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 February 28, 2002

                                       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 NW 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 ISSUERS INVOLVED IN BANKRUPTCY
                  PROCEEDINGS DURING THE PRECEDING FIVE YEARS:

    Indicate by check mark whether the registrant has filed all documents and
   reports required to be filed by Sections 12, 13, or 15(d) of the Securities
 Exchange Act of 1934 subsequent to the distribution of securities under a plan
                              confirmed by a court.

                                 Yes ___ No ___

                      APPLICABLE ONLY TO CORPORATE ISSUERS

    Indicate the number of shares outstanding of each of the issuer's classes
      of common stock, as of February 28, 2002. Common Stock, no par value
                               1,082,162 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.

Company operations were down during the second quarter of Fiscal 2002, ended
February 28, 2002, as sales decreased over the first quarter of Fiscal 2002.
Gross sales decreased $1,130,634 during the second quarter of Fiscal 2002 as
compared to the second quarter of Fiscal 2001. During the second quarter of
Fiscal 2002, the Company experienced an increase in net income of $24,143 as
compared to the second quarter of Fiscal 2001. As was the case last year,
management believes that the buying patterns in the area of building materials
have shifted and that sales which previously occurred in the Company's second
fiscal quarter of operations will now occur in the third and, in some instances,
the fourth fiscal quarters. The overall result was net income of $71,639 for the
second quarter of Fiscal 2001 and net income for the first six months of Fiscal
2002 of $165,131.

RESULTS OF OPERATIONS:

Jewett Cameron's operations are classified into three principle industry
segments: sales of building materials, sales of industrial tools and sales of
processed agricultural seeds and grain. 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 and grain in the United States. The Company's major
distribution centers are located in North Plains, Oregon and Ogden, Utah.

Three Months Ended February 28, 2002 and February 28, 2001:

For the second quarter of the current fiscal year, ending February 28, 2002,
sales decreased 24.9% to $3,414,881 compared to $4,545,515 for the same quarter
of the previous year.

General and administrative expenses for the Company were $776,327 for the second
quarter up from $742,631 for the second quarter of last year. With the exception
of a recovery in bad debt recorded during the three month period ended February
28, 2001 in the amount of $39,993, general and administrative expenses decreased
approximately
<PAGE>

$7,000 for the second quarter of fiscal 2002 as compared to the second quarter
of fiscal 2001. Reductions were experienced in the categories of insurance;
office and miscellaneous; professional fees; and, repairs and maintenance.
Slight increases occurred in the categories of telephone and utilities; travel,
entertainment and advertising; warehouse expenses and supplies; and, wages and
employee benefits.

Net income for the quarter was $71,639 which represents a 51% increase over the
second quarter of last year when net income was $47,496. The increase in net
income was due primarily to a decrease in the cost of sales of $1,190,033 and an
income tax recovery of $62,000 recorded during the second quarter of fiscal
2002.

Earnings per share (fully diluted) were $0.07 for the second quarter of Fiscal
2002 compared to $0.05 for the second quarter of fiscal 2001, an increase of
40%.

On February 25, 2002, the Company entered into an agreement with Greenwood
Forest Products, Inc., of Portland, Oregon, to acquire the business and certain
assets of Greenwood Forest Products on or about March 1, 2002. The assets being
acquired consisted of approximately $7 million of inventory (at year end) which
will be purchased in eight installments over the next two years for a price
equal to the seller's cost plus 2%; furnishings, equipment and supplies are
being purchased for $260 thousand, payable at closing; and, a license to use all
of the intangible assets of the seller for a five year term, with an option to
purchase for a nominal amount at the end of the term, is being acquired for $2
thousand, payable at closing. The initial acquisition price is being paid from
working capital and working capital loans.

Six Months Ended February 28, 2002 and February 28, 2001:

Sales in the first six months of Fiscal 2002 decreased 9% to $7,520,983 compared
to $8,265,315 for the same period last year.

