CONSOLIDATED FINANCIAL STATEMENTS

THREE MONTHS ENDED
MARCH 31, 2007

(Expressed in Canadian Dollars, unless otherwise stated)

(Unaudited)

These financial statements have not been reviewed by the Company's auditors

CONTINENTAL MINERALS CORPORATION

Consolidated Balance Sheets

(Expressed in Canadian Dollars)

		March 31			December 31
		2007			2006
		(unaudited)
Assets
Current assets
Cash and cash equivalents	$	31,628,056		$	1,791,802
Amounts receivable		189,087			227,598
Amounts due from related parties (note 8)		272,781			643,055
Prepaid expenses		127,918			168,078
		32,217,842			2,830,533
Mineral property interest (note 5)		114,652,309			112,747,309
Equipment (note 4)		467,851			523,327
Investments		1			1
	$	147,338,003		$	116,101,170
Liabilities and Shareholders' Equity
Current liabilities
Accounts payable and accrued liabilities	$	1,200,919		$	3,581,150
Loan from related party (note 8)		–			1,500,000
Current portion of long-term payable		577,300			578,650
Convertible promissory note (note 6)		–			11,034,366
		1,778,219			16,694,166
Long-term payable		1,731,900			1,735,950
Future income tax liabilities		27,382,000			26,948,000
		29,113,900			28,683,950
Shareholders' equity
Share capital (note 7)		156,452,925			107,421,628
Convertible promissory note - conversion right (note 7)		–			695,932
Contributed surplus (note 7)		6,914,670			4,322,759
Deficit		(46,921,711	)		(41,717,265	)
		116,445,884			70,723,054
Continuing operations (note 1)
	$	147,338,003		$	116,101,170

See accompanying notes to the consolidated financial statements

Approved by the Board of Directors

/s/ Gerald Panneton	/s/ Jeffrey Mason
Gerald Panneton	Jeffrey Mason
Director	Director

CONTINENTAL MINERALS CORPORATION

Consolidated Statements of Operations

(Unaudited – Expressed in Canadian Dollars)

		Three months ended March 31
		2007			2006
Expenses
Conference and travel	$	155,743		$	149,444
Exploration (schedule)		2,422,657			2,196,553
Foreign exchange		78,436			(6,197	)
Insurance expense		45,036			–
Interest expense		359,011			–
Interest income		(93,204	)		(17,097	)
Legal, accounting and audit		65,817			155,295
Loss on extinguishment of convertible promissory note (note 6)		376,366			–
Office and administration		638,033			408,614
Shareholder communications		65,842			99,200
Stock-based compensation – exploration (note 7)		17,840			32,615
Stock-based compensation – operations and administration (note 7)		465,133			228,526
Trust and filing		42,102			14,380
Loss before non-controlling interest		4,638,812			3,261,333
Non-controlling interest		–			(944,880	)
Loss and comprehensive loss for the period	$	4,638,812		$	2,316,453
Basic and diluted loss per common share	$	(0.05	)	$	(0.05	)
Weighted average number of common shares outstanding		101,129,109			47,360,195

See accompanying notes to the consolidated financial statements

CONTINENTAL MINERALS CORPORATION

Consolidated Statements of Shareholders' Equity and Deficit

(Unaudited – Expressed in Canadian Dollars)

