NOTICE TO
SHAREHOLDERS
FOR THE THREE MONTHS ENDED
AUGUST 31, 2006
GRANDVIEW GOLD INC.

(An Exploration Stage Company)

Responsibility for Financial Statements

The accompanying unaudited financial statements for Grandview Gold Inc. have been prepared by management in accordance with Canadian generally accepted accounting principles consistently applied. The most significant of these accounting principles have been set out in the May 31, 2006 audited financial statements. Only changes in accounting information have been disclosed in these unaudited financial statements. These unaudited statements are presented on the accrual basis of accounting. Accordingly, a precise determination of many assets and liabilities is dependent upon future events. Therefore, estimates and approximations have been made using careful judgment. Recognizing that the Company is responsible for both the integrity and objectivity of the financial statements, management is satisfied that these unaudited financial statements have been fairly presented.

Auditors' involvement

The auditors of Grandview Gold Inc. have not performed a review of the unaudited financial statements for the three months ended August 31, 2006 and August 31, 2005.

Grandview Gold Inc.

(An Exploration Stage Company)

(Unaudited)

Balance Sheets

		August 31,			May 31,
		2006			2006
Assets
Current assets
Cash	$	2,343,105		$	3,802,800
Marketable securities (Note 2)		9,766			9,766
GST receivable		150,113			130,297
Prepaid expenses		193,937			20,637
Exploration advances, net		90,000			271,977
		2,786,921			4,235,477
Mining interests		4,424,092			3,415,766
	$	7,211,013		$	7,651,243
Liabilities
Current liabilities
Accounts payable and accrued liabilities	$	323,909		$	421,502
Shareholders' Equity
Share capital (Note 3(b))		9,543,301			9,543,301
Warrants (Note 3(c))		1,800,239			2,086,995
Contributed surplus (Note 3(e))		2,406,020			1,547,701
Deficit		(6,862,456	)		(5,948,256	)
		6,887,104			7,229,741
	$	7,211,013		$	7,651,243

Nature of operations and going concern assumption (Note 1).

The notes to financial statements are an integral part of these statements.

- 2 -

Grandview Gold Inc.

(An Exploration Stage Company)

(Unaudited)

Statements of Operations and Deficit

								Cumulative
								from date of
								inception of the
		Three Months Ended						exploration
		August 31,			August 31,			stage
		2006			2005			(March 26, 2004)
Expenses
Stock-option compensation (Note 3(d))	$	571,563		$	121,291		$	1,920,876
Investor relations, business development
and reporting issuer maintenance costs		68,994			31,090			652,765
Professional fees		183,346			24,539			599,517
Management services		72,769			48,038			540,835
Office and administration		32,323			30,947			309,638
Write-down of marketable securities		-			-			15,234
Bad debt		-			-			1,235
Loss before the undernoted		(928,995	)		(255,905	)		(4,040,100	)
Interest income		14,795			-			14,795
Forgiveness of debt		-			-			35,667
Failed merger costs		-			-			(170,000	)
Loss before income taxes		(914,200	)		(255,905	)		(4,159,638	)
Future income tax recovery		-			-			(731,430	)
Net loss for the period		(914,200	)		(255,905	)		(3,428,208	)
Deficit, beginning of period		(5,948,256	)		(4,945,040	)		(3,434,248	)
Deficit, end of period	$	(6,862,456	)	$	(5,200,945	)	$	(6,862,456	)
Basic and diluted loss per share (Note 3(f))	$	(0.05	)	$	(0.02	)

The notes to financial statements are an integral part of these statements.

- 3 -

Grandview Gold Inc.

(An Exploration Stage Company)

(Unaudited)

Statements of Cash Flows

								Cumulative
								from date of
								inception of the
		Three Months Ended						exploration
		August 31,			August 31,			stage
		2006			2005			(March 26, 2004)
Operating activities
Net loss for the period	$	(914,200	)	$	(255,905	)	$	(3,428,208	)
Items not involving cash:
Write-down of marketable securities		-			-			15,234
Forgiveness of debt		-			-			(35,667	)
Future income tax recovery		-			-			(731,430	)
Write-off of bad debts		-			-			1,235
Stock-based compensation (Note 3(d))		571,563			121,291			1,920,876
Change in non-cash operating working capital
GST receivable		(19,816	)		(19,327	)		(149,623	)
Prepaid expenses		(173,300	)		-			(193,937	)
Accounts payable and accrued liabilities		(97,593	)		19,174			330,078
Cash flows used in operating activities		(633,346	)		(134,767	)		(2,271,442	)
Financing activities
Loans from related parties		-			-			(28,594	)
Proceeds from loan		-			195,000			175,000
Repayment of loan		-			-			(75,000	)
Share/warrant issuance		-			2,523,880			9,596,351
Cost of issuance		-			(212,522	)		(990,456	)
Cash flows provided by financing activities		-			2,506,358			8,677,301
Investing activities
Expenditures on mining interests		(1,008,326	)		(229,653	)		(3,972,755	)
Exploration advances		181,977			-			(90,000	)
Cash flows used in investing activities		(826,349	)		(229,653	)		(4,062,755	)
Change in cash during the period		(1,459,695	)		2,141,938			2,343,104
Cash, beginning of period		3,802,800			244,067			1
Cash, end of period	$	2,343,105		$	2,386,005		$	2,343,105

