Thompson Creek announces 2007 financial results



    Shares outstanding: 113,484,000

    NYSE:   TC
    TSX: TCM, TCM.WT
    Frankfurt: A6R

    TORONTO, March 13 /CNW/ -
    
    Overview (all in U.S. dollars):

    -   Revenues were $197.8 million in the fourth quarter and $914.4 million
        in 2007.
    -   Net income was $28.9 million or $0.25 per basic and $0.22 per diluted
        share in the fourth quarter and $157.3 million or $1.43 per basic and
        $1.24 per diluted share in 2007.
    -   Average realized price on molybdenum sales was $31.08 per pound in
        the fourth quarter and $28.77 per pound during the full year.
    -   Long-term debt borrowed for the acquisition of Thompson Creek USA in
        October 2006 was reduced by $165.8 million during 2007. At
        December 31, 2007, the principal outstanding on the First Lien Credit
        Facility was $236.1 million and cash balances totaled $113.7 million.
    -   Since the acquisition of Thompson Creek USA, the Company has used
        $327 million of cash to reduce acquisition debt and make payments to
        the previous owner, including a contingent purchase price payment of
        $100 million in January 2008.
    -   Molybdenum production from the Company's two mines was 3.4 million
        pounds in the fourth quarter and 16.3 million pounds in 2007.
    -   Outlook for molybdenum prices remains positive and the Company
        continues to expect its molybdenum production to increase to between
        23 and 24.5 million pounds in 2008 and in excess of 34 million pounds
        in 2009.
    -   The weighted-average cash operating expense was $11.51 per pound in
        the fourth quarter and $8.39 per pound for 2007. In 2008, costs are
        expected to be in the range of $6.00 to $6.50 per pound at the
        Thompson Creek Mine and $9.50 to $10.25 per pound at the Endako Mine.

    Note: A conference call and webcast for analysts and investors is
    scheduled for Friday, March 14, 2008 at 10:00 a.m. Eastern.
    

    Thompson Creek Metals Company Inc. ("the Company"), one of the world's
largest publicly traded, pure molybdenum producers, today announced financial
results for the year ended December 31, 2007 prepared in accordance with
Canadian generally accepted accounting principles. All dollar amounts are in
U.S. dollars unless otherwise indicated.
    "Thompson Creek achieved significant financial success in 2007 despite
experiencing lower molybdenum production at both of our operating mines in the
second half of the year," said Kevin Loughrey, Chairman and Chief Executive
Officer.
    "The production difficulties stemming from a rock slide at the Endako
Mine and the processing of a low-grade stockpile at the Thompson Creek Mine
are now behind us. At the Thompson Creek Mine, where we began mining Phase 6
ore in the fourth quarter of 2007, the ore grade has risen as expected and
molybdenum production currently is on track to achieve the guidance that we
previously announced for 2008.
    "Mining operations are also going well and on track to achieve forecasted
production levels at the Endako Mine, where we have experienced good grades
and recoveries from the ore that we have been mining from the Denak West Pit
since the beginning of the year," Mr. Loughrey stated.
    "With molybdenum prices showing continued strength, we believe that the
best is still to come for Thompson Creek shareholders. The Company is
well-positioned to deliver substantial gains in earnings and shareholder value
this year and beyond, especially due to our internal growth plans.
    "Molybdenum production from our existing mines is expected to more than
double from the 16.3 million pounds recorded in 2007 to at least 34 million
pounds in 2009 due to higher ore grades at the Thompson Creek Mine. The
Company is considering a possible mill expansion at the Endako Mine and the
development of the Davidson Deposit. Both of these expansion projects could
add to production starting in 2010. They currently are under review and
decisions will be announced in the coming months.
    "An important benefit for our shareholders from rising production is the
impact on per-pound production costs, which for the overall company are
expected to be lower this year than they were in 2007 and lower still in
2009," Mr. Loughrey added.
    "During 2007, the reported mineral resources, mineral reserves and mine
life increased substantially due to a re-evaluation of our existing mining
properties using the assumption of $10 per pound for the long-term price for
molybdenum. At the Thompson Creek Mine, additional drilling in 2008 is
expected to lead to a second revision of the estimates for reserves and mine
life."

    Financial Results

    Thompson Creek's revenues totaled $197.8 million in the fourth quarter
and $914.4 million in 2007. The average realized price on the Company's
molybdenum sales was $31.08 per pound in the fourth quarter and $28.77 per
pound for the year. In 2006, revenues for the fourth quarter and the full year
were $150.8 million - primarily from sales of molybdenum in the 67 days
following the acquisition of Thompson Creek Metals Company USA (formerly known
as Thompson Creek Metals Company) on October 26, 2006. The average realized
price for molybdenum sales in 2006 was $25.74 per pound. Prior to October 26,
2006, no revenues were earned by the Company as it was in the development
stage.
    After the deduction of operating, selling, marketing, depreciation,
depletion and accretion costs, the Company generated earnings from mining and
processing operations totaling $47.9 million in the fourth quarter and
$301 million in 2007, compared with $5.7 million in both the fourth quarter
and full year 2006.
    Net income for the fourth quarter of 2007 was $28.9 million or $0.25 per
basic and $0.22 per diluted share, compared with a net loss of $12.5 million
or $0.14 per basic and diluted share in the fourth quarter of 2006. The
per-share figures are based on a weighted-average number of shares outstanding
of 113,290,000 (basic) and 130,982,000 (diluted) in the fourth quarter of 2007
and 86,885,000 (basic and diluted) a year earlier. At March 13, 2008 there
were 113,484,000 shares outstanding.
    Net income in 2007 was $157.3 million or $1.43 per basic and $1.24 per
diluted share, compared with a net loss of $20.6 million or $0.36 per basic
and diluted share a year earlier. The per-share figures are based on a
weighted-average number of shares outstanding of 110,195,000 (basic) and
126,599,000 (diluted) in 2007 and 57,688,000 (basic and diluted) a year
earlier.
    Net income and earnings from mining and processing operations in both
years were negatively affected by the inclusion in operating expenses of a
non-cash acquisition expense related to the inventory portion of the purchase
price adjustment associated with the Company's purchase of Thompson Creek USA
in October 2006. This non-cash expense amounted to $68.9 million in the fourth
quarter of 2006 and $31.0 million in 2007.
    Cash flow from operating activities was $45.7 million in the fourth
quarter and $182.6 million in 2007, compared with $85.2 million in the fourth
quarter and $75.4 million in the full year 2006.
    Cash balances were $113.7 million at December 31, 2007, compared with
$98.1 million at December 31, 2006.
    During the fourth quarter of 2007, Thompson Creek made payments to reduce
its First Lien Credit Facility by $16.7 million to $236.1 million at
December 31, 2007. During 2007, the Company reduced debt by a total $165.8
million, including a payment of $61.9 million to fully discharge its Second
Lien Credit Facility.
    Since the acquisition of Thompson Creek USA in October 2006, the Company
has used $327 million of cash to reduce acquisition debt and to pay the former
owner $61.5 million in December 2006 for certain receivables acquired on the
acquisition date and $100 million in January 2008 as part of a contingent
purchase price payment linked to the performance of the molybdenum price. If
the average price for molybdenum exceeds $15 per pound in 2009, a final
$25 million will be owed to the former owner in January 2010.
    The Company's mines produced 3.4 million pounds of molybdenum in the
fourth quarter of 2007 and 16.3 million pounds in 2007. The weighted-average
cash operating expense was $11.51 per pound in the fourth quarter and $8.39
per pound for 2007.
    The production amounts for the fourth quarter and full year 2007 reflect
molybdenum produced at the Thompson Creek and Endako mines but do not include
molybdenum purchased from third parties, roasted and sold by the Company.
    The Thompson Creek Mine produced 1.9 million pounds in the fourth quarter
and a total of 9.2 million pounds in 2007. Sales of Thompson Creek Mine
molybdenum totaled 1.4 million pounds in the fourth quarter and 12.1 million
pounds in 2007. The average cash operating expense was $14.18 per pound for
the fourth quarter and $8.35 per pound for 2007.
    The Company's 75% share of Endako Mine's production was 1.5 million
pounds in the fourth quarter and a total of 7.1 million pounds in 2007. Sales
of Endako Mine molybdenum totaled 1.7 million pounds in the fourth quarter and
7.4 million pounds in 2007. The average cash operating expense was $9.25 per
pound for the fourth quarter and $8.45 per pound for 2007.
    Cash operating expenses represent operating expenses less non-cash items
including inventory purchase price adjustments and stripping costs deferred in
the reporting period. Cash operating expenses and cash operating expenses per
pound are considered a key measure by Thompson Creek in evaluating the
Company's operating performance. Cash operating expenses are not a measure of
financial performance, nor does it have a standardized meaning prescribed by
generally accepted accounting principles ("GAAP") and may not be comparable to
similar measures presented by other companies.

    Outlook

    The molybdenum price on world markets is the single most important
variable affecting the cash flow and profitability of Thompson Creek.
Management expects that molybdenum prices will remain strong in the near term.
    Molybdenum production of between 16.5 and 17.0 million pounds at a cost
of between $6.00 and $6.50 per pound is expected from the Thompson Creek Mine
in 2008. The Company's 75% share of the Endako Mine production is expected to
be between 6.5 and 7.5 million pounds at a cost of between $9.50 and $10.25
per pound. This production profile and the strong current market price for
molybdenum are expected to allow the Company to meet its cash requirements for
operations, capital expenditures, and debt payments during 2008.
    Mineral ore reserves were recalculated and increased at both operating
mines during 2007 using a long-term price of $10.00 per pound for molybdenum
sales. Proven and probable reserve estimates were revised at the Endako Mine
and the mine life, using current milling rates, was extended to 27 years. The
Thompson Creek Mine's proven and probable mineral reserve estimates were also
revised and the mine plan was extended to 10 years. Thompson Creek Mine
continues to work on development drilling and reserve analysis and will
complete the second stage of its reserve study in 2008.
    A feasibility study that examined the expansion of the Endako mill was
also completed in 2007. The study indicated there are potential significant
returns on an investment of this nature. The Company and the other joint
venture participant are reviewing the study and a decision is expected in
2008.
    In addition to the extended mine life at the current operating mines,
development of the Davidson Project continues. The Davidson deposit is
Canada's largest undeveloped molybdenum deposit. A feasibility study examining
mining 2,000 tonnes of high-grade ore per day from the deposit and the
shipping of this ore to the Endako mill for processing is being prepared by
consultants. The Company expects to make a decision on the project in 2008.

    Sensitivity Analysis

    The effect of a $1-per-pound change in the average price of molybdenum on
2008 net income and diluted earnings per share, based on the Company's plan,
is approximately $15.3 million and $0.12 respectively.
    The effect of a $0.01 change in the average Canadian/US exchange rate on
2008 net income and diluted earnings per share, based on the Company's plan,
is approximately $1 million and $0.01 respectively.
    Additional information on the Company's financial position is available
in Thompson Creek's Financial Statements and Management's Discussion and
Analysis for the year ended December 31, 2007, which will be filed with SEDAR
(www.sedar.com) and posted on the Company's website
(www.thompsoncreekmetals.com).

    Conference call and webcast

    Thompson Creek will hold a conference call for analysts and investors to
discuss its 2007 financial results on Friday, March 14, 2008 at 10 a.m.
(Eastern).
    Kevin Loughrey, Chairman and Chief Executive Officer, and Derek Price,
Chief Financial Officer, will be available to answer questions during the
call.
    To participate in the call, please dial 416-644-3416 or 1-800-732-9307
about five minutes prior to the start of the call.
    A live audio webcast of the conference call will be available at
www.newswire.ca and www.thompsoncreekmetals.com.
    An archived recording of the call will be available at 416-640-1917 or
 1-877-289-8525 (Passcode 21262412 followed by the number sign) from 12:00
p.m. on March 14 to 11:59 p.m. on March 21. An archived recording of the
webcast will also be available at Thompson Creek's website.

    About Thompson Creek Metals Company Inc.

    Thompson Creek Metals Company Inc. is one of the largest publicly traded,
pure molybdenum producers in the world. The Company owns the Thompson Creek
open-pit molybdenum mine and mill in Idaho, a 75% share of the Endako open-pit
mine, mill and roasting facility in northern British Columbia, and a
metallurgical roasting facility in Langeloth, Pennsylvania. Thompson Creek is
also developing the Davidson Deposit, a high-grade underground molybdenum
project near Smithers, B.C. The Company has approximately 800 employees. Its
principal executive office is in Denver, Colorado, and it has other executive
offices in Toronto, Ontario and Vancouver, British Columbia. More information
is available at www.thompsoncreekmetals.com.

    Cautionary Note Regarding Forward-Looking Statements
    ----------------------------------------------------
    This news release contains "forward-looking information" within the
meaning of the United States Private Securities Litigation Reform Act of 1995
and applicable Canadian securities legislation which may include, but is not
limited to, statements with respect to the timing and amount of estimated
future production. Often, but not always, forward-looking statements can be
identified by the use of words such as "plans", "expects", "is expected",
"budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or
"believes" or variations (including negative variations) of such words and
phrases, or state that certain actions, events or results "may", "could",
"would", "might" or "will" be taken, occur or be achieved. Forward-looking
statements involve known and unknown risks, uncertainties and other factors
which may cause the actual results, performance or achievements of Thompson
Creek and/or its subsidiaries to be materially different from any future
results, performance or achievements expressed or implied by the
forward-looking statements. Such factors include those factors discussed in
the section entitled "Risk Factors" in Thompson Creek's annual information
form for the year ended December 31, 2006 and dated March 26, 2007 which is
available on SEDAR at www.sedar.com and is incorporated in its Registration
Statement on Form 40-F filed with the United States Securities and Exchange
Commission on October 30, 2007 which is available at www.sec.gov. Although
Thompson Creek has attempted to identify important factors that could cause
actual actions, events or results to differ materially from those described in
forward-looking statements, there may be other factors that cause actions,
events or results to differ from those anticipated, estimated or intended.
Forward-looking statements contained herein are made as of the date of this
news release and Thompson Creek does not undertake to update any such
forward-looking statements, except in accordance with applicable securities
laws. There can be no assurance that forward-looking statements will prove to
be accurate, as actual results and future events could differ materially from
those anticipated in such statements. Accordingly, readers are cautioned not
to place undue reliance on forward-looking statements.
    Readers should refer to Thompson Creek's annual information form for the
year ended December 31, 2006 and dated March 26, 2007 which is available on
SEDAR at www.sedar.com and is incorporated in its Registration Statement on
Form 40-F filed with the SEC on October 30, 2007 which is available at
www.sec.gov and subsequent continuous disclosure documents available at
www.sedar.com and www.sec.gov for further information on mineral reserves and
mineral resources, which is subject to the qualifications and notes set forth
therein.

    Thompson Creek Metals Company Inc. (formerly Blue Pearl Mining Ltd.)
    Management's Discussion and Analysis
    Years Ended December 31, 2007 and 2006
    (US dollars in thousands, except per share and per pound amounts,
    unless otherwise indicated)

    This discussion and analysis should be read in conjunction with Thompson
Creek Metals Company Inc.'s ("Thompson Creek" or the "Corporation")
consolidated financial statements and related notes thereto for the years
ended December 31, 2007 and 2006 which were prepared in accordance with
Canadian generally accepted accounting principles. All dollar amounts are
expressed in US dollars unless otherwise indicated. Additional information on
the Corporation is available on SEDAR at www.sedar.com.

    Name Changes

    In May 2007, the Corporation changed its name to Thompson Creek Metals
Company Inc. from Blue Pearl Mining Ltd. Also in May 2007, Thompson Creek
Metals Company, the principal subsidiary of the Corporation that was acquired
in October 2006, changed its name to Thompson Creek Metals Company USA
("Thompson Creek USA").

    
    2007 Overview

    -   Molybdenum sold in 2007 was 31.0 million pounds, including
        12.1 million pounds from the Thompson Creek Mine and 7.4 million
        pounds from the Corporation's 75% interest in the Endako Mine, with
        the remaining sales from the processing of purchased concentrates.

    -   The average price realized on molybdenum sales was $28.77 per pound
        in 2007.

    -   Revenue increased by $763,559 in 2007 to $914,402, reflecting
        ownership of Thompson Creek USA for the full year in 2007 compared to
        the October 26 to December 31 period post-acquisition of Thompson
        Creek USA in 2006.

    -   Net income was $157,347 or $1.43 per basic and $1.24 per diluted
        common share.

    -   Long-term debt borrowed for the acquisition of Thompson Creek USA was
        reduced by $165,765 to $236,090 at year end.

    -   $100,000 contingent purchase price payment was recorded as a
        liability at December 31, 2007 and paid to the former owners of
        Thompson Creek USA in January 2008.

    -   The first of a two-part re-evaluation of Thompson Creek Mine
        increased estimated mineral reserves to 213.5 million pounds of
        contained molybdenum and indicates a remaining 10-year mine life.

    -   A re-evaluation of Endako Mine increased the Corporation's 75%
        interest in estimated mineral reserves to 233.0 million pounds of
        contained molybdenum and significantly extended the mine life to
        27 years based on current mining rates.

    -   A positive feasibility study on increasing milling capacity at the
        Endako Mine was completed and is under review by the Corporation and
        the other Endako Mine joint venture participant.
    

    Introduction

    Thompson Creek acquired Thompson Creek USA on October 26, 2006. The
operations acquired were the Thompson Creek Mine (mine and mill) in Idaho, a
75% joint venture interest in the Endako Molybdenum Mine Joint Venture (mine,
mill and roaster) ("Endako Mine") in British Columbia, and the Langeloth
metallurgical facility in Pennsylvania. This acquisition transformed the
Corporation into one of the world's largest publicly traded molybdenum
producers with vertically integrated mining, milling, processing and marketing
operations. Prior to this acquisition the Corporation had no active mining
operations.
    The Corporation acquired the Davidson molybdenum property ("Davidson
Project") in British Columbia in 2005. It has been developing this project
since that time and in March 2008 a positive feasibility study was completed.
Synergies are expected to be realized by trucking Davidson Project ore to the
Endako Mine for milling and roasting, eliminating the need for these
facilities at the Davidson Project.

    
    Selected Annual Information
    (Unaudited)
                                            2007          2006          2005
    Operations

    Molybdenum sold (000's lb)(1)         30,969         5,737             -
    Molybdenum production from mines
     (000's lb)(2)                        16,366         3,846             -
    Realized price ($/lb)            $     28.77   $     25.74   $         -
    Weighted-average cash operating
     expenses ($/lb)(3)              $      8.39   $      6.29   $         -

    Financial

    Revenue                          $   914,402   $   150,843   $         -
    Net income (loss)                $   157,347   $   (20,643)  $    (4,113)
    Net income (loss) per share
      - basic                        $       1.43  $     (0.36)  $     (0.13)
      - diluted                      $       1.24  $     (0.36)  $     (0.13)
    Cash flow provided by (used in)
     operating activities            $    182,551  $    75,444   $    (2,723)
    Cash and cash equivalents        $    113,692  $    98,059   $     6,915
    Total assets                     $  1,109,722  $   899,912   $     8,397
    Total long-term debt             $    237,420  $   397,806   $         -
    Total liabilities                $    622,080  $   675,861   $     1,541
    Shareholders' equity             $    487,642  $   224,051   $     6,856
    Shares outstanding (000's)            113,364      100,528        43,079

    (1) Includes molybdenum from mines and molybdenum processed from
        purchased concentrate at the Langeloth facility and resold.
    (2) Includes molybdenum produced at Thompson Creek Mine and the
        Corporation's share of the Endako Mine production; excludes
        molybdenum produced from purchased concentrate.
    (3) Weighted-average of Thompson Creek Mine and Endako Mine cash
        operating costs; excludes the effect of purchase price adjustments
        recorded on acquisition of Thompson Creek USA. See Non-GAAP Financial
        Measures - Cash Operating Expenses for additional information.
    

    Non-GAAP Financial Measures - Cash Operating Expenses

    Throughout this management's discussion and analysis reference is made to
cash operating expenses and cash operating expenses per pound. Cash operating
expenses and cash operating expenses per pound are considered a key measure by
Thompson Creek in evaluating the Corporation's operating performance. Cash
operating expenses are not a measure of financial performance, nor does it
have a standardized meaning prescribed by generally accepted accounting
principles ("GAAP") and may not be comparable to similar measures presented by
other companies. The Corporation's management believes this non-GAAP measure
provides useful supplemental information to investors in order that they may
evaluate the Corporation's financial performance using the same measures as
management, and that as a result, the investor is afforded greater
transparency in assessing the financial performance of the Corporation.
Non-GAAP financial measures should not be considered as a substitute for, nor
superior to, measures of financial performance prepared in accordance with
GAAP.
    The following table provides a reconciliation of cash operating expenses
and cash operating expenses per pound, by mine, and operating expenses
included in the Corporation's consolidated statements of income (loss) in the
determination of net income.