	Three months ended						Year ended
			March 31, 2007				December 31, 2006
			(unaudited)
Share capital	Number of shares				Number of shares
Balance at beginning of the period	91,239,417	$	107,421,628		47,306,185	$	19,465,518
Share purchase options exercised at $1.10 per share	–		–		432,600		474,760
Share purchase options exercised at $1.20 per share	10,000		12,000		6,666		7,999
Share purchase options exercised at $1.33 per share	–		–		246,667		328,067
Share purchase options exercised at $1.61 per share	3,334		5,368		–		–
Share purchase options exercised at $1.70 per share	6,666		11,332		–		–
Share purchase options exercised, credited to share capital	–		16,994		–		874,476
Warrants exercised at $1.05 per share, net of issue costs	–		–		5,640,000		5,470,100
Shares issued pursuant to private placement, Feb 2007, net of issue costs	19,439,395		30,829,329		–		–
Shares issued pursuant to private placement, Mar 2007, net of issue costs	10,000,000		18,000,000		–		–
Shares issued for interest on debt (note 8(d))	89,229		156,274		95,915		151,233
Shares issued for mineral property interest	–		–		37,016,384		79,585,225
Shares to be issued for Banongla property	–		–		495,000		1,064,250
Balance at end of the period	120,788,041	$	156,452,925		495,000	$	107,421,628
Convertible promissory note - conversion right
Balance at beginning of the period		$	695,932			$	–
Issuance of convertible promissory note			–				695,932
Extinguishment of convertible promissory note			(695,932	)			–
Balance at end of the period		$	–			$	695,932
Contributed surplus
Balance at beginning of the period		$	4,322,759			$	545,035
Stock-based compensation			482,973				2,610,538
Options issued pursuant to acquisition of Great China Mining Inc ("GCMI")			–				166,662
Estimated fair value of shares and warrants to be issued pursuant to the
Permits Consulting Agreement			1,430,000				1,875,000
Share purchase options exercised, credited to share capital			(16,994	)			(874,476	)
Extinguishment of convertible promissory note			695,932				–
Balance at end of the period		$	6,914,670			$	4,322,759
Deficit
Balance at beginning of year, as previously reported		$	(41,717,265	)		$	(15,001,192	)
Adjustment for adoption of new accounting standards (note 3(a))			(565,634	)			–
As restated			(42,282,899	)			(15,001,192	)
Loss for the period			(4,638,812	)			(26,716,073	)
Balance at end of the period		$	(46,921,711	)		$	(41,717,265	)
TOTAL SHAREHOLDERS' EQUITY		$	116,445,884			$	70,723,054

See accompanying notes to the consolidated financial statements

CONTINENTAL MINERALS CORPORATION

Consolidated Statements of Cash Flows

(Unaudited – Expressed in Canadian Dollars)

		Three months ended March 31
Cash provided by (used for)		2007			2006
Operating activities
Loss for the period	$	(4,638,812	)	$	(2,316,453	)
Items not involving cash
Accretion of convertible promissory note		98,634			–
Amortization		76,406			20,577
Interest paid by issuance of common shares		156,275			–
Non-controlling interest		–			(944,880	)
Stock-based compensation		482,973			261,141
Foreign exchange		(46,400	)		–
Loss on extinguishment of convertible promissory note		376,366			–
Changes in non-cash operating working capital
Amounts receivable		38,511			(189,776	)
Prepaid expenses		40,160			501
Accounts payable and accrued liabilities		(2,380,231	)		89,694
Cash used for operating activities		(5,796,118	)		(3,079,196	)
Investing activities
Acquisition of fixed assets		(20,930	)		(217,116	)
Cash used for investing activities		(20,930	)		(217,116	)
Financing activities
Issuance of common shares, net of issue costs		48,858,028			162,300
Repayment of convertible promissory note		(12,075,000	)		–
Repayment of loan from related party		(1,500,000	)		–
Due to related parties		370,274			259,048
Cash provided by financing activities		35,653,302			421,348
Increase (decrease) in cash and cash equivalents		29,836,254			(2,874,964	)
Cash and cash equivalents, beginning of period		1,791,802			4,009,244
Cash and cash equivalents, end of period	$	31,628,056		$	1,134,280
Components of cash and cash equivalents are as follows:
Cash	$	2,902,428		$	914,912
Bankers acceptances and term deposits		28,725,628			219,368
	$	31,628,056		$	1,134,280
Supplementary information
Taxes paid	$	–		$	–
Interest paid	$	155,947		$	–
Non-cash financing and investing activities
Fair value of stock options transferred from contributed surplus to
share capital upon exercise of options	$	16,994		$	104,281

See accompanying notes to the consolidated financial statements

CONTINENTAL MINERALS CORPORATION

Consolidated Schedules of Exploration Expenses

(Unaudited – Expressed in Canadian Dollars)