The notes to financial statements are an integral part of these statements.

- 4 -

Grandview Gold Inc.

(An Exploration Stage Company)

(Unaudited)

Statements of Mineral Properties

						Cumulative
						from date of
						inception of the
		Three months ended				exploration
		August 31,		August 31		stage
		2006		2005		(March 26, 2004)
Pony Creek Carlin Trend Project,
Nevada, USA (1)
Balance, beginning of period	$	1,881,582	$	411,874	$	-
Drilling, assays and related field work		691,325		52,395		1,990,912
Project administration and general		42,909		-		51,930
Property acquisition and holding costs		135,758		118,504		708,732
Total expenditures during the period		869,992		170,899		2,751,574
Balance, end of period		2,751,574		582,773		2,751,574
Red Lake Gold Camp, Ontario, Canada (1)
Balance, beginning of period		1,074,803		5,562		-
Drilling, assays and related field work		69,858		-		802,681
Property acquisition and holding costs		26,250		-		368,230
Total expenditures during the period		96,108		-		1,170,911
Balance, end of period		1,170,911		5,562		1,170,911
Rice Lake Gold Camp, Manitoba,
Canada (1)
Balance, beginning of period		459,381		241,800		-
Drilling, assays and related field work		38,072		8,754		193,844
Property acquisition and holding costs		4,154		50,000		307,763
Total expenditures during the period		42,226		58,754		501,607
Balance, end of period		501,607		300,554		501,607
	$	4,424,092	$	888,889	$	4,424,092

(1) For a description of these properties, refer to Note 5 of the audited financial statements as at May 31, 2006.

The notes to financial statements are an integral part of these statements.

- 5 -

Grandview Gold Inc.

(An Exploration Stage Company)

Notes to Financial Statements (Unaudited)

Three Months Ended August 31, 2006

1. Nature of business, going concern assumption and accounting policies

Grandview Gold Inc. (the "Company") is a gold exploration company focused on exploring and developing gold properties in gold camps of North America.

The Company was incorporated under the laws of the Province of Ontario. The Company was previously in the business of investing in significant equity interests in high-technology companies. As at March 26, 2004, the Company changed its direction to a gold exploration company. To date, the Company has not earned significant revenues from gold exploration and is considered to be in the exploration stage. As such, the Company will be applying Accounting Guideline 11 "Enterprises in the Development Stage" from March 26, 2004 onwards.

These statements are prepared using Canadian generally accepted accounting principles that are applicable to a going concern, which assumes the Company will be able to continue to operate throughout the next twelve months subsequent to August 31, 2006. The use of these principles may be inappropriate since there is significant doubt about the Company's ability to continue as a going concern. Significant doubt exists because the Company has no recurring source of revenue and the Company has a history of losses. The future of the Company is currently dependent upon its ability to obtain sufficient cash from external financing and related parties in order to pay its liabilities as they become due.

If the going-concern basis was not appropriate, material adjustments may be necessary in the carrying amounts and/or classifications of assets and liabilities and the loss reported in these financial statements.

The unaudited financial statements have been prepared in accordance with Canadian generally accepted accounting principles ("GAAP") for interim financial information. Accordingly, they do not include all of the information and notes to the financial statements required by Canadian generally accepted accounting principles for annual financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three month period ended August 31, 2006 may not necessarily be indicative of the results that may be expected for the year ending May 31, 2007.

The balance sheet at May 31, 2006 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by Canadian generally accepted accounting principles for annual financial statements. The interim financial statements have been prepared by management in accordance with the accounting policies described in the Company's annual financial statements for the year ended May 31, 2006. For further information, refer to the financial statements and notes thereto included in the Company's annual financial statements for the year ended May 31, 2006.

