CONSOLIDATED FINANCIAL STATEMENTS

THREE AND NINE MONTHS ENDED
SEPTEMBER 30, 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)

		September 30			December 31
		2007			2006
		(unaudited)
Assets
Current assets
Cash and cash equivalents	$	20,222,241		$	1,791,802
Amounts receivable		306,369			227,598
Amounts due from related parties (note 8)		–			643,055
Prepaid expenses		156,260			168,078
		20,684,870			2,830,533
Mineral property interest (note 5)		117,432,309			112,747,309
Equipment (note 4)		577,627			523,327
Investments		1			1
	$	138,694,807		$	116,101,170
Liabilities and Shareholders' Equity
Current liabilities
Accounts payable and accrued liabilities	$	1,451,997		$	3,581,150
Due from related party (note 8)		28,196			-
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
		2,057,493			16,694,166
Long-term payable		1,731,900			1,735,950
Future income tax liabilities		25,226,970			26,948,000
		26,958,870			28,683,950
Shareholders' equity
Share capital (note 7)		156,510,025			107,421,628
Convertible promissory note - conversion right		–			695,932
Contributed surplus (note 7)		10,626,426			4,322,759
Deficit		(57,458,007	)		(41,717,265	)
		109,678,444			70,723,054
Continuing operations (note 1)
Subsequent event (note 7(c))
	$	138,694,807		$	116,101,170

See accompanying notes to the consolidated financial statements

Approved by the Board of Directors

/s/ Gerald S. Panneton	/s/ Jeffrey Mason
Gerald S. Panneton	Jeffrey Mason
Director	Director

CONTINENTAL MINERALS CORPORATION

Consolidated Statements of Operations

(Unaudited – Expressed in Canadian Dollars)

		Three months ended September 30						Nine months ended September 30
		2007			2006			2007			2006
Expenses
Conference and travel	$	451,122		$	302,923		$	1,031,026		$	649,411
Exploration (schedule)		4,282,568			6,984,840			10,542,138			14,427,720
Foreign exchange		(209,091	)		(49,866	)		(1,890,281	)		(23,044	)
Insurance expense		37,440			–			127,512			–
Interest expense		4			211,328			362,953			211,328
Interest income		(257,628	)		(13,894	)		(667,790	)		(38,625	)
Legal, accounting and audit		156,286			228,194			420,329			611,464
Loss on extinguishment of convertible promissory note (note 6)		–			–			376,366			–
Office and administration		1,018,418			885,103			2,421,812			1,769,719
Shareholder communications		87,833			78,683			224,653			284,912
Stock-based compensation – exploration (note 7(d))		25,505			115,156			140,362			309,970
Stock-based compensation – administration (note 7(d))		683,855			635,803			1,991,466			1,236,225
Trust and filing		35,437			19,000			94,562			50,698
Loss before non-controlling interest		6,311,749			9,397,270			15,175,108			19,489,778
Non-controlling interest		–			–			–			(944,880	)
Loss and comprehensive loss for the period	$	6,311,749		$	9,397,270		$	15,175,108		$	18,544,898
Basic and diluted loss per common share	$	(0.05	)	$	(0.18	)	$	(0.13	)	$	(0.37	)
Weighted average number of common shares outstanding		120,801,954			53,028,123			114,312,459			50,505,805

See accompanying notes to the consolidated financial statements

Consolidated Statements of Operations

(Unaudited – Expressed in Canadian Dollars)

		Nine months ended September 30
		2007			2006
Balance at beginning of period, 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		(15,175,108	)		(18,544,898	)
Balance at end of the period	$	(57,458,007	)	$	(33,546,090	)

See accompanying notes to the consolidated financial statements

CONTINENTAL MINERALS CORPORATION

Consolidated Statements of Cash Flows

(Unaudited – Expressed in Canadian Dollars)