		Three months ended March 31
Xietongmen Property, China		2007		2006
Exploration Costs
Amortization	$	76,406	$	20,577
Assays and analysis		67,658		342,016
Drilling		–		719,044
Engineering		1,018,287		89,743
Environmental		21,140		–
Equipment rentals and leases		52,818		86,772
Freight		10,022		–
Geological		124,313		351,522
Graphics		10,610		18,180
Property and finders' fees		143,346		–
Site activities		335,338		272,136
Socioeconomic		462,561		167,978
Transportation		100,158		128,585
Incurred during the period		2,422,657		2,196,553
Non-cash stock-based compensation		17,840		32,615
		2,440,497		2,229,168
Cumulative balance, beginning of period		29,603,097		9,716,576
Cumulative balance, end of period	$	32,043,594	$	11,945,744

CONTINENTAL MINERALS CORPORATION

Notes to Consolidated Financial Statements

For the three months ended March 31, 2007

(Unaudited – Expressed in Canadian Dollars)

1.	NATURE OF OPERATIONS
	These interim consolidated financial statements are prepared in accordance with Canadian generally accepted accounting principles and are presented in Canadian dollars. They do not include all the disclosures as required for annual financial statements under generally accepted accounting principles. However, these interim consolidated financial statements follow the same accounting policies and methods of application as the Company's most recent annual financial statements. These interim consolidated financial statements should be read in conjunction with the Company's annual consolidated financial statements for the year ended December 31, 2006.
	Operating results for the three month period ended March 31, 2007 are not necessarily indicative of the results that may be expected for the full year ending December 31, 2007 or for any other period.
	These consolidated financial statements are prepared on the basis that the Company will continue as a going concern. Management recognizes that the Company will need to generate additional financial resources in order to meet its planned business objectives. However, there can be no assurances that the Company will continue to obtain additional financial resources and/or achieve profitability or positive cash flows. If the Company is unable to obtain adequate additional financing, the Company will be required to curtail operations and exploration activities. Furthermore, failure to continue as a going concern would require that the Company's assets and liabilities be restated on a liquidation basis which would differ significantly from the going concern basis.
2.	BASIS OF PRESENTATION AND PRINCIPLES OF CONSOLIDATION
	These consolidated financial statements have been prepared in accordance with Canadian generally accepted accounting principles. The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries.
	All material inter-company balances and transactions have been eliminated.

3. CHANGES IN ACCOUNTING POLICIES

Effective January 1, 2007, the Company adopted the following new accounting standards issued by the Canadian Institute of Chartered Accountants ("CICA") relating to financial instruments. These new standards have been adopted on a prospective basis with no restatement to prior period financial statements.

(a) Section 3855 – Financial Instruments – Recognition and Measurement

This standard sets out criteria for the recognition and measurement of financial instruments for fiscal years beginning on or after October 1, 2006. This standard requires all financial instruments within its scope, including derivatives, to be included on a Company's balance sheet and measured either at fair value or, in certain circumstances when fair value may not be considered most relevant, at cost or amortized cost. Changes

CONTINENTAL MINERALS CORPORATION

Notes to Consolidated Financial Statements

For the three months ended March 31, 2007

(Unaudited – Expressed in Canadian Dollars)

	in fair value are to be recognized in the statements of operations and comprehensive income (loss).
	All financial assets and liabilities are recognized when the entity becomes a party to the contract creating the asset or liability. As such, any of the Company's outstanding financial assets and liabilities at the effective date of adoption are recognized and measured in accordance with the new requirements as if these requirements had always been in effect. Any changes to the fair values of assets and liabilities prior to January 1, 2007 are recognized by adjusting opening deficit or opening accumulated other comprehensive income (loss).
	All financial instruments are classified into one of the following five categories: held for trading, held-to-maturity, loans and receivables, available-for-sale financial assets, or other financial liabilities. Initial and subsequent measurement and recognition of changes in the value of financial instruments depends on their initial classification:
	•	Held-to-maturity investments, loans and receivables, and other financial liabilities are initially measured at fair value and subsequently measured at amortized cost.
	•	Available-for-sale financial assets are measured at fair value. Revaluation gains and losses are included in other comprehensive income (loss) until the asset is removed from the balance sheet.
	•	Held for trading financial instruments are measured at fair value. All gains and losses are included in net earnings (loss) in the period in which they arise.
	•	All derivative financial instruments are measured at fair value, even when they are part of a hedging relationship. All gains and losses are included in net earnings (loss) in the period in which they arise.
	At January 1, 2007, upon adoption of this standard, the Company remeasured its financial assets and liabilities. The convertible promissory note (note 6) was classified as held for trading and its carrying value was adjusted to $11,600,000 with a charge to opening deficit of $565,634.
(b)	Section 3865 – Hedges
	This new standard specifies the circumstances under which hedge accounting is permissible and how hedge accounting may be performed. The Company currently does not have any hedges.

