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 May 31, 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 May 31, 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 up during the third quarter of Fiscal 2000, ended May
31, 2000, as sales increased substantially over the second quarter of Fiscal
2000, ended February 29, 2000. Gross sales decreased $619,977 during the third
quarter of Fiscal 2000 as compared to the third quarter of Fiscal 1999. During
the third quarter of Fiscal 2000, the Company experienced an increase in net
income of $18,048 as compared to the third quarter of Fiscal 1999. The overall
result was net income of $253,693 for the third quarter of Fiscal 2000 and net
income for the first nine months of Fiscal 2000 of $371,453.

RESULTS OF OPERATIONS:

THREE MONTHS ENDED May 31, 2000 and 1999:

For the third quarter of the current fiscal year, ending May 31, 2000, sales
decreased 5% to $10,299,697 compared to $10,849,674 for the same quarter of the
previous year.

General and administrative expenses for the Company were $665,001 for the third
quarter down from $766,566 for the third quarter of last year. The primary
reasons for the decrease of $101,565 are decreases of $5,134 in depreciation and
amortization; $3,727 in travel, entertainment and advertising; $130,689 in wages
and employee benefits; $1,595 in office and miscellaneous related expenses; and,
$28,879 in professional fees. Increases; however, did occur in the categories of
bad debt recovery of $39,558; warehouse expenses and supplies of $15,266; and,
repairs and maintenance of $$5,739 .

Net income for the quarter was $253,693. This represents a 7.7% increase over
the third quarter of last year when net income was $235,645. The increase in net
income was due primarily to a decrease in the cost of sales of $419,475 and a
decrease in general and administrative expenses of $101,555.

Earnings per share (fully diluted) was $0.23 for the third quarter of Fiscal
2000 compared to $0.20 for the third quarter of fiscal 1999.



<PAGE>

NINE MONTHS ENDED May 31, 2000:

Sales in the first nine months of Fiscal 2000 decreased 7.6% to $17,435,133
compared to $18,875,841 in the same period last year.

Sales for Jewett-Cameron Lumber were $16,581,802 million for the nine months
ended May 31, 2000, down 6.8% compared to sales of $17,802,645 million for the
same period of last year.

Sales for MSI-PRO (pneumatic tools and industrial clamps) were $807,729 for the
nine months ended May 31, 2000 compared to $824,621 for the same period of last
year, a decrease of $16,892.

Sales for Jewett-Cameron South Pacific in the Kingdom of Tonga were $45,602 for
the nine months ended May 31, 2000 compared to $248,575 for the same period 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 $1,688,143 for the nine
month period down from $1,898,410 for the same period of last year. The primary
reasons for the decrease of $210,267 are decreases of $17,322 in depreciation
and amortization; $15,388 in travel, entertainment and advertising; $187,511 in
wages and employee benefits; $13,714 in office and miscellaneous related
expenses; $2,943 in insurance; $5,898 in telephone and utilities; and, $1,893 in
professional fees. An increase; however, did occur in the categories of
warehouse expenses and supplies of $27,675; and, repairs and maintenance of
$7,169.

Net income for the first nine months of Fiscal 2000 was $371,453 which
represents a 20.6% decrease over the first nine months of last year when net
income was $467,816. The decrease in net income was due to a decrease in sales
of $1,440,708 over the same period last year. Even though general and
administrative expenses decreased by 11%; interest income decreased by 51.5%;
interest expense decreased by 28.5%, the loss in foreign exchange of ($40,452)
and the loss on disposal of capital assets of ($53,110) coupled with the
decrease in sales caused the drop in net income.

Earnings per share (fully diluted) was $0.35 for the first nine months of Fiscal
2000 compared to $0.40 for the same period of fiscal 1999.

