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 29, 2000

                                       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 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 29, 2000. Common Stock, no par value
1,075,162 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 2000, ended
February 29, 2000, as sales decreased over the first quarter of Fiscal 2000.
Gross sales decreased $1,241,419 during the second quarter of Fiscal 2000 as
compared to the second quarter of Fiscal 1999. During the second quarter of
Fiscal 2000, the Company experienced a decrease in net income of $113,991 as
compared to the second quarter of Fiscal 1999. Management believes that 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 $41,587 for the second quarter of Fiscal 2000
and net income for the first six months of Fiscal 2000 of $117,760.

RESULTS OF OPERATIONS:

THREE MONTHS ENDED FEBRUARY 29, 2000 and 1999:

For the second quarter of the current fiscal year, ending February 29, 2000,
sales decreased 29.4% to $2,985,720 compared to $4,227,139 for the same quarter
of the previous year.

Sales for Jewett-Cameron Lumber were $2,728,783 million for the quarter, down
27.4% compared to sales of $3,758,478 million for the second quarter of last
year.

Sales for MSI-PRO (pneumatic tools and industrial clamps) were $259,469 for the
second quarter compared to $257,877 for the second quarter of last year, an
increase of $1,592.

Sales for Jewett-Cameron South Pacific in the Kingdom of Tonga were zero for the
second quarter compared to $2,933 for the second quarter of last year. The
Company has almost completed winding down its operations in the Kingdom of
Tonga.

General and administrative expenses for the Company were $482,942 for the second
quarter down from $640,439 for the second quarter of last year. The primary
reasons for the decrease of $157,497 are decreases of $10,093 in depreciation
and amortization; $16,555 in travel, entertainment and advertising; $69,337 in
wages and employee benefits; $17,232 in office and miscellaneous related
expenses; $2,953 in insurance; $5,640 in professional fees; $8,362 in telephone;
and, $1,236 in repairs and maintenance. An increase; however, did occur in the
category of warehouse expenses and supplies of $13,911.

Net income for the quarter was $41,587 which represents a 73% decrease over the
second quarter of last year when net income was $155,578. The decrease in net
income was due to a decrease in sales of $1,241,419 over the same period last
year. Even though general and administrative expenses decreased by 25%; interest
income increased slightly; and, interest expense decreased, the loss in foreign
exchange of ($28,607) coupled with the decrease in sales caused the drop in net
income.


<PAGE>

Earnings per share (fully diluted) was $0.04 for the second quarter of Fiscal
2000 compared to $0.13 for the second quarter of fiscal 1999.

SIX MONTHS ENDED FEBRUARY 29, 2000:

Sales in the first six months of Fiscal 2000 decreased 11.1% to $7,135,436
compared to $8,026,176 in the same period last year.

Sales for Jewett-Cameron Lumber were $6,558,181 million for the six month
period, down 9.9% compared to sales of $7,275,714 million for the same period of
last year.

Sales for MSI-PRO (pneumatic tools and industrial clamps) were $532,883 for the
six month period compared to $539,669 for the same period of last year, down
1.2%.

Sales for Jewett-Cameron South Pacific in the Kingdom of Tonga were $44,372 for
the six month period compared to $210,784 for the same period of last year, down
78.9%. The Company is currently winding down its operations in the Kingdom of
Tonga.

General and administrative expenses for the Company were $1,023,142 for the six
month period down from $1,131,854 for the same period of last year. The primary
reasons for the decrease of $108,712 are decreases of $12,188 in depreciation
and amortization; $11,661 in travel, entertainment and advertising; $56,822 in
wages and employee benefits; $12,119 in office and miscellaneous related
expenses; $2,809 in insurance; and, $3,938 in telephone. An increase; however,
did occur in the categories of warehouse expenses and supplies of $12,409;
repairs and maintenance of $1,430; and, professional fees of $16,986.