Sales for Jewett-Cameron Lumber were $5,660,571 for the six-month period, down
18% compared to sales of $6,885,023 for the same period of last year.

Sales for MSI-PRO (pneumatic tools and industrial clamps) were $363,338 for the
six-month period compared to $453,636 for the same period of last year, down 20%

Sales for Jewett-Cameron Seed Company were $1,497,074 for the six-month period
compared to $926,656 for the same period of last year, an increase of 62%.

General and administrative expenses for the Company were $1,627,989 for the
six-month period, up from $1,380,054 for the same period of last year. The
primary reasons for the increase of $247,935 are increases of $29,453 in
depreciation and amortization; $11,890 in travel, entertainment and advertising;
$154,209in wages and employee benefits; $5,279 in insurance; $11,807 in
telephone; and, $30,044 in warehouse expenses and supplies. Decreases did occur
in the categories of office and miscellaneous of $15,520; professional fees in
the amount of $6,495; and, repairs and maintenance of $3,096.

Net income for the first six months of Fiscal 2002 was $165,131 which represents
a 26% increase over the first six months of last year when net income was
$131,459. The increase in net income was due primarily to a decrease in the cost
of sales of $1,059,021.
<PAGE>
Earnings per share (fully diluted) were $0.16 for the first six months of Fiscal
2002 compared to $0.13 for the same period of fiscal 2001. This is an increase
of 23%.

LIQUIDITY AND CAPITAL RESOURCES

As of February 28, 2002 the Company had working capital of $3,869,991 which
represented an increase of $755,057 as compared to the working capital position
of $3,114,934 on February 28, 2001. The increase in working capital was due to
an increase in cash and cash equivalents of $50,438. ; an increase in inventory
of $1,050,522; and an increase in prepaid expenses of $134,848.

Accounts Receivable and Inventory represented 89% 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 an outstanding balance as of February 28, 2002 of $941,276. 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 did not have any derivative financial instruments as of February 28,
2002. 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

N/A

<PAGE>
                           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:
        The Company conducted an Annual Meeting on January 18, 2002. The matters
        voted upon, together with the results of voting were as follows:
        1. The following persons were elected to fill the vacancies on the Board
        of Directors to serve until the year 2003 Annual Meeting of the
        Shareholders and until their successors shall be duly elected:

        Director:                                   Shares Voted    Shares Voted
                                                        in Favor         Against
        Donald M. Boone                                  305,744              0
        Jeffrey Lowe                                     305,744              0
        James Schjelderup                                305,744              0
        Stephanie Rink                                   305,744              0

        2. To appoint Davidson and Company
        as auditors and to authorize the Directors       305,744              0
        to fix the remuneration.
        3.To approve issuance of share purchase          305,544            200
        options to Directors
Item 5. Other Information - None
Item 6. a) Exhibits - Asset Purchase Agreement, dated February 25,
           2002, By and Between Greenwood Forest Products, Inc. and
           Jewett-Cameron Lumber Corporation
Item 6.(b) Reports on Form 8-K - Current Report dated February 25,
           2002 Reporting Acquisition of Assets

                                   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: April 10, 2002                    /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)

                                FEBRUARY 28, 2002


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

================================================================================
                                                   February 28,      August 31,
                                                       2002            2001
--------------------------------------------------------------------------------

ASSETS


Current
    Cash and cash equivalents                   $      373,060  $      322,622
    Accounts receivable                              1,261,689       1,864,991
    Inventory (Note 4)                               3,450,549       2,400,027
    Prepaid expenses                                   195,957          61,109
                                                 --------------  --------------

    Total current assets                             5,281,255       4,648,749

Capital assets (Note 5)                              2,726,555       2,820,676

Deferred income taxes (Note 6)                         184,300         207,300
                                                 --------------  --------------

Total assets                                    $    8,192,110  $    7,676,725
================================================================================