LIQUIDITY AND CAPITAL RESOURCES

As of May 31, 2000 the Company had working capital of $4,289,794 which
represented an increase of $328,107 as compared to the working capital position
of $3,961,687 as of May 31, 2000. The increase in working capital was due to an
increase in cash and cash equivalents of $9,099; an increase in income tax
receivable of $99,350; a decrease in accounts payable and accrued liabilities of
$691,631 and a decrease in bank indebtedness of $499,949.

Accounts Receivable and Inventory represented 92.4% of current assets and both
continue to turn over at acceptable rates.

<PAGE>

External sources of liquidity include a bank line from the United States
National Bank of Oregon. The total lines of credit available are $6.5 million of
which there was an outstanding balance as of May 31, 2000 of $2,000,051. As of
the end of Fiscal 1999 August 31st) the Company had an outstanding balance of
$87,883 and at the end of the third quarter of Fiscal 1999, the Company had an
outstanding balance of $2,500,000.

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

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 May 31,
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.



<PAGE>

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 - None
     Item 5.      Other Information - None
     Item 6.(a)   Exhibit 27 - Financial Data Schedule
     Item 6.(b)   Reports on Form 8-K - None


                                   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: July 10, 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)

                                  MAY 31, 2000


<PAGE>



JEWETT-CAMERON TRADING COMPANY LTD.
CONSOLIDATED BALANCE SHEETS
(Expressed in U.S. dollars)
(Unaudited)
<TABLE>
<CAPTION>
                                                                                   May 31,         May 31,        August 31,
                                                                                    2000            1999            1999
                                                                               --------------- --------------- -------------
<S>                                                                            <C>             <C>             <C>
ASSETS

Current
    Cash and cash equivalents                                                  $     388,792   $     379,693   $     223,949
    Accounts receivable                                                            3,035,453       3,986,176       2,492,312
    Income tax receivable                                                             99,350              -               -
    Inventory                                                                      3,798,395       3,809,946       2,666,835
    Prepaid expenses                                                                  63,472          73,120          28,543
                                                                               -------------   -------------   -------------

    Total current assets                                                           7,385,462       8,248,935       5,411,639

Capital assets (Note 3)                                                            1,399,993       1,568,273       1,511,067

Trademarks (Note 4)                                                                       -          172,686              -

Deferred income taxes (Note 5)                                                       217,200         203,200         217,200

Deposits                                                                              74,745          74,345          74,345
                                                                               -------------   -------------   -------------

Total assets                                                                   $   9,077,400   $  10,267,439   $   7,214,251
                                                                               =============== =============== =============



LIABILITIES AND SHAREHOLDERS' EQUITY

Current
    Bank indebtedness (Note 6)                                                 $   2,000,051   $   2,500,000   $      87,883
    Accounts payable and accrued liabilities                                       1,095,617       1,787,248       1,142,289
                                                                               -------------   -------------   -------------

    Total current liabilities                                                      3,095,668       4,287,248       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 (May 31, 1999 - 1,157,162;
                          August 31, 1999 - 1,157,162)                             1,795,157       1,932,096       1,932,097
    Additional paid-in capital                                                       582,247         582,247         582,247
    Retained earnings                                                              3,868,243       3,664,441       3,789,134
                                                                               -------------   -------------   -------------

                                                                                   6,245,647       6,178,784       6,303,478
    Less: Treasury stock - 52,100 common shares (May 31, 1999 - 39,600;
                          August 31, 1999 - 61,900)                                 (263,915)       (198,593)       (319,399)
                                                                               -------------   -------------   -------------

    Total shareholders' equity                                                     5,981,732       5,980,191       5,984,079
                                                                               -------------   -------------   -------------

Total liabilities and shareholder's equity                                     $   9,077,400   $  10,267,439   $   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)
<TABLE>
<CAPTION>


                                                                  Three month     Three month      Nine month      Nine month
                                                                 period ended    period ended    period ended    period ended
                                                                      May 31,         May 31,         May 31,         May 31,
                                                                         2000            1999            2000            1999
                                                                --------------  --------------  --------------  --------------
<S>                                                             <C>             <C>             <C>             <C>

