UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 10-Q
(Mark One)
              (X) QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934

                For the quarterly period ended November 30, 2001

                                       OR

              ( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ____________________to______________________

                        Commission file number: 0-19954

                      JEWETT-CAMERON TRADING COMPANY, LTD.
             ------------------------------------------------------
             (Exact name of registrant as specified in its charter)

       BRITISH COLUMBIA                                    NONE
-------------------------------             ------------------------------------
(State or other jurisdiction of             (IRS Employer Identification Number)
 incorporation or organization)

                32275 N.W. Hillcrest, North Plains, Oregon 97133
                ------------------------------------------------
                    (Address of Principal Executive Offices)

       Registrant's telephone number, including area code: (503) 647-0110

         Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 since May 16, 1992 and (2) has been subject to the above filing
requirements for the past 90 days.

Yes  X   No ___
    ---

                      APPLICABLE ONLY TO CORPORATE ISSUERS

Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of November 30, 2001. Common Stock, no par value 1,074,162
Shares.

<PAGE>
                         PART I - FINANCIAL INFORMATION

Item 1.  Financial Statements.

                  Attached hereto and incorporated herein by reference.

Item 2.  Management's Discussion and Analysis of Financial Condition and
                  Results of Operations.

The following information contains certain forward-looking statements that
anticipate future trends or events. These statements are based on certain
assumptions that may prove to be erroneous and are subject to certain risks
including but not limited to the risks of increased competition in the Company's
industry and other risks detailed in the Company's Securities and Exchange
Commission filings. Accordingly, actual results may differ, possibly materially,
from the predictions contained herein.

Gross sales increased $386,302 during the first quarter of Fiscal 2002 as
compared to the first quarter of Fiscal 2001. During the first quarter of Fiscal
2002, the Company experienced an increase in net income of $9,529.

Results of Operations.

The Company's operations are classified into three principle industry segments:
(sales of) building materials and (sales of) industrial tools and (sales of)
processed agricultural seeds.

Sales of building materials consists of wholesale sales of lumber and building
materials in the United States. Sales of industrial tools consists of
distribution of pneumatic air tools and industrial clamps in the United States.
Sales of seeds consists of distribution of processed agricultural seeds in the
United States.

For the first quarter of the current fiscal year, ending November 30, 2001,
sales increased 10.4% to $4,106,102 compared to $3,719,800 for the same quarter
of the previous year.

Sales for Jewett-Cameron Lumber were $3,133,563 million for the quarter, down
4.6% compared to sales of $3,283,140 million for the first quarter of last year.

Sales for MSI-PRO (pneumatic tools and industrial clamps) were $191,027 for the
first quarter compared to $251,303 for the first quarter of last year, down 24%.

Sales for Jewett Cameron Seed Company were $781,512 for the first quarter
compared to $185,357 for the first quarter of last year, an increase of 322%.

General and administrative expenses for the Company were $851,662 for the first
quarter up from $637,423 for the first quarter of last year. The primary reasons
for the increase of $214,239 are increases of $28,854 in depreciation and
amortization; $7,980 in insurance; $148,855 in wages and employee benefits;
$21,146 in warehouse expenses and supplies; $8,001 in travel, entertainment and
advertising; $6,888 in telephone and utilities; and, $6,184 in office and
miscellaneous. Decreases did occur, however, in the categories of repairs and
maintenance ($949); professional fees ($3,039); and, bad debts experienced a
recovery of ($3,001).

Net income for the quarter was $93,492 which represents an 11% increase over the
first quarter of last year when net income was $83,963. The increase in net
income was due to higher sales resulting from the first full quarter of
operations of the Company's wholly owned subsidiary, Jewett-Cameron Seed
Company; a $3,119 decrease in foreign exchange loss; and, an $8,811 decrease in
interest expense.
<PAGE>
Earnings per share was $0.10 for the first quarter of Fiscal 2002 compared to
$0.08 for the first quarter of fiscal 2001.

Liquidity and Capital Resources

As of November 30, 2001 the Company had working capital of $3,729,507 which
represented an increase of $668,917 as compared to the working capital position
of $3,060,590 as of November 30, 2000. The increase in working capital was due
primarily to a decrease in accounts payable and current liabilities of $59,887
and a decrease in bank indebtedness of $909,298. Current liabilities at November
30, 2002 consisted of $613,209 in accounts payable and accrued liabilities. In
the prior year accounts payable and accrued liabilities were $673,096 and bank
indebtedness was $909,298.

Accounts Receivable and Inventory represented 91.2% of current assets and both
continue to turn over at acceptable rates.

External sources of liquidity include a bank line from the United States
National Bank of Oregon. The total line of credit available is $6.5 million of
which there was no outstanding balance on November 30, 2001 and an outstanding
balance as of November 30, 2000 of $909,298. As of the end of Fiscal 2001
(August 31st) the Company had an outstanding balance of $297,960.

Based on the Company's current working capital position, its policy of retaining
earnings, and the line of credit available, the Company has adequate working
capital to meet its needs during the current fiscal year.

Item 3 - Quantitative and Qualitative Disclosures about Market Risks:

The Company does not have any derivative financial instruments as of November
30, 2001. However, the Company is exposed to interest rate risk.

The Company's interest income and expense are most sensitive to changes in the
general level of U.S. interest rates. In this regard, changes in U.S. interest
rates affect the interest earned on the Company's cash equivalents as well as
interest paid on debt.

The Company has a line of credit whose interest rate is based on various
published rates that may fluctuate over time based on economic changes in the
environment. The Company is subject to interest rate risk and could be subject
to increased interest payments if market interest rates fluctuate. The Company
does not expect any change in the interest rates to have a material adverse
effect on the Company's results from operations.