New accounting pronouncement

In January 2005, the Canadian Institute of Chartered Accountants issued four new accounting standards: Handbook Section 1530, Comprehensive Income, Handbook Section 3251, Equity, Handbook Section 3855, Financial Instruments – Recognition and Measurement and Handbook Section 3865, Hedges. These standards are effective for interim and annual financial statements for the Company's fiscal and interim periods beginning October 1, 2006.

- 6 -

Grandview Gold Inc.

(An Exploration Stage Company)

Notes to Financial Statements (Unaudited)

Three Months Ended August 31, 2006

2. Marketable securities

Marketable securities consists of:

		August 31,			May 31,
		2006			2006
Navitrak International Corporation
Common shares (at cost)	$	325,305		$	325,305
Less provision for write down to market		(315,539	)		(315,539	)
Carrying value	$	9,766		$	9,766

Navitrak International Corporation is a reporting issuer. As at August 31, 2006, the Company owned 488,300 (2005 -488,300) common shares. The trading activity and market volume of the marketable securities is limited.

3.	Share capital
(a)	Authorized
	Unlimited number of common shares
(b)	Issued

	Number
	of
	shares		Amount
Balance, May 31, 2004 and May 31, 2003	3,270,998	$	3,378,444
Stock split (3 for 1)	6,541,996		-
Private placement	120,000		120,000
Private placement	150,000		150,000
Mineral property acquisition	400,000		4,000
Private placement	175,000		175,000
Private placement	1,005,000		1,005,000
Warrant valuation	-		(138,188	)
Mineral property acquisition	118,500		159,975
Mineral property acquisition	70,000		86,800
Cost of issue - warrant valuation	-		(35,200	)
Cost of issue - cash laid out	-		(124,081	)
Balance, May 31, 2005	11,851,494	$	4,781,750

- 7 -

Grandview Gold Inc.

(An Exploration Stage Company)

Notes to Financial Statements (Unaudited)

Three Months Ended August 31, 2006

3.	Share capital (Continued)
(b)	Issued (Continued)

	Number
	of
	shares		Amount
Balance, May 31, 2005 (Carryforward from previous page)	11,851,494	$	4,781,750
Private placement	2,019,104		2,523,880
Debt conversation	80,000		100,000
Warrant valuation	-		(178,023	)
Private placement	590,320		737,900
Warrant valuation	-		(111,498	)
Shares issued for a finders' fee	160,000		200,000
Private placement	400,000		500,000
Private placement	3,985,974		4,384,571
Warrant valuation	-		(1,335,301	)
Cost of issue - broker warrant valuation	-		(462,173	)
Cost of issue - cash laid out	-		(866,375	)
Flow-through cost of issue	-		(731,430	)
Balance, May 31, 2006 and August 31, 2006	19,086,892	$	9,543,301

(c)	Warrants
The following is a continuity of warrants for the period ended August 31, 2006:

	Number			Average
	of			Exercise
	Warrants			Price
Balance, May 31, 2006	3,435,238		$	1.63
Expired/cancelled	(659,462	)		(1.59	)
Balance, August 31, 2006	2,775,776		$	1.64

The following are the warrants outstanding as at August 31, 2006:

Number		Black-
of		Scholes		Exercise		Expiry
Warrants		Value		Price		Date
285,160	$	111,498	$	1.75		September 15, 2006
59,032		30,342		1.25	(1 )(a)	September 15, 2006
40,000		21,360		1.25	(1 )(b)	October 19, 2006
1,992,987		1,335,301		1.75		March 27, 2009
398,597		301,738		1.10		March 27, 2009
2,775,776	$	1,800,239

- 8 -

Grandview Gold Inc.

(An Exploration Stage Company)

Notes to Financial Statements (Unaudited)

Three Months Ended August 31, 2006

3.	Share capital (Continued)
(c)	Warrants (Continued)
(1)	If these securities are exercised, the Company will issue the following warrants:

	Number
	of		Exercise	Expiry
	Warrants		Price	Date
(1)(a)	29,516	$	1.75	September 15, 2006
(1)(b)	20,000		1.75	October 19, 2006
	49,516

(d)	Stock options
The following is a continuity of stock options for the period ended August 31, 2006:

				Weighted
	Number			Average
	of			Exercise
	Stock Options			Price
Balance, May 31, 2006	2,225,000		$	1.28
Granted	750,000			1.10
Cancelled	(375,000	)		(1.00	)
Balance, August 31, 2006	2,600,000		$	1.26

The following are the stock options outstanding at August 31, 2006:

Number		Black-
of		Scholes		Exercise	Expiry
Stock options		Value		Price	Date
675,000	$	514,350	$	1.00	October 1, 2009
75,000		62,850		1.10	December 20, 2009
150,000		97,050		1.25	August 29, 2010
50,000		19,950		1.25	January 6, 2008
300,000		234,300		1.25	January 6, 2011
600,000		723,000		1.80	April 3, 2011
500,000		255,500		1.10	January 11, 2008
150,000		60,750		1.10	July 11, 2007
100,000		44,000		1.10	May 31, 2008
2,600,000	$	2,011,750

- 9 -

Grandview Gold Inc.