SALES                                                           $  10,299,697   $  10,849,674   $  17,435,133   $  18,875,841


COST OF SALES                                                      (9,054,795)     (9,474,270)    (14,917,098)    (16,073,320)
                                                                --------------  --------------  --------------  --------------


GROSS PROFIT                                                        1,244,902       1,375,404       2,518,035       2,802,521


GENERAL AND ADMINISTRATIVE
EXPENSES - Schedule                                                  (665,001)       (766,556)     (1,688,143)     (1,898,410)
                                                                --------------  --------------  --------------  --------------


Income from operations                                                579,901         608,848         829,892         904,111
                                                                --------------  --------------  --------------  --------------


OTHER ITEMS
    Loss on disposal of capital assets                                (11,528)             -          (53,110)             -
    Interest and other income                                             789          21,641          17,226          35,520
    Interest expense                                                  (55,709)        (70,891)        (73,503)       (102,746)
    Foreign exchange gain (loss)                                      (10,760)        (12,953)        (40,052)            931
                                                                --------------  --------------  --------------  --------------

                                                                      (77,208)        (62,203)       (149,439)        (66,295)
                                                                --------------  --------------  --------------  --------------

Income before income taxes                                            502,693         546,645         680,453         837,816


Income taxes                                                         (249,000)       (311,000)       (309,000)       (370,000)
                                                                --------------  --------------  --------------  --------------


Net income for the period                                       $     253,693   $     235,645   $     371,453   $     467,816
                                                                ==============  ==============  ==============  ==============


Basic earnings per share                                        $        0.24   $        0.21   $        0.36   $        0.41
                                                                ==============  ==============  ==============  ==============


Diluted earnings per share                                      $        0.23   $        0.20   $        0.35   $        0.40
                                                                ==============  ==============  ==============  ==============






</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)

<TABLE>
<CAPTION>
                                                                   Three month    Three month      Nine month       Nine month
                                                                  period ended   period ended    period ended     period ended
                                                                       May 31,        May 31,         May 31,          May 31,
                                                                          2000           1999            2000             1999
                                                                --------------  --------------  --------------  ---------------
<S>                                                             <C>             <C>             <C>             <C>

Bad debt (recovery)                                             $      39,558   $          -    $        (442)  $          -


Depreciation and amortization                                          30,967          36,101          90,283         107,605


Insurance                                                              15,563          15,697          40,001          42,944


Office and miscellaneous                                               59,932          61,527         168,664         182,378


Professional fees                                                      28,763          47,642         106,482         108,375


Repairs and maintenance                                                13,840           8,101          37,201          30,032


Telephone and utilities                                                20,793          22,753          61,685          67,583


Travel, entertainment and advertising                                  34,457          38,184         111,204         126,592


Wages and employee benefits                                           382,677         513,366         992,900       1,180,411


Warehouse expenses and supplies                                        38,451          23,185          80,165          52,490
                                                                --------------  --------------  --------------  ---------------


                                                                $     665,001   $     766,556   $   1,688,143   $   1,898,410
                                                                ==============  ==============  ==============  ==============

</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)
<TABLE>
<CAPTION>
                                                                                   Nine month      Nine month
                                                                                 period ended    period ended
                                                                                      May 31,         May 31,
                                                                                         2000            1999
                                                                                --------------  --------------

<S>                                                                             <C>             <C>

CASH FLOWS FROM OPERATING ACTIVITIES
    Net income for the period                                                   $     371,453   $     467,816
    Items not involving an outlay of cash:
       Depreciation and amortization                                                   90,283         107,605
       Bad debt                                                                          (442)             -
       Loss on disposal of capital assets                                              53,110              -

    Net change in non-cash working capital items:
       Increase in accounts receivable                                               (542,699)     (1,979,906)
       Increase in income taxes receivable                                            (99,350)             -
       Increase in inventory                                                       (1,131,560)       (761,143)
       Increase in prepaid expenses                                                   (34,929)        (27,367)
       Increase in bank indebtedness                                                1,912,168       1,732,679
       Increase (decrease) in accounts payable and accrued liabilities                (46,672)      1,050,985
                                                                                --------------  --------------