                                  - Continued -







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

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

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

                                                                                               February 28,      August 31,
                                                                                                     2002            2001
---------------------------------------------------------------------------------------------------------------------------



<S>                                                                                           <C>             <C>
LIABILITIES AND STOCKHOLDERS' EQUITY


Current
    Bank indebtedness (Note 7)                                                                 $      941,276  $      297,960
    Accounts payable and accrued liabilities                                                          469,988         684,891
                                                                                               --------------  --------------

    Total current liabilities                                                                       1,411,264         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
          1,082,162  common shares (August 31, 2001 - 1,074,162)                                    1,836,259       1,795,157

    Additional paid-in capital                                                                        602,587         582,247
    Retained earnings                                                                               4,982,797       4,817,666
                                                                                               --------------  --------------

                                                                                                    7,421,643       7,195,070
    Less:  Treasury stock - 117,000 common shares (August 31, 2001 -
                           97,000)                                                                   (640,797)       (501,196)
                                                                                               --------------  --------------

                                                                                                    6,780,846       6,693,874
                                                                                               --------------  --------------
Total liabilities and stockholders' equity                                                     $    8,192,110  $    7,676,725
==============================================================================================================================
</TABLE>

Contingent liabilities and commitments (Note 11)





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

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

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

                                                                   Three month    Three month       Six month       Six month
                                                                  period ended   period ended    period ended    period ended
                                                                  February 28,   February 28,    February 28,    February 28,
                                                                          2002           2001            2002            2001
------------------------------------------------------------------------------------------------------------------------------


<S>                                                             <C>             <C>            <C>             <C>
Net Sales                                                       $    3,414,881  $    4,545,515 $    7,520,983  $    8,265,315

Cost of sales                                                        2,504,557       3,694,590      5,600,455       6,659,476
                                                                --------------  -------------- --------------  --------------

Gross profit                                                           910,324         850,925      1,920,528       1,605,839
                                                                --------------  -------------- --------------  --------------

Operating expenses
    General And Administrative - Schedule                              776,327         742,631      1,627,989       1,380,054
    Foreign exchange (gain) loss                                        (1,072)         30,507           (815)         33,883
                                                                --------------  -------------- --------------  --------------

                                                                       775,255         773,138      1,627,174       1,413,937
                                                                --------------  -------------- --------------  --------------

Income from operations                                                 135,069          77,787        293,354         191,902
                                                                --------------  -------------- --------------  --------------


Other items
    Interest and other income                                              821             723          2,066           5,420
    Interest expense                                                    (2,251)        (43,014)        (3,289)        (52,863)
                                                                --------------  -------------- --------------  --------------

                                                                        (1,430)        (42,291)        (1,223)        (47,443)
                                                                --------------  -------------- --------------  --------------


Income before income taxes                                             133,639          35,496        292,131         144,459


Income tax (expense) recovery                                          (62,000)         12,000       (127,000)        (13,000)
                                                                --------------  -------------- --------------  --------------


Net income for the period                                       $       71,639  $       47,496 $      165,131  $      131,459
==============================================================================================================================

Basic earnings per share                                        $         0.07  $         0.05 $         0.17  $         0.13
==============================================================================================================================

Diluted earnings per share                                      $         0.07  $         0.05 $         0.16  $         0.13
==============================================================================================================================

Weighted average number of
    common shares outstanding
    Basic                                                              964,419       1,000,050        967,601       1,000,050
    Diluted                                                          1,013,649       1,031,642      1,014,218       1,031,642
==============================================================================================================================
</TABLE>



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

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

                                                                   Three month    Three month       Six month       Six month
                                                                  period ended   period ended    period ended    period ended
                                                                  February 28,   February 28,    February 28,    February 28,
                                                                          2002           2001            2002            2001
------------------------------------------------------------------------------------------------------------------------------



<S>                                                              <C>            <C>            <C>              <C>
Bad debt recovery                                                $          -   $     (39,993) $       (2,949)  $      (33,313)


