deduction

cannot exceed three years. MINEROS S.A. filed its

legal stability agreement in November of 2009, but

pronouncement by the corresponding committee is

still pending.

Fi n a n c i a l S t a t e m e n t 2 0 1 0

Documents

Informe Financiero 2010 (inglés)