Foreign Currency Risk

Management does not expect foreign currency exchange rates to significantly
impact the Company in the future as all of the Company's business operations are
in the United States.

                           Part II - OTHER INFORMATION

         Item 1.  Legal Proceedings - None
         Item 2.  Changes in Securities - None
         Item 3.  Default Upon Senior Securities - None
         Item 4.  Submission of Matters to a Vote of Securities Holders - None
         Item 5.  Other Information - None
         Item 6a  Exhibits: N/A
         Item 6b. Reports on Form 8-K - None
<PAGE>

                                   SIGNATURES

         Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.

                                         Jewett-Cameron Trading Company Ltd.
                                         (Registrant)


Dated: January 10, 2001                  /s/ Donald M. Boone
       ----------------                  -------------------
                                         Donald M. Boone, President/CEO/Director

<PAGE>
                       JEWETT-CAMERON TRADING COMPANY LTD.


                        CONSOLIDATED FINANCIAL STATEMENTS
                           (Expressed in U.S. Dollars)
                      (Unaudited - Prepared by Management)


                                NOVEMBER 30, 2001


<PAGE>
<TABLE>
<CAPTION>
JEWETT-CAMERON TRADING COMPANY LTD.
CONSOLIDATED BALANCE SHEETS
(Expressed in U.S. Dollars)
(Prepared by Management)

================================================================================ ================ ================

                                                                                   November 30,       August 31,
                                                                                           2001             2001
-------------------------------------------------------------------------------- ---------------- ----------------
<S>                                                                              <C>              <C>
ASSETS

Current
    Cash and cash equivalents                                                    $      250,250   $      322,622
    Accounts receivable                                                               1,537,505        1,864,991
    Inventory (Note 4)                                                                2,424,355        2,400,027
    Prepaid expenses                                                                    130,606           61,109
                                                                                 --------------   --------------

    Total current assets                                                              4,342,716        4,648,749

Capital assets (Note 5)                                                               2,767,335        2,820,676
Deferred income taxes (Note 6)                                                          207,300          207,300
                                                                                 --------------   --------------

Total assets                                                                     $    7,317,351   $    7,676,725
================================================================================ ================ ================

LIABILITIES AND STOCKHOLDERS' EQUITY

Current
    Bank indebtedness (Note 7)                                                   $           -    $      297,960
    Accounts payable and accrued liabilities                                            613,209          684,891
                                                                                 --------------   --------------

    Total current liabilities                                                           613,209          982,851
                                                                                 --------------   --------------

Stockholders' equity
    Capital stock (Note 8)
       Authorized
            20,000,000 Common shares, without par value
            10,000,000 Preferred shares, without par value
       Issued
             1,074,162 Common shares (August 31, 2001 - 1,074,162)                    1,795,157        1,795,157
    Additional paid-in capital                                                          602,587          582,247
    Retained earnings                                                                 4,911,158        4,817,666
                                                                                 --------------   --------------

                                                                                      7,308,902        7,195,070
    Less:  Treasury stock - 112,100 common shares (August 31, 2001 - 97,000)           (604,760)        (501,196)
                                                                                 --------------   --------------

    Total stockholders' equity                                                        6,704,142        6,693,874
                                                                                 --------------   --------------

Total liabilities and stockholders' equity                                       $    7,317,351   $    7,676,725
================================================================================ ================ ================
</TABLE>
Contingent liabilities and commitments (Note 11)


The accompanying notes are an integral part of these consolidated financial
statements.


<PAGE>
<TABLE>
<CAPTION>
JEWETT-CAMERON TRADING COMPANY LTD.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Expressed in U.S. Dollars)
(Prepared by Management)

===================================================================================

                                                         Three Month    Three Month
                                                        Period Ended   Period Ended
                                                        November 30,   November 30,
                                                                2001           2000
----------------------------------------------------- -------------- --------------


<S>                                                   <C>            <C>
SALES                                                 $   4,106,102  $   3,719,800

COST OF SALES                                             3,095,898      2,964,886
                                                      -------------  -------------

GROSS PROFIT                                              1,010,204        754,914
                                                      -------------  -------------


OPERATING COSTS
    General and administrative expenses - Schedule          851,662        637,423
    Foreign exchange loss                                       257          3,376
                                                      -------------  -------------

                                                            851,919        640,799
                                                      -------------  -------------


Income from operations                                      158,285        114,115
                                                      -------------  -------------


OTHER ITEMS
    Interest and other income                                 1,245          4,697
    Interest expense                                         (1,038)        (9,849)
                                                      -------------  -------------

                                                                207         (5,152)
                                                      -------------  -------------


Income before income taxes                                  158,492        108,963


Income taxes                                                 65,000         25,000
                                                      -------------  -------------


Net income for the period                             $      93,492  $      83,963
===================================================== ============== ================


Basic earnings per share                              $        0.10  $        0.08
===================================================== ============== ================


Diluted earnings per share                            $        0.09  $        0.08
===================================================== ============== ================
</TABLE>




The accompanying notes are an integral part of these consolidated financial
statements.
<PAGE>
JEWETT-CAMERON TRADING COMPANY LTD.
SCHEDULE OF CONSOLIDATED GENERAL AND ADMINISTRATIVE EXPENSES
(Expressed in U.S. Dollars)
(Prepared by Management)

=========================================================================

                                             Three Month      Three Month
                                            Period Ended     Period Ended
                                            November 30,     November 30,
                                                    2001             2000
--------------------------------------- ---------------- ----------------



Bad debt (recovery)                     $        (3,001) $         6,680
Depreciation and amortization                    67,807           38,953
Insurance                                        26,890           18,910
Office and miscellaneous                         56,597           50,413
Professional fees                                 8,230           11,269
Repairs and maintenance                           8,249            9,198
Telephone and utilities                          27,539           20,651
Travel, entertainment and advertising            42,662           34,661
Wages and employee benefits                     546,222          397,367
Warehouse expenses and supplies                  70,467           49,321
                                        ---------------  ---------------

                                        $       851,662  $       637,423
======================================= ================ ================





























The accompanying notes are an integral part of these consolidated financial
statements.