Depreciation and amortization                                           55,655         55,056         123,462           94,009


Insurance                                                               30,651         33,352          57,541           52,262


Office and miscellaneous                                                49,049         70,701         105,594          121,114


Professional fees                                                       40,024         43,480          48,254           54,749


Repairs and maintenance                                                  8,885         11,032          17,134           20,230


Telephone and utilities                                                 30,200         25,281          57,739           45,932


Travel, entertainment and advertising                                   50,297         46,408          92,959           81,069


Warehouse expenses and supplies                                         47,224         38,326         117,691           87,647


Wages and employee benefits                                            464,342        458,988       1,010,564          856,355
                                                                  ------------   ------------    ------------    -------------


                                                                $      776,327  $      742,631 $    1,627,989  $    1,380,054
==============================================================================================================================
</TABLE>





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

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

=============================================================================================================================
                                                                   Three month    Three month       Six month       Six month
                                                                  period ended   period ended    period ended    period ended
                                                                  February 28,   February 28,    February 28,    February 28,
                                                                          2002           2001            2002            2001
-----------------------------------------------------------------------------------------------------------------------------


<S>                                                             <C>              <C>           <C>             <C>
CASH FLOWS FROM OPERATING ACTIVITIES
    Net income for the period                                  $        71,639  $      47,496  $      165,131  $       131,459
    Items not involving an outlay of cash:
       Depreciation and amortization                                    55,655         55,056         123,462           94,009
       Deferred income taxes                                            23,000             -           23,000               -
       Stock based compensation                                             -              -           20,340               -

    Changes in non-cash working capital items:
       (Increase) decrease in accounts receivable                      275,816     (1,605,226)        603,302          (61,410)
       Increase in inventory                                       ( 1,026,194)    (1,406,999)     (1,050,522)      (2,091,287)
       Increase in prepaid expenses                                    (65,351)       (46,939)       (134,848)        (122,681)
       Increase in bank indebtedness                                   941,276      2,262,426         643,316        3,171,724
       Increase (decrease) in accounts payable
          and accrued liabilities                                     (143,221)       694,970        (214,903)         580,938
                                                                  ------------   ------------    ------------    -------------

    Net cash provided by operating activities                          132,620            784         178,278        1,702,752
                                                                  ------------   ------------    ------------    -------------


CASH FLOWS FROM FINANCING ACTIVITIES
    Treasury shares acquired                                           (36,037)       (39,029)       (139,601)        (125,177)
    Issuance of capital stock for cash                                 41,102              -           41,102             -
                                                                  ------------   ------------    ------------    -------------

    Net cash provided by (used in) financing activities                  5,065        (39,029)        (98,499)        (125,177)
                                                                  ------------   ------------    ------------    -------------


CASH FLOWS FROM INVESTING ACTIVITIES
    Purchase of capital assets                                         (14,875)        (9,179)        (29,341)      (1,594,715)
                                                                  ------------   ------------    ------------    -------------

    Net cash used in investing activities                              (14,875)        (9,179)        (29,341)      (1,594,715)
                                                                  ------------   ------------    ------------    -------------


Increase (decrease) in cash and cash equivalents                       122,810        (47,424)         50,438          (17,140)


Cash and cash equivalents, beginning of period                         250,250        238,561         322,622          208,277
                                                                  ------------   ------------    ------------    -------------


Cash and cash equivalents, end of period                        $      373,060 $      191,137  $      373,060  $       191,137
==============================================================================================================================
</TABLE>

Supplemental disclosures with respect to cash flows (Note 14)


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

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

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


                                            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                  -            -            -            -            -       165,131      165,131
  Treasury shares acquired                   -            -        20,000      139,601           -            -      (139,601)
  Stock based compensation for
     options issued to employees             -            -            -            -        20,340           -        20,340
  Share options exercised                 8,000       41,102           -            -            -            -        41,102
                                    -----------  -----------  -----------  -----------   ----------  -----------  -----------

Balance, February 28, 2002            1,082,162  $ 1,836,259      117,000  $   640,797   $  602,587  $ 4,982,797  $ 6,780,846
=================================== ============ ============ ============ ============= =========== ============ ============
</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)
(Unaudited - Prepared by Management)
FEBRUARY 28, 2002

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


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  February 28, 2002 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.