    
                                 2007                           2006
                  ----------------------------- -----------------------------
                               Pounds                         Pounds
                  Operating    Sold(1)           Operating    Sold(1)
                   Expenses (000's lbs)  $/lb    Expenses  (000's lbs) $/lb

    Thompson Creek
     Mine

      Cash opera-
       ting expen-
       ses(2)     $ 100,708     12,064  $ 8.35   $  14,711     2,529  $ 5.82
      Inventory
       purchase
       price
       adjustment
       (3)           30,997                         48,324
                  ----------                     ----------
                    131,705                         63,035
                  ----------                     ----------
    Endako Mine

      Cash
       operating
       expenses   $  62,612      7,413  $ 8.45   $  12,193     1,745  $ 6.99
      Inventory
       purchase
       price
       adjustment
       (3)                -                         20,608
                 -----------                     ----------
                  $  62,612                      $  32,801
                 -----------                     ----------

    Other
     Operations     360,171     11,492              43,279     1,463
                 -----------  ---------          ---------- ---------

    Operating
     expenses -
     consolidated $ 554,488     30,969           $ 139,115     5,737
                  ----------  ---------          ----------  --------
                  ----------  ---------          ----------  --------

    Weighted-
     average cash
     operating
     expenses(4)  $ 163,320     19,477  $ 8.39   $  26,904     4,274  $ 6.29
                  ----------  --------- ------   ----------  -------- -------
                  ----------  --------- ------    ---------  -------- -------

    (1) Pounds of molybdenum sold.
    (2) Excludes stripping costs deferred at Thompson Creek Mine in 2007.
    (3) On acquisition of Thompson Creek USA an accounting adjustment was
        made to increase the carrying value of the product inventory on hand
        at that date to its estimated fair value. This non-cash adjustment
        was charged to operating expenses in 2006 as the inventory was sold.
    (4) Weighted-average of Thompson Creek Mine and Endako Mine cash
        operating costs; excludes the effect of purchase price adjustments
        recorded on acquisition of Thompson Creek USA.
    

    Operations

    Thompson Creek Mine

    The Corporation's Thompson Creek Mine and mill are located near Challis,
in central Idaho. Mining is done by conventional open pit methods utilizing
electric-powered shovels and 180-tonne haul trucks. The property covers 8,500
hectares with all the necessary permits, water, power, easements and
rights-of-way to allow operations. The mill has a capacity of 27,000 tonnes
per day and operates with a crusher, SAG mill, ball mill and flotation
circuit.
    The table that follows presents a summary of Thompson Creek Mine's
operating and financial results for 2007 and 2006. Amounts for 2006 include
results for the period subsequent to the Corporation's acquisition of Thompson
Creek USA, from October 26 to December 31, 2006.

    
                                                          2007          2006
    Operations

    Mined (000's ore tonnes)                             6,659           899
    Milled (000's tonnes)                                8,047           883
      Grade (% molybdenum)                                0.06          0.14
      Recovery (%)                                        82.1          90.0
    Molybdenum production (000's lb)                     9,269         2,473
    Molybdenum sold (000's lb)                          12,064         2,529
    Realized price ($/lb)                          $     27.69   $     26.33
    Cash operating expenses ($/lb)(1)              $      8.35   $      5.82

    Financial

    Molybdenum sales                               $   334,011   $    66,583
                                                   ------------  ------------
    Operating expenses                                 131,705        66,313
    Selling and marketing                                3,950           252
    Depreciation, depletion and amortization            19,643         1,330
    Accretion                                            1,275            11
                                                   ------------  ------------
                                                       156,573        67,906
                                                   ------------  ------------
    Income (loss) from mining and processing       $   177,438   $    (1,323)
                                                   ------------  ------------
                                                   ------------  ------------

    (1) Excludes the effect of purchase price adjustments recorded on
        acquisition of Thompson Creek USA. See Non-GAAP Financial Measures -
        Cash Operating Expenses for additional information.
    

    Molybdenum sold from the Thompson Creek Mine increased by 9,535,000
pounds or 377% in 2007 compared to 2006 as a result of owning the mine for the
full year rather than only the post-acquisition period in 2006. Mining
transitioned from Phase 5 to the new Phase 6 area in 2007, and some of the ore
milled during the transition came from a low grade stockpile. While actual
molybdenum production increased in 2007, it was less than planned as a result
of inability to maintain access to high-grade ore from Phase 5, poorer than
planned quality of the low grade stockpile ore processed in the year and a
delay in stripping activity for Phase 6. These factors negatively impacted
recovery, grade and mill throughput, which reduced molybdenum production
compared to planned production for 2007. Realized prices increased by $1.36
per pound in 2007 compared to 2006.
    The first of a two-part reserve re-evaluation for the Thompson Creek Mine
was completed as of September 2007. This study assumed a long-term molybdenum
price of $10.00 per pound and estimated proven and probable mineral reserves
at 98.8 million tonnes with an average molybdenum grade of 0.098% containing
213.5 million pounds of molybdenum (proven reserves: 39.2 million tonnes at an
average grade of 0.104% molybdenum; probable reserves: 59.5 million tonnes at
an average grade of 0.094% molybdenum). The mine plan for these mineral
reserves estimates a 10-year production life. The previous reserve used a
long-term molybdenum price of $5.00 per pound. This first part of the study
used existing information from previous drilling and the current mine plan to
estimate new mineral reserves. Work on the second part of this reserve
analysis continues with development drilling and geologic model review with
the intent of expanding the mineral reserves and extending the mine life
further. This information will be used to complete the final part of this
reserve study in 2008.

    Endako Mine

    The Corporation has a 75% interest in the Endako open-pit mine, mill and
roaster which is located near Fraser Lake, British Columbia. The mine property
covers 7,741 hectares and has the necessary permits and ancillary facilities
to allow current operations. The infrastructure includes a 28,000 tonne per
day mill and a 14,000 to 16,000 kilogram per day multiple-hearth roaster.
    The table that follows presents a summary of the Corporation's 75% share
of the Endako Mine's operating and financial results for 2007 and 2006. 
Amounts for 2006 include results for the period subsequent to the
Corporation's acquisition of Thompson Creek USA, from October 26 to December
31, 2006.

    

                                                          2007          2006
    Operations

    Mined (000's ore tonnes)                             7,499         1,320
    Milled (000's tonnes)                                7,356         1,129
      Grade (% molybdenum)                                0.06          0.06
      Recovery (%)                                        72.7          75.7
    Molybdenum production (000's lb)                     7,097         1,373
    Molybdenum sold (000's lb)                           7,413         1,745
    Realized price ($/lb)                          $     28.26   $     24.23
    Cash operating expenses ($/lb)(1)              $      8.45   $      6.99

    Financial

    Molybdenum sales                               $   209,492   $    42,275
                                                   ------------  ------------
    Operating expenses                                  62,612        32,801
    Selling and marketing                                2,518           842
    Depreciation, depletion and amortization            18,475         1,450
    Accretion                                              381             4
                                                   ------------  ------------
                                                        83,986        35,097
                                                   ------------  ------------
    Income from mining and processing              $   125,506   $     7,178
                                                   ------------  ------------
                                                   ------------  ------------

    (1) Excludes the effect of purchase price adjustments recorded on
        acquisition of Thompson Creek USA.  See Non-GAAP Financial Measures -
        Cash Operating Expenses for additional information.
    

    The Corporation's share of molybdenum sold from the Endako Mine increased
by 5,668,000 pounds or 325% in 2007 compared to 2006 as a result of owning the
mine for the full year rather than only the post-acquisition period in 2006.
While actual molybdenum production increased in 2007, it was less than
planned. A rock slide occurred on the south wall of the Endako Pit in November
2007, resulting in the relocation of mining operations to the Denak Pit. The
mill continued to operate, with ore being delivered to the mill from ore
stockpiles and the Denak Pit. Due to the slide and also as a result of lower
than expected ore grade and recovery rate, and difficulty in feeding wet,
frozen ore into the mill in December, ore tonnage processed in that month was
reduced. Realized prices increased by $4.03 per pound in 2007 compared to
2006.
    Proven and probable ore reserve estimates were revised upwards in
July 2007, indicating the Corporation's share of mineral reserves were
207.0 million tonnes with an average molybdenum grade of 0.051% containing
233.0 million pounds of molybdenum (proven reserves: 84 million tonnes at an
average grade of 0.053% molybdenum; probable reserves: 123 million tonnes at
an average grade of 0.049% molybdenum). The revised mineral reserves were
estimated using an assumed long-term molybdenum price of $10.00 per pound.
Using the revised mineral reserves, at current production rates the Endako
mine life is estimated to be 27 years. Previous reserve estimates were based
on a molybdenum price of $3.50 per pound.
    A detailed feasibility study that examined the possible expansion of the
Endako mill to 50,000 tonnes per day from its current operation at 28,000
tonnes per day was completed in 2007. The study indicated the Corporation's
share of the capital cost, in addition to ongoing capital expenditures, would
be $280,000 and a potential positive return on investment. The Corporation and
the other joint venture participant are reviewing the study and a decision is
expected in 2008.

    Other Operations

    The Corporation operates a metallurgical facility located in Langeloth,
near Pittsburgh, Pennsylvania. Roasting capacity is approximately 35 million
pounds per year. The facility consists of six multi-hearth roasters. The
Thompson Creek Mine production provides much of the feed source for these
roasters and the costs of processing Thompson Creek Mine material are included
in Thompson Creek Mine operating expenses.
    Other Operations include the processing activities at the Langeloth
facility, excluding the processing of Thompson Creek Mine material. The
Corporation purchases molybdenum concentrate from third parties for processing
at the Langeloth metallurgical facility. These purchases are made to improve
operating efficiency by increasing capacity utilization at the Langeloth
facility and to maintain customers with a continuing molybdenum supply,
especially in periods when molybdenum produced from the Corporation's mining
operations is low. The Corporation also processes molybdenum and certain other
metals for other parties on a tolling, or cost-per-unit processed, basis.
    The table that follows presents a summary of Other Operations' operating
and financial results for 2007 and 2006. Amounts for 2006 include results for
the period subsequent to the Corporation's acquisition of Thompson Creek USA,
from October 26 to December 31, 2006.

    
                                                          2007          2006
    Operations

    Molybdenum sold from purchased concentrate
     (000's lb)                                         11,492         1,463
    Realized price on molybdenum sold from
     purchased concentrate ($/lb)                   $    30.25   $     26.53
    Toll roasted molybdenum (000's lb)                  13,070         1,999
    Roasted metal products processed (000's lb)         27,698         5,682

    Financial

    Molybdenum sales                                $  347,598   $    38,818
    Tolling and calcining                               23,301         3,167
                                                   ------------  ------------
                                                       370,899        41,985
                                                   ------------  ------------
    Operating expenses                                 360,171        40,001
    Selling and marketing                                2,574           145
    Depreciation, depletion and amortization             9,979         1,812
                                                   ------------  ------------
                                                       372,724        41,958
                                                   ------------  ------------
    (Loss) income from mining and processing        $   (1,825)  $        27
                                                   ------------  ------------
                                                   ------------  ------------
    

    Molybdenum sold from purchased concentrates, toll roasted molybdenum and
roasted metal products processed increased by 686%, 554% and 387%,
respectively, in 2007 compared to 2006 as a result of the Corporation owning
the Langeloth facility for the full year in 2007 compared to only the
post-acquisition period in 2006.

    Davidson Project

    An independent engineering firm is preparing a feasibility study on the
Davidson molybdenum deposit, located near Smithers, British Columbia. The
proposed underground mine has been designed to produce an average of 2,000
tonnes of high-grade ore per day. The main components of the project include:
the underground mine, an ore load out facility, a 7.2 kilometre haul road and
a water treatment plant and discharge line. The Davidson Project ore will be
transported to the Endako Mine for processing. Discussions on the sale of a
portion of the Davidson Project are underway with the other participant in the
Endako joint venture.
    The Davidson Project will require approvals from provincial and federal
regulators for construction and operation of the mine. Obtaining these
approvals will be the focus of activities on Davidson for 2008.

    Markets

    Thompson Creek produces primarily molybdenum products. The products
produced cover most of the range of molybdenum products available in the
market.
    The largest consumption of molybdenum occurs as a metallurgical alloy in
the production of certain steels. Molybdenum is added as an alloy to enhance
the steel's high temperature strength, to impart hardness, toughness and to
improve the weldability of steel, and to improve their anti-corrosive
characteristics. Molybdenum is an important ingredient in high-performance
stainless steel and other alloys. Molybdenum is also used in chemical products
such as lubricants and pigments and as a catalyst to reduce sulfur in refined
petroleum products.
    Molybdenum demand has grown at an average of approximately 4% a year over
the last 20 years and the world consumption is now in excess of 440 million
pounds annually. Demand growth stems from the demand for the industrial
capital goods sector especially from the oil and gas industry where it is used
in pipeline steel, drill steel, and ocean platforms, as well as a
desulfurization catalyst in petroleum refining. Other industrial sectors
important to the future demand for molybdenum include aircraft manufacturing,
shipbuilding, nuclear and coal power generation, and desalination plants among
others. Given expectations of continued strong growth in energy investments
and a continuation of global economic expansion, especially in China, the
demand for molybdenum consumption is expected to continue to grow at its
historic rate, or greater.
    Molybdenum supply is expected to be constrained over the next couple of
years. Approximately 60% of the world's molybdenum production comes from
by-product production at certain copper mines. While some of these mines are
expecting to increase molybdenum production in the coming years, others have
forecast lower production. Many have been mining areas of higher grade
molybdenum within their mines over the last two or three years to take
advantage of the recent increase in molybdenum prices. However, these mines
are unable to indefinitely maintain this high-grade molybdenum activity due to
the nature of their ore bodies. Other operators have announced construction of
molybdenum recovery circuits that will add small amounts to the supply. One
major operator has announced a mine reopening but it is not expected to start
producing until 2010 at the earliest. There are also potential additional
sources of molybdenum from new primary mine construction. Many of the
significant deposits are held by mining companies that do not have the
financial strength to finance mine development without assuming considerable
debt, and it may be difficult for these entities to obtain the necessary
financing, partly due to the lack of forward markets to hedge the molybdenum
price. The time required to complete construction related to the development
of new sources may be considerable therefore supply may not be available from
these sources for several years to come.
    China is a large producer and, increasingly, a large consumer of
molybdenum. China has significant molybdenum resources and produces more than
20% of the world's annual supply. China has been a major exporter of
molybdenum for the past ten years. The level of exports, however, has recently
been declining and this trend is expected to continue as a result of both the
increased internal demand for molybdenum within China and also due to Chinese
government regulations that have both restricted exports by quotas and
increased export taxes on molybdenum products.
    The price of molybdenum, which averaged $4.50 per pound between 1994 and
2004, peaked at $40.00 per pound in June 2005 and has since moderated
slightly. In 2006, the average price of molybdenum was approximately $25.00
per pound and in 2007 the price strengthened, averaging just over $30.00 per
pound for the year. Barring a worldwide recession, demand for molybdenum is
expected to continue to grow. And, in the absence of new supply coming from
China as well as the numerous constraints on production growth outside of
China, the price of molybdenum is expected to remain relatively strong for the
near-term, if not longer.

    Financial Review

    Acquisition of Thompson Creek USA

    On October 26, 2006, the Corporation acquired Thompson Creek USA, a
private company with producing molybdenum mines and processing facilities in
Canada and the United States. On closing, the Corporation paid $575,000 in
cash for all of the outstanding shares of Thompson Creek USA. Subsequent to
the closing date, the Corporation paid an additional $61,529 related to
certain acquired accounts receivable pursuant to the acquisition agreement. In
addition, at December 31, 2007, the Corporation had recorded an amount of
$100,000 as contingent consideration payable on this acquisition based on the
market price of molybdenum during 2007. This amount was settled in cash in
January 2008. The Corporation may also be responsible for a further contingent
payment in early 2010 of $25,000 if the average price of molybdenum exceeds
$15 per pound in 2009.
    This acquisition has been accounted for using the purchase method,
whereby the purchase consideration was allocated to the estimated fair values
of the assets acquired and liabilities assumed at the effective date of the
purchase. A preliminary allocation was made at October 26, 2006, and
subsequently finalized during the year ended December 31, 2007. Estimated fair
values have been based on independent appraisals, discounted cash flows,
quoted market prices and estimates made by management. As the purchase price
exceeded the fair value of the net identifiable assets acquired, the
Corporation has recorded goodwill of $121,605 on this transaction.
    Prior to this acquisition, the Corporation's mining assets were limited
to the Davidson Project which is presently in the development stage.

    Income Statement

    Revenues increased by $763,559 in 2007 compared to 2006. The Corporation
sold an additional 25,232,000 pounds of molybdenum in 2007 compared to 2006 as
a result of owning Thompson Creek USA and its operations for the full year in
2007 rather than the October 26 to December 31 period in 2006. The average
realized molybdenum price in 2007 was $28.77 per pound or $3.03 per pound more
than in 2006, which also contributed to the increased revenues.
    Operating expenses increased by $415,373 in 2007 largely as a result of
the 25,232,000 pound increase in molybdenum sold as a result of owning
Thompson Creek USA and its operations for the full year in 2007 rather than
the October 26 to December 31 period in 2006. Operating expenses also included
$30,997 in 2007 related to the inventory portion of the Thompson Creek USA
purchase price adjustment compared to $68,932 in 2006. These non-cash costs
are the fair value adjustments allocated to inventory on hand at the
acquisition date.
    Depreciation, depletion and amortization increased by $43,456 in 2007
compared to 2006. This increase is primarily a result of owning Thompson Creek
USA and its operations for the full year in 2007 rather than the October 26 to
December 31 period in 2006, and the purchase price adjustment allocated to
property, plant and equipment and the related depreciation, depletion and
amortization recorded thereon in the current year.
    General and administrative expense was $11,301 higher in 2007 and
resulted from increased corporate activities related to the ownership of
Thompson Creek USA for the full year in 2007.
    Interest and finance fees increased by $33,272 in 2007 compared to 2006. 
The Corporation borrowed $401,855 in October 2006 to partially fund the
purchase of Thompson Creek USA. Most of the interest in 2006 related to this
loan balance. Interest expense in 2007, while more than 2006, was lower than
planned as the Corporation made significant principal prepayments and reduced
the principal outstanding to $236,090 at December 31, 2007.
    Exploration and development expenses were $4,585 in 2007 and $8,635 in
2006. These expenses are mostly Davidson Project costs which vary from year to
year according to the type of activity being undertaken. In 2007, the
Corporation recorded a credit of $1,871 against this expense related to a
refundable exploration tax credit.
    Stock-based compensation increased by $1,759 in 2007 over 2006. The
number of stock options issued declined in 2007, however the Corporation's
higher share price resulted in an increased cost being assigned to each option
awarded in the year. In addition, current year amounts include the
amortization of costs related to options awarded in 2006.
    Income and mining taxes for 2007 totaled $70,966 or 31% of income before
income and mining taxes. For 2006, the income and mining taxes recovery was
$8,272 or 29% of the loss before income and mining taxes. The effective tax
rate for 2007 was positively affected by a reduction in tax rates enacted in
Canada which had the effect of reducing the Corporation's future tax
liabilities by $8,200.

    Cash Flows

    Cash from operating activities provided $182,551 in 2007 and $75,444 in
2006. The increased cash flow was mainly a result of owning Thompson Creek USA
and its operations throughout 2007 rather than only from October 26 to
December 31, 2006.
    Investing activities used $53,233 in 2007, including $34,174 for deferred
stripping at the Thompson Creek Mine and $14,593 in property, plant and
equipment additions at all operations. Investing activities required $605,315
in 2006 which was almost entirely related to the purchase of Thompson Creek
USA.
    Financing activities required $117,368 in 2007. Significant debt
repayments amounting to $168,216 were made. Common shares issued raised
$50,848. Financing activities generated $621,516 in 2006. The Corporation
issued 57,449,048 shares and 25,319,541 warrants to raise $233,701 mainly
through a prospectus offering completed in connection with the Thompson Creek
USA purchase. Long-term debt of $401,856 was borrowed to partially finance the
Thompson Creek USA purchase and finance fees of $13,673 were incurred to raise
this debt.