Net income for the first six months of Fiscal 2000 was $117,760 which represents
a 49.3% decrease over the first six months of last year when net income was
$232,171. The decrease in net income was due to a decrease in sales of $890,731
over the same period last year. Even though general and administrative expenses
decreased by 10%; interest income increased slightly; and, interest expense
decreased, the loss in foreign exchange of ($29,292) coupled with the decrease
in sales caused the drop in net income.

Earnings per share (fully diluted) was $0.11 for the first six months of Fiscal
2000 compared to $0.20 for the same period of fiscal 1999.

LIQUIDITY AND CAPITAL RESOURCES

As of February 29, 2000 the Company had working capital of $4,096,864 which
represented an increase of $319,115 as compared to the working capital position
of $3,777,749 as of February 28, 2000. The increase in working capital was due
to an increase in cash and cash equivalents of $95,914 and a decrease in
accounts payable and current liabilities of $1,059,893.

Accounts Receivable and Inventory represented 94% 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 29, 2000 of $2,207,877. As
of the end of Fiscal 2000 (August 31st) the Company had an outstanding balance
of $87,883 and at the end of the second quarter of Fiscal 2000, the Company had
an outstanding balance of $2,391,339.

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.


<PAGE>

IMPACT OF THE YEAR 2000 ISSUE:

The Year 2000 Issue arises because many computerized systems use two digits
rather than four to identify a year. Date-sensitive systems may recognize the
year 2000 as 1900 or some other date, resulting in errors when information using
year 2000 dates is processed. In addition, similar problems may arise in some
systems which use certain dates in 1999 to represent something other than a
date. Although the change in date has occurred, it is not possible to conclude
that all aspects of the Year 2000 Issue that may affect the company including
those related to customers, suppliers, or other third parties, have been fully
resolved.

ITEM 3.      QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT
             MARKET RISKS:

The Company does not have any derivative financial instruments as of February
29, 2000. 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

The Company operates a subsidiary in the Kingdom of Tonga. The Company's
business and financial condition is, therefore, sensitive to currency exchange
rates or any other restrictions imposed on its currency. Since the Company is
currently winding down its operations in the Kingdom of Tonga, management does
not expect the foreign currency exchange rates to significantly impact the
Company in the future.

                           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
                    14, 2000. 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 created by the
                         expiration of the directors' terms, to serve until the
                         year 2001 annual meeting of the shareholders and until
                         their successors shall be duly elected:

                           Director           Shares Voted  Shares Voted
                                              in Favor      Against
                           -----------------  ------------  ------------
                           Donald M. Boone      676,153            0
                           Jeffrey Lowe         676,153            0
                           James Schjelderup    676,153            0

         Item 5.           Other Information - None
         Item 6.(a)        Exhibit 27 - Financial Data Schedule
         Item 6.(b)        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: April 5, 2000                  /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 - See Notice to Reader)

                                FEBRUARY 29, 2000



<PAGE>

                        [Davidson & Company Letterhead]













                                NOTICE TO READER





We have  compiled  the  consolidated  balance  sheet of  Jewett-Cameron  Trading
Company  Ltd.  as at  February  29,  2000  and the  consolidated  statements  of
operations,  cash flows and  changes in  shareholders'  equity for the six month
period then ended from information provided by management.  We have not audited,
reviewed or otherwise  attempted to verify the accuracy or  completeness of such
information.  Readers are cautioned that these statements may not be appropriate
for their purposes.