(An Exploration Stage Company)

Notes to Financial Statements (Unaudited)

Three Months Ended August 31, 2006

3.	Share capital (Continued)
(d)	Stock options (Continued)

The stock options have been expensed as follows:

			Balance					Expensed				Balance
	Number		at					at		Remainder		at
	of		May 31,					August 31,		to be		August 31,
	stock options		2006		Cancelled			2006		expensed		2006
(1)(5)	675,000	$	800,100	$	(285,750	)	$	-	$	-	$	514,350
(1)	75,000		62,850		-			-		-		62,850
(1)	150,000		97,050		-			-		-		97,050
(1)	50,000		11,638		-			4,988		3,324		19,950
(1)	300,000		136,675		-			58,575		39,050		234,300
(1)	600,000		241,000		-			180,750		301,250		723,000
(2)	500,000		-		-			255,500		-		255,500
(3)(4)	150,000		-		-			60,750		-		60,750
(6)	100,000		-		-			11,000		33,000		44,000
	2,600,000	$	1,349,313	$	(285,750	)	$	571,563	$	376,624	$	2,011,750

(1) The values assigned were estimated using the Black-Scholes option pricing model with the following assumptions: expected dividend yield - 0%; expected volatility - 103.23% to 167.25%; risk-free interest rates - 3.44% to 4.15% and an expected average life of 2 to 5 years.

(2) On July 11, 2006, the Company retained Connect Capital Limited ("CCL") and Connect Corporate Communications Inc. ("CCCI" and collectively the "Connect Group") to assist with investor and public relation services on behalf the Company. CCL and CCCI will each receive a monthly retainer of US $10,000 for an 18-month term subject to termination by the Company with 30 days written notice. The Company issued as compensation to CCL an option to purchase 500,000 common shares at an exercise price of $1.10 per share for the term of the agreement. The estimated fair market value under the Black-Scholes option pricing model was $255,500. The following assumptions were used to estimate this amount: expected dividend yield - 0%; expected volatility - 96.86%; risk-free interest rate -4.26%; and an expected average life of 18 months.

(3) On July 11, 2006, the Company also retained the services of Mr. Ted Markovitz as a capital markets consultant. Under the terms of this agreement, Mr. Markovitz received an option to purchase 100,000 common shares at an exercise price of $1.10 per common share. The estimated fair market value under the Black-Scholes option pricing model was $40,500. The following assumptions were used to estimate this amount: expected dividend yield - 0%; expected volatility - 92.11%; risk-free interest rate - 4.15%; and an expected average life of 12 months.

(4) On July 11, 2006, the Company issued 50,000 options at an exercise price of $1.10 for a period of 12 months to a consultant. The estimated fair market value under the Black-Scholes option pricing model was $20,250. The following assumptions were used to estimate this amount: expected dividend yield - 0%; expected volatility - 92.11%; risk-free interest rate - 4.15%; and an expected average life of 12 months.

(5) 375,000 stock options were cancelled during the period.

(6) On June 1, 2006, the Company issued 100,000 options at an exercise price of $1.10 for a period of 24 months to a consultant. The estimated fair market value under the Black-Scholes option pricing model was $44,000. The following assumptions were used to estimate this amount: expected dividend yield - 0%; expected volatility - 97.41%; risk-free interest rate - 4.15%; and an expected average life of 18 months.

- 10 -

Grandview Gold Inc.

(An Exploration Stage Company)

Notes to Financial Statements (Unaudited)

Three Months Ended August 31, 2006

3.	Share capital (Continued)
(e)	Contributed Surplus

The following is a continuity of contributed surplus for the period ended August 31, 2006:

		Contributed
		Surplus
Balance, May 31, 2006	$	1,547,701
Vesting of stock options		571,563
Expired warrants		286,756
Balance, August 31, 2006	$	2,406,020

(f) Basic and diluted loss per share

The following table sets forth the computation of basic and diluted loss per share:

		Three Months Ended
		August 31,			August 31,
		2006			2005
Numerator for basic loss per share	$	(914,200	)	$	(255,905	)
Numerator for diluted loss per share	$	(914,200	)	$	(255,905	)
Denominator for weighted number of common shares - basic		19,086,892			11,851,494
Denominator for weighted number of common shares - diluted		19,086,892			11,851,494
Basic loss per share	$	(0.05	)	$	(0.02	)
Diluted loss per share	$	(0.05	)	$	(0.02	)

Diluted loss per share, reflects the maximum possible dilution from the potential exercise of outstanding stock options and warrants, and the conversion of convertible securities. However, the effect of outstanding warrants and options, and the conversion of convertible securities was not calculated as the effect would be anti-dilutive.