         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.
<PAGE>
JEWETT-CAMERON TRADING COMPANY LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(Expressed in U.S. Dollars)
(Unaudited - Prepared by Management)
FEBRUARY 28, 2002

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


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


         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,  using 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)
(Unaudited - Prepared by Management)
FEBRUARY 28, 2002

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


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

         Earnings per share (cont'd...)

         The  earnings  per share  data for the  periods  ended  February  28 is
         summarized as follows:
<TABLE>
<CAPTION>

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

                                                              Three Month      Three Month        Six Month         Six Month
                                                             Period Ended     Period Ended     Period Ended      Period Ended
                                                             February 28,     February 28,     February 28,      February 28,
                                                                     2002             2001             2002              2001
         ------------------------------------------------ ---------------- ---------------- ---------------- -----------------

<S>                                                       <C>              <C>              <C>              <C>
         Net income                                       $        71,639  $        47,496  $       165,131  $       131,459
                                                          ===============  ===============  ===============  ===============

         Basic earnings per share weighted
             average number of shares outstanding                 964,419        1,000,050          967,601        1,000,050
         Effect of dilutive securities
             Stock options                                         49,230           31,592           46,617           31,592
                                                          ---------------  ---------------  ---------------  ---------------

         Diluted earnings per share weighted
             average number of shares outstanding               1,013,649        1,031,642        1,014,218        1,031,642
         ================================================ ================ ================ ================ =================
</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)
(Unaudited - Prepared by Management)
FEBRUARY 28, 2002

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


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


         Financial instruments (cont'd...)

         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.

         Bank indebtedness

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

         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>

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

                                                         February 28, 2002                   August 31, 2001
                                                   -------------------------------    -------------------------------

                                                         Carrying            Fair           Carrying            Fair
                                                           Amount           Value             Amount           Value
---------------------------------------------------------------------------------------------------------------------

<S>                                                <C>             <C>                <C>             <C>
Cash and cash equivalents                          $      373,060  $      373,060     $      322,622  $      322,622
Accounts receivable                                     1,261,689       1,261,689          1,864,991       1,864,991
Bank indebtedness                                         941,276         941,276            297,960         297,960
Accounts payable and accrued liabilities                  469,988         469,988            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)
(Unaudited - Prepared by Management)
FEBRUARY 28, 2002

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


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 year ended August 31, 2001, 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)
(Unaudited - Prepared by Management)
FEBRUARY 28, 2002

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


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

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

                                                February 28,       August 31,
                                                        2002             2001
------------------------------------------------------------------------------

 Home improvement products                    $     2,789,826 $     1,936,706
 Air tools and industrial clamps                      310,112         280,449
 Seeds                                                350,611         182,872
                                              --------------- ---------------

                                              $     3,450,549 $     2,400,027
==============================================================================



5.       CAPITAL  ASSETS

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

                                               February 28,       August 31,
                                                       2002             2001
------------------------------------------------------------------------------

Office equipment                             $       204,258  $       199,348
Warehouse equipment                                  659,282          651,581
Buildings                                          2,083,585        2,072,155
Land                                                 851,568          845,632
                                             ---------------  ----------------

                                                   3,798,693        3,768,716
Accumulated depreciation                          (1,072,138)        (948,040)
                                             ---------------  ----------------

Net book value                               $     2,726,555  $     2,820,676
==============================================================================
<PAGE>
JEWETT-CAMERON TRADING COMPANY LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(Expressed in U.S. Dollars)
(Unaudited - Prepared by Management)
FEBRUARY 28, 2002

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


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 $184,300  (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

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

                                                February 28,       August 31,
                                                        2002             2001
------------------------------------------------------------------------------

Demand loan                                  $       941,276  $       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 February
         28, 2002 and 2001,  the Company  repurchased  20,000 and 28,500 shares,
         respectively,   at  an  aggregate   cost  of  $139,601  and   $125,177,
         respectively.

