Minefinders Corporation Ltd.
Management Discussion and Analysis
December 31, 2005
This discussion is for the year ended December 31, 2005, with comparisons to 2004 and 2003. Unless otherwise
noted, all information is current to March 14, 2006, and all currency amounts are in United States dollars. The
discussion and analysis is intended to complement and supplement the Company’s Consolidated Financial
Statements for the year ended December 31, 2005 (the “Financial Statements”) and should be read together with
those Financial Statements.
Additional information, including the Company’s Annual Information Form for the year ended December 31, 2005
(the “Annual Information Form” or “AIF”) is available on SEDAR at www.sedar.com
Effective January 1, 2004 the Company changed its reporting currency from the Canadian dollar to the United
States dollar. The Financial Statements, including the comparative figures for 2004 and 2003, have been prepared
and presented as if this new policy had always been in place. The discussion and analysis in this document has been
presented in the same way.
The Financial Statements have been prepared in accordance with Canadian Generally Accepted Accounting
Principles (“Canadian GAAP”) (see “Summary of Significant Accounting Polices” and Note 1 to the Financial
Statements) which differs in certain material respects from US Generally Accepted Accounting Principles (“U.S.
GAAP”). Differences between Canadian GAAP and U.S. GAAP applicable to the Company are described in Note
9 to the Financial Statements.
Change in Accounting Policy
Effective January 1, 2004, the Company adopted the revised Canadian accounting standards for stock option
compensation expense of CICA Handbook Section 3870, and adjusted previously published numbers to include the
effects of this change in the comparative numbers for 2003 that are included in the Financial Statements.
Stock option compensation expense is charge