- 11 -

Grandview Gold Inc.

(An Exploration Stage Company)

Notes to Financial Statements (Unaudited)

Three Months Ended August 31, 2006

4. Income taxes

The estimated taxable income for the period is $nil. Based upon the level of historical taxable income, it cannot be reasonably determined if the Company will realize the benefits from future income tax assets or the amounts owing from future income tax liabilities. Consequently, the future recovery or loss arising from differences in tax values and accounting values have been reduced by an equivalent estimated taxable temporary difference valuation allowance. This estimated taxable temporary difference valuation allowance will be adjusted in the period that it can be determined that it is more likely than not that some or all of the future tax assets or future tax liabilities will be realized.

For further information about the Company's losses for tax purposes, refer to the audited May 31, 2006 financial statements. The benefits for these losses and the estimated loss for the period are not recognized in these financial statements.

5. Related party transactions not disclosed elsewhere

On June 1, 2004, the Company entered into a management agreement with a company owned by Raymond Pecoskie ("Ray"), the President of the Company. Ray's company provides management and consulting services to the Company in exchange for $11,682 per month. On July 13, 2006, Ray stepped down as President of the Company. Ray will continue to manage the Company's Nevada drilling program on a contract basis. As President of the Company, Ray was paid $11,682 (2005 - $35,046).

Michael Hitch, PhD. P. Geology, a director, has been appointed to the position of interim Chief Executive Officer and will be overseeing the operations of the Company until the selection process for a new President and Chief Executive Officer is completed. His fees for the period amounted to $13,500 (2005 - $nil).

$12,000 (2005 - $nil) was accrued to the Chief Financial Officer of the Company.

$30,000 (2005 - $nil) was paid to a company that a director is a partner of for consulting services.

These transactions have been measured at the exchange amount which is intended to represent fair market value.

6. Differences between Canadian GAAP and US GAAP

The Company's financial statements have been prepared in accordance with Canadian GAAP. These principles, as they pertain to the Company's financial statements differ from US GAAP as follows:

Under Canadian GAAP, the Company accounted for its stock compensation plan as described in Note 2(i) in the fiscal 2006 audited financial statements under which CICA Handbook Section 3870 requires that compensation for option awards to employees and consultants be recognized in the financial statements at fair value for options granted in fiscal years beginning on or after January 1, 2004. The Company, as permitted by CICA Handbook Section 3870, has adopted this section prospectively for new option awards granted on or after June 1, 2003. Accordingly, a fair value compensation expense is reported for any options that were granted and vested during a interim or fiscal period. Prior to this accounting policy, no compensation expense was required to be recorded for stock option grants under Canadian GAAP for fiscal 2004. For US GAAP purposes, the Company has adopted the provisions of Financial Accounting Standards Board (FASB) Statement 148 effective as of June 1, 2003, which provisions allow the Company to record compensation expense for stock options granted in fiscal 2004 and all future periods based on the estimated fair value of such option, using the prospective method. In December 2004, FASB issued Statement 123 (Revised 2004), "Share-Based Payment," which mandates the recording of compensation expense based on the fair value of such options.

- 12 -

Grandview Gold Inc.

(An Exploration Stage Company)

Notes to Financial Statements (Unaudited)

Three Months Ended August 31, 2006

6. Differences between Canadian GAAP and US GAAP (Continued)

Prior to June 1, 2003, the Company accounted for its stock-based compensation plan for US GAAP purposes under FASB statement 123, under which no compensation expense was required to be recognized in fiscal 2003.

For the period ended August 31, 2006 and 2005, the Company's accounting for stock option grants under US GAAP is substantially equivalent to the accounting under Canadian GAAP. As such, the expense recorded for US GAAP purposes would be equal to the expense recorded for Canadian GAAP purposes for the period ended August 31, 2006 and 2005. Had the Company adopted (FASB) Statement 148 for 2004, there would be no effect on earnings since no stock options were issued in that fiscal period.