<PAGE>
<TABLE>
<CAPTION>
JEWETT-CAMERON TRADING COMPANY LTD.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Expressed in U.S. Dollars)
(Prepared by Management)

============================================================= ================ ================

                                                                   Three Month      Three Month
                                                                  Period Ended     Period Ended
                                                                  November 30,     November 30,
                                                                          2001             2000
------------------------------------------------------------- ---------------- ----------------


<S>                                                           <C>              <C>
CASH FLOWS FROM OPERATING ACTIVITIES
    Net income for the period                                 $       93,492   $       83,963
    Items not involving an outlay of cash:
       Depreciation and amortization                                  67,807           38,953
       Foreign exchange (gain) loss                                      257            3,376
       Stock based compensation                                       20,340               -

    Changes in non-cash working capital items:
       Decrease in accounts receivable                               327,229        1,540,440
       Increase in inventory                                         (24,328)        (684,288)
       Increase in prepaid expenses                                  (69,497)         (75,742)
       Decrease in accounts payable and accrued liabilities          (71,682)        (114,032)
                                                              --------------   --------------

    Net cash provided by operating activities                        343,618          792,670
                                                              --------------   --------------


CASH FLOWS FROM FINANCING ACTIVITIES
    Increase (decrease) in bank indebtedness                        (297,960)         909,298
    Treasury shares acquired                                        (103,564)         (86,148)
                                                              --------------   --------------

    Net cash provided by (used in) financing activities             (401,524)         823,150
                                                              --------------   --------------


CASH FLOWS FROM INVESTING ACTIVITIES
    Purchase of capital assets                                       (14,466)      (1,585,536)
                                                              --------------   --------------

    Net cash used in investing activities                            (14,466)      (1,585,536)
                                                              --------------   --------------


Change in cash and cash equivalents                                  (72,372)          30,284


Cash and cash equivalents, beginning of period                       322,622          208,277
                                                              --------------   --------------


Cash and cash equivalents, end of period                      $      250,250   $      238,561
============================================================= ================ ================
</TABLE>

Supplemental disclosures with respect to cash flows (Note 14)



The accompanying notes are an integral part of these consolidated financial
statements.
<PAGE>
<TABLE>
<CAPTION>
JEWETT-CAMERON TRADING COMPANY LTD.
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
(Expressed in U.S. Dollars)
(Prepared by Management)

=================================== ========================= ========================== =========== ============ ============


                                          Common Stock             Treasury Shares
                                          ------------             ---------------        Additional
                                        Number                    Number                    Paid-In    Retained
                                      of Shares       Amount    of Shares        Amount     Capital    Earnings        Total
----------------------------------- ------------ ------------ ------------ ------------- ----------- ------------ ------------


<S>                                   <C>        <C>               <C>     <C>           <C>         <C>          <C>
Balance, August 31, 2000              1,074,162  $ 1,795,157       65,500  $   332,642   $  582,247  $ 4,105,470  $ 6,150,232

  Net income for the year                    -            -            -            -            -       712,196      712,196
  Treasury shares acquired                   -            -        31,500      168,554           -            -      (168,554)
                                    -----------  -----------  -----------  -----------   ----------  -----------  -----------

Balance, August 31, 2001              1,074,162    1,795,157       97,000      501,196      582,247    4,817,666    6,693,874

  Net income for the period                  -            -            -            -            -        93,492       93,492
  Treasury shares acquired                   -            -        15,100      103,564           -            -      (103,564)
  Stock based compensation for
     options issued to employees             -            -            -            -        20,340           -        20,340
                                    -----------  -----------  -----------  -----------   ----------  -----------  -----------

Balance, November 30, 2001            1,074,162  $ 1,795,157      112,100  $   604,760   $  602,587  $ 4,911,158  $ 6,704,142
=================================== ============ ============ ============ ============= =========== ============ ============

</TABLE>





























The accompanying notes are an integral part of these consolidated financial
statements.
<PAGE>
JEWETT-CAMERON TRADING COMPANY LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(Expressed in U.S. Dollars)
(Prepared by Management)
NOVEMBER 30, 2001


1.       NATURE OF OPERATIONS


         The Company was incorporated under the Company Act of British Columbia
         on July 8, 1987.

         The Company through its subsidiaries operates out of facilities located
         in North Plains, Oregon and Ogden, Utah. The Company operates as a
         wholesaler of lumber and building materials to home improvement centres
         located primarily in the Pacific and Rocky Mountain regions of the
         United States, as an importer and distributor of pneumatic air tools
         and industrial clamps throughout the United States, and as a processor
         and distributor of agricultural seeds in the United States.



2.       SIGNIFICANT ACCOUNTING POLICIES


         Generally accepted accounting principles

         These consolidated financial statements have been prepared in
         accordance with generally accepted accounting principles of the United
         States of America, which are not materially different from generally
         accepted accounting principles utilized in Canada.