                                                         "DAVIDSON & COMPANY"


Vancouver, Canada                                         Chartered Accountants

March 31, 2000




                          A Member of SC INTERNATIONAL

     Suite 1200, Stock Exchange Tower, 609 Granville Street, P.O. Box 10372,
                 Pacific Centre, Vancouver, BC, Canada, V7Y 1G6
                   Telephone (604) 687-0947 Fax (604) 687-6172

<PAGE>

JEWETT-CAMERON TRADING COMPANY LTD.
CONSOLIDATED BALANCE SHEETS
(Expressed in U.S. dollars)
(Unaudited - See Notice to Reader)
<TABLE>
<CAPTION>

                                                                                 February 29,    February 28,      August 31,
                                                                                         2000            1999            1999
                                                                               --------------- --------------- ---------------

<S>                                                                            <C>             <C>             <C>
ASSETS

Current
    Cash and cash equivalents                                                  $      95,914   $          -    $     223,949
    Accounts receivable                                                            1,502,843       2,427,470       2,492,312
    Income tax receivable                                                            211,650         128,003              -
    Inventory                                                                      5,069,136       5,237,111       2,666,835
    Prepaid expenses                                                                 100,549         111,726          28,543
                                                                               -------------   -------------   -------------

    Total current assets                                                           6,980,092       7,904,310       5,411,639

Capital assets (Note 3)                                                            1,433,575       1,572,743       1,511,067
Trademarks (Note 4)                                                                       -          179,931              -
Deferred income taxes (Note 5)                                                       217,200         203,200         217,200
Deposits                                                                              74,345          74,345          74,345
                                                                               -------------   -------------   -------------

                                                                               $   8,705,212   $   9,934,529   $   7,214,251
                                                                               =============== =============== ===============

LIABILITIES AND SHAREHOLDERS' EQUITY

Current
    Bank indebtedness (Note 6)                                                 $   2,207,877   $   2,391,339   $      87,883
    Accounts payable and accrued liabilities                                         675,329       1,735,222       1,142,289
                                                                               -------------   -------------   -------------

    Total current liabilities                                                      2,883,206       4,126,561       1,230,172
                                                                               -------------   -------------   -------------

Shareholders' equity
    Capital stock
       Authorized
              20,000,000  common shares, without par value
              10,000,000  preferred shares, without par value
       Issued
               1,075,162  common shares (February 28, 1999 - 1,157,162;
                          August 31, 1999 - 1,157,162)                             1,795,157       1,932,097       1,932,097
    Additional paid-in capital                                                       582,247         582,247         582,247
    Retained earnings                                                              3,614,550       3,428,796       3,789,134
                                                                               -------------   -------------   -------------

                                                                                   5,991,954       5,943,140       6,303,478
    Less:  Treasury stock - 32,800 common shares (February 28, 1999 -
                           26,500;  August 31, 1999 - 61,900)                       (169,948)       (135,172)       (319,399)
                                                                               -------------   -------------   -------------

                                                                                   5,822,006       5,807,968       5,984,079
                                                                               -------------   -------------   -------------

                                                                               $   8,705,212   $   9,934,529   $   7,214,251
                                                                               =============== =============== ===============
</TABLE>

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 - See Notice to Reader)
<TABLE>
<CAPTION>

                                             Three month    Three month       Six month       Six month
                                            period ended   period ended    period ended    period ended
                                            February 29,   February 28,    February 29,    February 28,
                                                    2000           1999            2000            1999
                                         --------------- -------------- --------------- ---------------
<S>                                      <C>             <C>            <C>             <C>
SALES                                    $   2,985,720   $   4,227,139  $   7,135,436   $   8,026,167

COST OF SALES                               (2,364,563)     (3,403,566)    (5,862,303)     (6,599,050)
                                         -------------   -------------  -------------   -------------

GROSS PROFIT                                   621,157         823,573      1,273,133       1,427,117


GENERAL AND ADMINISTRATIVE
EXPENSES - Schedule                           (482,942)       (640,439)    (1,023,142)     (1,131,854)
                                         -------------   -------------  -------------   -------------


Income from operations                         138,215         183,134        249,991         295,263
                                         -------------   -------------  -------------   -------------


OTHER ITEMS
    Loss on disposal of capital assets         (41,582)             -         (41,582)             -
    Interest and other income                    6,262           4,020         16,437          13,879
    Interest expense                           (17,701)        (19,356)       (17,794)        (31,855)
    Foreign exchange gain (loss)               (28,607)         13,780        (29,292)         13,884
                                         -------------   -------------  -------------   -------------