Under Canadian GAAP, the Company accounts for its exploration costs as described in Note 2(e) of the audited annual financial statements for May 31, 2006, while under US GAAP, exploration costs cannot be capitalized and are expensed as incurred. Mineral property rights relating to the properties are capitalized and they are tested for impairment.

Under Canadian GAAP, marketable securities and long term investments are carried at the lower of cost or market, and adjustments to the carrying value are shown as an expense on the statement of operations. Under US GAAP, marketable equity securities are carried at market value, and adjustments to the carrying value are shown as a component of shareholder's equity (if the securities are classified as available-for-sale securities) or as gain or loss in the statement of operations (if the securities are classified as trading securities).

Canadian GAAP provides that a tax benefit be recorded in the statement of operations to reflect the recovery of future income taxes relating to the renunciation of resource property expenditures to the Company's flow-through share investors (See Note 8 of the audited annual financial statements for May 31, 2006). US GAAP has no such provision; consequently, the US GAAP statement of operations contains no such tax benefit.

- 13 -

Grandview Gold Inc.

(An Exploration Stage Company)

Notes to Financial Statements (Unaudited)

Three Months Ended August 31, 2006

6. Differences between Canadian GAAP and US GAAP (Continued)

Had the Company's balance sheets as at August 31, 2006 and May 31, 2006 been prepared using US GAAP, such balance sheets would be presented as follows:

		August 31, 2006			May 31, 2006
Assets
Current
Cash	$	2,343,105		$	3,802,800
Marketable securities		9,766			9,766
GST receivable		150,113			130,297
Prepaid expenses		193,937			20,637
Exploration advances, net		90,000			271,977
		2,786,921			4,235,477
Property and equipment
Mineral property rights		1,384,725			1,218,563
	$	4,171,646		$	5,454,040
Liabilities and Shareholders' Equity
Current
Accounts payable and accrued liabilities	$	323,909		$	421,502
Shareholders' equity
Share capital
Authorized - unlimited common shares
Issued
Common shares		10,274,731			10,274,731
Additional paid in capital		485,144			198,388
Warrants		1,800,239			2,086,995
Cumulative adjustments to marketable securities		(315,539	)		(315,539	)
Deferred stock option compensation		1,920,876			1,349,313
Deficit accumulated before change to a exploration stage company		(3,133,943	)		(3,133,943	)
Deficit accumulated during the exploration stage		(7,183,771	)		(5,427,407	)
		3,847,737			5,032,538
	$	4,171,646		$	5,454,040

- 14 -

Grandview Gold Inc.

(An Exploration Stage Company)

Notes to Financial Statements (Unaudited)

Three Months Ended August 31, 2006

6. Differences between Canadian GAAP and US GAAP (Continued)

Under US GAAP, exploration stage companies are required to provide cumulative-from-inception information relating to income statements, statements of cash flows, and statements of changes in shareholders' equity. Inception has been deemed to be March 26, 2004, the date on which the Company, at a shareholders' meeting, made the decision to return to the business of exploration as its primary business focus. Had the Company's statements of operations and deficit been prepared using US GAAP, such statements would have included cumulative-from-inception amounts in addition to amounts for August 31, 2006, August 31, 2005 and August 31, 2004. Such statements under US GAAP are as follows:

Statements of Operations and Comprehensive Loss

											Cumulative
											from date of
											inception of the
		Three Months Ended									exploration
		August 31,			August 31,			August 31,			stage
		2006			2005			2004			(March 26, 2004)
Expenses
Management services	$	72,769		$	48,038		$	35,047		$	540,835
Investor relations, business
development and reporting
issuer maintenance costs		68,994			31,090			9,367			652,765
Bad debt expense		-			-			-			1,235
Professional fees		183,346			24,539			-			599,517
Office and administration		32,323			30,947			4,197			309,638
Gain on forgiveness of debt		-			-			-			(35,667	)
Non-cash compensation expense		571,563			121,291			-			1,920,876
General exploration		842,164			229,653			136,876			3,039,367
Failed merger costs		-			-			-			170,000
Loss before the under noted		(1,771,159	)		(485,558	)		(185,487	)		(7,198,566	)
Interest income		14,795			-			-			14,795
Net loss for the period and from
date of inception		(1,756,364	)		(485,558	)		(185,487	)		(7,183,771	)
Comprehensive loss items:
Write-down of marketable
securities		-			-			-			(15,234	)
Comprehensive loss for the
period	$	(1,756,364	)	$	(485,558	)	$	(185,487	)	$	(7,199,005	)

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Grandview Gold Inc.