         In the opinion of management, the accompanying consolidated financial
         statements contain all adjustments necessary (consisting only of normal
         recurring accruals) to present fairly the financial information
         contained therein. These statements do not include all disclosures
         required by generally accepted accounting principles and should be read
         in conjunction with the audited financial statements of the Company for
         the year ended August 31, 2001. The results of operations for the
         period ended November 30, 2001 are not necessarily indicative of the
         results to be expected for the year ending August 31, 2002.


         Principles of consolidation

         These consolidated financial statements include the accounts of the
         Company and its wholly-owned subsidiaries, The Jewett-Cameron Lumber
         Corporation, Jewett-Cameron Seed Co. and MSI-PRO Co., all of which are
         incorporated under the laws of Oregon, U.S.A.

         Significant inter-company balances and transactions have been
         eliminated upon consolidation.


         Estimates

         The preparation of financial statements in conformity with generally
         accepted accounting principles requires management to make estimates
         and assumptions that affect the reported amounts of assets and
         liabilities and disclosure of contingent assets and liabilities at the
         date of the financial statements and the reported amounts of revenues
         and expenses during the reporting period. Actual results could differ
         from those estimates.
<PAGE>
JEWETT-CAMERON TRADING COMPANY LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(Expressed in U.S. Dollars)
(Prepared by Management)
NOVEMBER 30, 2001


2.       SIGNIFICANT ACCOUNTING POLICIES (cont'd...)

         Revenue recognition

         The Company recognizes revenue from the sales of building supply
         products and tools, when the products are shipped and the ultimate
         collection is reasonably assured. Revenue from the Company's seed
         operations is generated by the provision of seed processing, handling
         and storage services provided to seed growers, and by the sales of seed
         products. Revenue from the provision of these services and products is
         recognized when the services have been performed and products sold and
         collection of the amounts is reasonably assured.

         Currency

         These financial statements are expressed in U.S. dollars as the
         Company's operations are based predominately in the United States. Any
         amounts expressed in Canadian dollars are indicated as such.

         Cash and cash equivalents

         Cash and cash equivalents include highly liquid investments with
         original maturities of three months or less.

         Inventory

         Inventory is recorded at the lower of cost, based on the average cost
         method and net realizable value.

         Capital assets and depreciation

         Capital assets are recorded at cost and the Company provides for
         depreciation over the estimated life of each asset on a straight-line
         basis over the following periods:

             Office equipment                       5-7 years
             Warehouse equipment                    2-10 years
             Buildings                              5-30 years

         Foreign exchange

         The Company's functional currency for all operations worldwide is the
         U.S. dollar. Nonmonetary assets and liabilities are translated at
         historical rates and monetary assets and liabilities are translated at
         exchange rates in effect at the end of the year. Income statement
         accounts are translated at average rates for the year. Gains and losses
         from translation of foreign currency financial statements into U.S.
         dollars are included in current results of operations. Gains and losses
         resulting from foreign currency translations are also included in
         current results of operations.

         Earnings per share

         In February 1997, the Financial Accounting Standards Board issued
         Statement of Financial Accounting Standards No. 128, "Earnings Per
         Share" ("SFAS 128"). Under SFAS 128, basic and diluted earnings per
         share are to be presented. Basic earnings per share is computed by
         dividing income available to common shareholders by the weighted
         average number of common shares outstanding in the period. Diluted
         earnings per share takes into consideration common shares outstanding
         (computed under basic earnings per share) and potentially dilutive
         common shares.
<PAGE>
JEWETT-CAMERON TRADING COMPANY LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(Expressed in U.S. Dollars)
(Prepared by Management)
NOVEMBER 30, 2001


2.       SIGNIFICANT ACCOUNTING POLICIES (cont'd...)


         Earnings per share (cont'd...)

         The earnings per share data for the periods ended November 30 is
summarized as follows:
<TABLE>
<CAPTION>
========================================================================== ================ ================

                                                                               Three Month      Three Month
                                                                              Period Ended     Period Ended
                                                                              November 30,     November 30,
                                                                                      2001             2000
-------------------------------------------------------------------------- ---------------- ----------------
<S>                                                                        <C>              <C>
Net income                                                                 $        93,492  $        83,963
========================================================================== ================ ================

Basic earnings per share weighted average number of shares outstanding             970,783        1,003,149
Effect of dilutive securities
    Stock options                                                                   46,892           29,680
                                                                           ---------------  ---------------

Diluted earnings per share weighted average number of shares outstanding         1,017,675        1,032,829
========================================================================== ================ ================
</TABLE>

         Employee stock option plan

         Financial Accounting Standards Board statement No. 123 (Accounting for
         Stock-Based Compensation) encourages, but does not require, companies
         to record compensation cost for stock-based employee compensation plans
         based on the fair value of options granted. The Company has elected to
         continue to account for stock-based compensation using the intrinsic
         value method prescribed in Accounting Principles Board Opinion No. 25
         (Accounting for Stock Issued to Employees) and related interpretations
         and to provide additional disclosures with respect to the pro-forma
         effects of adoption had the Company recorded compensation expense as
         provided in SFAS-123.

         In accordance with APB-25, compensation costs for stock options is
         recognized in income based on the excess, if any, of the quoted market
         price of the stock at the grant date of the award or other measurement
         date over the amount an employee must pay to acquire the stock.
         Generally, the exercise price for stock options granted to employees
         equals or exceeds the fair market value of the Company's common stock
         at the date of grant, thereby resulting in no recognition of
         compensation expense by the Company.

