This Management's Discussion and Analysis ("MD&A") of the financial results of Revett Minerals Inc. ("Revett Minerals" or the "Company") for the three and six month periods ended June 30, 2012 should be read in conjunction with the unaudited interim financial statements and notes for the three and six months ended June 30, 2012 which form part of this report. In addition, this MD&A and related financial statements should be read in conjunction with the 2011 audited consolidated financial statements, the related Management's Discussion and Analysis, and the Form 10-K filed in Canada on SEDAR or on file in the United States with the Securities and Exchange Commission ("SEC") or on EDGAR. These financial statements are expressed in United States dollars, unless otherwise stated, and they are prepared in accordance with United States generally accepted accounting principles ("GAAP").

These unaudited interim consolidated financial statements have been prepared by management in accordance with generally accepted accounting principles used in the United States of America (U.S. GAAP) and are presented in U.S. dollars.

Some of the statements in this MD&A are forward looking statements that are subject to risk factors set out in the cautionary note contained in this MD&A.

Overview and Important Factors Influencing Results for the Six Months Ended June 30, 2012

As at August 10, 2012, the Company's principal assets consisted of a 100% interest in the Troy copper and silver mine ("Troy") in northwest Montana, USA and also a 100% interest in the undeveloped Rock Creek copper and silver development project ("Rock Creek") also located in northwest Montana.

Overall Performance

As at June 30, 2012 the Company increased cash and short-term investments on hand by 104% to $30.0 million compared to $14.7 million at June 30, 2011. For the six month period ended June 30, 2012, the Company reported net income after taxes of $1.5 million or $0.04 net income per share compared to a net income after taxes of $5.1 million or $0.11 per share for the six months ended June 30, 2011.

Results of Operations for the Six Months Ended June 30, 2012 compared to the same period in 2011.

The major highlights for the six months ended June 30, 2012, included:

• The Company continues to improve its Balance Sheet. Cash and short-term investments on hand as at June 30, 2012 was $30.0 million ;

• Adjusted EBITDA* for the first six months of 2012 was $5.6 million as compared to $9.9 million for the first six months of 2011; (* Adjusted EBITDA is a non-GAAP measure in which standard EBITDA (earnings before interest, taxes, depreciation and amortization is adjusted for stock based compensation, foreign exchange gains and losses, and non-recurring items));

• Mill throughput for the first six months 2012 was 649,009 tons processed, averaging 3,626 tpd for the period as compared to 644,508 tons (3,621 tpd) in first six months of 2011; .
• Silver production in the first six months of 2012 was 602,762 ounces averaging throughput grades of 1.07 oz/ton for the period. A production improvement of 3% over the first six months of 2011;

• Copper production for the first six months of 2012 was 4,185,318 pounds averaging throughput grades of 0.38% for the period. A 17% decrease over the first six months of 2011;

• There were two lost time incidents reported during the second quarter. Our MSHA calculated Incidence Rate for the first six months of 2012 is 3.04 as compared to a national underground average for the first half of 2012 (latest available statistic) of 2.12. As at the end of June, 2012, it has been 65 days, and 59,980 man hours worked since our last lost time accident.

Operating Results:

The table below illustrates certain key operating statistics for Troy for the
three months ended June 30, 2012, with a comparison to the same three month
period in 2011.

                      Three Months Ended June 30, Three Months Ended June 30,
                                 2012                        2011
Tons milled                     317,487                     352,818
Tons milled per day              3,567                       3,964
Copper grade (%)                 0.37                        0.52
Silver grade (opt)               1.02                        1.14
Copper recovery (%)              83.13                       82.36
Silver recovery (%)              86.26                       85.04
Copper produced (lbs)          1,936,207                   3,028,252
Silver produced (ozs)           278,387                     342,822