CONTINENTAL MINERALS CORPORATION

Notes to Consolidated Financial Statements

For the three months ended March 31, 2007

(Unaudited – Expressed in Canadian Dollars)

(c)	Section 1530 – Comprehensive Income (Loss)
	Comprehensive income (loss) is the change in the Company's net assets that results from transactions, events, and circumstances from other than the Company's shareholders. This standard requires certain gains and losses that would otherwise be recorded as part of net earnings to be presented in other "comprehensive income (loss)" until it is considered appropriate to recognize into net earnings (loss). This standard requires the presentation of comprehensive income (loss), and its components in a separate financial statement that is displayed with the same prominence as the other financial statements.
	Accordingly, the Company now reports comprehensive income (loss) and includes, if applicable, the account "accumulated other comprehensive income (loss)" in the shareholders' equity section of the consolidated balance sheet.

4. EQUIPMENT

		March 31, 2007						December 31, 2006
				Accumulated		Net book				Accumulated		Net book
		Cost		amortization		value		Cost		amortization		value
Buildings	$	47,848	$	14,119	$	33,729	$	47,848	$	10,769	$	37,079
Computers		83,981		30,627		53,354		78,840		20,399		58,441
Field		135,634		52,411		83,223		126,182		36,638		89,544
Furniture		23,937		8,513		15,424		17,600		5,996		11,604
Vehicles		396,044		113,923		282,121		396,044		69,385		326,659
	$	687,444	$	219,593	$	467,851	$	666,514	$	143,187	$	523,327

5. MINERAL PROPERTY INTEREST

Xietongmen Property		March 31		December 31
		2007		2006
Balance, beginning of the year	$	112,747,309	$	1,903,525
Acquired during the period:
Acquisition of Great China Mining Inc.		–		75,212,559
Future income tax related to acquisition of Great China Mining		–		25,070,000
Acquisition of surrounding properties		–		8,546,225
Future income tax related to acquisition of surrounding		–		1,595,000
properties
Mining permit costs		1,430,000		315,000
Future income tax related to mining permit costs		475,000		105,000
Balance, end of the period	$	114,652,309	$	112,747,309

CONTINENTAL MINERALS CORPORATION

Notes to Consolidated Financial Statements

For the three months ended March 31, 2007

(Unaudited – Expressed in Canadian Dollars)

6. CONVERTIBLE PROMISSORY NOTE

In February 2007, Taseko Mines Limited ("Taseko"), a public company related by virtue of having certain directors in common with the Company, redeemed the convertible promissory note with a face value of $11,500,000 for $12,075,000, and concurrently exercised its participation right to participate in the private placement in the Company for $12,075,000 and acquired 7,318,181 units at a price of $1.65 per unit. Each unit was comprised of one common share and one share purchase warrant exercisable into one common share at $1.80 until February 20, 2008.