         Post retirement benefits

         Post retirement benefits are accounted for on an accrual basis. Any
         difference between net periodic post retirement benefit cost charged
         against income and the amount actually funded is recorded as an accrued
         or prepaid cost. This policy is consistent with Financial Accounting
         Standards No. 106, "Employers Accounting for Post Retirement Benefits
         Other than Pensions".

         Financial instruments

         The Company uses the following methods and assumptions to estimate the
         fair value of each class of financial instruments for which it is
         practicable to estimate such values:
<PAGE>
JEWETT-CAMERON TRADING COMPANY LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(Expressed in U.S. Dollars)
(Prepared by Management)
NOVEMBER 30, 2001


2.       SIGNIFICANT ACCOUNTING POLICIES (cont'd...)

         Financial instruments (cont'd...)

         Bank indebtedness

         The carrying amount approximates fair value due to the short-term
         nature of the obligation.

         Cash and short-term investments

         The carrying amount approximates fair value because of the short-term
         maturity of those instruments.

         Accounts receivable

         The carrying value of accounts receivable approximates fair value due
         to the short-term nature and historical collectability.

         Accounts payable

         The carrying value of accounts payable approximates fair value due to
         the short-term nature of the obligations. The estimated fair values of
         the Company's financial instruments are as follows:
<TABLE>
<CAPTION>
=============================== =============================== == ===============================

                                      November 30, 2001                   August 31, 2001
                                -------------------------------    -------------------------------

                                      Carrying            Fair           Carrying            Fair
                                        Amount           Value             Amount           Value
------------------------------- --------------- --------------- -- --------------- ---------------
<S>                             <C>             <C>                <C>             <C>
Cash and cash equivalents       $      250,250  $      250,250     $      322,622  $      322,622
Accounts receivable                  1,537,505       1,537,505          1,864,991       1,864,991
Bank indebtedness                           -               -             297,960         297,960
Accounts payable                       613,209         613,209            684,891         684,891
=============================== =============== =============== == =============== ===============
</TABLE>


         Comparative figures

         Certain comparative figures have been reclassified to conform with the
         presentation adopted for the current period.


         Accounting for derivative instruments and hedging activities

         Effective August 31, 2000, the Company adopted SFAS No. 133,
         "Accounting for Derivative Instruments and Hedging Activities," as
         amended. This statement requires companies to record derivatives on the
         balance sheet as assets or liabilities at their fair value. In certain
         circumstances, changes in the value of such derivatives may be required
         to be recorded as gains or losses. The impact of this statement did not
         have a material effect on the Company's consolidated financial
         statements.
<PAGE>
JEWETT-CAMERON TRADING COMPANY LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(Expressed in U.S. Dollars)
(Prepared by Management)
NOVEMBER 30, 2001


2.       SIGNIFICANT ACCOUNTING POLICIES (cont'd...)


         Income taxes

         Income taxes are provided in accordance with SFAS No. 109, "Accounting
         for Income Taxes". A deferred tax asset or liability is recorded for
         all temporary differences between financial and tax reporting and net
         operating loss carryforwards. Deferred tax expense (benefit) results
         from the net change during the year of deferred tax assets and
         liabilities.

         Deferred tax assets are reduced by a valuation allowance when, in the
         opinion of management, it is more likely than not that some portion or
         all of the deferred tax assets will not be realized. Deferred tax
         assets and liabilities are adjusted for the effects of changes in tax
         laws and rates on the date of enactment.


         Recent accounting pronouncements

         Effective June 1, 2001, the Company adopted the SEC's Staff Accounting
         Bulletin No. 101, "Revenue Recognition in Financial Statements," ("SAB
         101"). SAB 101 provides guidance related to revenue recognition.

         In July 2001, the FASB issued SFAS No. 141, "Business Combinations",
         and SFAS No. 142, "Goodwill and Other Intangible Assets." SFAS No. 141
         requires that the purchase method of accounting be used for all future
         business combinations and specifies criteria that intangible assets
         acquired in a business combination must meet to be recognized and
         reported apart from goodwill. SFAS No. 142 requires that goodwill and
         intangible assets with indefinite useful lives no longer be amortized,
         but instead tested for impairment at least annually in accordance with
         the provisions of SFAS No. 142. SFAS No. 142 will also require that
         intangible assets with estimable useful lives be amortized over their
         respective estimated useful lives, and reviewed for impairment in
         accordance with SFAS No. 121. The Company has adopted the provisions of
         SFAS 141 and SFAS 142 as of July 1, 2001.

         In July 2001, the FASB issued Statement of Financial Accounting
         Standards No. 143 ("SFAS 143") "Accounting for Asset Retirement
         Obligations" that records the fair value of the liability for closure
         and removal costs associated with the legal obligations upon retirement
         or removal of any tangible long-lived assets. The initial recognition
         of the liability will be capitalized as part of the asset cost and
         depreciated over its estimated useful life. SFAS 143 is required to be
         adopted effective January 1, 2003.

         In August 2001, the FASB issued Statement of Financial Accounting
         Standards No. 144 ("SFAS 144") "Accounting for the Impairment or
         Disposal of Long-Lived Assets" that supersedes Statement of Financial
         Accounting Standards No. 121 "Accounting for the Impairment or Disposal
         of Long-Lived Assets and for Long-Lived Assets to Be Disposed Of." SFAS
         144 is required to be adopted effective January 1, 2002.

         The adoption of these new pronouncements is not expected to have a
         material effect on the Company's financial position or results of
         operations.