Mill through-put for the second quarter of 2012 decreased by 10% as compared to the second quarter of 2011 due to an extended run-off period from spring rains and snow melt resulting in lower production from the C Bed orebody. Silver production was 19% lower and copper production was 36% lower in the second quarter of 2012 as compared to the second quarter of 2011 due to lower tons mined and lower grades. Mill recoveries were higher for both silver and copper in the second quarter of 2012 as compared to the second quarter of 2011. This is a result of modifications to optimize the grind size and a reduction in the non-sulfide content of the ore processed.

a) Revenue: For the second quarter of 2012 compared to the second quarter of 2011, revenue decreased from $18.8 million to $13.5 million primarily due to lower copper pounds sold and lower copper and silver prices realized. During the quarter ended June 30, 2012, the LME price of copper and silver averaged $3.57 per pound and $29.42 per ounce, respectively, compared to average prices of $4.15 per pound and $38.17 per ounce in the second quarter of 2011. Metal sales during the second quarter of 2012 were 1.8 million pounds of copper and 260,458 ounces of silver compared to 2.9 million pounds of copper and 315,396 ounces of silver sold in the second quarter of 2011.

b) Cost of Sales: The cost of sales associated with the second quarter 2012 revenue was $10.4 million, an increase of 7% when compared to the second quarter of 2011. This increase is a result of higher concentrate inventory change, higher labor costs due to a 4% increase in wages, higher freight, treatment and refining costs along with higher Bio-diesel fuel costs.

c) Depreciation and depletion: For the second quarter of 2012, these non-cash charges are slightly lower than the second quarter of 2011. The majority of the plant and equipment at Troy is depreciated using the units-of-production method and the effect of lower mill throughput resulted in lower depreciation expense.

d) Exploration and development: This expense includes $0.5 million for exploration spending around the Troy Mine and $0.7 million spending for Rock Creek for the second quarter of 2012. The spending in 2012 is higher than 2011 ($0.2 million) due to increased emphasis on exploration around the Troy Mine and the costs related to completing the Supplemental Environmental Impact Statement for Rock Creek.

e) General and administration costs: The increase in the corporate administration costs during the second quarter of 2012 is a result of increased legal fees, outside consultant costs and continued emphasis on investor relations. Stock based compensation is higher in the second quarter 2012 due to the timing of the stock options awarded to the employees as the 2012 stock option award occurred on April 2, 2012 compared to March 30, 2011 in the prior year.

f) Net loss before taxes: Unfavorable metal sales and the non-cash stock option expense resulted in a decrease profits in the second quarter of 2012 compared to the same period 2011.

g) Net loss: The Company recorded a net loss of $2.2 million or $0.07 loss per share for the second quarter compared to a net income of $7.9 million or $0.23 per share in the second quarter of 2011. The primary difference was the decreased metal sales in 2012 along with expensing $2.0 million of non-cash stock option expense.

The table below illustrates certain key operating statistics for Troy for the six months ended June 30, 2012, with a comparison to the same six month period in 2011.

                      Six Months Ended June 30, Six Months Ended June 30,
                                2012                      2011
Tons milled                    649,009                   644,508
Tons milled per day             3,626                     3,621
Copper grade (%)                0.38                      0.48
Silver grade (opt)              1.07                      1.09
Copper recovery (%)             84.4                      80.2
Silver recovery (%)             86.76                     83.70
Copper produced (lbs)         4,185,318                 5,026,662
Silver produced (ozs)          602,762                   587,890

Financial Results:

a) Revenue: For the first six months of 2012 compared to the first six months of 2011, revenue increased from $31.5 million to $32.7 million primarily due to a 20% increase in silver ounces sold. During the six months ended June 30, 2012, the LME price of copper and silver averaged $3.67 per pound and $31.02 per ounce, respectively, compared to average prices of $4.26 per pound and $34.92 per ounce for the first six months of 2011. Metal sales during the first six months of 2012 were 4.1 million pounds of copper and 560,022 ounces of silver compared to 4.3 million pounds of copper and 469,153 ounces of silver sold in the first six months of 2011.