    Liquidity and Capital Resources

    During 2007, cash and cash equivalents increased by $15,633 to $113,692
at December 31, 2007. The Corporation also has a $22,500 revolving credit
facility available as part of its long-term debt financing arrangement. This
revolving credit facility matures October 26, 2011 and bears interest on
outstanding balances at LIBOR plus 475 basis points. At December 31, 2007,
this revolving credit facility was not drawn.
    At December 31, 2007, the Corporation had recorded a liability of
$100,000 for a contingent purchase price payment to the former owners of
Thompson Creek USA. A cash payment was made in January 2008 to settle this
obligation. The Corporation may be responsible for a further contingent
payment in early 2010 of $25,000 if the average price of molybdenum exceeds
$15 per pound in 2009.
    A positive feasibility study has been prepared for the expansion of the
Endako mill that shows the Corporation's share of capital costs, in addition
to ongoing capital expenditures, would be $280,000. A feasibility study is
also being prepared for the Davidson Project. The Corporation expects to make
a decision on both of these projects in 2008. Capital expenditures are
expected on both projects in 2008 if the projects are approved. Additional
capital is also planned for the Corporation's other operations in 2008. 
Capital expenditures for 2008 are expected to exceed the $15,000 limit
specified in the Corporation's debt agreement. The Corporation is considering
alternatives to address this limitation, including seeking a waiver from the
current lenders or new financing arrangements.

    Outlook

    The molybdenum price on world markets is the single most important
variable affecting the cash flow and profitability of the Corporation. 
Management expects that molybdenum prices will remain strong in the near term.
    Molybdenum production of between 16.5 and 17.0 million pounds at an
operating cost of $6.00 to $6.50 per pound is expected from the Thompson Creek
Mine in 2008. The Corporation's 75% share of the Endako Mine production is
expected to be from 6.5 to 7.5 million pounds at an operating cost of $9.50 to
$10.25 per pound. This production profile and the strong current market price
for molybdenum are expected to allow the Corporation to meet its cash
requirements for operations, capital expenditures, and debt payments during
2008.
    Ore mineral reserves were recalculated and increased at both operating
mines during 2007 using a long-term price of $10.00 per pound for molybdenum
sales. Proven and probable reserve estimates were revised at the Endako Mine
and the mine life, using current milling rates, was extended to 27 years.
Exploration drilling is underway in the vicinity of the Endako Mine. The
Thompson Creek Mine proven and probable reserve estimates were also revised
and the mine plan was extended to 10 years. Thompson Creek Mine continues to
work on development drilling and reserve analysis to complete the second stage
of its reserve study.
    In addition to the extended mine life at the current operating mines,
development of the Davidson Project continues. The Davidson deposit is
Canada's largest undeveloped molybdenum deposit. A feasibility study is being
prepared to examine the mining of 2,000 tonnes of high-grade ore per day from
the deposit and the shipping of this ore to the Endako mill for processing.
The Corporation expects to make a decision on the project in 2008. Efforts to
secure permitting for the project are ongoing.
    A feasibility study that examined the expansion of the Endako mill was
also completed in 2007. The study indicated there are potential positive
returns on an investment of this nature. The Corporation and the other joint
venture participant are reviewing the study and a decision is expected in
2008.

    Sensitivity Analysis

    The effect of a $1.00 per pound change in the price of molybdenum on 2008
net income and diluted earnings per share, based on the Corporation's plan, is
approximately $15,300 and $0.12, respectively.
    The effect of a $0.01 change in the Canadian/US dollar exchange rate on
2008 net income and diluted earnings per share, based on the Corporation's
plan, is approximately $1,000 and $0.01 respectively.

    Related Party Transactions

    The Corporation has a 75% interest in the Endako Mine joint venture. The
other participant in the joint venture is a related party as they jointly
control significant assets. Consolidated sales to members of a group of
companies affiliated with the other participant in the Endako Mine joint
venture were $176,109 for the year ended December 31, 2007, representing 19.2%
of the Corporation's total revenues for 2007 (2006 - $21,106 and 14.0%,
respectively). For the year ended December 31, 2007, the Corporation recorded
management fee income of $676 (2006 - $176) and selling and marketing costs of
$1,374 (2006 - $316) from this group of companies.

    Commitments and Contingencies

    As discussed above, in connection with the acquisition of Thompson Creek
USA, the Corporation entered into the First Lien and Second Lien credit
facility loan agreements. During the first quarter of 2007, the Corporation
repaid the Second Lien credit facility. The First Lien credit facility
requires quarterly principal payments. In addition to the regular principal
payments, the Corporation is required to make additional principal payments
upon the issuance of any new equity subsequent to the acquisition of Thompson
Creek USA. In 2007, the Corporation made additional principal payments of
$34,051 with proceeds from equity issuances. This agreement requires
additional principal payments each year if cash flows, as defined in the loan
agreement, in the year exceed the operating requirements of the Corporation.
In 2007, no additional payments were required under this term of the loan
agreement. This loan is scheduled to mature on September 30, 2012.
    In April 2007, the Corporation entered into an interest rate protection
agreement, as required under the First Lien credit facility. As a result of
the agreement, the Corporation has capped the underlying LIBOR rate on a
portion of the First Lien principal at 6.0%. At December 31, 2007 the
principal amount covered under this agreement was $116,500. The LIBOR rate at
December 31, 2007 was 4.6%.
    The Corporation has entered into variable-rate loan agreements to finance
the purchase of certain mining equipment. The mining equipment is pledged as
collateral for the loans. Each of these loans requires regular principal
repayments and mature no later than 2010. These loans bear interest at LIBOR
plus 200 basis points. As at December 31, 2007, the interest rate for these
loans was 6.6%.
    Maturities of long-term debt obligations are as follows:

    
                                      First Lien     Equipment
                                          Senior         Loans         Total
    Year ending December 31:

      2008                           $    66,818   $     2,704   $    69,522
      2009                                66,818         2,898        69,716
      2010                                44,545         1,165        45,710
      2011                                31,182             -        31,182
      2012                                26,727             -        26,727
      Thereafter                               -             -             -
                                     ------------  ------------  ------------
                                     $   236,090   $     6,767   $   242,857
                                     ------------  ------------  ------------
                                     ------------  ------------  ------------
    

    On acquisition of Thompson Creek USA, the Corporation has assumed an
agreement with a company affiliated with the other participant in the Endako
joint venture in which the Corporation will sell up to 10% of certain
production from the Thompson Creek Mine. The price to be paid will vary
depending on the production costs and the market price of molybdenum. The
Corporation expects to sell approximately 8.0 million pounds of molybdenum
from 2007 to 2011 under the terms of this agreement. One million pounds in
each of the four years, 2008 through to 2011, will be sold at a price as
determined by the agreement not to exceed $7.50 per pound. The remainder of
the expected sales will be sold at a discount to the market price at the time
of the sale. At the December 31, 2007 market price of $32.38 per pound and
current expected costs, this discount would be approximately $3.74 per pound.
    In addition to the above noted contract, the Corporation has entered into
agreements in which it has committed to sell specified amounts of molybdenum
from 2008 to 2011 at fixed prices. At December 31, 2007, the Corporation has
committed to sell approximately 2.2 million pounds from 2008 through to 2011
at an average price of $22.52 per pound.
    The Corporation enters into forward currency contracts in order to reduce
the impact of certain foreign currency fluctuations related to the operations
of Endako. The forward currency contracts provide protection to the
Corporation from fluctuations in the Canadian dollar. The terms of the
contracts are less than one year. At December 31, 2007 the Corporation had
open forward exchange contracts with a total commitment to purchase Cdn$21,000
at an average rate of US$1.04.
    In January 2008, the Corporation paid $100,000 to the vendors of Thompson
Creek USA under a contingent payment clause of the purchase agreement. In
early 2010, the Corporation may also be responsible for a further contingent
payment of $25,000 if the average 2009 molybdenum price exceeds $15.00 per
pound.
    In the normal course of operations, the Corporation enters into
agreements for the purchase of molybdenum. As at December 31, 2007, the
Corporation had commitments to purchase approximately 9.5 million pounds of
molybdenum (2006 - 10.4 million pounds), including approximately 6.7 million
pounds in 2008 and 1.4 million pounds in each of 2009 and 2010.

    Risk and Uncertainties

    Commodity Prices

    The Corporation's profitability is based on the production and sale of
molybdenum products. The profitability will be significantly impacted by
changes in the market price for molybdenum and in the change in the exchange
rate of the US dollar relative to the Canadian dollar. The Corporation has not
entered into any forward sales agreements in respect to the sale of
molybdenum, other than with the other participant in the Endako joint venture
and certain agreements for small quantities of sales. The Corporation has
entered into and continues to enter into agreements to fix the US dollar to
Canadian dollar exchange rate. The Corporation does not consider these
agreements to be accounting hedges.

    Mineral Reserves and Resources

    Mineral reserves and resources are estimates and no assurance can be
given that the anticipated tonnages and grades will be achieved or that the
expected level of recovery will be realized. The ore grade recovered may
differ from the estimated grades of the reserves and resources. Such figures
have been determined based upon assumed metal prices and operating costs.
Changes in mine operating and processing costs, changes in ore grade and
decline in the market price of molybdenum may render some or all of the
mineral reserves uneconomic.

    Capital Markets

    Changes to the market price of molybdenum and assumptions concerning
future operating expenses may make capital more costly or unavailable to the
Corporation. The Corporation's current credit facilities specify an annual
limit of $15,000 on capital expenditures. The Corporation expects to exceed
this limit in 2008 and is considering alternatives to address this limitation,
including seeking a waiver from the current lenders or new financing
arrangements.

    Construction

    The construction of a new mine is dependent on financing, construction
companies and personnel, weather and government permits. If the Corporation is
unable to access each of these in a timely manner, construction could be
delayed or require significant additional costs to complete in a timely
manner. Increases in the cost of machinery, equipment, personnel and other
construction materials may affect the economic viability and profitability of
developing new resources.

    Environmental, Health and Safety

    The Corporation's operations are subject to environmental regulations in
the jurisdictions in which it operates. Environmental legislation is evolving
in a manner which will require stricter standards and enforcement, increased
fines and penalties for non-compliance and more stringent environmental
assessments of proposed projects. There is no assurance that future changes in
environmental regulation, if any, will not adversely affect the Corporation's
operations.
    Mineral ores and mineral products including molybdenum ore and molybdenum
products contain naturally occurring impurities and toxic substances. Although
the Corporation has implemented procedures that are designed to identify,
isolate and safely remove or reduce such impurities and substances, such
procedures require strict adherence and no assurance can be given that
employees, contractors or others will not be exposed to or affected by such
impurities and toxic substances, which may attract liability to the
Corporation. A risk to the operation of the Thompson Creek Mine, the Endako
Mine, and the Langeloth metallurgical facility is that standard operating
procedures may not identify, isolate and safely remove or reduce such
substances. The Corporation is aware that both careful monitoring and
effective control are paramount but there is still a risk that the presence of
impurities or toxic substances in the Corporation's product may result in such
product being rejected by the Corporation's customers or penalties being
imposed due to such impurities. Such incidents could require remedial action
and could result in curtailment of operations.
    Legislation requiring manufacturers, importers and downstream users of
chemical substances, including metals and minerals, to establish that the
substances can be used without negatively affecting health or the environment
may impact the Corporation's operations and markets. These potential
compliance costs, litigation expenses, regulatory delays, remediation expenses
and operational costs could negatively affect the Corporation's financial
results.

    Currency Rates

    Results of the Corporation's Canadian mining operations are affected by
the US dollar exchange rate. A weaker US dollar causes the Corporation's
Canadian dollar denominated costs to increase subject to protection in place
through our currency hedging program.

    
    Summary of Quarterly Results
    (Unaudited)
                                     2007
    -------------------------------------------------------------------------
                                Q1        Q2        Q3        Q4      Total
    Operations

    Molybdenum sold
     (000's lb)               10,485     8,154     6,113     6,217    30,969
    Molybdenum production
     (000's lb)                5,433     4,466     3,024     3,443    16,366
    Realized price ($/lb)   $  25.57  $  29.59  $  32.05  $  31.08  $  28.77
    Cash operating expenses
     ($/lb)(1)              $   8.27  $   6.16  $   9.09  $  11.51  $   8.39

    Financial

    Revenue                 $267,967  $247,784  $200,856  $197,795  $914,402
    Income from mining
     and processing         $ 88,081  $104,126  $ 60,906  $ 47,915  $301,028
    Net income              $ 47,735  $ 56,799  $ 23,948  $ 28,865  $157,347
    Net income per
     common share
      - basic               $   0.46  $   0.51  $   0.21  $   0.25  $   1.43
      - diluted             $   0.43  $   0.45  $   0.18  $   0.22  $   1.24
    Cash flow from
     operating activities   $105,059  $    359  $ 31,426  $ 45,707  $182,551


                                     2006
    -------------------------------------------------------------------------
                                Q1        Q2        Q3        Q4      Total
    Operations

    Molybdenum sold
     (000's lb)                    -         -         -     5,737     5,737
    Molybdenum production
     (000's lb)                    -         -         -     3,846     3,846
    Realized price ($/lb)   $      -  $      -  $      -  $  25.74  $  25.74
    Cash operating expenses
     ($/lb)(1)              $      -  $      -  $      -  $   6.30  $   6.30

    Financial

    Revenue                 $      -  $      -  $      -  $150,843  $150,843
    Income from mining
     and processing         $      -  $      -  $      -  $  5,744  $  5,744
    Net loss                $ (2,481) $ (2,855) $ (2,795) $(12,512) $(20,643)
    Net income per
     common share
      - basic               $  (0.06) $  (0.06) $  (0.06) $  (0.14) $  (0.36)
      - diluted             $  (0.06) $  (0.06) $  (0.06) $  (0.14) $  (0.36)
    Cash flow from
     operating activities   $ (3,672) $ (2,751) $ (3,288) $ 85,155  $ 75,444

    (1) Weighted-average of Thompson Creek Mine and Endako Mine cash
        operating costs; excludes the effect of purchase price adjustments
        recorded on acquisition.
    

    Analysis of 2007 Fourth Quarter Results

    Molybdenum sold increased by 480,000 pounds - or 8% due to the
Corporation owning Thompson Creek USA for the entire fourth quarter in 2007
rather than only the post-acquisition period in the 2006 fourth quarter.
Production from both mines was lower in the 2007 fourth quarter compared to
the 2006 fourth quarter as discussed below and the increased pounds sold were
produced from purchased concentrate. Earnings from mining and processing
increased by $42,171 in the 2007 fourth quarter as the 2006 fourth quarter
absorbed a non-cash purchase price adjustment of $69,932 in operating expenses
related to a fair-value increase in inventory acquired with the purchase of
Thompson Creek USA. Cash from operating activities declined by $37,139 in the
2007 fourth quarter, primarily due to a 26% decline in sales of product
produced from the Corporation's mines in the current year period.

    
    Thompson Creek Mine - Three Months Ended December 31, 2007 and 2006

                                                          2007          2006
    Operations

    Mined (000's ore tonnes)                             3,420           899
    Milled (000's tonnes)                                2,234           883
      Grade (% molybdenum)                                0.05          0.14
      Recovery (%)                                        84.4          90.0
    Molybdenum production (000's lb)                     1,953         2,473
    Molybdenum sold (000's lb)                           1,444         2,529
    Realized price ($/lb)                          $     29.47   $     26.33
    Cash operating expenses ($/lb)(1)              $     14.18   $      5.82

    Financial

    Molybdenum sales                               $    42,555   $    66,583
                                                   ------------  ------------
    Operating expenses                                  21,884        66,313
    Selling and marketing                                  392           252
    Depreciation, depletion and amortization             3,120         1,330
    Accretion                                              354            11
                                                   ------------  ------------
                                                        25,750        67,906
                                                   ------------  ------------
    Income (loss) from mining and processing       $    16,805   $    (1,323)
                                                   ------------  ------------
                                                   ------------  ------------

    (1) Excludes the effect of purchase price adjustments recorded on
        acquisition.
    

    Molybdenum sold declined by 1,085,000 pounds or 43% even though the
Corporation owned the Thompson Creek Mine for the entire fourth quarter in
2007 rather than only the post-acquisition period in the fourth quarter of
2006. Ore processed in the 2007 fourth quarter came primarily from stockpiled
material and, increasingly from Phase 6 ore as waste stripping activity
exposed more of the Phase 6 ore throughout the quarter. The ore processed
during the fourth quarter of 2007 had lower grades and recoveries compared to
the Phase 5 ore processed in the 2006 fourth quarter, resulting in a decline
in material available for sale in the current year period. Average realized
prices increased by $3.14 per pound in the 2007 fourth quarter compared to the
same period in 2006. Operating expenses declined by $11.06 per pound in the
2007 fourth quarter as the fourth quarter of 2006 absorbed a non-cash purchase
price adjustment of $48,324 in operating expenses related to a fair-value
increase in inventory acquired with the purchase of Thompson Creek USA.

    
    Endako Mine - Three Months Ended December 31, 2007 and 2006

    Amounts presented in the table below represent the Corporation's 75%
    share of the Endako Mine's operations.

                                                          2007          2006
    Operations

    Mined (000's ore tonnes)                             1,621         1,320
    Milled (000's tonnes)                                1,549         1,129
      Grade (% molybdenum)                                0.06          0.06
      Recovery (%)                                        68.7          75.7
    Molybdenum production (000's lb)                     1,490         1,373
    Molybdenum sold (000's lb)                           1,707         1,745
    Realized price ($/lb)                          $     31.03   $     24.23
    Cash operating expenses ($/lb)(1)              $      9.25   $      6.99

    Financial

    Molybdenum sales                               $    52,965   $    42,275
                                                   ------------  ------------
    Operating expenses                                  15,793        32,801
    Selling and marketing                                  542           842
    Depreciation, depletion and amortization             2,910         1,450
    Accretion                                              103             4
                                                   ------------  ------------
                                                        19,348        35,097
                                                   ------------  ------------
    Income from mining and processing              $    33,617   $     7,178
                                                   ------------  ------------
                                                   ------------  ------------

    (1) Excludes the effect of purchase price adjustments recorded on
        acquisition.
    

    Molybdenum sold decreased by 38,000 pounds or 2% in the fourth quarter of
2007 over the comparable 2006 period. The decline occurred even though the
Corporation owned Endako for the entire quarter in 2007 compared to only the
post-acquisition period in 2006. While actual molybdenum production increased
in the fourth quarter of 2007, it was less than planned. A rock slide occurred
on the south wall of the Endako Pit in November 2007, requiring ore to be
sourced from stockpiles and the Denak Pit rather than the Endako Pit. Due to
the slide and also as a result of lower than expected ore grade and recovery
rate, and difficulty in feeding wet, frozen ore into the mill in December, ore
tonnage processed in that month was reduced. Realized prices were $6.80 per
pound greater in the 2007 fourth quarter compared to the fourth quarter of
2006. Operating expenses were $9.55 per pound lower in the fourth quarter of
2007 as the 2006 fourth quarter absorbed a non-cash accounting charge of
$20,608 in operating expenses for a fair-value increase in inventory acquired
with the purchase of Thompson Creek USA.

    
    Other Operations - Three Months Ended December 31, 2007 and 2006

                                                          2007          2006
    Operations

    Molybdenum sold from purchased concentrate
     (000's lb)                                          3,066         1,463
    Realized price on molybdenum sold from
     purchased concentrate ($/lb)                  $     31.86   $     26.53
    Toll roasted molybdenum (000's lb)                   2,253         1,999
    Roasted metal products processed (000's lb)          8,150         5,682

    Financial

    Molybdenum sales                               $    97,686   $    38,818
    Tolling and calcining                                4,589         3,167
                                                   ------------  ------------
                                                       102,275        41,985
                                                   ------------  ------------
    Operating expenses                                 101,826        40,001
    Selling and marketing                                  642           145
    Depreciation, depletion and amortization             2,283         1,812
                                                   ------------  ------------
                                                       104,751        41,958
                                                   ------------  ------------
    Income (loss) from mining and processing       $    (2,476)  $        27
                                                   ------------  ------------
                                                   ------------  ------------
    

    Molybdenum sold from purchased concentrates, toll roasted molybdenum and
roasted metal products processed increased by 110%, 13% and 5%, respectively,
as a result of the Corporation owning the Langeloth facility for the entire
fourth quarter in 2007 compared to only the post-acquisition period in the
fourth quarter of 2006. Molybdenum sold from purchased concentrates increased
significantly in the 2007 fourth quarter in order to meet customer demand and
to offset the decline in molybdenum concentrate deliveries from the Thompson
Creek Mine due to lower production at that operation.

    Critical Accounting Estimates

    In preparing financial statements, management has to make estimates and
assumptions that affect the reported amounts of assets, liabilities, revenues
and expenses. Critical accounting assumptions affect the consolidated
financial statements materially and require a significant level of judgement
by management. There is a reasonable likelihood that materially different
amounts could be reported under different conditions or using different
assumptions and estimates.