3.       BUSINESS COMBINATION AND ACQUISITION

         During the period ended November 30, 2000, the Company acquired all of
         the assets, including land, buildings and equipment of Agrobiotech Inc.
         (Hillsboro) for total proceeds of $1,530,762.
<PAGE>
JEWETT-CAMERON TRADING COMPANY LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(Expressed in U.S. Dollars)
(Prepared by Management)
NOVEMBER 30, 2001


3.       BUSINESS COMBINATION AND ACQUISITION (cont'd...)


         The cost of the acquisition was allocated as follows:

         Land                                 $       456,713
         Buildings                                    782,781
         Warehouse equipment                          285,768
         Office equipment                               5,500
                                              ---------------

                                              $     1,530,762

         Following the acquisition, the Company incorporated Jewett-Cameron Seed
         Co. under the laws of Oregon, U.S.A. This subsidiary operates as a
         processor and distributor of agricultural seed products.


4.       INVENTORY

         ==================================== ================ ================

                                                November 30,        August 31,
                                                        2001              2001
         ------------------------------------ ---------------- ----------------

          Home improvement products           $    1,728,480   $     1,936,706
          Air tools and industrial clamps            299,891           280,449
          Seeds                                      395,984           182,872
                                              --------------   ---------------

                                              $    2,424,355   $     2,400,027
         ==================================== ================ ================



5.       CAPITAL  ASSETS

         ==================================== ================ ================

                                                 November 30,       August 31,
                                                         2001             2001
         ------------------------------------ ---------------- ----------------

         Office equipment                     $       201,392  $       199,348
         Warehouse equipment                          659,282          651,581
         Buildings                                  2,077,121        2,072,155
         Land                                         845,631          845,632
                                              ---------------  ---------------

                                                    3,783,426        3,768,716

         Accumulated depreciation                  (1,016,091)        (948,040)
                                              ---------------  ---------------

         Net book value                       $     2,767,335  $     2,820,676
         ==================================== ================ ================
<PAGE>
JEWETT-CAMERON TRADING COMPANY LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(Expressed in U.S. Dollars)
(Prepared by Management)
NOVEMBER 30, 2001


5.       CAPITAL  ASSETS (cont'd...)

         In the event that facts and circumstances indicate that the carrying
         amount of an asset may not be recoverable and an estimate of future
         undiscounted cash flows is less than the carrying amount of the asset,
         an impairment loss will be recognized. Management's estimates of
         revenues, operating expenses, and operating capital are subject to
         certain risks and uncertainties which may affect the recoverability of
         the Company's investments. Although management has made its best
         estimate of these factors based on current conditions, it is possible
         that changes could occur which could adversely affect management's
         estimate of the net cash flow expected to be generated from its
         operations.


6.       DEFERRED INCOME TAXES

         Deferred income taxes of $207,300 (August 31, 2001 - $207,300) relate
         principally to timing differences between the accounting and tax
         treatment of income, expenses, reserves and depreciation.


7.       BANK INDEBTEDNESS

         ==================================== ================ ================

                                                 November 30,       August 31,
                                                         2001             2001
         ------------------------------------ ---------------- ----------------

         Demand loan                          $            -   $       297,960
         ==================================== ================ ================

         Bank indebtedness is secured by an assignment of accounts receivable
         and inventory. Interest is calculated at either prime or the libor rate
         plus 225 basis points.


8.       CAPITAL STOCK

         Holders of common stock are entitled to one vote for each share held.
         There are no restrictions that limit the Company's ability to pay
         dividends on its common stock. The Company has not declared any
         dividends since incorporation.

         Treasury stock

         Treasury stock is recorded at cost. During the periods ended November
         30, 2001 and 2000, the Company repurchased 15,100 and 21,000 shares,
         respectively, at an aggregate cost of $103,564 and $86,148,
         respectively.

         Stock options

         The Company has a stock option plan under which stock options to
         purchase securities from the Company can be granted to directors and
         employees of the Company on terms and conditions acceptable to the
         regulatory authorities of Canada, notably the Toronto Stock Exchange
         ("TSE"), the Ontario Securities Commission and the British Columbia
         Securities Commission.
<PAGE>
JEWETT-CAMERON TRADING COMPANY LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(Expressed in U.S. Dollars)
(Prepared by Management)
NOVEMBER 30, 2001


8.       CAPITAL STOCK (cont'd...)


         Stock pptions (cont'd...)

         Under the stock option program, stock options for up to 10% of the
         number of issued and outstanding common shares may be granted from time
         to time, provided that stock options in favour of any one individual
         may not exceed 5% of the issued and outstanding common shares. No stock
         option granted under the stock option program is transferable by the
         optionee other than by will or the laws of descent and distribution,
         and each stock option is exercisable during the lifetime of the
         optionee only by such optionee.


         The exercise price of all stock options, granted under the stock option
         program, must be at least equal to the fair market value (subject to
         regulated discounts) of such common shares on the date of grant.


         Proceeds received by the Company from exercise of stock options are
         credited to capital stock.