                                               (81,628)         (1,556)       (72,231)         (4,092)
                                         -------------   -------------  -------------   -------------


Income before income taxes                      56,587         181,578        177,760         291,171


Income taxes                                   (15,000)        (26,000)       (60,000)        (59,000)
                                         -------------   -------------  -------------   -------------


Net income for the period                $      41,587   $     155,578  $     117,760   $     232,171
                                         =============   =============  =============   =============


Basic earnings per share                 $        0.04   $        0.14  $        0.11   $        0.20
                                         =============   =============  =============   =============


Diluted earnings per share               $        0.04   $        0.13  $        0.11   $        0.19
                                         =============   =============  =============   =============

</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 - See Notice to Reader)
<TABLE>
<CAPTION>

                                             Three month    Three month       Six month       Six month
                                            period ended   period ended    period ended    period ended
                                            February 29,   February 28,    February 29,    February 28,
                                                    2000           1999            2000            1999
                                         --------------- -------------- --------------- ---------------
<S>                                      <C>             <C>            <C>             <C>
Bad debt (recovery)                      $     (40,000)  $          -   $     (40,000)  $          -


Depreciation and amortization                   28,942          39,035         59,316          71,504


Insurance                                       11,965          14,918         24,438          27,247


Office and miscellaneous                        56,277          73,509        108,732         120,851


Professional fees                               39,580          45,220         77,719          60,733


Repairs and maintenance                          8,694           9,930         23,361          21,931


Telephone and utilities                         19,270          27,632         40,892          44,830


Travel, entertainment and advertising           38,992          55,547         76,747          88,408


Warehouse expenses and supplies                 23,176           9,265         41,714          29,305


Wages and employee benefits                    296,046         365,383        610,223         667,045
                                         -------------   -------------  -------------   -------------


                                         $     482,942   $     640,439  $   1,023,142   $   1,131,854
                                         =============== ============== =============== ===============
</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 - See Notice to Reader)
<TABLE>
<CAPTION>
                                                                              Six month       Six month
                                                                           period ended    period ended
                                                                           February 29,    February 28,
                                                                                   2000            1999
                                                                          -------------- ---------------
<S>                                                                       <C>            <C>
CASH FLOWS FROM OPERATING ACTIVITIES
    Net income                                                            $     117,760  $     232,171
    Items not involving an outlay of cash:
       Depreciation and amortization                                             59,316         71,504
       Loss on disposal of capital assets                                        41,582             -

    Changes in non-cash working capital items:
       (Increase) decrease in accounts receivable                               989,469       (421,200)
       Increase in income tax receivable                                       (211,650)      (128,003)
       Increase in inventory                                                 (2,402,301)    (2,188,308)
       Increase in prepaid expenses                                             (72,006)       (65,973)
       Increase in bank indebtedness                                          2,119,994      1,624,018
       Increase (decrease) in accounts payable and accrued liabilities         (466,960)       998,960
                                                                          -------------  -------------

    Net cash provided by operating activities                                   175,204        123,169
                                                                          -------------  -------------


CASH FLOWS FROM FINANCING ACTIVITIES
    Treasury shares acquired                                                   (279,833)      (151,896)
    Capital stock issued                                                             -          11,043
                                                                          -------------  -------------

    Net cash used in financing activities                                      (279,833)      (140,853)
                                                                          -------------  -------------


CASH FLOWS FROM INVESTING ACTIVITIES
    Purchase of capital assets                                                  (23,406)       (35,245)
                                                                          -------------  -------------

    Net cash used in investing activities                                       (23,406)       (35,245)
                                                                          -------------  -------------


Change in cash and cash equivalents for the period                             (128,035)       (52,929)


Cash and cash equivalents, beginning of period                                  223,949         52,929
                                                                          -------------  -------------


Cash and cash equivalents, end of period                                  $      95,914  $          -
                                                                          ============== ===============