    Purchase Price Allocation

    Business acquisitions are accounted for by the purchase method of
accounting whereby the purchase price is allocated to the assets acquired and
the liabilities assumed based on fair value at the time of the acquisition.
The determination of fair value requires management to make assumptions and
estimates about future events which require a high degree of judgment
including estimates of mineral reserves acquired, future molybdenum prices and
discount rates. Changes in any of the assumptions or estimates used in the
fair value determination could materially impact the amounts assigned to
assets, liabilities and goodwill in the purchase price allocation.

    Goodwill and Goodwill Impairment

    Goodwill arising from business combinations is allocated to reporting
units by preparing estimates of the fair value of each reporting unit as
compared to the fair value of the assets and liabilities of the reporting
unit. Goodwill is tested for impairment on an annual basis or when
circumstances indicate that the value may have become impaired. This
assessment includes a comparison of the carrying value and fair value of each
reporting unit to determine whether the fair value exceeds its carrying value.
If the carrying value exceeds the fair value a more detailed goodwill
impairment assessment would have to be undertaken. In determining fair value,
management must exercise judgment and make assumptions and different judgments
and assumptions could affect the determination of fair value and any resulting
impairment write-down.
    At December 31, 2007, each reporting unit's estimated fair value was
greater than its carrying value. However, the timing and amount of future
goodwill impairment charges is difficult to determine and may be impacted by
molybdenum prices, the timing and future value of additions to proven and
probable mineral reserves, operating costs, level of capital expenditures and
currency exchange, discount and interest rates.

    Depreciation, Depletion and Amortization

    Plant, facilities and machinery used directly in mining operations are
amortized using the units-of-production method over the estimated life of the
ore body based on recoverable pounds to be mined from estimated proven and
probable mineral reserves. Mobile and other equipment are depreciated on a
straight-line basis over the shorter of their estimated useful life and the
life of the mine.
    The estimate that most significantly affects the unit of production rate
is the quantities of proven and probable molybdenum mineral reserves. The
estimation of the extent of mineral reserves is a complex task in which a
number of estimates and assumptions are made. These involve the use of
geological sampling and models as well as estimate of long term molybdenum
prices and future costs. This data could change over time as a result of
numerous factors including new information gained from development activities,
evolving production history and a reassessment of the viability of production
under different economic conditions. Significant judgment is involved in the
reserve estimates and actual results may differ significantly from current
assumptions.

    Property, Plant and Equipment

    The Corporation reviews and evaluates the carrying value of its operating
mines and development properties for impairment when events or changes in
circumstances indicate that the carrying value of the assets may not be
recoverable.
    An impairment loss is measured and recorded when the carrying amount
exceeds the estimated future undiscounted cash flows. These future cash flows
are developed using assumptions that reflect the long-term operating plans for
an asset given management's best estimate of the most probable set of economic
conditions. At December 31, 2007, it is management's view based on assumptions
that management believes to be reasonable that there is no impairment in the
carrying value of property plant and equipment. Changes in market conditions,
reserve estimates and other assumptions used in these estimates may result in
future write-downs.

    Asset Retirement Obligations

    Accounting for reclamation and remediation obligations requires
management to make estimates of the future costs the Corporation will incur to
complete the work required to comply with existing laws and regulation at each
mining operation. Actual costs may differ from those amounts estimated. Also,
future changes to environmental laws and regulations could increase the extent
of reclamation and remediation work required.

    Income and Mining Taxes

    The determination of the Corporation's tax expense for the year and its
future tax liabilities and assets involves significant management estimation
and judgment involving a number of assumptions. In determining these amounts,
management interprets tax legislation in a variety of jurisdictions and makes
estimates of the expected timing of the reversal of future tax assets and
liabilities. Management also makes estimates of future earnings which affect
the extent to which potential future tax benefits may be used. The Corporation
is subject to assessments by various taxation authorities which may interpret
tax legislation differently. These differences may affect the final amount or
the timing of the payment of taxes. The Corporation provides for such
differences where known based on management's best estimate of the probable
outcome of these matters.

    Recent Changes in Accounting Pronouncements

    Financial Instruments, Hedges and Comprehensive Income

    Effective January 1, 2007, the Corporation adopted the three new
accounting standards and related amendments to other standards on financial
instruments issued by the Canadian Institute of Chartered Accountants
("CICA"), including Handbook Section 1530, "Comprehensive Income", Section
3251, "Equity", Section 3855, "Financial Instruments - Recognition and
Measurement" and Section 3865, "Hedges".

    
    (a)    Financial Instruments - Recognition and Measurement

           Under this new standard, all financial instruments are classified
           as one of the following: held-to-maturity investments, loans and
           receivables, held-for-trading or available-for-sale. Financial
           assets and liabilities held-for-trading are measured at fair value
           with gains and losses recognized in net income. Financial assets
           held-to-maturity, loans and receivables, and financial liabilities
           other than those held-for-trading, are measured at amortized cost.
           Available-for-sale instruments are measured at fair value with
           unrealized gains and losses recognized in other comprehensive
           income. The standard also permits the designation of any financial
           instrument as held-for-trading upon initial recognition.

           Effective January 1, 2007, the Corporation's cash, cash
           equivalents and reclamation deposits have been classified as
           available for sale investments and are recorded at fair value on
           the balance sheet.

           All derivative instruments are recorded on the consolidated
           balance sheet at fair value. Mark-to-market adjustments on these
           instruments are included in net income. In accordance with the
           standard's transitional provisions, the Corporation recognizes as
           separate assets and liabilities only embedded derivatives acquired
           or substantively modified on or after January 1, 2003.

           All other financial instruments are recorded at amortized cost,
           subject to impairment reviews. The criteria for assessing an
           other-than-temporary impairment remain unchanged. Transaction
           costs incurred to acquire or issue financial instruments are
           included in the carrying amount of the relevant financial
           instrument.

    (b)    Hedges

           This new standard specifies the criteria under which hedge
           accounting can be applied and how hedge accounting can be executed
           for each of the permitted hedging strategies: fair-value hedges,
           cash-flow hedges and hedges of a foreign currency exposure of a
           net investment in a self-sustaining foreign operation. The
           Corporation has not designated any agreements as hedges.

    (c)    Comprehensive Income

           This standard requires the presentation of a statement of
           comprehensive income and its components. Comprehensive income
           includes both net earnings and other comprehensive income. Other
           comprehensive income includes unrealized gains and losses on
           available for sale investments, gains and losses on certain
           derivative instruments and foreign currency gains and losses
           relating to self-sustaining foreign operations, all of which are
           not included in the calculation of net earnings until realized.
           This statement has been included in the Corporation's consolidated
           financial statements effective 2007. The balance in accumulated
           other comprehensive income at December 31, 2007 relates entirely
           to unrealized foreign exchange gains on translation of self-
           sustaining foreign operations.
    

    Stripping Costs Incurred in the Production Phase of a Mining Operation

    Effective January 1, 2007, the Corporation adopted the new
recommendations of the CICA Emerging Issues Committee Abstract No. 160,
"Stripping Costs Incurred in the Production Phase of a Mining Operation"
("EIC-160"). EIC-160 clarifies the treatment of costs associated with the
activity of removing overburden and other mine waste materials in the
production phase of a mining operation and requires that these costs be
charged to income in the period in which they are incurred, except when the
costs represent a betterment to the mineral property. Costs represent a
betterment to the mineral property when the stripping activity provides access
to mineral reserves that will be produced in future periods that would not
have been accessible without the stripping activity. When costs are deferred
in relation to a betterment, the costs are amortized over the mineral reserves
accessed by the stripping activity using the units of production method.
Adoption of this standard had no impact on the Corporation's previously
reported results.

    Accounting Changes

    Effective January 1, 2007, the Corporation adopted the revised CICA
Handbook Section 1506 "Accounting Changes", which requires that: (a) a
voluntary change in accounting principles can be made if, and only if, the
changes result in more reliable and relevant information, (b) changes in
accounting policies are accompanied with disclosures of prior period amounts
and justification for the change, and (c) for changes in estimates, the nature
and amount of the change should be disclosed. The Corporation has not made any
voluntary change in accounting principles since the adoption of the revised
standard.

    Accounting Policy Developments

    Convergence with International Financial Reporting Standards

    The CICA plans to transition Canadian GAAP for public companies to
International Financial Reporting Standards ("IFRS"). The effective changeover
date is for interim and annual financial statements relating to fiscal years
beginning on or after January 1, 2011. The impact of the transition to IFRS on
the Corporation's consolidated financial statements is not yet determinable.

    Inventories

    In June 2007, the CICA released Handbook Section 3031, "Inventories",
which replaces the existing Section 3030 "Inventories". This standard
introduces changes to the measurement and disclosure of inventory and
converges with IFRS. Key requirements of this standard include that:
inventories be measured at the lower of cost and net realizable value; the
allocation of overhead be based on normal capacity; the use of the specific
cost method for items that are not normally interchangeable or produced for
specific purposes; the use of a consistent cost formula for inventory of
similar nature and use; and the reversal of previous write-downs of inventory
to net realizable value when there has been a subsequent increase in the value
of this inventory. Disclosure requirements include the Corporation's policies,
inventory carrying amounts, amounts recognized as an expense, write-downs and
subsequent reversals of write-downs. This standard is effective for interim
and annual financial statements relating to fiscal years beginning on or after
January 1, 2008. The Corporation is currently assessing the impact that the
adoption of this standard will have on its consolidated financial statements.

    Financial Instruments - Disclosure and Presentation

    In March 2007, the CICA released Handbook Section 3862, "Financial
Instruments - Disclosure", and Handbook Section 3863, "Financial Instruments -
Presentation" to replace existing Section 3861, "Financial Instruments -
Disclosure and Presentation". The new financial statement disclosure
requirements of Section 3862 are to enable users to evaluate the significance
of financial instruments on the Corporation's financial position and
performance, the nature and extent of risks arising from financial instruments
the Corporation is exposed to during the reporting period and as at the
balance sheet date, and how the Corporation is managing those risks. Section
3863 carries forward, unchanged, the presentation requirements of existing
Section 3861 to enhance user's understanding of the significance of financial
instruments to the Corporation's financial position, performance and cash
flows. These standards are effective for interim and annual financial
statements relating to fiscal years beginning on or after October 1, 2007.

    Capital Disclosures

    In December 2006, the CICA released Handbook Section 1535, "Capital
Disclosures". The objective of the new financial statement disclosure
requirements of Section 1535 is to enable users to evaluate the Corporation's
objectives, policies and processes for managing capital. This standard is
effective for interim and annual financial statements relating to fiscal years
beginning on or after October 1, 2007.

    Goodwill and Intangible Assets

    In February 2008, the CICA issued Section 3064, "Goodwill and Intangible
Assets", replacing Section 3062, "Goodwill and Other Intangible Assets" and
Section 3450, "Research and Development Costs". Various changes have been made
to other sections of the CICA Handbook for consistency purposes. Section 3064
establishes standards for the recognition, measurement, presentation and
disclosure of goodwill subsequent to its initial recognition and of intangible
assets by profit-oriented enterprises. Standards concerning goodwill are
unchanged from the standards included in the previous Section 3062. The new
Section will be applicable to financial statements relating to fiscal years
beginning on or after October 1, 2008. Accordingly, the Corporation will adopt
the new standards for its fiscal year beginning January 1, 2009. The
Corporation is currently assessing the impact that the adoption of this
standard will have on its consolidated financial statements.

    Outstanding Share Data

    Common shares and convertible securities outstanding at March 13, 2008
were:

    
                                                               Common Shares
                                             Exercise Price     on Exercise
    Security             Expiry Dates            (Cdn$)            (000's)

    Common shares                                                    113,484
    Warrants           October 23, 2011          $9.00                24,506
    Share options     August 11, 2010 to    $0.60 to $23.93            7,376
                       December 6, 2012                        --------------
                                                                     145,366
                                                               --------------
                                                               --------------
    

    Controls and Procedures

    Disclosure Controls and Procedures

    The Corporation's management has evaluated the effectiveness of the
Corporation's disclosure controls and procedures. Based upon the results of
that evaluation, the Corporation's Chief Executive Officer and Chief Financial
Officer have concluded that, as of the end of the period covered by this
report, the Corporation's disclosure controls and procedures were effective to
provide reasonable assurance that the information required to be disclosed by
the Corporation in the reports it files, and the transactions that are
recorded, processed, summarized and reported, within the appropriate time
periods and forms.

    Internal Controls over Financial Reporting

    The Corporation's management, with the participation of its Chief
Executive Officer and Chief Financial Officer, are responsible for
establishing and maintaining adequate internal control over financial
reporting. Under the supervision of management, the Corporation's internal
control over financial reporting is a process designed to provide reasonable
assurance regarding the reliability of financial reporting and the preparation
of financial statements for external purposes in accordance with generally
accepted accounting principles ("GAAP"). The Corporation's controls include
policies and procedures that:

    
    -   pertain to the maintenance of records that, in reasonable detail,
        accurately and fairly reflect the transactions and dispositions of
        the assets of the Corporation;

    -   provide reasonable assurance that transactions are recorded as
        necessary to permit preparation of financial statements in accordance
        with GAAP; and

    -   provide reasonable assurance regarding prevention or timely detection
        of unauthorized acquisition, use or disposition of the Corporation's
        assets that could have a material effect on the annual financial
        statements or interim financial statements.
    

    In making its assessment of the Corporation's design of internal control
over financial reporting as of December 31, 2007, management used criteria set
forth by the Committee of Sponsoring Organizations of the Treadway Commission
("COSO"). For purposes of management's evaluation, any significant deficiency,
or a combination of significant deficiencies, that resulted in there being
more than a remote likelihood that a material misstatement of the annual or
interim financial statements would not be prevented or detected in a timely
basis by management or employees in the normal course of performing their
assigned functions, have been reported to the Audit Committee of the Board.
    There have been significant changes in the Corporation's internal control
over financial reporting during the Corporation's year ended December 31, 2007
that have materially affected the Corporation's internal control environment.
    Among the more significant events affecting internal control over
financial reporting was the acquisition of the formerly privately-held
Thompson Creek USA and the transformation of the Corporation from a
development company to a multi-operations mining company. These changes have
resulted in an evolution and formalization of the internal control and
regulatory reporting environment within the Corporation.
    During management's review and evaluation of the design of the internal
controls over financial reporting, management concluded that significant
deficiencies existed within the internal control environment as a result of
the changes described above. These significant deficiencies included:

    
    -   the lack of effective segregation of duties where responsibilities
        for the preparation, entry and approval of accounting transactions
        were shared at some of the mine operations;

    -   the lack of standardized, formal policies and procedures around the
        financial closing and reporting of financial results; and

    -   The lack of formal evidence of management oversight and review of
        financial information.
    

    Limitations of Controls and Procedures

    The Corporation's management, including the Chief Executive Officer and
Chief Financial Officer, believe that any disclosure controls and procedures
or internal controls over financial reporting, no matter how well conceived
and operated, can provide only reasonable, not absolute, assurance that the
objectives of the control system are met. Further, the design of a control
system must reflect the fact that there are resource constraints, and the
benefits of controls must be considered relative to their costs. Because of
the inherent limitations in all control systems, they cannot provide absolute
assurance that all control issues and instances of fraud, if any, within the
Corporation have been prevented or detected. These inherent limitations
include the realities that judgments in decision-making can be faulty, and
that breakdowns can occur because of simple error or mistake. Additionally,
controls can be circumvented by the individual acts of some persons, by
collusion of two or more people, or by unauthorized override of the control.
The design of any systems of controls also is based in part upon certain
assumptions about the likelihood of future events, and there can be no
assurance that any design will succeed in achieving its stated goals under all
potential future conditions. Accordingly, because of the inherent limitations
in a cost effective control system, misstatements due to error or fraud may
occur and not be detected.



    
    Consolidated Balance Sheets
    December 31
    (US dollars in thousands)
    Unaudited
                                            Note          2007          2006
    Assets

    Current assets
      Cash and cash equivalents                    $   113,692   $    98,059
      Accounts receivable                               84,128        84,476
      Product inventory                                131,272       131,269
      Material and supplies inventory                   32,899        25,498
      Prepaid expense and other current
       assets                                            4,614         3,015
      Income and mining taxes recoverable               13,410             -
                                                   ------------  ------------
                                                       380,015       342,317
    Reclamation deposits                      12        26,851        23,005
    Restricted cash                           11         9,964         8,081
    Other assets                               8         2,439             -
    Property, plant and equipment              5       566,791       480,187
    Goodwill                                4, 6       123,662        46,322
                                                   ------------  ------------
                                                   $ 1,109,722   $   899,912
                                                   ------------  ------------
                                                   ------------  ------------
    Liabilities

    Current liabilities
      Accounts payable and accrued
       liabilities                                 $    60,428   $    38,794
      Acquisition cost payable                 4       100,000             -
      Income and mining taxes payable                        -        29,407
      Current portion of long-term debt        9        67,242        73,758
      Future income and mining taxes          19         6,370        16,769
                                                   ------------  ------------
                                                       234,040       158,728
    Long-term debt                             9       170,178       324,048
    Contractual sales obligations             10         9,668        11,421
    Severance and other liabilities        8, 11        20,277         8,008
    Asset retirement obligations              12        26,413        25,992
    Future income and mining taxes            19       161,504       147,664
                                                   ------------  ------------
                                                       622,080       675,861
                                                   ------------  ------------
    Shareholders' Equity

    Common shares                             14       268,143       210,857
    Common share warrants                     14        34,975        35,445
    Contributed surplus                                 26,537        14,953
    Retained earnings (deficit)                        129,768       (27,579)
    Accumulated other comprehensive
     income (loss)                                      28,219        (9,625)
                                                   ------------  ------------
                                                       487,642       224,051
                                                   ------------  ------------
                                                   $ 1,109,722   $   899,912
                                                   ------------  ------------
                                                   ------------  ------------

    Commitments and contingencies             16



    Consolidated Statements of Income (Loss)
    Years ended December 31
    (US dollars and share amounts in thousands, except per share amounts)
    Unaudited

                                            Note          2007          2006

    Revenues
      Molybdenum sales                             $   891,101   $   147,676
      Tolling and calcining                             23,301         3,167
                                                   ------------  ------------
                                                       914,402       150,843
                                                   ------------  ------------
    Cost of sales
      Operating expenses                               554,488       139,115
      Selling and marketing                              9,042         1,239
      Depreciation, depletion and
       amortization                                     48,174         4,718
      Accretion                                          1,670            27
                                                   ------------  ------------
                                                       613,374       145,099
                                                   ------------  ------------
    Income from mining and processing                  301,028         5,744

    Other (income) expenses
      General and administrative                        15,869         4,568
      Exploration and development                        4,585         8,635
      Interest and finance fees               17        42,411         9,139
      Stock-based compensation                15        16,306        14,547
      Interest income                                   (7,783)       (1,183)
      Other                                   18         1,327        (1,047)
                                                   ------------  ------------
                                                        72,715        34,659
                                                   ------------  ------------
    Income (loss) before income and
     mining taxes                                      228,313       (28,915)
    Income and mining taxes (recoverable)
      Current                                 19       103,070        23,133
      Future                                  19       (32,104)      (31,405)
                                                   ------------  ------------
                                                        70,966        (8,272)
                                                   ------------  ------------
    Net income (loss)                              $   157,347   $   (20,643)
                                                   ------------  ------------
                                                   ------------  ------------
    Net income (loss) per share               20
      Basic                                        $      1.43   $     (0.36)
                                                   ------------  ------------
                                                   ------------  ------------
      Diluted                                      $      1.24   $     (0.36)
                                                   ------------  ------------
                                                   ------------  ------------



    Consolidated Statements of Cash Flows
    Years ended December 31
    (US dollars in thousands)
    Unaudited

                                            Note          2007          2006

    Operating Activities

    Net income (loss)                              $   157,347   $   (20,643)
    Reclamation expenditures                               (82)            -
    Items not affecting cash:
      Depreciation, depletion and
       amortization                                     48,174         4,718
      Accretion                                          1,670            27
      Amortization of finance fees                       7,831           406
      Stock-based compensation                          16,306        14,547
      Future income and mining taxes                   (32,104)      (31,405)
      Unrealized loss on derivative
       instruments                                       4,837           660
    Change in non cash working capital        23       (21,428)      107,134
                                                   ------------  ------------
        Cash generated by operating
         activities                                    182,551        75,444
                                                   ------------  ------------

    Investing Activities

    Property, plant and equipment                      (14,593)       (4,514)
    Deferred stripping costs                           (34,174)            -
    Acquisitions, net of cash acquired                       -      (600,428)
    Restricted cash                                     (1,620)         (138)
    Reclamation deposit                                 (2,846)         (235)
                                                   ------------  ------------
        Cash used in investing activities              (53,233)     (605,315)
                                                   ------------  ------------