The continuity of the convertible promissory note is as follows:

Convertible promissory note at December 31, 2006	$	11,034,366
Adjustment to estimated fair value upon adoption of new accounting standard		565,634
As restated, January 1, 2007		11,600,000
Accretion for the period		98,634
Convertible promissory note at redemption date, February 2007		11,698,634
Redemption of convertible promissory note		(12,075,000	)
Loss on extinguishment of convertible promissory note	$	(376,366	)

7. SHAREHOLDERS' EQUITY

(a)	Authorized share capital
		an unlimited number of common shares without par value; and
		an unlimited number of non-voting, redeemable preferred shares without par value.
(b)	Issued and outstanding common share capital

	Number of
	common		Dollar
	shares		amount
Balance, December 31, 2006	91,239,417	$	107,421,628
Private placement, February 2007, net of issue costs (i)	19,439,395		30,829,329
Private placement, March 2007 (ii)	10,000,000		18,000,000
Share purchase options exercised	20,000		28,700
Shares issued for interest on convertible promissory note (note 8(d))	89,229		156,274
Fair value of stock options allocated to shares issued on exercise	–		16,994
Balance, March 31, 2007	120,788,041	$	156,452,925

CONTINENTAL MINERALS CORPORATION

Notes to Consolidated Financial Statements

For the three months ended March 31, 2007

(Unaudited – Expressed in Canadian Dollars)

(i)	In February 2007, the Company completed a private placement of 19,439,395 units at a price of $1.65 per unit for gross proceeds of $32,075,000 ($30,829,329 net of issue costs). Each unit consisted of one common share and one common share purchase warrant exercisable to purchase an additional common share at a price of $1.80 until February 20, 2008. The units are subject to a four-month hold period under applicable Canadian securities legislation. The warrants are subject to accelerated expiration which can be triggered at the election of the Company, on 30 days notice, if the Company's common shares trade at a price of $2.25 for any ten consecutive day period, after the four month holding period has expired.
	In connection with the financing, Taseko redeemed its convertible promissory note (note 6) for $12,075,000 and participated in this private placement by acquiring 7,318,181 units for $12,075,000.
(ii)	On March 29, 2007, the Company completed a private placement of 10,000,000 units at a price of $1.80 per unit for gross proceeds of $18,000,000. Each unit consisted of one common share and one common share purchase warrant. Each warrant is exercisable for 0.8 of a common share until December 29, 2007 at the following prices: at $2.25 per share until September 29, 2007, and $2.75 per share thereafter. The units are subject to a four-month hold period under applicable Canadian securities legislation.

(c)	Warrants
	The continuity of share purchase warrants is as follows:

		Dec. 29		Feb. 20		Dec. 15		Feb. 14
Expiry date		2007		2008		2008		2009
Exercise price	$	2.25/$2.75	$	1.80	$	1.59	$	1.59
Note reference		note 7(b)(ii)		note 7(b)(i)
Balance, December 31, 2006		–		–		1,000,000		500,000
Issued		8,000,000		19,439,395		–		–
Exercised		–		–		–		–
Expired		–		–		–		–
Balance, March 31, 2007		8,000,000		19,439,395		1,000,000		500,000

CONTINENTAL MINERALS CORPORATION

Notes to Consolidated Financial Statements

For the three months ended March 31, 2007

(Unaudited – Expressed in Canadian Dollars)

(d)	Share purchase option plan
	The continuity schedule of share purchase options is as follows:

		Weighted
Share purchase options outstanding	Number of	average
	options	exercise price
Balance, December 31, 2006	5,189,107	$ 1.66
Granted	1,911,000	2.01
Exercised	(20,000)	1.43
Expired or cancelled	(9,666)	1.73
Balance, March 31, 2007	7,070,441	$ 1.76

Share purchase options outstanding and exercisable at March 31, 2007 were as follows:

				Number of		Number of
				options		options
Expiry date		Option price		outstanding		exercisable
September 28, 2007	$	1.70		893,334		893,334
November 30, 2007	$	1.20		240,000		240,000
December 14, 2007	$	1.50		15,000		10,000
February 29, 2008	$	1.61		20,000		13,333
December 15, 2008	$	2.10		40,000		–
December 21, 2008	$	1.21		136,607		136,607
February 27, 2009	$	1.61		50,000		33,332
April 30, 2009	$	2.01		1,325,500		246,500
November 30, 2009	$	1.61		250,000		166,666
February 28, 2011	$	1.61		2,700,000		666,666
February 28, 2012	$	2.01		1,400,000		–
Total				7,070,441		2,406,438
Average option price			$	1.76	$	1.61