         At November 30, 2001, employee incentive stock options were outstanding
         enabling the holders to acquire the following number of shares:


          ================  =============  ====================================

           Number Exercise
                of Shares          Price   Expiry Date
          ----------------  -------------  ------------------------------------

                   70,000     Cdn$  4.25   August 6, 2006
                    8,000     Cdn$  8.25   December 31, 2001
                                           (exercised Note 15)
                   12,000     Cdn$  7.50   December 31, 2003
          ================  =============  ====================================



9.       EMPLOYEE STOCK OWNERSHIP PLAN


         The Company sponsors an employee stock ownership plan ("ESOP") that
         covers all U.S. employees who are employed by the Company on August 31
         of each year and who have at least one thousand hours with the Company
         in the twelve months preceding that date. The ESOP grants to
         participants in the plan certain ownership rights in, but not
         possession of, the common stock of the Company held by the Trustee of
         the Plan. Shares of common stock are allocated annually to participants
         in the ESOP pursuant to a prescribed formula. The Company accounts for
         its ESOP in accordance with SOP-93-6 (Employers' Accounting for
         Employee Stock Ownership Plans). The Company records compensation
         expense equal to the market price of the shares acquired on the open
         market. Any dividends on allocated ESOP shares are recorded as a
         reduction of retained earnings.
<PAGE>
JEWETT-CAMERON TRADING COMPANY LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(Expressed in U.S. Dollars)
(Prepared by Management)
NOVEMBER 30, 2001


10.      STOCK BASED COMPENSATION EXPENSE

         Following is a summary of the status of the plan during 2001 and 2000:
<TABLE>
<CAPTION>
         ============================================================== =========== ==========

                                                                                     Weighted
                                                                                      Average
                                                                            Number   Exercise
                                                                         of Shares      Price
         -------------------------------------------------------------- ----------- ----------
<S>                                                                        <C>      <C>
         Outstanding at August 31, 1999 and 2000 and November 30, 2000      90,000  Cdn$ 5.14
             Granted                                                            -
             Forfeited                                                          -
             Exercised                                                          -
             Expired                                                       (12,000) Cdn$ 8.25
                                                                        ----------

         Outstanding at August 31, 2001                                     78,000  Cdn$ 4.66
             Granted                                                        12,000  Cdn$ 7.50
             Forfeited                                                          -
             Exercised                                                          -
                                                                        ----------

         Outstanding at November 30, 2001                                   90,000  Cdn$ 5.04
         ============================================================== =========== ==========
</TABLE>

         Following is a summary of the status of options outstanding at November
         30, 2001:

         ======================================================================

                               Outstanding Options          Exercisable Options
                          -----------------------------     -------------------

                                    Weighted
                                     Average   Weighted             Weighted
                                   Remaining    Average              Average
                                 Contractual   Exercise             Exercise
         Exercise Price   Number        Life      Price     Number     Price
         ---------------- ------ ------------ ----------    ------ -----------

         Cdn$  4.25       70,000        4.75  Cdn$  4.25    70,000 Cdn$  4.25
         Cdn$  8.25        8,000        0.08  Cdn$  8.25     8,000 Cdn$  8.25
         Cdn$  7.50       12,000        2.08  Cdn$  7.50    12,000 Cdn$  7.50
         ================ ====== ============ ==========    ====== ===========

         The Company has elected to follow APB Opinion No. 25 (Accounting for
         Stock Issued to Employees) in accounting for its employee stock
         options. Accordingly, compensation cost for stock options is measured
         as the excess, if any, of quoted market price of the Company's stock at
         the date of grant over the option price. Stock based compensation
         recognized during the period ended November 30, 2001 was $20,340 (2000
         - $Nil). This amount was allocated to wages and employee benefits in
         the accompanying statement of operations. If under Financial Accounting
         Standards Board Statement No. 123 (Accounting for Stock-Based
         Compensation) the Company determined compensation costs based on the
         fair value at the grant date for its stock options, net earnings and
         earnings per share would have been reduced to the following pro-forma
         amounts:
<PAGE>
JEWETT-CAMERON TRADING COMPANY LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(Expressed in U.S. Dollars)
(Prepared by Management)
NOVEMBER 30, 2001


10.      STOCK BASED COMPENSATION EXPENSE (cont'd...)


  =========================================== ================ ================

                                                 November 30,     November 30,
                                                         2001             2000
  ------------------------------------------- ---------------- ----------------

  Net income
    As reported                               $        93,492  $        83,963
                                              ================ ================

    Pro forma                                 $        83,520  $        83,963
                                              ================ ================

  Basic earnings per share
    As reported                               $          0.10  $          0.08
                                              ================ ================

    Pro forma                                 $          0.09  $          0.08
                                              ================ ================

  Diluted earnings per share
    As reported                               $          0.09  $          0.08
                                              ================ ================

    Pro forma                                 $          0.08  $          0.08
  =========================================== ================ ================


         The weighted average estimated fair value of stock options granted
         during the periods ended November 30, 2001 and 2000 were Cdn$2.67 and
         $Nil per share, respectively. These amounts were determined using the
         Black-Scholes option pricing model, which values options based on the
         stock price at the grant date, the expected life of the option, the
         estimated volatility of the stock, the expected dividend payments, and
         the risk-free interest rate over the expected life of the option. The
         assumptions used in the Black-Scholes model were as follows for stock
         options granted:

         ==================================================== ================

                                                November 30,     November 30,
                                                        2001             2000
         ---------------------------------------------------- ----------------

         Risk-free interest rate                      3.00%             -
         Expected life of the options               2 years             -
         Expected volatility                         41.62%             -
         Expected dividend yield                       -                -
         ==================================================== ================


         The Black-Scholes option valuation model was developed for estimating
         the fair value of traded options that have no vesting restrictions and
         are fully transferable. Because option valuation models require the use
         of subjective assumptions, changes in these assumptions can materially
         affect the fair value of the options, and the Company's options do not
         have the characteristics of traded options, so the option valuation
         models do not necessarily provide a reliable measure of the fair value
         of its options.
<PAGE>
JEWETT-CAMERON TRADING COMPANY LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(Expressed in U.S. Dollars)
(Prepared by Management)
NOVEMBER 30, 2001


11.      CONTINGENT LIABILITIES AND COMMITMENTS


         a) The Company established an Employee Stock Ownership Plan, whereby
            the employees may earn up to 90,000 shares of the Company using a
            formula based on years of service. The establishment of the plan
            resulted in the Company forming a trust, which acquired from the
            Company 90,000 shares at a deemed price of Cdn$5.00 per share. As at
            November 30, 2001 and 2000, 90,000 of these shares were earned by
            the employees under this plan but remain in the trust (Note 9).

         b) At November 30, 2001 and 2000, the Company had an un-utilized
            line-of-credit of approximately $4,700,000 and $4,500,000,
            respectively.