		Three months ended September 30						Nine months ended September 30
Cash provided by (used for)		2007			2006			2007			2006
Operating activities
Loss for the period	$	(6,311,749	)	$	(9,397,270	)	$	(15,175,108	)	$	(18,544,898	)
Items not involving cash
Accretion of convertible promissory note		–			60,095			98,634			60,095
Amortization		19,178			40,361			188,419			88,422
Foreign exchange		(683,580	)		–			(2,896,429	)		–
Interest paid by issuance of common shares		–			–			156,274			–
Loss on extinguishment of convertible promissory note		–			–			376,366			–
Non-controlling interest		–			–			–			(944,880	)
Stock-based compensation		709,361			750,959			2,131,828			1,546,195
Changes in non-cash operating working capital
Accounts payable and accrued liabilities		225,852			1,102,075			(2,129,153	)		1,454,729
Amounts receivable		21,680			(150,306	)		(78,771	)		(431,358	)
Prepaid expenses		(67,959	)		(262,572	)		11,818			(724,192	)
Cash used for operating activities		(6,087,217	)		(7,856,658	)		(17,316,122	)		(17,495,887	)
Investing activities
Acquisition of fixed assets		(29,942	)		(90,751	)		(242,719	)		(503,768	)
Cash used for investing activities		(29,942	)		(90,751	)		(242,719	)		(503,768	)
Financing activities
Issuance of common shares, net of issue costs		18,000			728,299			48,893,029			5,660,459
Repayment of convertible promissory note		–			11,500,000			(12,075,000	)		11,500,000
Repayment of loan from related party		28,196			–			(1,471,804	)		–
Due to (from) related parties		307,779			(2,066,159	)		643,055			(209,360	)
Cash provided by financing activities		353,975			10,162,140			35,989,280			16,951,099
Increase (decrease) in cash and cash equivalents		(5,763,184	)		2,214,731			18,430,439			(1,048,556	)
Cash and cash equivalents, beginning of period		25,985,425			745,957			1,791,802			4,009,244
Cash and cash equivalents, end of period	$	20,222,241		$	2,960,688		$	20,222,241		$	2,960,688
Components of cash and cash equivalents are as follows:
Cash	$	1,462,375		$	813,865		$	1,462,375		$	813,865
Bankers acceptances and term deposits		18,759,866			2,146,823			18,759,866			2,146,823
	$	20,222,241		$	2,960,688		$	20,222,241		$	2,960,688
Supplementary information
Taxes paid	$	–		$	–		$	–		$	–
Interest paid	$	3,938		$	151,233		$	159,885		$	151,233
Non-cash financing and investing activities
Fair value of stock options transferred from contributed
surplus to share capital upon exercise of options	$	6,500		$	5,383		$	23,494		$	155,888
Interest paid by issuance of common shares	$	–		$	–		$	156,274		$	–

See accompanying notes to the consolidated financial statements

CONTINENTAL MINERALS CORPORATION

Consolidated Schedules of Exploration Expenses

(Unaudited – Expressed in Canadian Dollars)

		Three months ended September 30				Nine months ended September 30
Xietongmen Property, China		2007		2006		2007		2006
Exploration Costs
Amortization	$	19,178	$	40,361	$	188,419	$	88,422
Assays and analysis		194,967		510,325		456,902		1,410,707
Drilling		1,350,233		2,158,798		1,866,177		4,729,447
Engineering		1,254,639		2,509,439		3,739,741		3,553,125
Environmental		274,167		252,449		721,661		423,982
Equipment rentals and leases		103,691		137,955		254,453		386,385
Freight		9,771		–		32,938		16,156
Geological		282,261		355,716		619,126		1,310,575
Graphics		7,365		21,018		26,655		71,906
Property and finders' fees		33,326		14,159		166,164		36,160
Site activities		108,490		484,226		908,260		1,244,008
Socioeconomic		566,403		303,438		1,284,211		617,791
Transportation		78,077		196,956		277,431		539,056
Incurred during the period		4,282,568		6,984,840		10,542,138		14,427,720
Non-cash stock-based compensation		25,505		115,156		140,362		309,970
		4,308,073		7,099,996		10,682,500		14,737,690
Cumulative balance, beginning of period		35,977,524		17,354,270		29,603,097		9,716,576
Cumulative balance, end of period	$	40,285,597	$	24,454,266	$	40,285,597	$	24,454,266

CONTINENTAL MINERALS CORPORATION

Notes to Consolidated Financial Statements

For the three and nine months ended September 30, 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 and nine month periods ended September 30, 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 assurance 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 and nine months ended September 30, 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 and nine months ended September 30, 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

		September 30, 2007						December 31, 2006
				Accumulated		Net book				Accumulated		Net book
		Cost		amortization		value		Cost		amortization		value
Buildings	$	47,847	$	24,326	$	23,521	$	47,848	$	10,769	$	37,079
Computers		120,500		57,550		62,950		78,840		20,399		58,441
Field		184,794		95,026		89,768		126,182		36,638		89,544
Furniture		25,184		15,221		9,963		17,600		5,996		11,604
Vehicles		530,562		139,137		391,425		396,044		69,385		326,659
	$	908,887	$	331,260	$	577,627	$	666,514	$	143,187	$	523,327

5. MINERAL PROPERTY INTEREST

Xietongmen Property		September 30, 2007		December 31, 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		3,515,000		315,000
Future income tax related to mining permit costs		1,170,000		105,000
Balance, end of the period	$	117,432,309	$	112,747,309

CONTINENTAL MINERALS CORPORATION

Notes to Consolidated Financial Statements

For the three and nine months ended September 30, 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		Dollar
	common 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	45,000		63,700
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	–		39,094
Balance, September 30, 2007	120,813,041	$	156,510,025

(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 warrants are subject to accelerated expiration which can be

CONTINENTAL MINERALS CORPORATION

Notes to Consolidated Financial Statements

For the three and nine months ended September 30, 2007

(Unaudited – Expressed in Canadian Dollars)

	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.
	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 at $2.25 per share until September 29, 2007, and at $2.75 per share thereafter until December 29, 2007 (see note 7(c)).