b) Cost of Sales: The cost of sales associated with the first six months 2012 revenue was $22.2 million, an increase of 20% when compared to the first six months of 2011. This increase is a result of higher ore throughput (1% higher), higher labor costs due to a 4% increase in wages, higher freight, treatment and refining costs along with higher Bio-diesel fuel costs.

c) Depreciation and depletion: For the first six of 2012, these non-cash charges are slightly higher than the first six months of 2011. The majority of the plant and equipment at Troy is depreciated using the units-of-production method and the effect of higher mill throughput resulted in slightly higher depreciation expense.

d) Exploration and development: This expense includes $1.0 million for exploration spending around the Troy Mine and $1.0 million spending for Rock Creek. The spending in 2012 is higher than 2011 ($0.5 million) due to increased emphasis on exploration around the Troy Mine and the costs related to completing the Supplemental Environmental Impact Statement for Rock Creek.

e) General and administration costs: The increase in the corporate administration costs during the first six months of 2012 is a result of increased legal fees, outside consultant costs and continued emphasis on investor relations.

f) Net income before taxes: Favorable metal sales resulted in a $1.1 million increase in revenues in the first six months of 2012 compared to the same period 2011 while costs were higher ($4.9 million) in 2012 resulting in a net decrease in income from operation by $3.8 million.

g) Net income: The Company recorded a net income of $1.5 million or $0.04 income per share for the first six months compared to a net income of $5.1 million or $0.11 per share in the first six months of 2011. The primary difference was lower metal prices and higher costs in 2012.

Summarized Financial Results by Quarter

                 2010     2010     2011     2011     2011     2011     2012     2012
                 Q3       Q4       Q1       Q2       Q3       4Q       1Q       2Q
Cu Production      2.3      2.1      2.0      3.0      3.3      2.4      2.2      1.9
(million lbs)
Ag Production      277      235      245      343      403      300      292      278
(000's ozs)
Total Sales       $12.4    $13.2    $12.8    $18.8    $16.7    $21.9    $19.2    $13.5
(millions)
Cash Flow from     $4.2     $4.7     $3.4     $7.4     $8.3     $9.1     $7.5     $3.4
Operations
before changes
in working
capital (1)
(millions)
Net Income         $0.7    ($1.3)   ($2.8)    $7.9     $2.9     $5.6     $3.7    $(2.2)
(loss)
(millions)
EPS- Basic        $0.02   ($0.03)  ($0.12)   $0.23    $0.08    $0.17    $0.11    $(0.7)
EPS- Fully        $0.02   ($0.03)  ($0.12)   $0.16    $0.07    $0.16    $0.10    $(0.7)
diluted
Cash and Cash      $6.6     $8.8    $10.2    $14.7    $19.9    $25.2    $28.7    $30.0
Equivalents &
Short term
Investments
(millions)
Total Assets      $79.4    $81.3    $83.4    $92.1    $96.7    $103.4   $109.9   $108.6
ending
(millions)
Total             $21.6    $20.3    $21.8    $18.4    $20.3    $21.1    $24.1    $22.4
liabilities
(millions)
Total Equity      $57.8    $60.3    $61.7    $73.7    $76.4    $82.3    $85.8    $86.2
(millions)

(1) This is a non-GAAP measurement. These amounts reflect the net cash flow from the Troy Mine before capital spending, equipment payments and changes in working capital.

Mine Safety Disclosures

Our operations at the Troy Mine are subject to health, safety and other standards imposed under the federal Mine Safety and Health Act of 1977 ("FMSHA") and regulations promulgated thereunder. FMSHA is administered by the Mine Safety and Health Administration ("MSHA").

There were no mining fatalities at the Troy Mine during the three months ended June 30, 2012, nor did MSHA issue written notice pursuant to Section 104(e) of FMSHA during the period alleging any pattern of violations of mandatory health or safety standards or the potential for such a pattern. MSHA did not deem the cited violations to be flagrant within the meaning of Section 110(b)(2) of FMSHA. There was no imminent danger orders were issued under Section 107(a) of FMSHA during the quarter.