    Financing Activities

    Proceeds from issuance of common shares             50,848       233,701
    Repayment of long-term debt                       (168,216)         (368)
    Proceeds from issuance of long-term debt                 -       401,856
    Debt issue costs                                         -       (13,673)
                                                   ------------  ------------
        Cash (used in) generated by
         financing activities                         (117,368)      621,516
                                                   ------------  ------------
    Effect of exchange rate changes on cash              3,683          (501)
                                                   ------------  ------------
    Increase in cash and cash equivalents               15,633        91,144
    Cash and cash equivalents,
     beginning of year                                  98,059         6,915
                                                   ------------  ------------
    Cash and cash equivalents, end of year         $   113,692   $    98,059
                                                   ------------  ------------
                                                   ------------  ------------

    Supplementary cash flow information       23


    Consolidated Statements of Shareholders' Equity
    Years ended December 31
    (US dollars in thousands)
    Unaudited

                                                     2007          2006

    Common Shares
    Balance, beginning of year                     $   210,857   $    11,867
      Proceeds from private placement                   31,898         2,921
      Proceeds from exercise of stock options           15,343           485
      Transferred from contributed surplus on
       exercise of options                               6,870            88
      Proceeds from exercise of warrants                 3,607         3,523
      Transferred from warrants on exercise of
       warrants                                            469           570
      Proceeds from acquisition of Thompson
       Creek USA                                             -       203,050
      Issue costs                                         (901)      (11,647)
                                                  ------------- -------------
    Balance, end of year                           $   268,143   $   210,857
                                                  ------------- -------------
    Warrants
    Balance, beginning of year                     $    35,445   $       646
      Transferred to common shares on exercise
       of warrants                                        (469)         (570)
      Warrants expired                                      (1)            -
      Issued on acquisition of Thompson Creek USA            -        37,064
      Issued on private placement                            -           184
      Agent compensation warrants                            -           110
      Issue costs                                            -        (1,989)
                                                  ------------- -------------
    Balance, end of year                           $    34,975   $    35,445
                                                  ------------- -------------
    Contributed Surplus
    Balance, beginning of year                     $    14,953   $       422
      Amortization of fair value of employee
       stock options                                    16,306        14,619
      Transferred to common shares on exercise of
       options                                          (6,870)          (88)
      Stock-based compensation tax adjustment            2,147             -
      Warrants expired                                       1             -
                                                  ------------- -------------
    Balance, end of year                           $    26,537   $    14,953
                                                  ------------- -------------
    Retained Earnings (Deficit)
    Balance, beginning of year                     $   (27,579)  $    (6,936)
      Net income (loss)                                157,347       (20,643)
                                                  ------------- -------------
    Balance, end of year                           $   129,768   $   (27,579)
                                                  ------------- -------------
    Accumulated Other Comprehensive Income (Loss)
    Balance, beginning of year                     $    (9,625)  $       857
      Foreign currency translation adjustments          37,844       (10,482)
                                                  ------------- -------------
    Balance, end of year                           $    28,219   $    (9,625)
                                                  ------------- -------------
    Shareholders' Equity, end of year              $   487,642   $   224,051
                                                  ------------- -------------
                                                  ------------- -------------



    Consolidated Statement of Comprehensive Income
    Year ended December 31
    (US dollars in thousands)
    Unaudited

                                                                   2007

    Net income                                                   $   157,347
      Foreign currency translation adjustments                        37,844
                                                                -------------
    Comprehensive income                                         $   195,191
                                                                -------------
                                                                -------------



    Notes to the Consolidated Financial Statements
    Years ended December 31, 2007 and 2006
    (US dollars in thousands, except per share amounts)
    Unaudited

    1.  Description of Business

    Thompson Creek Metals Company Inc. (formerly Blue Pearl Mining Ltd.)
    ("Thompson Creek" or "the Corporation") is a Canadian mining company with
    molybdenum mines and processing facilities in Canada and the United
    States ("US").

    The Corporation acquired Thompson Creek Metals Company USA
    ("Thompson Creek USA") on October 26, 2006. The operations acquired were
    the Thompson Creek Mine (mine and mill) in Idaho, the Langeloth
    Metallurgical Facility in Pennsylvania and a 75% joint venture interest
    in the Endako Molybdenum Mine Joint Venture ("Endako Mine") (mine, mill
    and roaster) in British Columbia. This acquisition positioned the
    Corporation as a molybdenum producer with vertically integrated mining,
    milling, processing and marketing operations, and is further described in
    Note 4 to these financial statements. Prior to this acquisition the
    Corporation had no active mining operations.

    The Corporation acquired the Davidson molybdenum property ("Davidson
    Project") in British Columbia in 2005. The Corporation has been
    developing this project since that time.

    2.  Significant Accounting Policies

    a)  Basis of Preparation

    The accompanying consolidated financial statements have been prepared
    according to Canadian generally accepted accounting principles ("Canadian
    GAAP"). All financial figures are presented in United States dollars
    unless otherwise stated. Material measurement differences between
    Canadian GAAP and generally accepted accounting principles in the United
    States ("US GAAP") are described in Note 25.

    b)  Principles of Consolidation

    The consolidated financial statements include the accounts of the
    Corporation and its subsidiaries. The principal subsidiaries of the
    Corporation are:

        Thompson Creek Metals Company USA
        Langeloth Metallurgical Company LLC
        Thompson Creek Mining Co.
        Cyprus Thompson Creek Mining Company
        Thompson Creek Mining Ltd.
        Blue Pearl Mining Inc.

    These consolidated financial statements also include the Corporation's
    pro rata share of its 75% joint venture interest in the Endako Mine.

    The comparative figures presented in these consolidated financial
    statements include the results of operations for Thompson Creek USA, and
    the effect on the consolidated cash flows, from the date of acquisition,
    October 26, 2006 to December 31, 2006.

    All intercompany accounts and transactions have been eliminated on
    consolidation.

    c)  Currency Translation

    The functional currency of the Corporation and its US operations is the
    US dollar. Monetary assets and liabilities denominated in foreign
    currencies are translated into US dollars at exchange rates in effect at
    the balance sheet date with resulting gains or losses being reported in
    other income or expense in the computation of net income. Other
    non-monetary assets and liabilities are translated at historic rates.
    Revenues, expenses and cash flows completed in foreign currencies are
    translated into US dollars at exchange rates prevailing at the
    transaction date.

    The Corporation's interest in the Endako Mine is accounted for as a
    self-sustaining operation. The Endako Mine's functional currency is the
    Canadian dollar. Endako Mine's assets and liabilities are translated at
    exchange rates in effect at the balance sheet date and revenues and
    expenditures are translated at monthly average exchange rates.
    Differences arising from these foreign currency translations are recorded
    in shareholders' equity as a component of accumulated other comprehensive
    income (loss).

    In connection with the acquisition of Thompson Creek USA, the Corporation
    changed its reporting currency from Canadian dollars to US dollars
    effective October 26, 2006.

    d)  Use of Estimates

    The preparation of financial statements in conformity with Canadian GAAP
    requires management to make estimates and assumptions that affect the
    reported amount of assets and liabilities and disclosure of contingent
    liabilities as at the date of the financial statements, and the reported
    amounts of revenues and expenditures during the reporting period. As the
    estimation process is inherently uncertain, actual future outcomes could
    differ from current estimates and assumptions, potentially having
    material effects on future financial statements.

    e)  Cash and Cash Equivalents

    Cash equivalents are investments in money market instruments with a
    maturity of ninety days or less at the date of acquisition. Cash
    equivalents have been designated as available-for-sale and are reported
    on the balance sheet at fair value with changes in fair value reported in
    other comprehensive income, net of income taxes. These investments are
    readily convertible to known amounts of cash and are subject to
    insignificant changes in value during the period they are held.

    f)  Accounts Receivable

    Accounts receivable are carried at the lower of amortized cost or net
    realizable value. On a periodic basis, receivables are reviewed for
    collectibility on an individual account basis in consideration of payment
    history, age of the receivable and credit worthiness of the customer.
    Accounts receivable are written off as they are determined to be
    uncollectible.

    g)  Inventories

    Product inventories are carried at the lower of cost or net realizable
    value. Cost is comprised of production costs for ore produced from the
    Corporation's mines and amounts paid for molybdenum concentrate purchased
    from third parties. Production costs include the costs of materials,
    costs of processing and roasting, direct labour, mine site and processing
    facility overhead costs and depreciation, depletion and amortization. The
    Corporation uses the first-in, first-out cost method for production and
    sales of product inventory.

    Materials and supplies inventories are carried at the lower of cost or
    replacement cost.

    h)  Property, Plant and Equipment

    Property, plant and equipment are recorded at cost. Plant, facilities and
    machinery are amortized using the units of production method over the
    estimated life of the ore body based on recoverable pounds to be produced
    from estimated proven and probable mineral reserves. Mobile and other
    equipment are depreciated on either a declining-balance basis or a
    straight line basis over the shorter of their estimated useful life and
    the life of the mine. The cost of normal maintenance and repairs to
    maintain processing facilities and mining equipment is charged to
    earnings as incurred. Expenditures that extend the useful lives of
    existing facilities or equipment are capitalized and amortized on the
    same basis as the underlying asset.

    The Corporation capitalizes the costs to acquire mineral properties. On
    acquisition of a mineral property, the Corporation estimates the fair
    value of proven and probable mineral reserves as well as the value beyond
    proven and probable mineral reserves and records these amounts as assets
    at the date of acquisition. Mineral properties in production are
    amortized over the life of the mine using the units-of-production method
    based on recoverable pounds to be mined from estimated proven and
    probable mineral reserves. The cost assigned to value beyond proven and
    probable mineral reserves is not amortized. However, as new information
    is gained or economics change these mineral reserves may be converted
    into proven and probable mineral reserves at which time the capitalized
    costs associated with these mineral reserves are reclassified as costs
    subject to amortization.

    Exploration costs are expensed as incurred. When it is determined that a
    mineral property can be economically developed and proven and probable
    mineral reserves have been established, costs incurred to develop the
    property are capitalized as incurred until the assets are brought into
    operational use. Prior to the initial establishment of proven and
    probable mineral reserves, development costs are expensed as incurred.

    Expenditures incurred for stripping activity considered to be a
    betterment to a mineral property are capitalized and amortized over the
    mineral reserves that directly benefit from the specific stripping
    activity.

    The Corporation reviews and evaluates the carrying value of its
    long-lived assets when events or changes in circumstances indicate that
    the carrying value of the assets may be impaired. These tests compare
    expected undiscounted future cash flows from these assets to their
    carrying value. When indicators of impairment are determined to exist,
    carrying values are written down to their estimated fair values computed
    using the risk-free rate.

    i)  Reclamation Deposits

    As part of its management of risks related to the final reclamation of
    mine sites, the Corporation maintains cash deposits whose use is
    restricted to the funding of reclamation costs. Cash deposits are
    required under a reclamation insurance policy that the Corporation has
    purchased for the Thompson Creek Mine. For the Endako Mine, the
    Corporation has placed cash on deposit to fund future reclamation costs
    anticipated under a reclamation plan approved by the Province of
    British Columbia. Reclamation deposits are classified as
    available-for-sale and are recorded at fair value, and are classified as
    a non-current asset.

    j)  Goodwill

    Acquisitions are accounted for using the purchase method whereby assets
    and liabilities acquired are recorded at their fair values as of the date
    of acquisition and any excess of the purchase price over such fair value
    is recorded as goodwill. Goodwill is identified and assigned to reporting
    units by preparing estimates of the fair value of each reporting unit and
    comparing this amount to the fair value of assets and liabilities in the
    reporting unit. Goodwill is not amortized.

    The Corporation evaluates, on an annual basis, the carrying amount of
    goodwill to determine whether current events or changes in circumstances
    indicate that such carrying amount may no longer be recoverable. To
    accomplish this, the Corporation compares the fair value of its reporting
    units to their carrying amounts. If the carrying value of a reporting
    unit exceeds its fair value, then the Corporation compares the implied
    fair value of the reporting unit's goodwill to its carrying amount, and
    any excess of the carrying value over the fair value is charged to
    operations. Assumptions underlying fair value estimates are subject to
    significant risk and uncertainties.

    k)  Derivative Instruments

    The Corporation enters into various arrangements such as interest rate
    protection agreements, foreign currency forward contracts, and molybdenum
    purchase and sale contracts. The Corporation does not qualify any of
    these arrangements as hedging relationships, nor does it designate these
    contracts as "normal sales and purchase contracts". The fair value of
    these derivative instruments are adjusted at each balance sheet date,
    with changes in fair value recorded in the determination of net income.

    l)  Income and Mining Taxes

    The Corporation uses the liability method of accounting for income and
    mining taxes. Under the liability method, future tax assets and
    liabilities are recognized for the future tax consequences attributable
    to differences between the financial statement carrying amounts of
    existing assets and liabilities and their respective tax bases and for
    tax losses and other deductions carried forward.

    In a business acquisition, the cost of the acquisition is allocated to
    the assets and liabilities acquired by reference to their fair values at
    the date of acquisition. Temporary differences that exist between the
    assigned values and the tax bases of the related assets and liabilities
    result in either future tax liabilities or assets. These future tax
    assets and liabilities are treated as identifiable assets and liabilities
    when allocating the cost of the purchase.

    Future tax assets and liabilities are measured using enacted or
    substantively enacted tax rates expected to apply when the asset is
    realized or the liability settled. A reduction in respect of the
    potential benefit of a future tax asset, a valuation allowance, is
    recorded against any future tax asset if it is not more likely than not
    to be realized. The effect on future tax assets and liabilities of a
    change in tax rates is recognized in income in the period in which the
    change is substantively enacted.

    m)  Asset Retirement Obligations

    Asset retirement obligations are recorded at the time incurred. The
    Corporation estimates future reclamation costs based on the level of
    current mining activity and estimates of costs required to fulfill the
    Corporation's future obligations. Asset retirement obligations are
    initially recorded at fair value by applying an estimate for inflation
    and discounting the expected cash flows using a discount rate that
    reflects the Corporation's credit-adjusted risk-free rate of interest.

    For this application, the Corporation's credit-adjusted risk-free rate of
    interest has been adjusted to reflect security provided to government
    agencies in connection with these obligations. Asset retirement
    obligations are adjusted to reflect the passage of time (accretion)
    calculated by applying the discount factor implicit in the initial
    fair-value measurement to the beginning-of-period carrying amount of the
    obligation.

    The value of asset retirement obligations is evaluated on an annual basis
    or as new information comes available on the expected amounts and timing
    of cash flows required to discharge the liability. These changes are
    recorded in the period in which they are identified and when costs can be
    reasonably quantified.

    n)  Flow-through Shares

    The Corporation financed a portion of its exploration and development
    costs through the issuance of flow-through shares. Under the terms of
    these share issues, the tax attributes of the related expenditures are
    renounced to the shareholders. The tax benefits foregone are classified
    as share issue costs and are reported as a reduction of common shares
    with a corresponding increase to future income tax liabilities.

    o)  Revenue Recognition

    The Corporation recognizes revenue from molybdenum sales upon the
    transfer of title of the metal to third parties and when collection is
    reasonably assured. The Corporation recognizes tolling and calcining
    revenue under contractual arrangements when the services are performed.

    p)  Stock-based Compensation

    The Corporation accounts for all stock-based compensation using the
    fair-value method. Under this method, the fair value of stock options at
    grant date is estimated using the Black-Scholes option pricing model.

    Compensation expense is recognized on a straight-line basis over the
    stock option vesting period. Proceeds arising from the exercise of stock
    options are credited to share capital.

    q)  Earnings (Loss) per Share

    Earnings (loss) per share calculations are based on the weighted average
    number of common shares issued and outstanding during the year. Diluted
    earnings (loss) per share are calculated using the treasury stock method,
    which assumes that outstanding stock options and warrants with an average
    exercise price less than the average market price of the Corporation's
    common shares are exercised and the proceeds are used to repurchase
    common shares at the average market price of the common shares for the
    period. In years in which a loss is incurred, the effect of potential
    issuances of shares under options and warrants would be anti-dilutive and
    therefore basic and diluted losses per share are the same.

    r)  Comparative Figures

    Certain comparative information has been reclassified to conform to the
    current year's presentation.

    3.  Accounting Changes and Accounting Policy Developments

    Accounting Changes

    a)  Financial Instruments, Hedges, Comprehensive Income

    Effective January 1, 2007, the Corporation adopted the three new
    accounting standards and related amendments to other standards on
    financial instruments issued by the Canadian Institute of Chartered
    Accountants ("CICA"), including Handbook Section 1530, "Comprehensive
    Income", Section 3251, "Equity", Section 3855, "Financial Instruments -
    Recognition and Measurement" and Section 3865, "Hedges".

        (i)   Financial Instruments - Recognition and Measurement

              Under this new standard, all financial instruments are
              classified as one of the following: held-to-maturity
              investments, loans and receivables, held-for-trading or
              available-for-sale. Financial assets and liabilities
              held-for-trading are measured at fair value with gains and
              losses recognized in net income. Financial assets
              held-to-maturity, loans and receivables, and financial
              liabilities other than those held-for-trading, are measured at
              amortized cost. Available-for-sale instruments are measured at
              fair value with unrealized gains and losses recognized in other
              comprehensive income. The standard also permits the designation
              of any financial instrument as held-for-trading upon initial
              recognition.

              Effective January 1, 2007, the Corporation's cash and cash
              equivalents and reclamation deposits have been classified as
              available for sale investments and are recorded at fair value
              on the balance sheet.

              All derivative instruments are recorded on the consolidated
              balance sheet at fair value. Mark-to-market adjustments on
              these instruments are included in net income. In accordance
              with the standard's transitional provisions, the Corporation
              recognizes as separate assets and liabilities only embedded
              derivatives acquired or substantively modified on or after
              January 1, 2003.

        All other financial instruments are recorded at amortized cost,
        subject to impairment reviews. The criteria for assessing an
        other-than-temporary impairment remain unchanged. Transaction
        costs incurred to acquire or issue financial instruments are
        included in the carrying amount of the relevant financial
        instrument.

        (ii)  Hedges

              This new standard specifies the criteria under which hedge
              accounting can be applied and how hedge accounting can be
              executed for each of the permitted hedging strategies:
              fair-value hedges, cash-flow hedges and hedges of a foreign
              currency exposure of a net investment in a self-sustaining
              foreign operation. The Corporation has not designated any
              agreements as hedges.

        (iii) Comprehensive Income

              This standard requires the presentation of a statement of
              comprehensive income and its components. Comprehensive income
              includes both net earnings and other comprehensive income.
              Other comprehensive income includes unrealized gains and losses
              on available for sale investments, gains and losses on certain
              derivative instruments and foreign currency gains and losses
              relating to self-sustaining foreign operations, all of which
              are not included in the calculation of net earnings until
              realized. This statement has been included in the Corporation's
              consolidated financial statements effective 2007. The balance
              in accumulated other comprehensive income at December 31, 2007
              relates entirely to unrealized foreign exchange gains on
              translation of self-sustaining foreign operations.

        At January 1, 2007, in accordance with the transition provisions, the
        adoption of these standards relating to financial instruments
        resulted in the following changes to the Corporation's financial
        statements:

        -  a reclassification of deferred financing fees of $13,267 from
           assets to long-term debt, resulting in a $13,267 reduction in
           assets, a $2,230 reduction in the current portion of long-term
           debt, and a $11,037 reduction in long-term debt; and

        -  a change in terminology with reference to foreign currency gains
           and losses relating to self-sustaining foreign operations. Prior
           to the adoption of these standards, these unrealized gains and
           losses were classified and reported in the equity section of the
           balance sheet as a foreign currency translation adjustment. At
           January 1, 2007, accumulated unrealized foreign exchange losses of
           $9,625 were reclassified from foreign currency translation
           adjustment to accumulated other comprehensive income (loss) within
           the equity section of the balance sheet.

    b)  Stripping Costs Incurred in the Production Phase of a Mining
        Operation

    Effective January 1, 2007, the Corporation adopted the new
    recommendations of the CICA Emerging Issues Committee Abstract No. 160,
    "Stripping Costs Incurred in the Production Phase of a Mining Operation"
    ("EIC-160"). EIC-160 clarifies the treatment of costs associated with the
    activity of removing overburden and other mine waste materials in the
    production phase of a mining operation and requires that these costs be
    charged to income in the period in which they are incurred, except when
    the costs represent a betterment to the mineral property. Costs represent
    a betterment to the mineral property when the stripping activity provides
    access to mineral reserves that will be produced in future periods that
    would not have been accessible without the stripping activity. When costs
    are deferred in relation to a betterment, the costs are amortized over
    the reserve accessed by the stripping activity using the units of
    production method. Adoption of this standard had no impact on the
    Corporation's previously reported results.

    c)  Accounting Changes

    Effective January 1, 2007, the Corporation adopted the revised CICA
    Handbook Section 1506 "Accounting Changes", which requires that: (a) a
    voluntary change in accounting principles can be made if, and only if,
    the changes result in more reliable and relevant information, (b) changes
    in accounting policies are accompanied with disclosures of prior period
    amounts and justification for the change, and (c) for changes in
    estimates, the nature and amount of the change should be disclosed. The
    Corporation has not made any voluntary change in accounting principles
    since the adoption of the revised standard.