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

		Dec. 29		Feb. 20		Dec. 15		Feb. 14
Expiry date		2007		2008		2008		2009
Exercise price	$	2.75/2.25	$	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		–		–
Balance, September 30, 2007		8,000,000		19,439,395		1,000,000		500,000

Subsequent to September 30, 2007, the Company amended the exercise price of the 8,000,000 common share purchase warrants issued in February 2007 expiring December 31, 2007. The exercise price was amended to $2.25. These warrants were exercised in their entirety on November 29, 2007, for net proceeds to the Company of $18,000,000.

CONTINENTAL MINERALS CORPORATION

Notes to Consolidated Financial Statements

For the three and nine months ended September 30, 2007

(Unaudited – Expressed in Canadian Dollars)

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

Share purchase options outstanding	Number of			Weighted average
	options			exercise price
Balance, December 31, 2006	5,189,107		$	1.66
Granted	2,612,000			1.92
Exercised	(45,000	)		1.41
Expired or cancelled	(951,832	)		1.72
Balance, September 30, 2007	6,804,275		$	1.75

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 and nine months ended September 30, 2007, and which have been reflected in the consolidated statements of operations, is as follows:

Transactions		Three months ended September 30				Nine months ended September 30
		2007		2006		2007		2006
Exploration
Engineering	$	20,900	$	12,876	$	20,900	$	17,928
Environmental, socioeconomic and land		–		–		–		1,407
Geological		4,605		102,280		119,462		290,635
Exploration		25,505		115,156		140,362		309,970
Operations and administration		683,856		635,803		1,991,466		1,236,225
Total compensation cost recognized in	$	709,361	$	750,959	$	2,131,828	$	1,546,195
operations, credited to contributed surplus

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

	Three months ended		Nine months ended
	September 30		September 30
	2007	2006	2007	2006
Risk free interest rate	3.76%	4.00%	3.76%	4.00%
Expected life	3.1 years	2.7 years	3.1 years	2.7 years
Expected volatility	88%	69%	88%	69%
Expected dividends	nil	nil	nil	nil

Subsequent to September 30, 2007, a total of 6,668 options were cancelled.

CONTINENTAL MINERALS CORPORATION

Notes to Consolidated Financial Statements

For the three and nine months ended September 30, 2007

(Unaudited – Expressed in Canadian Dollars)

(e) Contributed surplus

Balance, December 31, 2006	$	4,322,759
Changes during the period
Non-cash stock-based compensation		2,131,828
Mining permit cost		3,515,000
Conversion right, credited to contributed surplus upon extinguishment of the		695,933
convertible promissory note
Share purchase options exercised, credited to share capital		(39,094	)
Balance, September 30, 2007	$	10,626,426

8. RELATED PARTY BALANCES AND TRANSACTIONS

Due from (to) related party		September 30			December 31
		2007			2006
Loan from Hunter Dickinson Inc. (‘HDI") (a)	$	–		$	(1,500,000	)
Hunter Dickinson Inc.	$	(28,196	)	$	643,055

Transactions		Three months ended September 30				Nine months ended September 30
		2007		2006		2007		2006
Hunter Dickinson Inc. –
Reimbursement for third party expenses
and services rendered	$	656,221	$	749,313	$	1,948,972	$	2,560,452
Interest paid (a) and (b)	$	–	$	–	$	55,126	$	–
Taseko Mines Limited – Interest paid (d)	$	–	$	–	$	254,155	$	–
Payments to companies controlled by
Zhi Wang, a director (c)	$	204,923	$	–	$	666,836	$	52,967
Payments to Xiaojun Ma, a director (e)	$	6,435	$	–	$	15,042	$	–

(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 September 30, 2007, the Company paid $79,092 (three months ended September 30, 2006 – $35,789) to Honglu Investment Holdings Inc. and $125,831 (three months ended September 30, 2006 – $nil) 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.

CONTINENTAL MINERALS CORPORATION

Notes to Consolidated Financial Statements

For the three and nine months ended September 30, 2007

(Unaudited – Expressed in Canadian Dollars)

(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 September 30, 2007, he was paid RMB 45,000 ($6,435) (three months ended September 30, 2006 – $6,435) for such services.