We are a party to nine pending appeals before the Federal Mine Health Safety Review Commission challenging MSHA's assessment of proposed penalties against us, seven actions are contests of proposed penalties and two are pre-penalty Notices of Contest. The following table sets forth relevant information concerning the statutory basis for these violations:

Mine  Section   Section Section   Section    Section Total    Total      Received  Received  Legal   Legal     Legal
Name  104 S&S   104(b)  104(d)    110(b)(2)  107(a)  Dollar   Number of  Notice of Notice of Actions Actions   Actions
Mine  Citations Orders  Citations Violations Orders  Value of Mining     Pattern   Potential Pending Initiated Resolved
ID                      and                          MSHA     Related    of        to Have   as of   During    During
                        Orders                       Assessme Fatalities Violation Pattern   Last    Period    Period
                                                     nts                 s Under   Under     Day of
                                                     Proposed            Section   Section   the
                                                                         104(e)    104(e)    Period
Troy  4         0       0         0          0       $0.0     0          No        No        9       3         1
Mine,
Inc.
24-
01467

Financing Activities

During the first six months of 2012, the Company entered into three new capital
leases. The Company purchased two haul trucks and a loader to improve mine
production. Revett Silver had entered into the following contractual financial
obligations (in thousands of USD):

                                           Current     1 to 3     3 to 5     5 years or
Contractual obligation          Total      portion     years      years         more

Capital lease obligations     $  2,292   $     973   $  1,319          -              -
Long term reclamation costs     14,482           -          -          -         14,482
Total contractual obligations $ 16,774   $     973   $  1,319          -   $     14,482

Revett Silver has also entered into a number of operating leases relating to the production and transportation of the copper concentrate produced at Troy. All such leases expire in 2012 and many may be renewed annually. The obligations in 2012 under the terms of these leases are $0.4 million.

Liquidity and Capital Resources

The Company's liquidity position is directly related to the level of concentrate production, cost of this production and the provisional and final prices received for the copper and silver in the concentrate that is sold. At June 30, 2012, working capital was $30.7 million, including cash and short-term investments of $30.0 million. At June 30, 2012, net concentrate receivable was $3.3 million compared to $4.7 million at December 31, 2011 and copper concentrate inventory was $0.7 million compared to $1.5 million at December 31, 2011.

Off Balance Sheet Arrangements

The Company has forward contracts to sell 1.8 million pounds of copper at fixed prices of $4.00 per pound, which have been designated as normal purchase and sales contracts. The fair value of these contracts at June 30, 2012, is an asset of $0.9 million which is not recognized in the balance sheet (see Financial instruments, hedging activities and other instruments).

Related Party Transactions

There were no related party transactions during the first six months of 2012.

Proposed Transactions

There were no proposed transactions during the first six months of 2012.

Principal Risks and Uncertainties

Revett Minerals is a speculative investment, for many reasons, and the following risk factors should be carefully considered in evaluating it. In addition, this report contains forward-looking statements that involve known and unknown risks and uncertainties. These forward-looking statements include statements of our plans, objectives, expectations and intentions. Actual results could differ from those discussed in the forward-looking statements as a result of certain factors, including those set forth below. You should carefully consider the risks and uncertainties described below and the other information in this report before investing.

We have a limited operating history and had losses in prior years. We have been engaged in commercial mining operations at Troy for just over seven years and have not yet attained a significant level of continued earnings. For 2011, we had net income of $13.5 million on revenues of $70.1 million. For the 2010 year, we incurred a loss of $0.6 million on revenues of $47.0 million. In 2009, we incurred a loss of $3.7 million on $33.1 million in revenues. In 2008, we incurred a loss of $6.7 million on revenues of $39.5 million. In 2007, we earned approximately $0.9 million on revenues of approximately $38.9 million.