    Accounting Policy Developments

    a)  Convergence with International Financial Reporting Standards

    The CICA plans to transition Canadian GAAP for public companies to
    International Financial Reporting Standards ("IFRS"). The effective
    changeover date is for interim and annual financial statements relating
    to fiscal years beginning on or after January 1, 2011. The impact of the
    transition to IFRS on the Corporation's consolidated financial statements
    is not yet determinable.

    b)  Inventories

    In June 2007, the CICA released Handbook Section 3031, "Inventories",
    which replaces the existing Section 3030 "Inventories". This standard
    introduces changes to the measurement and disclosure of inventory and
    converges with IFRS. Key requirements of this standard include that:
    inventories be measured at the lower of cost and net realizable value;
    the allocation of overhead be based on normal capacity; the use of the
    specific cost method for items that are not normally interchangeable or
    produced for specific purposes; the use of a consistent cost formula for
    inventory of similar nature and use; and the reversal of previous
    write-downs of inventory to net realizable value when there has been a
    subsequent increase in the value of this inventory. Disclosure
    requirements include the Corporation's policies, inventory carrying
    amounts, amounts recognized as an expense, write-downs and subsequent
    reversals of write-downs. This standard is effective for interim and
    annual financial statements relating to fiscal years beginning on or
    after January 1, 2008. The Corporation is currently assessing the impact
    that the adoption of this standard will have on its consolidated
    financial statements.

    c)  Financial Instruments - Disclosure and Presentation

    In March 2007, the CICA released Handbook Section 3862, "Financial
    Instruments - Disclosure", and Handbook Section 3863, "Financial
    Instruments - Presentation" to replace existing Section 3861, "Financial
    Instruments - Disclosure and Presentation". The new financial statement
    disclosure requirements of Section 3862 are to enable users to evaluate
    the significance of financial instruments on the Corporation's financial
    position and performance, the nature and extent of risks arising from
    financial instruments the Corporation is exposed to during the reporting
    period and as at the balance sheet date, and how the Corporation is
    managing those risks. Section 3863 carries forward, unchanged, the
    presentation requirements of existing Section 3861 to enhance user's
    understanding of the significance of financial instruments to the
    Corporation's financial position, performance and cash flows. These
    standards are effective for interim and annual financial statements
    relating to fiscal years beginning on or after October 1, 2007.

    d)  Capital Disclosures

    In December 2006, the CICA released Handbook Section 1535, "Capital
    Disclosures". The objective of the new financial statement disclosure
    requirements of Section 1535 is to enable users to evaluate the
    Corporation's objectives, policies and processes for managing capital.
    This standard is effective for interim and annual financial statements
    relating to fiscal years beginning on or after October 1, 2007.

    e)  Goodwill and Intangible Assets

    In February 2008, the CICA issued Section 3064, "Goodwill and Intangible
    Assets", replacing Section 3062, "Goodwill and Other Intangible Assets"
    and Section 3450, "Research and Development Costs". Various changes have
    been made to other sections of the CICA Handbook for consistency
    purposes. Section 3064 establishes standards for the recognition,
    measurement, presentation and disclosure of goodwill subsequent to its
    initial recognition and of intangible assets by profit-oriented
    enterprises. Standards concerning goodwill are unchanged from the
    standards included in the previous Section 3062. The new Section will be
    applicable to financial statements relating to fiscal years beginning on
    or after October 1, 2008. Accordingly, the Corporation will adopt the new
    standards for its fiscal year beginning January 1, 2009. The Corporation
    is currently assessing the impact that the adoption of this standard will
    have on its consolidated financial statements.

    4.  Acquisition of Thompson Creek USA

    On October 26, 2006, the Corporation acquired Thompson Creek USA, a
    private company with producing molybdenum mines and processing facilities
    in Canada and the United States. On closing, the Corporation paid
    $575,000 in cash for all of the outstanding shares of Thompson Creek USA.
    Subsequent to the closing date, the Corporation paid an additional
    $61,529 related to certain acquired accounts receivable pursuant to the
    acquisition agreement. In addition, at December 31, 2007, the Corporation
    had recorded an amount of $100,000 as contingent consideration payable on
    this acquisition based on the market price of molybdenum during 2007.
    This amount was settled in cash in January 2008. The Corporation may also
    be responsible for a further contingent payment in early 2010 of $25,000
    if the average price of molybdenum exceeds $15 per pound in 2009.

    This acquisition has been accounted for using the purchase method,
    whereby the purchase consideration was allocated to the estimated fair
    values of the assets acquired and liabilities assumed at the effective
    date of the purchase. A preliminary allocation was made at October 26,
    2006, and subsequently finalized during the year ended December 31, 2007.
    Estimated fair values have been based on independent appraisals,
    discounted cash flows, quoted market prices and estimates made by
    management. As the purchase price exceeded the fair value of the net
    identifiable assets acquired, the Corporation has recorded goodwill of
    $121,605 on this transaction.

    The allocation of the purchase cost for the acquisition is as follows:

                                                         Final   Preliminary
                                                    Allocation    Allocation
                                                          2007          2006

    Assets
      Cash and cash equivalents                    $    36,280   $    36,280
      Accounts receivable                               83,733        83,733
      Product inventory                                197,285       195,883
      Material and supplies inventory                   31,280        26,503
      Other assets                                       3,851         3,851
      Property, plant and equipment                    533,425       490,032
      Reclamation deposits                              23,227        22,727
      Restricted cash                                    7,578         7,578
      Goodwill                                         121,605        46,989
                                                  ------------- -------------
                                                     1,038,264       913,576
                                                  ------------- -------------

    Liabilities
      Accounts payable and accrued liabilities          26,611        25,927
      Long-term debt                                     9,585         9,585
      Contractual sales obligations                     13,977        11,175
      Severance and other liabilities                    7,974         7,411
      Asset retirement obligations                      26,521        25,651
      Future income and mining taxes                   216,595       197,119
                                                  ------------- -------------
                                                       301,263       276,868
                                                  ------------- -------------
    Net assets acquired                            $   737,001   $   636,708
                                                  ------------- -------------
                                                  ------------- -------------

    Purchase Price
    Paid on closing                                $   575,000   $   575,000
    Paid subsequent to closing                          61,529        61,529
    Acquisition cost payable                           100,000             -
    Costs                                                  472           179
                                                  ------------- -------------
                                                   $   737,001   $   636,708
                                                  ------------- -------------
                                                  ------------- -------------

    Significant adjustments arising from the final allocation included a
    $43,393 increase in property, plant and equipment and a $19,476 increase
    in the future income and mining tax liability mainly due to an upward
    revision in the valuation of mineral reserves and mineral resources based
    on technical studies finalized during the year relating to information
    available at the time of the acquisition. In addition, an additional
    acquisition cost payable of $100,000 based on the market price of
    molybdenum during 2007 has been incorporated into the final allocation.
    These items contributed to a $74,616 increase in goodwill in the final
    allocation.

    5.  Property, Plant and Equipment

                                                          2007          2006

    Mining properties                              $   333,234   $   249,857
    Mining equipment                                   150,576       134,799
    Processing facilities                              105,803       104,344
    Deferred stripping costs                            34,174             -
    Development properties                               2,262         1,525
    Other                                                  536           140
                                                  ------------- -------------
                                                       627,455       490,665
    Less: Accumulated depreciation, depletion
     and amortization                                  (60,664)      (10,478)
                                                  ------------- -------------
                                                   $   566,791   $   480,187
                                                  ------------- -------------
                                                  ------------- -------------

    In 2007, the Corporation recorded $34,174 in deferred stripping costs and
    related amortization of $362.

    6.  Goodwill

    Goodwill arising on the Corporation's acquisition of Thompson Creek USA
    was $121,605. The Corporation determined that goodwill would be allocated
    to its two reporting units - US operations and Canadian operations.

    The following table details items affecting goodwill:

                                                          2007          2006

    Balance, beginning of year                     $    46,322   $         -
      Arising from acquisition (Note 4)                      -        46,989
      Adjustment to acquisition value (Note 4)          74,616             -
      Foreign exchange                                   2,724          (667)
                                                  ------------- -------------
      Balance, end of year                         $   123,662   $    46,322
                                                  ------------- -------------
                                                  ------------- -------------

    7.  Joint Venture

    Endako Molybdenum Mine Joint Venture is an unincorporated joint venture
    in which the Corporation has a 75% interest. The Corporation acquired its
    interest in this joint venture as part of its acquisition of Thompson
    Creek USA.

    The following table presents a summary of the Corporation's 75% pro-rata
    share of the assets, liabilities, revenue, expenses, net earnings and
    cash flows of the joint venture. The assets and liabilities presented
    below include fair-value purchase adjustments arising from the
    Corporation's acquisition of Thompson Creek USA.


                                                          2007          2006
    Assets
      Current assets                               $    68,513   $    58,663
      Property, plant and equipment, net           $   287,927   $   138,764
      Goodwill                                     $    43,467   $    18,623
      Other long-term assets                       $     4,536   $     6,243

    Liabilities
      Current liabilities                          $     6,707   $    29,371
      Other liabilities                            $   103,171   $    58,444

    Revenue                                        $   210,213   $    42,275
    Cost of sales                                  $    88,000   $    35,097
    Income before income and mining taxes          $   114,199   $     8,007

    Cash flows
      Operating                                    $   133,778   $    10,200
      Investing                                    $      (872)  $      (160)
      Financing                                    $         -   $         -

    8.  Derivative Financial Instruments

    a)  Interest Rate Protection Agreement

    In April 2007, the Corporation entered into an interest rate protection
    agreement which capped the underlying LIBOR at 6.0% on $135,250 of its
    First Lien credit facility (see Note 9) at a cost of $88. At
    December 31, 2007, the principal amount covered under this agreement was
    $116,500. The Corporation has determined this interest rate protection
    agreement to be a derivative instrument, the fair value of which was an
    asset of $20 at December 31, 2007. This asset has been included in
    prepaid expense and other current assets on the Corporation's
    consolidated balance sheet. For the year ended December 31, 2007, a loss
    of $68 related to this agreement has been included in other expense in
    the Corporation's consolidated statement of income (loss).

    b)  Forward Currency Contracts

    The Corporation uses foreign currency forward contracts to fix the rate
    of exchange for Canadian dollars at future dates in order to reduce the
    Corporation's exposure to foreign currency fluctuations on cash flows
    related to its share of the Endako Mine's operations. The terms of these
    contracts are less than one year. At December 31, 2007, the Corporation
    had open forward currency contracts with a total commitment to purchase
    Cdn$21,000 at an average rate of US$1.04 (2006 - Cdn$22,631 at an average
    rate of US$0.89).

    The Corporation does not consider these contracts to be hedges for
    accounting purposes and has determined these contracts to be derivative
    instruments, the fair value of which was a liability of $613 at
    December 31, 2007 (2006 - $571). This liability has been included in
    accounts payable and accrued liabilities on the Corporation's
    consolidated balance sheets. For the year ended December 31, 2007, a gain
    of $2,264 has been included in other expense on the Corporation's
    consolidated statements of income (loss) related to these contracts
    (2006 - loss of $671).

    c)  Embedded Derivatives

    The Corporation enters into agreements to purchase molybdenum at prices
    to be determined in the future. The future pricing mechanism of these
    agreements constitutes an embedded derivative which must be bi-furcated
    and separately recorded. Changes to the fair value of the embedded
    derivative are included in the determination of net income. At
    December 31, 2007, the fair value of these embedded derivatives was a
    liability of $311, which has been included in accounts payable and
    accrued liabilities on the Corporation's consolidated balance sheets. For
    the year ended December 31, 2007, a loss of $8,589 has been included in
    operating expenses on the Corporation's consolidated statements of income
    (loss).

    d) Forward Sales Contracts

    The Corporation has forward sales contracts with fixed-price agreements
    under which it is required to sell certain future molybdenum production
    at prices that are different than the prevailing market price. Forward
    sales contracts in place at December 31, 2007 cover the period 2008 to
    2011. The Corporation has determined these agreements to be derivative
    instruments and records their estimated fair value at each balance sheet
    date with the resulting change in fair value being included in the
    determination of net income. As there is not an organized forward market
    for molybdenum, the Corporation uses molybdenum price forecasts from
    various metals industry analysts in determining the fair value of these
    contracts. At December 31, 2007, a positive mark-to-market value of
    $2,439 has been recorded and is included in other assets on the
    Corporation's consolidated balance sheets. In addition, a negative
    mark-to-market value of $9,472 has been recorded and is included in
    severance and other liabilities on the Corporation's consolidated balance
    sheets (see Note 11). For the year ended December 31, 2007, a loss of
    $7,033 has been included in molybdenum sales on the Corporation's
    consolidated statements of income (loss).

    9.  Long-term Debt

    Long term debt consists of:

                                                          2007          2006

    First Lien Senior                              $   236,090   $   340,000
    Second Lien Senior                                       -        61,855
    Equipment loans                                      6,767         9,218
                                                  ------------- -------------
                                                       242,857       411,073
    Less: Finance fees                                  (5,437)      (13,267)
                                                  ------------- -------------
                                                       237,420       397,806
    Less: Current portion                              (67,242)      (73,758)
                                                  ------------- -------------
                                                   $   170,178   $   324,048
                                                  ------------- -------------
                                                  ------------- -------------

    The Corporation entered into the First Lien Senior and Second Lien Senior
    collateralized credit facilities in connection with the acquisition of
    Thompson Creek USA (Note 4). The assets of Thompson Creek USA provide
    collateral for these facilities.

    The First Lien Senior credit facility requires quarterly principal
    repayments. In addition to the scheduled principal repayments, the
    Corporation is required to make additional principal repayments using
    proceeds from new issues of equity. In 2007, additional principal
    repayments of $34,051 were made with proceeds from equity issuances in
    the year (2006 - nil). This facility also requires additional principal
    repayments each year if annual cash flows, as defined in the facility
    agreement, exceed the Corporation's ongoing capital and operating
    requirements, as defined in the facility agreement. In 2007, no
    additional principal repayments were required under this provision of the
    facility (2006 - nil). The First Lien facility is scheduled to mature on
    September 30, 2012. This facility bears interest at LIBOR plus 475 basis
    points. At December 31, 2007 the effective interest rate on this facility
    was 9.56% (2006 - 10.1%).

    The First Lien facility includes a $22,500 revolving collateralized line
    of credit. This element of the First Lien facility is scheduled to mature
    on October 26, 2011. At December 31, 2007 drawings on this facility were
    nil (2006 - nil). This facility bears interest at LIBOR plus 475 basis
    points.

    In March 2007, the Corporation prepaid the Second Lien Senior facility
    principal of $61,855 in full. This prepayment required the Corporation to
    pay a prepayment premium of $2,474. There were no required principal
    repayments on this facility prior to its original maturity date of
    April 26, 2013. Interest on this facility was at LIBOR plus 1,000 basis
    points.

    During the year ended December 31, 2006, finance fees related to both the
    First Lien Senior and Second Lien Senior facilities, totaling $13,674,
    were deferred on the balance sheet and were being amortized over the term
    of the facilities. During the year ended December 31, 2007, the
    Corporation expensed $3,494 in previously deferred finance fees in
    connection with the prepayment of the Second Lien Senior facility. At
    December 31, 2007, the balance of unamortized deferred finance fees
    totaled $5,437 (2006 - $13,267). On adoption of the new financial
    instruments accounting standards (see Note 3)a)), deferred finance fees
    were reclassified from assets to liabilities, are presented as an offset
    to long-term debt on the consolidated balance sheet and are amortized
    using the effective interest method.

    The First Lien Senior facility limits capital expenditures to $15,000 in
    2008. The Corporation anticipates that it will exceed this limit during
    2008 and accordingly, will have to seek a waiver on this expenditure
    limit from its current lenders or arrange alternative financing.

    The Corporation has entered into variable rate loan agreements to finance
    the purchase of certain mining equipment. The mining equipment provides
    collateral for these loans. Each of these loans requires regular
    principal repayments and mature no later than 2010. These loans bear
    interest at LIBOR plus 200 basis points. At December 31, 2007, the
    effective interest rate for these loans was 6.6% (2006 - 7.4%).

    Maturities of long term debt obligations are as follows:

                                      First Lien     Equipment
                                          Senior         Loans         Total

    Year ending December 31:
      2008                           $    66,818   $     2,704   $    69,522
      2009                                66,818         2,898        69,716
      2010                                44,545         1,165        45,710
      2011                                31,182             -        31,182
      2012                                26,727             -        26,727
      Thereafter                               -             -             -
                                    ------------- ------------- -------------
                                     $   236,090   $     6,767   $   242,857

    10. Contractual Sales Obligations

    On acquisition of Thompson Creek USA, the Corporation acquired a
    contractual agreement to sell 10% of certain production at the Thompson
    Creek Mine at an amount that may be less than the then prevailing market
    price. Deliveries under the contract commenced in 2007 and continue
    through to 2011. The fair value of this contractual agreement was a
    liability of $9,960 on acquisition of Thompson Creek USA. As this
    contractual agreement is satisfied by delivery of product, the liability
    set up at acquisition of Thompson Creek USA is being released to
    molybdenum sales in the determination of net income. For the year ended
    December 31, 2007, $292 of this liability has been amortized against
    molybdenum sales in the determination of net income.

    11. Severance and Other Liabilities

    A trust fund has been established to fund future obligations related to
    an employee severance and retention program for individuals employed by
    Thompson Creek USA at the time it was acquired by the Corporation. Under
    this program, the Corporation makes contributions to the trust fund based
    upon program participants' salaries. Contributions made are payable to
    participants on the earlier of June 30, 2012, the date the participant's
    employment is no longer required (except for cause) or the date of the
    participant's retirement, permanent disability, or death. The Corporation
    recorded the trust fund assets and the program's liability upon
    acquisition of Thompson Creek USA and continues to make ongoing
    contributions to the trust. The trust fund assets totaled $9,964 at
    December 31, 2007 (2006 - $8,081) and have been presented as restricted
    cash, a long-term asset, on the Corporation's consolidated balance
    sheets. The liability under this program was $10,805 at December 31, 2007
    (2006 - $8,008) and has been presented as severance and other liabilities
    on the Corporation's consolidated balance sheets.

    In addition, the Corporation acquired contractual sales obligations with
    fixed pricing that was less than market rates at the date of acquisition
    of Thompson Creek USA. The fair value of these contracts was a liability
    of $4,017 on acquisition. These contractual obligations were satisfied by
    product deliveries by the end of 2007.

    Subsequent to the acquisition of Thompson Creek USA, the Corporation has
    entered into sales agreements with forward pricing that are revalued at
    their fair value each reporting date. A negative mark-to-market amount of
    $9,472 relating to these agreements has been included in severance and
    other liabilities on the Corporation's consolidated balance sheets at
    December 31, 2007 (see Note 8) d)).

    12. Asset Retirement Obligations

    Asset retirement obligations arise from the acquisition, development,
    construction and normal operation of mining property, plant and
    equipment, due to government controls and regulations that protect the
    environment on the closure and reclamation of mining properties. The
    Corporation has future obligations to retire its mining assets including
    dismantling, remediation and ongoing treatment and monitoring of sites.
    The exact nature of environmental issues and costs, if any, which the
    Corporation may encounter in the future are subject to change, primarily
    because of the changing character of environmental requirements that may
    be enacted by governmental agencies.

    The following table details items affecting asset retirement obligations
    for future mine closure and reclamation costs in connection with the
    Corporation's Thompson Creek Mine, Endako Mine and Davidson Project:


                                   Thompson     Endako   Davidson
                                 Creek Mine       Mine    Project      Total

    At December 31, 2005          $       -  $       -  $     193  $     193
      Additions from acquisition     20,684      4,967          -     25,651
      Accretion                         245         69         12        326
      Foreign exchange                    -       (172)        (6)      (178)
                                 ----------- ---------- ---------- ----------
    At December 31, 2006             20,929      4,864        199     25,992
      Adjustments to acquisition
       value                            851        205          -      1,056
      Revisions to expected cash
       flows                         (2,233)      (941)         -     (3,174)
      Accretion                       1,362        328         14      1,704
      Reclamation spending                -        (82)         -        (82)
      Foreign exchange                    -        917          -        917
                                 ----------- ---------- ---------- ----------
    At December 31, 2007          $  20,909  $   5,291  $     213  $  26,413
                                 ----------- ---------- ---------- ----------
                                 ----------- ---------- ---------- ----------

    The Corporation has an insurance policy to provide financial assurance of
    future mine reclamation costs at its Thompson Creek Mine. This policy
    provides the Corporation with an aggregate limit of $35,000 for the
    reclamation of the Thompson Creek Mine, including $21,505 in cash
    recorded as reclamation deposits at December 31, 2007 (2006 - $18,481).
    The aggregate limit on this policy will be reduced as the policy is used
    to pay actual reclamation costs incurred. This benefit will respond in
    the event that the actual cost of reclamation exceeds the current
    anticipated reclamation cost estimate due to unexpected conditions or
    changes in regulatory requirements. The policy term is for 20 years,
    expiring July 31, 2022. As of December 31, 2007, the Corporation
    estimates that the non-discounted inflation adjusted reclamation cost for
    the Thompson Creek Mine will total $31,376 (2006 - $29,332) and
    anticipates that these costs will be incurred over the period 2014 to
    2028. The estimated future reclamation costs for the Thompson Creek Mine
    have been discounted using rates ranging from 5.3% to 6.9% to reflect the
    underlying funding arrangements.