Supplemental disclosure with respect to cash flows (Note 10)
</TABLE>


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


<PAGE>

JEWETT-CAMERON TRADING COMPANY LTD.
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
(Expressed in U.S. Dollars)
(Unaudited - See Notice to Reader)
<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, 1998              1,176,762  $ 1,960,368       20,600  $   117,630   $  582,247  $ 3,291,664  $ 5,716,649

Net income for the year                    -            -            -            -            -         592,509      592,509
Stock options exercised                   4,000       11,044         -            -            -            -          11,044
Shares cancelled                        (23,600)     (39,315)        -            -            -            -         (39,315)
Treasury shares acquired                   -            -          64,900      336,123         -            -        (336,123)
Treasury shares cancelled                  -            -         (23,600)    (134,354)        -            -         134,354
Premium relating to cancellation
    of share capital                         -            -            -            -            -       (95,039)     (95,039)
                                    -----------  -----------  -----------  -----------   ----------  -----------  -----------

Balance, August 31, 1999              1,157,162  $ 1,932,097       61,900  $   319,399   $  582,247  $ 3,789,134  $ 5,984,079
                                    ============ ============ ============ ============= =========== ============ ============

Balance, August 31, 1998              1,176,762  $ 1,960,368       20,600  $   117,630   $  582,247  $ 3,291,664  $ 5,716,649

Net income for the period                  -            -            -            -            -         232,171      232,171
Stock options exercised                   4,000       11,044         -            -            -            -          11,044
Shares cancelled                        (23,600)     (39,315)        -            -            -            -         (39,315)
Treasury shares acquired                     -            -        29,500      151,896         -            -        (151,896)
Treasury shares cancelled                    -            -       (23,600)    (134,354)        -            -         134,354
Premium relating to cancellation
    of capital stock                         -            -            -            -            -       (95,039)     (95,039)
                                    -----------  -----------  -----------  -----------   ----------  -----------  -----------

Balance, February 28, 1999            1,157,162  $ 1,932,097       26,500  $   135,172   $  582,247  $ 3,428,796  $ 5,807,968
                                    ============ ============ ============ ============= =========== ============ ============

Balance, August 31, 1999              1,157,162  $ 1,932,097       61,900  $   319,399   $  582,247  $ 3,789,134  $ 5,984,079

Net income for the period                    -            -            -            -            -       117,760      117,760
Shares cancelled                        (82,000)    (136,940)          -            -                         -      (136,940)
Treasury shares acquired                     -            -        52,900      279,833           -            -      (279,833)
Treasury shares cancelled                    -            -       (82,000)    (429,284)          -            -       429,284
                                                                                  -
Premium relating to cancellation
    of capital stock                         -            -            -            -            -      (292,344)    (292,344)
                                    -----------  -----------  -----------  -----------   ----------  -----------  -----------

Balance, February 29, 2000            1,075,162  $ 1,795,157       32,800  $   169,948   $  582,247  $ 3,614,550  $ 5,822,006
                                    ============ ============ ============ ============= =========== ============ ============

</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 - See Notice to Reader)
FEBRUARY 29, 2000
--------------------------------------------------------------------------------
1.      NATURE OF OPERATIONS

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

        The Company and its  subsidiaries  operate as a wholesaler of lumber and
        other building products,  as a distributor of industrial tools, and as a
        retailer of building materials.

2.      SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

        Generally accepted accounting principles

        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, 1999. The results of operations for the period
        ended February 29, 2000 are not necessarily indicative of the results to
        be expected for the year ending August 31, 2000.

        Principles of consolidation

        These  consolidated  financial  statements  include the  accounts of the
        Company and its wholly-owned  subsidiaries,  The  Jewett-Cameron  Lumber
        Corporation, MSI-Pro Co., and Material Supply International Inc., all of
        which  are   incorporated   under  the  laws  of  Oregon,   U.S.A.   and
        Jewett-Cameron  South Pacific Ltd., which is incorporated under the laws
        of Tonga.