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)
(Unaudited - Prepared by Management)
FEBRUARY 28, 2002

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


10.      STOCK OPTIONS

         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.

         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 February 28, 2002, 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
                   12,000           Cdn$  7.50         April 30, 2003
         =======================================================================

         Following is a summary of the status of the plan during 2002 and 2001:

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

                                                                     Weighted
                                                                      Average
                                                       Number        Exercise
                                                    of Shares           Price
         ---------------------------------------------------------------------

         Outstanding at August 31, 2000                 90,000      Cdn$ 5.14
             Granted                                        -              -
             Forfeited                                      -              -
             Exercised                                 (12,000)          8.25
                                                --------------

         Outstanding at August 31, 2001                 78,000           4.66
             Granted/repriced                           12,000           8.55
             Forfeited                                      -              -
             Exercised                                  (8,000)          8.25
                                                --------------

         Outstanding at February 28, 2002               82,000      Cdn$ 4.73
         =====================================================================
<PAGE>
JEWETT-CAMERON TRADING COMPANY LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(Expressed in U.S. Dollars)
(Unaudited - Prepared by Management)
FEBRUARY 28, 2002

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


10.      STOCK  OPTIONS (cont'd...)

         Following is a summary of the status of options outstanding at February
         28, 2002:
<TABLE>
<CAPTION>

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

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

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

<S>                          <C>             <C>       <C>                   <C>        <C>
Cdn$  4.25                   70,000          4.44   Cdn$     4.25            70,000  Cdn$     4.25
Cdn$  8.55                   12,000          1.17   Cdn$     7.50            12,000  Cdn$     8.55
====================================================================================================
</TABLE>


         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 February 28, 2002 was $20,340 (2001
         - $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:


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

                                        February 28,     February 28,
                                                2002             2001
----------------------------------------------------------------------

Net income
    As reported                      $       165,131  $       131,459
                                     ================ ================

    Pro forma                        $       155,159  $       131,459
                                     ================ ================

Basic earnings per share
    As reported                      $          0.17  $          0.13
                                     ================ ================

    Pro forma                        $          0.16  $          0.13
                                     ================ ================

Diluted earnings per share

    As reported                      $          0.16  $          0.13
                                     ================ ================


    Pro forma                        $          0.15  $          0.13
======================================================================
<PAGE>
JEWETT-CAMERON TRADING COMPANY LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(Expressed in U.S. Dollars)
(Unaudited - Prepared by Management)
FEBRUARY 28, 2002

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


10.      STOCK  OPTIONS (cont'd...)

         The weighted  average  estimated  fair value of stock  options  granted
         during the periods  ended  February 28, 2002 and 2001 were Cdn$3.98 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:

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

                                                February 28,  February 28,
                                                        2002          2001
---------------------------------------------------------------------------

Risk-free interest rate                                  3%          -
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.


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
            February  28,  2002 and 2001 and  August 31,  2001,  90,000 of these
            shares  were earned by the  employees  under this plan but remain in
            the trust (Note 9).

         b) At  February  28,  2002 and 2001,  the  Company  had an  un-utilized
            line-of-credit   of   approximately   $3,700,000   and   $1,900,000,
            respectively.