CONTINENTAL MINERALS CORPORATION

Notes to Consolidated Financial Statements

For the three months ended March 31, 2007

(Unaudited – Expressed in Canadian Dollars)

The exercise prices of all share purchase options granted were at or above the market price at the grant date. Using an option pricing model with the assumptions noted below, the estimated fair value of all options granted or vesting during the three months ended March 31, 2007, and which have been reflected in the consolidated statements of operations, is as follows:

		Three months ended March 31
		2007		2006
Exploration
Engineering	$	7,570	$	1,181
Environmental, socioeconomic and land		–		431
Geological		10,270		31,003
Exploration		17,840		32,615
Operations and administration		465,133		228,526
Total compensation cost recognized in operations, credited to
contributed surplus	$	482,973	$	261,141

The weighted-average assumptions used to estimate the fair value of options vesting during the respective periods were as follows:

	Three months ended March 31
	2007	2006
Risk free interest rate	4.15%	4%
Expected life	3 years	2.4 years
Expected volatility	63%	70%
Expected dividends	nil	nil

Subsequent to March 31, 2007, a total of 5,000 options were cancelled.

(e) Contributed surplus

Balance, December 31, 2006	$	4,322,759
Changes during the period
Non-cash stock-based compensation		482,973
Mining permit cost		1,430,000
Conversion right, credited to contributed surplus upon		695,932
extinguishment of the convertible promissory note
Share purchase options exercised, credited to share capital		(16,994	)
Balance, March 31, 2007	$	6,914,670

CONTINENTAL MINERALS CORPORATION

Notes to Consolidated Financial Statements

For the three months ended March 31, 2007

(Unaudited – Expressed in Canadian Dollars)

8. RELATED PARTY BALANCES AND TRANSACTIONS

Due from (to) related party		March 31		December 31
		2007		2006
Loan from Hunter Dickinson Inc (‘HDI"). (a)	$	–	$	(1,500,000	)
Hunter Dickinson Inc.	$	272,781	$	643,055

Transactions		Three months ended March 31
		2007		2006
Hunter Dickinson Inc. –
Reimbursement for third party expenses and services rendered	$	554,005	$	759,613
Interest paid (a) and (b)	$	44,605	$	–
Taseko Mines Limited – Interest paid (d)	$	254,155	$	–
Payments to companies controlled by Zhi Wang, a director (c)	$	339,976	$	52,967
Payments to Xiaojun Ma, a director (e)	$	8,607	$

(a)	In November 2006, the Company signed a loan agreement with HDI pursuant to which the Company borrowed $1,500,000 from HDI. On March 2, 2007, the Company repaid this loan and paid $30,575 in interest, of which $20,054 was recorded for the period three months ended March 31, 2007.
(b)	On January 23, 2007, the Company signed a second loan agreement with HDI pursuant to which the Company borrowed US$2,500,000 from HDI, maturing on April 18, 2007, on an unsecured basis. The loan bore interest at 8% per annum. The Company repaid the loan on March 2, 2007 and paid $24,551 in interest.
(c)	During the three months ended March 31, 2007, the Company paid $53,680 (three months ended March 31, 2006 – nil) to Honglu Investment Holdings Inc. and $286,291 (three months ended March 31, 2006 – $52,967) to Tibet Bojing Minerals Exploration Limited, each of which are companies controlled by Zhi Wang, a director of the Company, for administrative and consulting services.
(d)	In February 2007, the Company redeemed the $11,500,000 convertible promissory note held by Taseko at 105% of the principal amount (note 6). Taseko and the Company are related by virtue of having certain directors in common. During the three months ended March 31, 2007, the Company paid interest related to this convertible promissory note to Taseko of $254,155, of which $156,274 was paid to Taseko by the issuance of 89,229 common shares of the Company.
(e)	Xiaojun Ma is a director of the Company who also provides managerial services to the Company's Tibetan subsidiary. During the three months ended March 31, 2007, he was paid $8,607 for such services.