    A mine reclamation and closure plan is also in place for the Endako Mine.
    This plan has been approved by the British Columbia Ministry of Energy
    and Mines ("MEM"). In connection with this plan, the MEM has required
    security in the amount of $6,700 of which the Corporation's proportionate
    share is $5,025 (2006 - $4,261). As of December 31, 2007, the Corporation
    estimates its proportionate share of the non-discounted inflation
    adjusted reclamation costs for the Endako Mine will total $17,062 (2006 -
    $8,113) and anticipates that these costs will be incurred over the period
    2008 to 2035. The estimated future reclamation costs for the Endako Mine
    have been discounted using rates ranging from 6.6% to 7.5% which reflect
    the underlying funding arrangements.

    The Corporation's Davidson Project is presently in the exploration stage.
    Estimated undiscounted future reclamation costs for the project of $339
    (2006 - $288) are the result of disturbance to the site caused by recent
    development activities. The estimated future reclamation costs for the
    Davidson Project have been discounted using rates ranging from 6.6% to
    7.5% which reflect the underlying funding arrangements at the time these
    costs were identified. At December 31, 2007, the amount of $321 had been
    set aside to fund this future obligation (2006 - $263).

    13. Employee Future Benefits

    Defined Contribution Pension Plans

    The Corporation, through its subsidiaries, maintains defined contribution
    pension plans available to certain employees.

    The Corporation's 401(k) Savings Plan (the "Plan") is a defined
    contribution pension plan and covers all employees in the US employed
    with Thompson Creek USA and its subsidiaries. The Plan is subject to the
    provisions of the US Employee Retirement Income Security Act of 1974, as
    amended, and Section 401(k) of the US Internal Revenue Code. The assets
    of the Plan are held and the related investment transactions are executed
    by the Plan's trustee. Participants in the Plan have numerous investment
    alternatives in which to place their funds. Administrative fees,
    including accounting and attorney fees, are paid by the Corporation on
    behalf of the Plan. The Corporation contributed approximately $948 to the
    Plan for the year ended December 31, 2007 (2006 - $169). The Corporation
    may make additional contributions to the Plan at its sole discretion,
    however, the Corporation has no further obligation relating to pension
    benefits under this Plan.

    The Endako Mine maintains a defined contribution pension plan (the
    "Endako Plan") covering all of its employees. The assets of the Endako
    Plan are held and the related investment transactions are executed by the
    Endako Plan's trustee. Administrative fees, including any accounting and
    legal fees are paid by the Endako Mine on behalf of the Endako Plan. The
    Endako Mine contributed $695 (2006 - $97) to the Endako Plan for the year
    ended December 31, 2007 and the Corporation has recorded its
    proportionate share of these contributions. The Corporation has no
    further obligation relating to pension benefits under this Plan.

    Other Benefits

    The Corporation provides post-retirement health care benefits to certain
    retired employees in the US. This retiree plan covers former unionized
    employees at the Corporation's Langeloth metallurgical processing
    facility. The Corporation paid $66 in premiums to provide this benefit
    for the year ended December 31, 2007 (2006 - $10).

    14. Common Share Capital and Common Share Warrants

    a)  Authorized Share Capital

    The authorized share capital of the Corporation is comprised of an
    unlimited number of common shares (2007 - 113,363,938 issued; 2006 -
    100,528,430 issued) and an unlimited number of preferred shares, issuable
    in series (2007 and 2006 - nil issued).

    b)  Common Shares

    A summary of common share transactions is as follows:

                                           2007                 2006

                                   Number of            Number of
                                      Shares               Shares
                                      (000's)    Amount    (000's)    Amount

    Balance, beginning of year       100,528  $ 210,857    43,079  $  11,867
      Private placement                3,000     31,898     1,585      2,921
      Options exercised                4,720     22,213     1,230        573
      Warrants exercised               5,116      4,076     5,547      4,093
      Equity issue                         -          -    49,087    203,050
      Issue costs                          -       (901)        -    (11,647)
                                    --------- ---------- --------- ----------
    Balance, end of year             113,364  $ 268,143   100,528  $ 210,857
                                    --------- ---------- --------- ----------
                                    --------- ---------- --------- ----------

    In February 2007, the Corporation renounced, for income tax purposes,
    exploration expenses of Cdn$3,092 to the purchasers of the Corporation's
    flow-through common shares. As a result of this renunciation, the
    Corporation recorded a future tax liability and corresponding share issue
    cost of $901.

    In April 2007, the Corporation brokered a private placement of
    3,000,000 common shares at a price of Cdn$12.00 per common share for
    total proceeds of $31,898.

    In October 2006, in connection with the acquisition of Thompson Creek
    USA, the Corporation issued 41,860,000 common shares and
    20,930,000 warrants for net proceeds of $191,877. Additionally, the
    Corporation issued 7,227,182 common shares and 3,613,591 warrants to a
    former shareholder of Thompson Creek USA for gross proceeds of $35,352.

    In April 2006, the Corporation closed a private placement of
    1,085,000 flow-through common shares priced at Cdn$2.85 per share for
    gross proceeds of $2,749. The Corporation also issued 76,000 compensation
    warrants to the agents of this transaction.

    In February 2006, the Corporation closed a private placement of
    500,000 non-flow-through purchase receipts at a price of Cdn$0.80 per
    unit for gross proceeds of $356. Each unit consists of one common share,
    one "A" warrant and 0.4 of one "B" warrant.

    c)  Common Share Warrants

    A summary of common share warrant transactions is as follows:

                                           2007                 2006

                                   Number of            Number of
                                    Warrants             Warrants
                                      (000's)    Amount    (000's)    Amount

    Balance, beginning of year        29,630  $  35,445     9,858  $     646
      Warrants exercised              (5,116)      (469)   (5,547)      (570)
      Warrants expiring                   (8)        (1)        -          -
      Issuance on acquisition              -          -    24,543     37,064
      Issuance on private placement        -          -       700        184
      Agent compensation warrants          -          -        76        110
      Issue costs                          -          -         -     (1,989)
                                    --------- ---------- --------- ----------
    Balance, end of year              24,506  $  34,975    29,630  $  35,445
                                    --------- ---------- --------- ----------
                                    --------- ---------- --------- ----------

    As previously noted, in October 2006 the Corporation issued
    20,930,000 warrants in connection with the acquisition of Thompson Creek
    USA. Additionally, on this date the Corporation also issued
    3,613,591 warrants to a former shareholder of Thompson Creek USA. Each
    warrant entitles the holder to purchase one common share of the
    Corporation at a price of Cdn$9.00 until October 23, 2011. The
    Corporation determined the fair value allocated to these warrants to be
    Cdn$1.70 based on a pro rata allocation of the fair value of common
    shares issued and the estimated fair value of the warrants issued using
    the Black-Scholes model and applying the following assumptions: expected
    life of 5 years; expected volatility of 45.8%; risk free interest rate of
    4.02%; and an expected dividend of 0%.

    As previously noted, in April 2006, the Corporation issued
    76,000 compensation warrants in connection with a private placement of
    flow-through shares. Each warrant entitles the agents to purchase one
    common share of the Corporation at a price of Cdn$2.85 per share until
    April 5, 2008. The Corporation has determined the fair value of these
    warrants to be Cdn$1.62 using the Black-Scholes model and applying the
    following assumptions: expected life of 14 months; expected volatility of
    128%; risk free interest rate of 4.31%; and an expected dividend of 0%.
    As at December 31, 2007, all of these warrants have been exercised.

    As previously noted, in February 2006 the Corporation issued
    500,000 non-flow-through purchase receipts that included one "A" warrant
    and 0.4 of one "B" warrant. Each whole "A" warrant entitles the holder to
    purchase one common share of the Corporation at a price of Cdn$1.00 and
    each whole "B" warrant entitles the holder to purchase one common share
    of the Corporation at a price of Cdn$0.80 until February 3, 2008. The
    Corporation has determined the fair value of the "A" and "B" warrants to
    be Cdn$0.29 and Cdn$0.30, respectively, based on a pro rata allocation of
    the fair value of common shares issued and the estimated fair value of
    warrants issued using the Black-Scholes model and applying the following
    assumptions: expected life of 14 months; expected volatility of 158%;
    risk free interest rate of 3.94%; and an expected dividend of 0%. As at
    December 31, 2007, all of these warrants have been exercised.

    15. Stock-based Compensation

    The Corporation has a stock option plan for directors, officers,
    employees and consultants, enabling them to purchase common shares. The
    maximum number of shares that may be issued pursuant to this plan and all
    options granted there under is limited to 11,174,916 common shares
    effective May 10, 2007. The expiry date and vesting provisions of options
    granted are established at the time an award is made. The exercise price
    of option grants awarded is the greater of: (i) the weighted-average
    trading price of the underlying shares on the Toronto Stock Exchange over
    the five consecutive trading days immediately before the grant date and,
    (ii) if the award date occurs in a trading black-out period, the
    weighted-average trading price over the five consecutive trading days
    immediately after the black-out has been lifted.

    The Corporation uses the fair value method of accounting for stock-based
    compensation and recognized a stock-based compensation expense of $16,306
    for the year ended December 31, 2007 (2006 - $14,547).

    The following table summarizes the status of the stock option plan and
    changes during the years ended December 31, 2007 and 2006:

                                            2007                 2006

                                               Weighted-            Weighted-
                                     Options    average   Options    average
                                     Outstan-  Exercise   Outstan-  Exercise
                                        ding      Price      ding      Price
                                      (000's)     (Cdn$)   (000's)     (Cdn$)

    Balance, beginning
     of year                           9,651  $    5.28     4,096  $    0.57
      Options granted                  2,565      17.47     6,785       7.25
      Options exercised               (4,720)      3.50    (1,230)      0.44
                                    --------- ---------- --------- ----------
    Balance, end of year               7,496  $   10.57     9,651  $    5.28
                                    --------- ---------- --------- ----------
                                    --------- ---------- --------- ----------

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

                                         Options   Contractual       Options
    Exercise Price                   Outstanding          Life   Exercisable
    (Cdn$)                                (000's)       (years)       (000's)

      $ 0.60                                 160          2.61           160
      $ 2.94                                  50          3.21            50
      $ 7.42                               4,691          3.86         3,708
      $ 8.29                                 250          3.92           167
      $ 8.93                                 163          4.04           163
      $12.35                                 182          4.22           182
      $17.33                                 900          4.36           600
      $19.54                                 435          4.61           235
      $23.93                                 185          4.86           185
      $20.61                                 480          4.94           176
                                       ----------                  ----------
                                           7,496          4.04         5,626
                                       ----------                  ----------
                                       ----------                  ----------

    The following weighted average assumptions were used in computing the
    fair value of stock options granted for the periods noted:

                                                          2007          2006

    Number of options granted                        2,565,000     6,785,000
    Expected life (years)                                  4.8           4.8
    Risk-free interest rate                               4.1%          3.9%
    Expected volatility                                  46.2%         49.3%
    Dividend yield                                        0.0%          0.0%
    Weighted average fair value
     of options granted                              Cdn$ 7.34     Cdn$ 3.50


    The Corporation made the determination that the historic volatility of
    its common share price was characteristic of a development company rather
    than of the operating company the Corporation became upon acquisition of
    Thompson Creek USA. In computing the fair value of option grants made
    subsequent to the acquisition of Thompson Creek USA, the Corporation has
    utilized an expected volatility that has been computed using a weighted
    average of the average volatility of a peer group of operating mining
    companies and the Corporation's actual share price volatility from the
    date it acquired Thompson Creek USA. Further, in the absence of reliable
    evidence to support a lesser estimated expected life, the Corporation
    used the full contractual life of option awards in determining the fair
    value of options awarded subsequent to the acquisition of Thompson Creek
    USA until October 2007. An estimated life based on actual experience has
    been used in determining the fair value of options awarded after
    October 2007.

    16. Commitments and Contingencies

    As outlined in Note 4, the Corporation may be required to pay additional
    amounts to the vendors of Thompson Creek USA in 2010. The total payment
    will not exceed $25,000 (see Note 4).

    The Corporation has entered into commitments to buy Canadian dollars at
    future dates at established exchange rates (see Note 8) b)).

    The Corporation has purchased molybdenum in the current year that is to
    be settled at prices to be determined in the future (see Note 8) c)).

    The Corporation has committed to sell a certain amount of production at a
    defined price that may be less than market (see Note 8) d) and Note 10).

    In addition to the scheduled principal payments, under certain
    circumstances the Corporation may be required to make additional
    principal payments to the holders of the First Lien Senior credit
    facility if annual cash flows, as defined in the credit facility
    agreement, exceed the Corporation's ongoing capital and operating
    requirements, as defined in the credit facility agreement (see Note 9).

    In the normal course of operations, the Corporation enters into
    agreements for the purchase of molybdenum. As at December 31, 2007, the
    Corporation had commitments to purchase approximately 9.5 million pounds
    of molybdenum (2006 - 10.4 million pounds), including approximately
    6.7 million pounds in 2008 and 1.4 million pounds in each of 2009 and
    2010.

    17. Interest and Finance Fees

                                                          2007          2006

    Interest expense                               $    32,106   $     8,733
    Finance fees                                         7,831           406
    Debt prepayment premium (Note 9)                     2,474             -
                                                    -----------   -----------
                                                   $    42,411   $     9,139
                                                    -----------   -----------
                                                    -----------   -----------

    18. Other Expense and Income

                                                          2007          2006

    Loss (gain) on foreign exchange                $     4,308   $    (2,232)
    Unrealized (gain) loss on derivative
     instruments                                        (2,507)          660
    Management fee income                                 (676)         (176)
    Other                                                  202           701
                                                    -----------   -----------
                                                   $     1,327   $    (1,047)
                                                    -----------   -----------
                                                    -----------   -----------

    19. Income and Mining Taxes

                                                          2007          2006

    Current income and mining taxes                $   103,070   $    23,133
    Future income and mining taxes recoverable         (32,104)      (31,405)
                                                    -----------   -----------
                                                   $    70,966   $    (8,272)
                                                    -----------   -----------
                                                    -----------   -----------

    Income and mining taxes differ from the amount that would result from
    applying the Canadian federal and provincial income tax rates to earnings
    before income taxes. The differences result from the following items:

                                                          2007          2006

    Income (loss) before income and mining taxes   $   228,313    $  (28,915)
    Combined Canadian federal and provincial
     income tax rates                                   34.12%        34.12%
    Income taxes (recoverable) based on above rates     77,900        (9,866)
    Increase (decrease) to income taxes due to:
      Difference in statutory tax rates on
       earnings of foreign operations                    4,859          (977)
      Provincial and state mining taxes                 12,343           997
      Withholding tax on distributions                   4,465             -
      Non-deductible expenses                            5,378         3,026
      Non-taxable income                                (7,685)            -
      Resource allowance                                     -          (678)
      Depletion allowance                              (25,013)       (5,824)
      Change in valuation allowance                      4,119         2,528
      Impact of reduction in tax rates on
       future income and mining taxes                   (8,200)            -
      Other                                              2,800         2,522
                                                    -----------   -----------
    Income and mining taxes (recoverable)          $    70,966    $   (8,272)
                                                    -----------   -----------
                                                    -----------   -----------

    Future Income and Mining Taxes

    Future income and mining taxes arise from temporary differences in the
    recognition of income and expenses for financial reporting and tax
    purposes. The significant components of future income and mining tax
    assets and liabilities at December 31 are as follows:

                                                          2007          2006

    Future income and mining tax assets - current
      Working capital                              $       143   $       468
                                                    -----------   -----------
                                                    -----------   -----------
    Future income and mining tax assets -
     non-current
      Tax losses and credits carried forward       $    15,059   $     4,773
      Property, plant and equipment                      2,733         2,114
      Contractual sales obligations                      6,405         4,369
      Asset retirement obligations                       3,751         5,866
      Share issuance costs                               3,088         3,572
      Other deductible temporary differences             9,595         6,171
      Valuation allowance                              (12,853)       (9,758)
                                                    -----------   -----------
                                                   $    27,778   $    17,107
                                                    -----------   -----------
                                                    -----------   -----------
    Future income and mining tax liabilities -
     current
      Inventory                                    $    (5,763)  $   (14,960)
      Other taxable temporary differences                 (750)       (2,277)
                                                    -----------   -----------
                                                   $    (6,513)  $   (17,237)
                                                    -----------   -----------
                                                    -----------   -----------
    Future income tax liabilities - non-current
      Property, plant and equipment                $  (188,650)  $  (164,771)
      Other taxable temporary differences                 (632)            -
                                                    -----------   -----------
                                                   $  (189,282)  $  (164,771)
                                                    -----------   -----------
                                                    -----------   -----------
    Net future income and mining tax
     liabilities - current                         $    (6,370)  $   (16,769)
    Net future income and mining tax
     liabilities - non-current                        (161,504)     (147,664)
                                                    -----------   -----------
    Net future income and mining tax liabilities   $  (167,874)  $  (164,433)
                                                    -----------   -----------
                                                    -----------   -----------

    Tax Loss and Credit Carry Forwards

    At December 31, 2007, the Corporation has the following loss and credit
    carry forwards available for tax purposes (losses and credits shown by
    tax jurisdiction and year of expiry):

                                                        United
                                                        States        United
                                          Canada  Pennsylvania        States
                                     Non-capital     Operating       Federal
                                          Losses        Losses    AMT Credit

        2008                         $     1,069   $         -   $         -
        2009                                 566             -             -
        2010                                 462             -             -
        2011                                   -             -             -
        2012                                   -             -             -
        Thereafter                        17,347         4,057         7,549
                                      -----------   -----------   -----------
                                     $    19,444   $     4,057   $     7,549
                                      -----------   -----------   -----------
                                      -----------   -----------   -----------

    The Corporation has $13,031 in capital losses available in Canada that
    can be carried forward indefinitely but these can only be applied against
    future capital gains. A full valuation allowance has been recorded
    against the potential future income tax assets associated with the
    Canadian tax loss carry forwards as their utilization is not considered
    more likely than not.

    20. Net Income (Loss) Per Share

                                                          2007          2006

    Net income (loss)                              $   157,347   $   (20,643)
                                                    -----------   -----------
                                                    -----------   -----------

    Basic weighted-average number of
     shares outstanding (000's)                        110,195        57,688
    Effect of dilutive securities
      Common share warrants                             12,243             -
      Stock options                                      4,162             -
                                                    -----------   -----------
    Diluted weighted-average number of
     shares outstanding (000's)                        126,600        57,688
                                                    -----------   -----------
                                                    -----------   -----------

    Net income (loss) per share
      Basic                                        $      1.43   $     (0.36)
                                                    -----------   -----------
                                                    -----------   -----------
      Diluted                                      $      1.24   $     (0.36)
                                                    -----------   -----------
                                                    -----------   -----------

    For the year ended December 31, 2007, 2,000,500 stock options and nil
    warrants (2006 - 9,651,000 stock options and 29,630,546 warrants) have
    been excluded from the computation of diluted securities as these would
    be considered to be anti-dilutive.

    21. Related Party Transactions

    Consolidated sales to members of a group of companies affiliated with the
    other participant in the Endako Mine joint venture were $176,109 for the
    year ended December 31, 2007, representing 19.2% of the Corporation's
    total revenues for 2007 (2006 - $21,106 and 14.0%, respectively). For the
    year ended December 31, 2007, the Corporation recorded management fee
    income of $676 (2006 - $176) and selling and marketing costs of $1,374
    (2006 - $316) from this group of companies. At December 31, 2007, the
    Corporation's accounts receivable included $8,878 owing from this group
    of companies (2006 - $7,553).

    22. Fair Value of Financial Instruments

    The carrying amounts of financial instruments including cash and cash
    equivalents, restricted cash, accounts receivable, accounts payable and
    accrued liabilities and variable rate debt approximate fair value as of
    December 31, 2007 and 2006. The fair value of investments is determined
    using quoted market prices for those securities.