(An Exploration Stage Company)

Notes to Financial Statements (Unaudited)

Three Months Ended August 31, 2006

6. Differences between Canadian GAAP and US GAAP (Continued)

Statements of Operations and Comprehensive Loss (Continued)

		Three Months Ended
		August 31,			August 31,			August 31,
		2006			2005			2004
Loss per common share
Basic	$	(0.09	)	$	(0.04	)	$	(0.03	)
Diluted	$	(0.09	)	$	(0.04	)	$	(0.03	)
Comprehensive loss per common share
Basic	$	(0.09	)	$	(0.04	)	$	(0.03	)
Diluted	$	(0.09	)	$	(0.04	)	$	(0.03	)

Statements of Changes in Shareholders' Equity

			Amount
			Under
	Shares		US GAAP
Common shares before change to a exploration stage company and
as of May 31, 2004	3,270,998	$	3,378,444
Stock split (3 for 1)	6,541,996		-
Private placement	120,000		120,000
Private placement	150,000		150,000
Mineral property acquisition	400,000		4,000
Private placement	175,000		175,000
Private placement	1,005,000		1,005,000
Warrant valuation	-		(138,188	)
Mineral property acquisition	118,500		159,975
Mineral property acquisition	70,000		86,800
Cost of issue - warrant valuation	-		(35,200	)
Cost of issue - cash laid out	-		(124,081	)
Balance, May 31, 2005	11,851,494		4,781,750
Private placement	2,019,104		2,523,880
Debt conversation	80,000		100,000
Warrant valuation	-		(178,023	)
Private placement	590,320		737,900
Warrant valuation	-		(111,498	)
Shares issued for a finders' fee	160,000		200,000
Private placement	400,000		500,000
Private placement	3,985,974		4,384,571
Warrant valuation	-		(1,335,301	)
Cost of issue - broker warrant valuation	-		(462,173	)
Cost of issue - cash laid out	-		(866,375	)
Balance, May 31, 2006 and August 31, 2006	19,086,892	$	10,274,731

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Grandview Gold Inc.

(An Exploration Stage Company)

Notes to Financial Statements (Unaudited)

Three Months Ended August 31, 2006

6. Differences between Canadian GAAP and US GAAP

Other changes in shareholders' equity are presented as follows:

Additional paid in capital
Balance, May 31, 2004 and May 31, 2005	$	25,000
Expired warrants		173,388
Balance, May 31, 2006		198,388
Expired warrants		286,756
Balance, August 31, 2006	$	485,144
Warrants
Balance, May 31, 2004	$	-
Issued		173,388
Balance, May 31, 2005		173,388
Issued		2,086,995
Expired		(173,388	)
Balance, May 31, 2006		2,086,995
Expired		(286,756	)
Balance, August 31, 2006	$	1,800,239
Cumulative adjustments to marketable securities
Balance, June 1, 2001	$	(85,625	)
Comprehensive loss		(121,100	)
Balance, May 31, 2002		(206,725	)
Comprehensive loss		(88,580	)
Balance, May 31, 2003		(295,305	)
Comprehensive loss		(5,000	)
Balance, March 26, 2004		(300,305	)
Comprehensive loss		(15,234	)
Balance, May 31, 2004, May 31, 2005,
May 31, 2006 and August 31, 2006	$	(315,539	)

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Grandview Gold Inc.

(An Exploration Stage Company)

Notes to Financial Statements (Unaudited)

Three Months Ended August 31, 2006

6. Differences between Canadian GAAP and US GAAP (Continued)

Deferred stock-option compensation
Balance, May 31, 2004	$	-
Vesting of stock options		775,613
Balance, May 31, 2005		775,613
Vesting of stock options		573,700
Balance, May 31, 2006		1,349,313
Vesting of stock options		571,563
Balance, August 31, 2006	$	1,920,876
Deficit accumulated during the exploration stage
Balance, March 26, 2004	$	-
Net income		4,678
Comprehensive loss items		(15,234	)
Balance, May 31, 2004		(10,556	)
Net loss		(1,743,463	)
Balance, May 31, 2005		(1,754,019	)
Net loss		(3,673,388	)
Balance, May 31, 2006		(5,427,407	)
Net loss		(1,756,364	)
Balance, August 31, 2006	$	(7,183,771	)

- 18 -

Grandview Gold Inc.

(An Exploration Stage Company)

Notes to Financial Statements (Unaudited)

Three Months Ended August 31, 2006

6. Differences between Canadian GAAP and US GAAP (Continued)

Had the Company's statements of cash flows been prepared using US GAAP, such statements would have included cumulative from inception amounts in addition to amounts for the period ended August 31, 2006, August 31, 2005 and August 31, 2004.

