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YUKON ZINC CORPORATION

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#701 – 475 Howe Street<br />

Vancouver, British Columbia<br />

Canada V6C 2B3<br />

Telephone: (604) 682-5474<br />

Toll-free: 1-877-682-5474<br />

Fax: (604) 682-5404<br />

International toll-free: 800-8682-5474<br />

info@yukonzinc.com<br />

Consolidated Financial Statements<br />

Years Ended December 31, 2006 and 2005<br />

Index Page<br />

Page<br />

Auditors’ Report to the Shareholders ……………………………………………………….......... 2<br />

Consolidated Balance Sheets ……………………………………………………………………… 3<br />

Consolidated Statements of Operations and Deficit ………………………………………......... 4<br />

Consolidated Statements of Cash Flows …………………………………………………………. 5<br />

Schedules of Mineral Property Costs ……………………………………………………………... 6<br />

Notes to the Consolidated Financial Statements…………………………………………………. 7

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