    Net cash provided by operating activities                                         571,362         590,669
                                                                                --------------  --------------


CASH FLOWS FROM FINANCING ACTIVITIES
    Treasury shares acquired                                                         (373,800)       (215,317)
    Capital stock issued                                                                   -           11,043
                                                                                --------------  --------------

    Net cash used in financing activities                                            (373,800)       (204,274)
                                                                                --------------  --------------


CASH FLOWS FROM INVESTING ACTIVITIES
    Purchase of capital assets                                                        (32,319)        (59,631)
    Deposits                                                                             (400)             -
                                                                                --------------  --------------

    Net cash used in investing activities                                             (32,719)        (59,631)
                                                                                --------------  --------------


Increase in cash and cash equivalents                                                 164,843         326,764


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


Cash and cash equivalents, end of period                                        $     388,792   $     379,693
                                                                                ==============  ==============

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)
<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                  -            -            -            -            -         467,816      467,816
Stock options exercised                   4,000       11,043         -            -            -            -          11,043
Shares cancelled                        (23,600)     (39,315)        -            -            -            -         (39,315)
Treasury shares acquired                     -            -        42,600      215,317         -            -        (215,317)
Treasury shares cancelled                    -            -       (23,600)    (134,354)        -            -         134,354
Premium relating to cancellation
    of capital stock                         -            -            -            -            -       (95,039)     (95,039)
                                    ------------ ------------ ------------ ------------- ----------- ------------ ------------

Balance, May 31, 1999                 1,157,162  $ 1,932,096       39,600  $   198,593   $  582,247  $ 3,664,441  $ 5,980,191
                                    ============ ============ ============ ============= =========== ============ ============


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                    -            -            -            -            -       371,453      371,453
Shares cancelled                        (82,000)    (136,940)          -            -                         -      (136,940)
Treasury shares acquired                     -            -        73,200      373,800           -            -      (373,800)
Treasury shares cancelled                    -            -       (83,000)    (429,284)          -            -       429,284
                                                                                  -
Premium relating to cancellation
    of capital stock                         -            -            -            -            -      (292,344)    (292,344)
                                    ------------ ------------ ------------ ------------- ----------- ------------ ------------

Balance, May 31, 2000                 1,075,162  $ 1,795,157       52,100  $   263,915   $  582,247  $ 3,868,243  $ 5,981,732
                                    ============ ============ ============ ============= =========== ============ ============

</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)
MAY 31, 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 May 31, 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.


<PAGE>

JEWETT-CAMERON TRADING COMPANY LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(Expressed in U.S. dollars)
(Unaudited)
MAY 31, 2000


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


        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


        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, deposits, bank indebtedness,  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.



<PAGE>

JEWETT-CAMERON TRADING COMPANY LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(Expressed in U.S. dollars)
(Unaudited)
MAY 31, 2000


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

        Earnings per share (cont'd.....)


        The earnings  per share data for the periods  ended May 31, 2000 and May
        31, 1999 is summarized as follows:


<TABLE>
<CAPTION>
                                                                  Three Month     Three Month      Nine Month       Nine Month
                                                                 Period Ended    Period Ended    Period Ended     Period Ended
                                                                      May 31,         May 31,         May 31,          May 31,
                                                                         2000            1999            2000             1999
                                                                --------------  --------------  --------------  ---------------
<S>                                                             <C>             <C>             <C>             <C>

         Net income                                             $     253,693   $     235,645   $     371,453   $      467,816
                                                                ==============  ==============  ==============  ===============

         Basic earnings per share weighted average
             number of shares outstanding                           1,042,362       1,130,662       1,042,362        1,130,662
         Effect of dilutive securities
             Stock options                                             28,880          31,774          28,880           31,774
                                                                --------------  --------------  --------------  ---------------

         Diluted earnings per share weighted average
             number of shares outstanding                           1,071,242       1,162,436       1,071,242        1,162,436
                                                                ==============  ==============  ==============  ===============
</TABLE>



        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".