Such statements under US GAAP are as follows:

Statements of Cash Flow s											Cumulative from
		Three Months Ended									date of
		August 31,			August 31,			August 31,			inception
		2006			2005			2004			(March 26, 2004)
Cash flows used in operating activities
Net loss for the period	$	(1,756,364	)	$	(485,558	)	$	(185,487	)	$	(7,183,771	)
Items not involving cash:
Forgiveness of debt		-			-			-			(35,667	)
Write-off of bad debts		-			-			-			1,235
Non-cash compensation expense		571,563			121,291			-			1,920,876
Change in non-cash operating
working capital
GST receivable		(19,816	)		(19,327	)		(31,740	)		(155,293	)
Prepaid expenses		(173,300	)		-			-			(188,267	)
Accounts payable and
accrued liabilities		(97,593	)		19,174			284			330,640
		(1,475,510	)		(364,420	)		(216,943	)		(5,310,247	)
Cash flows used in financing activities
Loans from related parties		-			-			-			(28,594	)
Proceeds from loan		-			195,000			-			175,000
Repayment of loan		-			-			-			(75,000	)
Share/warrant issuance		-			2,523,880			246,321			9,596,351
Cost of issue		-			(212,522	)		-			(990,456	)
		-			2,506,358			246,321			8,677,301
Cash flows used in investing activities
Purchase of mineral property
rights		(166,162	)		-			4,000			(933,950	)
Exploration advances		181,977			-			-			(90,000	)
		15,815			-			4,000			(1,023,950	)
Change in cash during the period		(1,459,695	)		2,141,938			33,378			2,343,104
Cash, beginning of period		3,802,800			244,067			1			1
Cash, end of period	$	2,343,105		$	2,386,005		$	33,379		$	2,343,105

- 19 -

Grandview Gold Inc.

(An Exploration Stage Company)

Notes to Financial Statements (Unaudited)

Three Months Ended August 31, 2006

6. Differences between Canadian GAAP and US GAAP (Continued)

								Cumulative from
		Three Months Ended						date of
		August 31,		August 31,		August 31,		inception
		2006		2005		2004		(March 26, 2004)
Supplemental schedule of non-cash
transaction
Share issuance included in mining
interest	$	-	$	-	$	4,000	$	450,775

Recent US GAAP accounting pronouncements

In March 2005, the FASB issued FASB Interpretation (FIN) No. 47, "Accounting for Conditional Asset Retirement Obligations, an interpretation of FASB Statement No. 143" (FIN 47). FIN 47 clarifies that conditional asset retirement obligations meet the definition of liabilities and should be recognized when incurred if their fair values can be reasonably estimated. The Company was required to adopt FIN 47 during the year ended May 31, 2006; the implementation did not have any effect on the Company's financial statements as the Company does not yet have significant assets which the Company is obligated to retire.

In June 2005, the FASB issued Statement 154, "Accounting Changes and Error Corrections, a replacement of APB Opinion No. 20 and FASB Statement No. 3." Statement 154 will become effective for accounting changes and corrections of errors made in fiscal year 2007 and beyond. The effect of this statement on the Company's financial statements will depend on the nature and significance of future accounting changes subject to this statement.

In January 2006, the FASB ratified the consensus reached by the Emerging Issues Task Force on Issue No. 04-6, "Accounting for Stripping Costs Incurred during Production in the Mining Industry" (EITF 04-6), which requires that stripping costs be included in costs of sales as incurred beginning in fiscal 2007. The Company believes this consensus will have no effect on the financial statements until such time as the Company has a mine or mines in production.

In July 2006, the FASB issued FASB Interpretation No.48, "Accounting for Uncertainty in Income Taxes" (FIN 48). FIN 48 prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. The Interpretation also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. FIN 48 is effective in fiscal years beginning after December 15, 2006. The provisions of FIN 48 are to be applied to all tax positions upon initial adoption, with the cumulative effect adjustment reported as an adjustment to the opening balance of retained earnings. The Company is currently evaluating the potential impact, if any, that the adoption of FIN 48 will have on the financial statements.

In September 2006, the FASB issued Statement 157 "Fair Value Measurements". Statement 157 will become effective for financial statements issued for fiscal years beginning after November 15, 2007, and interim periods within those fiscal years. This statement defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles and expands disclosures about fair value measurements. The Company is currently evaluating the potential impact, if any, that the adoption of Statement 157 "Fair Value Measurements" will have on the financial statements.

- 20 -