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

        Estimates

        The  preparation  of financial  statements in conformity  with generally
        accepted accounting principles required 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.

        Currency

        These  financial  statements  are  expressed  in  U.S.  dollars  as  the
        Company's operations are based predominantly in the United States.

        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 and net  realizable  value
        based on the average cost method.

        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
          Automotive equipment                 4 years
          Buildings                            5- 30 years
<PAGE>
JEWETT-CAMERON TRADING COMPANY LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(Expressed in U.S. dollars)
(Unaudited - See Notice to Reader)
FEBRUARY 29, 2000
--------------------------------------------------------------------------------
2.      SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont'd.....)

        Foreign exchange

       The Company accounts for foreign currency transactions and translation of
       foreign  currency  financial  statements  under  Statement  of  Financial
       Accounting Standards No. 52, "Foreign Currency  Translation" ("SFAS 52").
       Transaction  amounts  denominated in foreign currencies are translated at
       exchange  rates  prevailing  at  transaction  dates.  Carrying  values of
       monetary  assets and  liabilities are adjusted at each balance sheet date
       to reflect  the  exchange  rate at that  date.  Non  monetary  assets and
       liabilities   are  translated  at  the  exchange  rate  on  the  original
       transaction  date.  Gains and losses from restatement of foreign currency
       monetary and non-monetary  assets and liabilities are included in income.
       Revenues and expenses are translated at the rates of exchange  prevailing
       on the dates such items are recognized in earnings.

        Trademarks

        The  Company   accounts  for  costs  of  acquiring  its   trademarks  by
        capitalizing all costs of acquisition.  These costs will be amortized to
        income over periods ranging from five to fifteen years.

        Comparative figures

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

        Financial instruments

        The   Company's   financial   instruments   consist  of  cash  and  cash
        equivalents,  accounts receivable, income tax receivable, deposits, bank
        indebtedness  and  accounts  payable  and  accrued  liabilities.  Unless
        otherwise  noted,  it is  management's  opinion  that the Company is not
        exposed to significant  interest,  currency or credit risks arising from
        these  financial   instruments.   The  fair  value  of  these  financial
        instruments approximate their carrying values, unless otherwise noted.

        Earnings per share

        Basic earnings per share is computed  using the weighted  average number
        of shares outstanding during the period.

        Diluted   earnings  per  share  consider  the  dilutive  impact  of  the
        conversion of outstanding stock options as if the events occurred during
        the period.

        The earnings per share data for the periods ended  February 29, 2000 and
        February 28, 1999 is summarized as follows:
<TABLE>
<CAPTION>
                                                             Three Month      Three Month        Six Month       Six Month
                                                            Period Ended     Period Ended     Period Ended    Period Ended
                                                            February 29,     February 28,     February 29,    February 28,
                                                                    2000             1999             2000            1999
                                                          --------------- ---------------- ---------------- ---------------
<S>                                                       <C>             <C>              <C>              <C>
        Net income                                        $       41,587  $       155,578  $       117,760  $      232,171
                                                          ==============  ===============  ===============  ==============
        Basic earnings per share weighted
            average number of shares outstanding               1,055,255        1,166,919        1,055,255       1,166,919
        Effect of dilutive securities
            Stock options                                         28,880           35,863           28,880          35,863
                                                          --------------  ---------------  ---------------  --------------
        Diluted earnings per share weighted
            average number of shares outstanding               1,084,135        1,202,782        1,084,135       1,202,782
                                                          =============== ================ ================ ===============
</TABLE>
<PAGE>
JEWETT-CAMERON TRADING COMPANY LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(Expressed in U.S. dollars)
(Unaudited - See Notice to Reader)
FEBRUARY 29, 2000
--------------------------------------------------------------------------------
2.      SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont'd.....)

        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".