12.      SEGMENTED INFORMATION


         The Company has three principal operating segments: the sales of lumber
         and building materials to home improvements centres in the United
         States; the sale of pneumatic air tools and industrial clamps in the
         United States; and the processing and sales of agricultural seeds in
         the United States. These operating segments were determined based on
         the nature of the products offered. Operating segments are defined as
         components of an enterprise about which separate financial information
         is available that is evaluated regularly in deciding how to allocate
         resources and in assessing performance. The Company evaluates
         performance based on several factors, of which the primary financial
         measure is business segment income before taxes. The following tables
         show the operations of the Company's reportable segments.

         In computing income from operations by industry segment, unallocable
         general and administrative expenses have been excluded from each
         segment's pre-tax operating earnings before interest expense and have
         been included in general corporate and other operations.


         Following is a summary of segmented information for the three month
         periods:

         =====================================================================

                                                 November 30,     November 30,
                                                         2001             2000
         ------------------------------------- --------------   --------------

         Sales to unaffiliated customers:
           Building materials:
              United States                    $    3,133,563   $    3,283,140
           Industrial tools                           191,027          251,303
           Seed processing services and sales         781,512          185,357
                                               --------------   --------------

                                               $    4,106,102   $    3,719,800
                                               ==============   ==============


                                  - continued -

<PAGE>
JEWETT-CAMERON TRADING COMPANY LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(Expressed in U.S. Dollars)
(Prepared by Management)
NOVEMBER 30, 2001


12.      SEGMENTED INFORMATION (cont'd...)

         ======================================== ============== ==============

                                                  November 30,   November 30,
                                                          2001           2000
         ---------------------------------------- ------------   ------------

         Income from operations:
             Building materials                   $     33,868   $     78,559
             Industrial tools                           21,104         24,627
             Seed processing services and sales        133,018         29,346
             General corporate                         (29,705)       (18,417)
                                                  ------------   ------------

                                                  $    158,285   $    114,115
                                                  ============   ============

         Identifiable assets:
             Building materials                   $  6,218,756   $  7,177,206
             Industrial tools                           91,983        105,489
             Seed processing services and sales        987,626        331,384
             General corporate                          18,986        116,362
                                                  ------------   ------------

                                                  $  7,317,351   $  7,730,441
                                                  ============   ============

         Depreciation and amortization:
             Building materials                   $     67,807   $     30,617
             Industrial tools                               -             244
             Seed processing services and sales             -           8,092
                                                  ------------   ------------

                                                  $     67,807   $     38,953
                                                  ============   ============

         Capital expenditures:
             Building materials                   $      3,531   $     54,774
             Seed processing services and sales         10,935      1,530,762
                                                  ------------   ------------

                                                  $     14,466   $  1,585,536
                                                  ============   ============

         Interest expense:
             Building materials                   $      1,245   $      9,849
             Industrial tools                               -              -
             Seed processing services and sales             -              -
                                                  ------------   -----------

                                                  $      1,245   $      9,849
                                                  ============   ============

         For the three month periods ended November 30, 2001 and 2000 the
         Company made sales of $1,317,640 (2000 - $1,318,919) and $1,570,807
         (2000 - $1,189,912) to customers of the building material segments
         which were in excess of 10% of total sales for the quarter.
<PAGE>
JEWETT-CAMERON TRADING COMPANY LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(Expressed in U.S. Dollars)
(Prepared by Management)
NOVEMBER 30, 2001


13.      CONCENTRATIONS OF CREDIT RISK

         Financial instruments that potentially subject the Company to
         concentrations of credit risk consist primarily of cash and cash
         equivalents and accounts receivable. The Company places its cash and
         cash equivalents with high quality financial institutions and limits
         the amount of credit exposure with any one institution. The Company has
         concentrations of credit risk with respect to accounts receivable as
         large amounts of its accounts receivable are concentrated
         geographically in the United States amongst a small number of
         customers. At November 30, 2001, two customers totalling $636,636 and
         $648,774 and at November 30, 2000, three customers totalling $535,775,
         $117,443 and $212,914, respectively, accounted for accounts receivable
         greater than 10% of total accounts receivable. The Company controls
         credit risk through credit approvals, credit limits, and monitoring
         procedures. The Company performs credit evaluations of its commercial
         customers but generally does not require collateral to support accounts
         receivable.


14.      SUPPLEMENTAL DISCLOSURES WITH RESPECT TO CASH FLOWS

         ==================================== ================ ================

                                                 November 30,     November 30,
                                                        2001             2000
         ------------------------------------ ---------------- ----------------

         Cash paid during the period for:
             Interest                         $        1,038   $        9,849
             Income taxes                                 -                -
         ==================================== ================ ================

         There were no significant non-cash transactions for the three month
         periods ended November 30, 2001 and 2000.


15.      SUBSEQUENT EVENT

         Subsequent to November 30, 2001, 8,000 stock options were exercised for
         total proceeds of CDN$66,000..