12.      SEGMENTED INFORMATION

         The Company has three principal operating segments: the sales of lumber
         and  building  materials  to home  improvement  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.
<PAGE>
JEWETT-CAMERON TRADING COMPANY LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(Expressed in U.S. Dollars)
(Unaudited - Prepared by Management)
FEBRUARY 28, 2002

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


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


         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 six month
         periods:

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

                                            February 28,     February 28,
                                                    2002             2001
--------------------------------------------------------------------------

Sales to unaffiliated customers:
    Building materials                   $     5,660,571  $     6,885,023
    Industrial tools                             363,338          453,636
    Seed processing services and sales         1,497,074          926,656
                                         ---------------  ---------------

                                         $     7,520,983  $     8,265,315
                                         ================ ================

Income from operations:
    Building materials                   $        96,213  $       172,675
    Industrial tools                              41,346           36,804
    Seed processing services and sales           193,702           37,885
    General corporate                            (37,907)         (55,462)
                                         ---------------  ---------------

                                         $       293,354  $       191,902
                                         ================ ================

Identifiable assets:
    Building materials                   $     7,053,439  $     9,894,578
    Industrial tools                             112,299          117,608
    Seed processing services and sales         1,010,414          566,059
    General corporate                             15,958          118,059
                                         ---------------  ---------------

                                         $     8,192,110  $    10,696,304
                                         ================ ================


                                  - continued -
<PAGE>
JEWETT-CAMERON TRADING COMPANY LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(Expressed in U.S. Dollars)
(Unaudited - Prepared by Management)
FEBRUARY 28, 2002

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


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


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

                                                 February 28,     February 28,
                                                         2002             2001
-------------------------------------------------------------------------------

Cont'd...

Depreciation and amortization:
    Building materials                        $       123,462  $        93,460
    Industrial tools                                       -               549
    Seed processing services and sales                     -                -
                                              ---------------  --------------

                                              $       123,462  $        94,009
                                              ================ ===============

Capital expenditures:
    Building materials                        $         8,758  $        63,953
    Seed processing services and sales                 20,583        1,530,762
                                              ---------------  ---------------

                                              $        29,341  $     1,594,715
                                              ================ ===============

Interest expense:
    Building materials                        $         3,289  $        52,863
    Industrial tools                                       -                -
    Seed processing services and sales                     -                -
                                              ---------------  ---------------

                                              $         3,289  $        52,863
===============================================================================

         For the six month periods ended  February 28, 2002 and 2001 the Company
         made sales of $3,317,473  (2001 - $2,189,199)  and  $1,544,073  (2001 -
         $3,118,008) to customers of the building  material  segments which were
         in excess of 10% of total sales for the six month periods.


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 February 28, 2002, two customers  totalling $573,340 and
         $143,928 and at February 28, 2001, four customers  totalling  $501,379,
         $1,372,537, $243,010 and $231,733, 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.
<PAGE>
JEWETT-CAMERON TRADING COMPANY LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(Expressed in U.S. Dollars)
(Unaudited - Prepared by Management)
FEBRUARY 28, 2002

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14.      SUPPLEMENTAL DISCLOSURES WITH RESPECT TO CASH FLOWS

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                                                February 28,     February 28,
                                                        2002             2001
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Cash paid during the period for:
    Interest                                 $         2,251  $         3,289
    Income taxes                                          -                -
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         There  were no  significant  non-cash  transactions  for the six  month
         periods ended February 28, 2002 and 2001.


15.      SUBSEQUENT EVENT

         On March 1, 2002 the Company  entered into an agreement  with Greenwood
         Forest  Products,  Inc.  ("Greenwood")  to  acquire  certain  assets of
         Greenwood.  The assets being  acquired  consist of nearly $7 million of
         inventory,  purchased in seven installments over the next two years for
         a price equal to the seller's cost plus 2%; furnishings,  equipment and
         supplies for $260,000  payable at closing;  and a license to use all of
         the  intangible  assets of the  seller  for a five year  term,  with an
         option to  purchase  the  intangible  assets  for a  nominal  amount of
         $1,000, payable at closing.

         Greenwood  is  in  the  business  of  processing  and  distribution  of
         industrial wood and other specialty building  products,  principally to
         original equipment manufacturers.