3.      CAPITAL ASSETS


                                  February 29,    February 28,      August 31,
                                          2000            1999            1999
                                 -------------   -------------   -------------

        Office equipment         $     181,703   $     179,389   $     210,652
        Warehouse equipment            210,551         214,182         213,751
        Automotive equipment            43,871          59,009          46,159
        Building                     1,378,802       1,463,266       1,410,058
        Land                           372,562         344,892         365,522
                                 -------------   -------------   -------------

                                     2,187,489       2,260,738       2,246,142

        Accumulated depreciation      (753,914)       (687,995)       (735,075)
                                 -------------   -------------   -------------

        Net book value           $   1,433,575   $   1,572,743   $   1,511,067
                                 =============   =============   =============


4.      TRADEMARKS

                                  February 29,    February 28,      August 31,
                                          2000            1999            1999
                                 -------------   -------------   -------------

        Trademarks               $     283,914   $     283,914   $     283,914
        Accumulated amortization      (118,474)       (103,983)       (118,474)
        Write-down of trademarks      (165,440)             -         (165,440)
                                 -------------   -------------   -------------

        Net book value           $          -    $     179,931   $          -
                                 =============== =============== ===============



5.      DEFERRED INCOME TAXES

        Deferred income taxes of $217,200 (February 28, 1999 - $203,200;  August
        31, 1999 - $217,200) relate  principally to timing  differences  between
        the  accounting  and tax  treatment  of income,  expenses,  reserves and
        depreciation.
<PAGE>
JEWETT-CAMERON TRADING COMPANY LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(Expressed in U.S. dollars)
(Unaudited - See Notice to Reader)
FEBRUARY 29, 2000
--------------------------------------------------------------------------------
6.      BANK INDEBTEDNESS


                               February 29,    February 28,      August 31,
                                       2000            1999            1999
                             --------------- --------------- ---------------

        Demand loan          $   2,207,877   $   2,391,339   $      87,883
                             =============== =============== ===============

        The 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.


7.      STOCK OPTIONS

        At  February  29,  2000,  the Company had the  following  stock  options
        outstanding  enabling  the  holders  to  purchase  common  shares of the
        Company:


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

           12,000     Cdn  $ 8.25        December 31, 2000
           70,000     Cdn  $ 4.25        August 6, 2006
        ==========         =========     =================



8.      EMPLOYEE STOCK OWNERSHIP PLAN

        The Company  sponsored 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 value of the shares released
        by the Trustee under the plan's provisions for allocation was recognized
        as an expense of $Nil,  $Nil and $90,170 for the periods ended  February
        29, 2000, February 28, 1999 and August 31, 1999, respectively.


                               February 29,    February 28,      August 31,
                                       2000            1999            1999
                             --------------- --------------- ---------------

        Allocated shares           107,000          90,000         107,000
        Total ESOP shares          107,000          90,000         107,000
                             =============== =============== ===============


<PAGE>
JEWETT-CAMERON TRADING COMPANY LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(Expressed in U.S. dollars)
(Unaudited - See Notice to Reader)
FEBRUARY 29, 2000
--------------------------------------------------------------------------------
9.      CONTINGENT LIABILITIES AND COMMITMENTS


        At February 29, 2000, February 28, 1999 and August 31, 1999, the Company
        had  an  un-utilized   line-of-credit   of   approximately   $4,300,000,
        $1,300,000 and $6,400,000, respectively.


10.      SUPPLEMENTAL DISCLOSURE WITH RESPECT TO CASH FLOWS
<TABLE>
<CAPTION>
                                              February 29,    February 28,      August 31,
                                                      2000            1999            1999
                                            --------------- --------------- ---------------
<S>                                         <C>             <C>             <C>
         Cash paid during the period for:
             Interest                       $      16,437   $      31,855   $      93,701
             Income taxes                         441,157         257,667         433,157
                                            =============== =============== ===============
</TABLE>

         Significant  non-cash  transactions  for the  six  month  period  ended
         February 29, 2000 are as follows:

            The Company cancelled 82,000 treasury shares  repurchased at a price
            of $429,284  which had an original  cost  $136,940.  The  difference
            between the original cost and purchase price of $292,344 was applied
            against retained  earnings as a premium relating to the cancellation
            of share capital.