    The Corporation does not acquire, hold or issue financial instruments for
    trading or speculative purposes. Derivative instruments are used to
    manage certain market risks resulting from fluctuations in foreign
    currency exchange rates. On a limited basis the Corporation enters into
    forward contracts for the purchase of Canadian dollars.

    The Corporation continually monitors its positions with, and the credit
    quality of, the financial institutions it invests with. As of the balance
    sheet date, and periodically throughout the year, the Corporation has
    maintained balances in various operating accounts in excess of federally
    insured limits.

    The Corporation controls credit risk related to accounts receivable
    through credit approvals, credit limits, and monitoring procedures.
    Concentration of credit risk with respect to accounts receivable are
    limited because the Corporation's customer base includes a large number
    of geographically diverse customers, thus spreading the trade credit
    risk. Management considers the credit of each individual customer,
    including payment history and other factors.

    23. Supplementary Cash Flow Information

                                                          2007          2006

    Change in non-cash working capital
      Accounts receivable                          $     4,584   $    (1,138)
      Product inventory                                  3,065        65,421
      Material and supplies inventory                   (1,108)          766
      Prepaid expense and other current assets          (1,780)       (1,447)
      Income and mining taxes recoverable              (11,263)          968
      Accounts payable and accrued liabilities          16,009        22,802
      Income and mining taxes payable                  (30,935)       19,762
                                                    -----------   -----------
                                                   $   (21,428)  $   107,134
                                                    -----------   -----------
                                                    -----------   -----------

    Cash interest paid                             $    35,538   $     1,408
    Cash income taxes paid                         $   149,507   $     2,500
    Cash and cash equivalents is comprised of:
      Cash                                         $    77,730   $    28,536
      Cash equivalents                                  35,962        69,523
                                                    -----------   -----------
                                                   $   113,692   $    98,059
                                                    -----------   -----------
                                                    -----------   -----------

    Cash equivalents consist of deposits and money market instruments issued
    or guaranteed by major financial institutions and governments that have
    an original maturity date of less than 90 days.

    24. Segment Information

    The Corporation has two operating segments, being the mining, milling,
    roasting and sale of molybdenum products at the Corporation's US and
    Canadian operations. Geographic segment information for the years ended
    and as at December 31, 2007 and 2006 is as follows:

    2007                           US     Canadian
                           Operations   Operations    Corporate        Total
    Revenues
      Molybdenum sales    $   681,609  $   209,492  $         -  $   891,101
      Tolling and
       calcining               23,301            -            -       23,301
                           -----------  -----------  -----------  -----------
                              704,910      209,492            -      914,402
                           -----------  -----------  -----------  -----------
    Cost of sales
      Operating expenses      491,876       62,612            -      554,488
      Selling and marketing     6,524        2,518            -        9,042
      Depreciation,
       depletion and
       amortization            29,623       18,475           76       48,174
      Accretion                 1,275          381           14        1,670
                           -----------  -----------  -----------  -----------
                              529,298       83,986           90      613,374
                           -----------  -----------  -----------  -----------
    Income (loss)
     from mining
     and processing       $   175,612  $   125,506  $       (90) $   301,028
                           -----------  -----------  -----------  -----------
                           -----------  -----------  -----------  -----------

    Capital expenditures  $    12,789  $       911  $       893  $    14,593

    Assets                $   532,898  $   407,585  $   169,239  $ 1,109,722

    Liabilities           $   167,184  $   116,368  $   338,528  $   622,080


    2006                           US     Canadian
                           Operations   Operations    Corporate        Total
    Revenues
      Molybdenum sales    $   105,401  $    42,275  $         -  $   147,676
      Tolling and
       calcining                3,167            -            -        3,167
                           -----------  -----------  -----------  -----------
                              108,568       42,275            -      150,843
                           -----------  -----------  -----------  -----------
    Cost of sales
      Operating expenses      106,314       32,801            -      139,115
      Selling and marketing       397          842            -        1,239
      Depreciation,
       depletion and
       amortization             3,259        1,450            9        4,718
      Accretion                    11            4           12           27
                           -----------  -----------  -----------  -----------
                              109,981       35,097           21      145,099
                           -----------  -----------  -----------  -----------
    Income (loss)
     from mining
     and processing       $    (1,413) $     7,178  $       (21) $     5,744
                           -----------  -----------  -----------  -----------
                           -----------  -----------  -----------  -----------

    Capital expenditures  $     3,896  $       160  $       458  $     4,514

    Assets                $   654,074  $   222,503  $    23,335  $   899,912

    Liabilities           $   217,626  $    81,768  $   376,467  $   675,861


    25. Reconciliation to United States Generally Accepted Accounting
        Principles

    The Corporation's consolidated financial statements have been prepared
    according to Canadian GAAP which differ in certain respects from those
    principles that the Corporation would have followed had the consolidated
    financial statements been prepared in accordance with US GAAP. The
    material differences between Canadian GAAP and US GAAP and their effect
    on the consolidated financial statements are detailed below.

                                     2007                      2006
                          ------------------------- -------------------------
                             Canadian                  Canadian
                                 GAAP      US GAAP         GAAP      US GAAP
    Assets
    Current assets
      Cash and cash
       equivalents        $   113,692  $   113,692  $    98,059    $  98,059
      Accounts
       receivable              84,128       84,128       84,476       84,476
      Product
       inventory       a)     131,272      138,290      131,269      131,269
      Material and
       supplies
       inventory               32,899       32,899       25,498       25,498
      Prepaid expense
       and other
       current assets           4,614        4,614        3,015        3,015
      Income and mining
       taxes recoverable       13,410       13,410            -            -
                           -----------  -----------  -----------  -----------
                              380,015      387,033      342,317      342,317
    Reclamation
     deposits                  26,851       26,851       23,005       23,005
    Restricted cash             9,964        9,964        8,081        8,081
    Other assets                2,439        2,439            -            -
    Property, plant
     and equipment     a)     566,791      532,979      480,187      480,187
    Goodwill                  123,662      123,662       46,322       46,322
                           -----------  -----------  -----------  -----------
                          $ 1,109,722  $ 1,082,928  $   899,912  $   899,912
                           -----------  -----------  -----------  -----------
                           -----------  -----------  -----------  -----------
    Liabilities
    Current
     liabilities
      Accounts payable
       and accrued
       liabilities     b) $    60,428  $    60,428  $    38,794    $  38,289
      Acquisition cost
       payable                100,000      100,000            -            -
      Income and mining
       taxes payable                -            -       29,407       29,407
      Current portion of
       long term debt          67,242       67,242       73,758       73,758
      Future income and
       mining taxes             6,370        6,370       16,769       16,962
                           -----------  -----------  -----------  -----------
                              234,040      234,040      158,728      158,416
    Long-term debt     c)     170,178      170,178      324,048      324,338
    Contractual sales
     obligations                9,668        9,668       11,421       11,421
    Severance and
     other liabilities         20,277       20,277        8,008        8,008
    Asset retirement
     obligations               26,413       26,413       25,992       25,992
    Future income and
     mining taxes      a)     161,504      151,394      147,664      147,553
                           -----------  -----------  -----------  -----------
                              622,080      611,970      675,861      675,728
                           -----------  -----------  -----------  -----------
    Shareholders'
     Equity
    Common shares      d)     268,143      269,663      210,857      211,476
    Common share
     warrants                  34,975       34,975       35,445       35,445
    Contributed surplus        26,537       26,537       14,953       14,953
    Retained earnings
     (deficit)                129,768      111,564      (27,579)     (28,065)
    Accumulated other
     comprehensive
     income (loss)             28,219       28,219       (9,625)      (9,625)
                           -----------  -----------  -----------  -----------
                              487,642      470,958      224,051      224,184
                           -----------  -----------  -----------  -----------
                          $ 1,109,722  $ 1,082,928  $   899,912  $   899,912
                           -----------  -----------  -----------  -----------
                           -----------  -----------  -----------  -----------

    The following table reconciles the consolidated net income (loss) and
    consolidated comprehensive income (loss) as reported under Canadian GAAP
    with that which would have been reported under US GAAP.

                                              2007         2006         2005

    Net income (loss) - Canadian GAAP  $   157,347  $   (20,643) $    (4,113)
    Reconciling items:
      Stripping costs incurred
       during production                   (26,794)           -            -
      Financial instruments                   (505)         505            -
      Amortization of deferred
       finance fees                            290         (290)           -
      Income tax effect of
       above adjustments                    10,192          (82)           -
      Issuance of flow-through shares         (901)        (619)           -
                                        -----------  -----------  -----------
    Net income (loss) - US GAAP        $   139,629  $   (21,129) $    (4,113)
                                        -----------  -----------  -----------
                                        -----------  -----------  -----------
    Net income (loss) per share
      Basic                            $      1.27  $     (0.37) $     (0.13)
                                        -----------  -----------  -----------
                                        -----------  -----------  -----------
      Diluted                          $      1.10  $     (0.37) $     (0.13)
                                        -----------  -----------  -----------
                                        -----------  -----------  -----------

    Net income (loss) - US GAAP        $   139,629  $   (21,129) $    (4,113)
    Foreign currency translation
     adjustment                             37,844      (10,482)         857
                                        -----------  -----------  -----------
    Comprehensive income (loss) -
     US GAAP                           $   177,473  $   (31,611) $    (3,256)
                                        -----------  -----------  -----------
                                        -----------  -----------  -----------

    In 2007, under US GAAP, cash flows from operating activities would
    decrease by $34,174 and cash flows from investing activities would
    increase by $34,174 due to the stripping costs incurred during
    production.

    In 2006 and 2005, cash flows from operating, investing and financing
    activities for US GAAP purposes are the same as those under Canadian
    GAAP.

    Current Differences in Accounting Principles

    a)  Stripping Costs Incurred During Production

    Effective January 1, 2007, for Canadian GAAP purposes, the Corporation
    prospectively adopted EIC-160 "Stripping Costs Incurred in the Production
    Phase of a Mining Operation". Under EIC 160, stripping activity at
    operating mines that represents a betterment is capitalized to property,
    plant and equipment and amortized on a unit of production basis over the
    related proven and probable reserves. Betterment occurs when the
    stripping activity increases future output of the mine by providing
    additional sources of mineral reserves.

    Under US GAAP, Emerging Issues Task Force ("EITF") abstract EITF 04-6
    "Accounting for Stripping Costs Incurred during Production in the Mining
    Industry", does not permit capitalization of such stripping costs and
    requires stripping costs to be accounted for as a variable production
    cost to be included in the costs of inventory produced during the
    production phase. Accordingly for the year ended December 31, 2007,
    inventory and cost of sales for US GAAP purposes would increase by $7,018
    and $26,794, respectively, and property, plant and equipment would
    decrease by $33,812.

    b)  Embedded Derivatives

    The Corporation enters into agreements to purchase molybdenum at prices
    to be determined in the future. The future pricing mechanism is
    considered to be an embedded derivative. US GAAP requires such embedded
    derivatives to be separated from their host contract and carried at fair
    value on the balance sheet with the changes in the fair value recorded in
    the income statement. In 2006, under Canadian GAAP, the separation of
    embedded derivatives was not required and changes in fair value were
    recorded in product inventory. Accordingly, for US GAAP purposes,
    accounts payable and cost of goods sold would decrease by $505 for the
    year ended December 31, 2006.

    Effective January 1, 2007, the Corporation adopted the new Canadian
    standard for financial instruments that requires the separation of such
    embedded derivatives with the changes in fair value recognized in the
    income statement. The change in Canadian GAAP eliminates this difference
    for 2007.

    c)  Effective Interest Rate Method

    US GAAP requires financing fees to be accounted for by the effective
    interest rate method. In 2006, under Canadian GAAP, financing fees were
    deferred and amortized on a straight-line basis over the term of the
    underlying loan facilities. Accordingly, for US GAAP purposes, long-term
    debt and interest expense would increase by $290 for the year ended
    December 31, 2006.

    Effective January 1, 2007 the Corporation adopted the new Canadian
    standard for financial instruments which requires the use of the
    effective interest rate method similar to US GAAP. The change in Canadian
    GAAP eliminates this difference for 2007.

    d)  Issuance of Flow-through Shares and the Related Renouncement of
        Qualifying Expenditures

    For Canadian GAAP purposes, the issuance of flow-through shares has been
    recorded in shareholders' equity at gross proceeds. When the Corporation
    renounces deductions for qualifying expenditures to investors, the
    Corporation recognizes the related tax recovery as share issue costs and
    therefore as a reduction to the common shares proceeds. In 2005 and 2006,
    the Corporation issued flow through shares at a discount. In the
    following years, 2006 and 2007, the Corporation renounced the tax
    deductions for the qualifying expenditures.

    For US GAAP, when flow-through shares are issued, the proceeds are
    allocated between the issue of shares and the sale of tax benefits. The
    allocation is made based on the difference between the quoted price of
    the existing shares and the amount that the investor pays for the shares
    with the difference recognized as a liability provided the shares are
    issued at a premium.

    However, because the flow-through shares were issued at a discount, under
    US GAAP proceeds would not be allocated to the sale of tax benefits. The
    reduction to common shares as share issue costs and the related tax
    recovery made under Canadian GAAP would be reversed. Accordingly for US
    GAAP purposes, common shares would increase and deferred income and
    mining tax recovery would decrease by $901 for the year ended
    December 31, 2007 (2006 - $619).

    e)  Accounting for Uncertainty in Income Taxes

    In June 2006, the Financial Accounting Standards Board ("FASB") issued
    Financial Interpretation ("FIN") FIN 48 which prescribes a recognition
    and measurement model for uncertain tax positions taken in a
    Corporation's tax returns. FIN 48 also provides guidance on
    derecognition, classification, presentation and disclosure of
    unrecognized tax benefits. FIN 48 is effective for fiscal years beginning
    after December 15, 2006.

    For US GAAP purposes, the Corporation adopted the provisions of FIN 48 on
    January 1, 2007. As a result of the implementation, no adjustment was
    required to the liability for unrecognized tax benefits.

    f)  Stock-based Compensation

    US GAAP requires that stock-based compensation not be shown as a separate
    item in the determination of net income (loss), as allowed under Canadian
    GAAP, but to be included in the specific income statement categories that
    include the costs of the employees for which the option grant applies.
    For US GAAP, operating expenses would have increased by $7,063 (2006 -
    $8,657), general and administrative expenses would have increased by
    $9,243 (2006 - $5,747) and exploration and development expenses would
    have increased by nil (2006 - $143).

    Recent Accounting Pronouncements

    a)  EITF No. 07-5, Issue Summary No. 1 - Determining Whether an
        Instrument (or an Embedded Feature) is Indexed to an Entity's Own
        Stock

    The Corporation has warrants to purchase common shares that are
    denominated in Canadian dollars which results in the Corporation having
    warrants outstanding that are denominated outside its US dollar
    functional currency.

    The US Securities and Exchange Commission and FASB have issued recent
    interpretations for US GAAP that suggest warrants with exercise prices
    denominated in a currency other than the entity's functional currency
    cannot be classified as equity. As a result, these instruments would be
    treated as derivatives and recorded as liabilities which are carried at
    fair value with changes in the fair value recorded in the income
    statement.

    In August 2007, the EITF issued EITF No. 07-5, Issue Summary No. 1
    "Determining Whether an Instrument (or an Embedded Feature) is Indexed to
    an Entity's Own Stock". The Issue Summary discusses the merits of various
    accounting treatments related to this issue but does not provide any
    definitive guidance. The EITF considers Issue 07-5 an open issue subject
    to future discussion at future meetings.

    b)  Financial Accounting Standard 157, Fair Value Measurements (FAS 157)

    In September 2006, the FASB issued FAS 157 that provides enhanced
    guidance for using fair value to measure assets and liabilities. FAS 157
    is meant to ensure that the measurement of fair value is more comparable
    and consistent, and improve disclosure about fair value measures. As a
    result of FAS 157, there is now a common definition of fair value to be
    used throughout US GAAP. FAS 157 applies whenever US GAAP requires (or
    permits) measurement of assets or liabilities at fair value. FAS 157 does
    not address when the use of fair value measurements is required.

    In December 2007, the FASB issued FASB Staff Position ("FSP") FSP
    FAS 157-b, which provided a one-year deferral, until January 1, 2009, for
    the implementation of FAS 157 for non-financial assets and liabilities.
    The deferral is intended to provide the FASB additional time to consider
    the effects of various implementation issues that have arisen, or that
    may arise, from the application of FAS 157. The Corporation is required
    to implement FAS 157 for financial assets and liabilities that are
    carried at fair value effective January 1, 2008. The adoption of FAS 157
    is not expected to have a material impact on valuations of investments or
    derivative instruments.

    c)  Financial Accounting Standard 159, The Fair Value Option for
        Financial Assets and Financial Liabilities (FAS 159)

    In February 2007, the FASB issued FAS 159, which allows an irrevocable
    option, Fair Value Option ("FVO"), to carry eligible financial assets and
    liabilities at fair value, with the election made on an
    instrument-by-instrument basis. Changes in fair value for these
    instruments would be recorded in earnings. The objective of FAS 159 is to
    improve financial reporting by providing entities with the opportunity to
    mitigate volatility in reported earnings caused by measuring related
    assets and liabilities differently without having to apply complex hedge
    accounting provisions. The Corporation does not expect to adopt the FVO
    on its eligible financial instruments existing as at January 1, 2008.

    d)  Financial Accounting Standard 141(R), Business Combinations
        (FAS 141(R))

    In December 2007, the FASB issued FAS 141(R), which will replace FAS 141
    prospectively for business combinations consummated after the effective
    date of December 15, 2008. Early adoption is not permitted. Under
    FAS 141(R), business acquisitions will be accounted for under the
    "acquisition method", compared to the "purchase method" mandated by
    FAS 141.

    The more significant changes that will result from applying the
    acquisition method include: (i) the definition of a business is broadened
    to include development stage entities, and therefore more acquisitions
    will be accounted for as business combinations rather than asset
    acquisitions; (ii) the measurement date for equity interests issued by
    the acquirer is the acquisition date instead of a few days before and
    after terms are agreed to and announced, which may significantly change
    the amount recorded for the acquired business if share prices differ from
    the agreement and announcement date to the acquisition date; (iii) all
    future adjustments to income tax estimates will be recorded to income tax
    expense, whereas under FAS 141 certain changes in income tax estimates
    were recorded to goodwill; (iv) acquisition-related costs of the
    acquirer, including investment banking fees, legal fees, accounting fees,
    valuation fees, and other professional or consulting fees will be
    expensed as incurred, whereas under FAS 141 these costs are capitalized
    as part of the cost of the business combination; (v) the assets acquired
    and liabilities assumed are recorded as 100% of fair value even if less
    that 100% is obtained, whereas under FAS 141 only the controlling
    interest's portion is recorded at fair value; and (vi) the
    non-controlling interest will be recorded at its share of fair value of
    net assets acquired, including its share of goodwill, whereas under
    FAS 141 the non-controlling interest is recorded at its share of carrying
    value of net assets acquired with no goodwill being allocated.

    e)  Financial Accounting Standard 160, Non-controlling Interests in
        Consolidated Financial Statements (FAS 160)

    In December 2007, the FASB issued FAS 160, which is effective for fiscal
    years beginning after December 15, 2008. Under FAS 160, non-controlling
    interests will be measured at 100% of the fair value of assets acquired
    and liabilities assumed. Under current standards, the non-controlling
    interest is measured at book value. For presentation and disclosure
    purposes, non-controlling interests will be classified as a separate
    component of shareholders' equity. In addition, FAS 160 will change the
    manner in which increases/decreases in ownership percentages are
    accounted for. Changes in ownership percentages will be recorded as
    equity transactions and no gain or loss will be recognized as long as the
    parent retains control of the subsidiary. When a parent company
    deconsolidates a subsidiary but retains a non-controlling interest, the
    non-controlling interest is re-measured at fair value on the date control
    is lost and a gain or loss is recognized at that time. Under FAS 160,
    accumulated losses attributable to the non-controlling interests are no
    longer limited to the original carrying amount, and therefore
    non-controlling interests could have a negative carrying balance. The
    provisions of FAS 160 are to be applied prospectively with the exception
    of the presentation and disclosure provisions, which are to be applied
    for all prior periods presented in the financial statements. Early
    adoption is not permitted.
    





For further information:

For further information: Wayne Cheveldayoff, Director of Investor
Relations, Thompson Creek Metals Company Inc., Tel: (416) 860-1438, Toll free:
1-800-827-0992, wcheveldayoff@tcrk.com; Dan Symons, Renmark Financial
Communications Inc., Tel.: (514) 939-3989, dsymons@renmarkfinancial.com

Organization Profile

Thompson Creek Metals Company Inc.

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