Environmental challenges could prevent us from ever developing Rock Creek. Our proposed development of Rock Creek has been challenged on environmental grounds by several regional and national environmental organizations at various times subsequent to the Forest Service's issuance of a Record of Decision approving our plan of operation in 2003. Some of these challenges are substantial and ongoing, and allege violations of the procedural and substantive requirements of a variety of federal and state laws and regulations pertaining to our permitting activities at Rock Creek, including ESA, NEPA, the 1872 Mining Law, the Federal Land Policy Management Act, the

Wilderness Act, the National Forest Management Act, the Clean Water Act, the Forest Service Organic Act of 1897 and the Administrative Procedural Act. Although we have generally been successful in addressing most of the environmental challenges to our operations, we cannot predict with any degree of certainty how the pending challenges will be resolved. Rock Creek is potentially the more significant of our two mining assets. Continued court challenges to the Record of Decision and its accompanying biological opinion have delayed us from proceeding with our planned development. If we are successful in defending these challenges, we still must comply with a number of requirements and conditions as development progresses, failing which we could be denied the ability to continue with our proposed activities at Rock Creek. (See the section of this report entitled "Legal Proceedings.")

We presently do not have the financial resources to develop Rock Creek. At June 30, 2012 we had cash and short term investments of $30.0 million. We may not have sufficient cash to allow us to develop a mine or begin mining operations at Rock Creek should it prove feasible to do so.

The Rock Creek mineral resources are not equivalent to reserves. This report includes information concerning the estimated size of our mineral resource at Rock Creek and the amount of ore that may be produced from the project were it to be developed. Since no ore has been produced from Rock Creek, these estimates are preliminary in nature. This report also includes information concerning mineral resources at Troy. Although we believe these amounts are significant, it does not mean the mineral resource can be economically mined. A mineral resource is not equivalent to a commercially mineable ore body or "proven reserves" or "probable reserves" under standards promulgated by the SEC, principally because they are less certain and not necessarily amenable to economic development. We will not be able to determine whether Rock Creek contains a commercially mineable ore body until our evaluation program has been completed and we have obtained a final, economic and technical feasibility study that will include an analysis of the amount of ore that can be economically produced under then-prevailing market conditions. United States investors are cautioned that the terms "measured mineral resources", "indicated mineral resources" and "inferred mineral resources" are not recognized by the SEC. The estimation of mineral resources involves greater uncertainty as to their existence and economic feasibility than the estimation of proven and probable reserves. United States investors are cautioned not to assume that mineral resources will ever be converted into reserves.

There are other formidable risks to mining. We are subject to all of the risks inherent in the mining industry, including industrial accidents, labor disputes, unusual or unexpected geologic formations, cave-ins, surface subsidence, flooding, power disruptions and periodic interruptions due to inclement weather. These risks could result in damage to or destruction of its mineral properties and production facilities, personal injury, environmental damage, delays, monetary losses and legal liability. In addition, we are subject to competition for new minerals properties, management and skilled miners from other mining companies, many of which have significantly greater resources than we do. We also have no control over changes in governmental regulation of mining activities, the speculative nature of mineral exploration and development, operating hazards, fluctuating metals prices, and inflation and other economic conditions.

Currency fluctuations will affect our competitiveness. The price of copper and silver are denominated in U.S. dollars even though most production originates in countries whose currencies are independently valued. Fluctuations in the value of the U.S. dollar relative to the values of these host country currencies could affect the competitiveness of our operations.

Accounting Changes

These unaudited interim financial statements have been prepared by management in accordance with generally accepted accounting principles used in the United States of America (U.S. GAAP) and are presented in U.S. dollars. Effective January 1, 2011, the Company began presenting its financial statements in accordance with US GAAP and prior period financial statements were restated to be presented in accordance with US GAAP. All financial information stated herein has been presented in accordance with US GAAP.

Future accounting changes

There were no new pronouncements issued by the FASB that may materially impact . . .