         Significant  non-cash  transactions  for the  six  month  period  ended
         February 28, 1999 are as follows:

            The Company cancelled 23,600 treasury shares, repurchased at a price
            of $134,354,  which had an original cost of $39,315.  The difference
            of $95,039  between the original cost and purchase price was applied
            against retained  earnings as a premium relating to the cancellation
            of share capital.



11.      SEGMENTED INFORMATION


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

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

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

<PAGE>
JEWETT-CAMERON TRADING COMPANY LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(Expressed in U.S. dollars)
(Unaudited - See Notice to Reader)
FEBRUARY 29, 2000
--------------------------------------------------------------------------------
11.      SEGMENTED INFORMATION (cont'd.....)

         Following  is a  summary  of  segmented  information  for the six month
         periods  ended  February  29, 2000 and  February  28, 1999 and the year
         ended August 31, 1999:
<TABLE>
<CAPTION>
                                              February 29,    February 28,       August 31,
                                                      2000            1999             1999
                                           ---------------- --------------- ----------------
<S>                                        <C>              <C>             <C>
         Sales to unaffiliated customers:
             Building Materials:
                United States              $    6,558,181   $    7,275,714  $   27,707,986
                South Pacific                      44,372          210,784         316,757
             Industrial tools                     532,883          539,669       1,077,530
                                           --------------   --------------  --------------

                                           $    7,135,436   $    8,026,167  $   29,102,273
                                           ================ =============== ================
         Income from operations:
             Building Materials:
                United States              $      267,437   $      367,425  $    1,583,793
                South Pacific                     (44,044)         (62,717)       (138,126)
             Industrial tools                      80,338           61,341         116,902
             General corporate                    (53,740)         (70,786)       (111,654)
                                           --------------   --------------  --------------

                                           $      249,991   $      295,263  $    1,450,915
                                           ================ =============== ================
         Identifiable assets:
             Building Materials:
                United States              $    8,119,130   $    8,966,092  $    6,521,677
                South Pacific                     334,884          710,922         464,719
             Industrial tools                     146,479          146,017         117,549
             General corporate                    104,719          111,498         110,306
                                           --------------   --------------  --------------

                                           $    8,705,212   $    9,934,529  $    7,214,251
                                           ================ =============== ================

         Depreciation and amortization:
             Building Materials:
                United States              $       57,657   $       65,147  $      152,591
                South Pacific                       1,110            5,359          16,250
             Industrial tools                         549              998           1,594
                                           --------------   --------------  --------------

                                           $       59,316   $       71,504  $      170,435
                                           ================ =============== ================
         Capital expenditures:
             Building Materials:
                United States              $       23,406   $       32,972  $      112,411
                South Pacific                          -             2,273              -
                                           --------------   --------------  -------------

                                           $       23,406   $       35,245  $      112,411
                                           ================ =============== ================
</TABLE>


<PAGE>
JEWETT-CAMERON TRADING COMPANY LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(Expressed in U.S. dollars)
(Unaudited - See Notice to Reader)
FEBRUARY 29, 2000
--------------------------------------------------------------------------------
12.     UNCERTAINTY DUE TO THE YEAR 2000

        The Year 2000 Issue  arises  because many  computerized  systems use two
        digits rather than four to identify a year.  Date-sensitive  systems may
        recognize the year 2000 as 1900 or some other date,  resulting in errors
        when  information  using  year 2000  dates is  processed.  In  addition,
        similar  problems may arise in some systems  which use certain  dates in
        1999 to represent  something  other than a date.  Although the change in
        date has  occurred,  it is not possible to conclude  that all aspects of
        the Year 2000 Issue that may affect the entity,  including those related
        to  customers,  suppliers,  or other  third  parties,  have  been  fully
        resolved.