        Accounting for derivative instruments and hedging activities

        In June 1998, the Financial Accounting Standards Board issued Statements
        of Financial  Accounting  Standards No. 133  "Accounting  for Derivative
        Instruments  and Hedging  Activities"  ("SFAS  133")  which  establishes
        accounting and reporting  standards for derivative  instruments  and for
        hedging  activities.  SFAS 133 is effective  for all fiscal  quarters of
        fiscal  years  beginning  after June 15,  1999.  In June 1999,  the FASB
        issued  SFAS  137 to defer  the  effective  date of SFAS  133 to  fiscal
        quarters of fiscal years beginning after June 15, 2000. The Company does
        not  anticipate   that  the  adoption  of  the  statement  will  have  a
        significant impact on its financial statements.

        Stock-based compensation

        Statement of Financial  Accounting  Standards No. 123,  "Accounting  for
        Stock-Based  Compensation,"  encourages, but does not require, companies
        to record compensation cost for stock-based employee  compensation plans
        at fair  value.  The  Company  has  chosen to  account  for  stock-based
        compensation   using   Accounting   Principles  Board  Opinion  No.  25,
        "Accounting  for Stock Issued to  Employees."  Accordingly  compensation
        cost for stock options is measured as the excess,  if any, of the quoted
        market  price of the  Company's  stock at the date of the grant over the
        amount an employee is required to pay for the stock.


<PAGE>

JEWETT-CAMERON TRADING COMPANY LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(Expressed in U.S. dollars)
(Unaudited)
MAY 31, 2000

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

        Comprehensive income

        In 1998, the Company adopted Statement of Financial Accounting Standards
        No. 130 ("SFAS 130"),  "Reporting  Comprehensive Income". This statement
        establishes  rules for the  reporting  of  comprehensive  income and its
        components.   The   adoption   of  SFAS  130  had  no  impact  on  total
        stockholders' equity as of May 31, 2000.


3.      CAPITAL ASSETS

<TABLE>
<CAPTION>

                                                                       May 31,         May 31,      August 31,
                                                                          2000            1999            1999
                                                                --------------  --------------  --------------
<S>                                                             <C>             <C>             <C>

        Office equipment                                        $     185,422   $     179,836   $     210,652
        Warehouse equipment                                           220,998         217,935         213,751
        Automotive equipment                                           43,871          59,009          46,159
        Building                                                    1,350,009       1,460,982       1,410,058
        Land                                                          375,593         367,362         365,522
                                                                --------------  --------------  --------------

                                                                    2,175,893       2,285,124       2,246,142
        Accumulated depreciation                                     (775,900)       (716,851)       (735,075)
                                                                --------------  --------------  --------------

        Net book value                                          $   1,399,993   $   1,568,273   $   1,511,067
                                                                ==============  ==============  ==============
</TABLE>

4.      TRADEMARKS

        Trademark  costs are comprised of development and legal fees incurred in
        establishing  and  maintaining  trademarks for the Company's  industrial
        tools  business.  The trademark costs are being amortized to income over
        periods ranging from five to fifteen years.
<TABLE>
<CAPTION>


                                                                      May 31,         May 31,      August 31,
                                                                         2000            1999            1999
                                                                --------------  --------------  --------------

<S>                                                             <C>             <C>             <C>
        Trademarks                                              $          -    $     283,914   $     283,914
        Accumulated amortization                                           -         (111,228)       (118,474)
        Write-down of trademarks                                           -               -         (165,440)
                                                                --------------  --------------  --------------

        Net book value                                          $          -    $     172,686   $          -
                                                                ==============  ==============  ==============
</TABLE>

5.      DEFERRED INCOME TAXES

        Deferred  income taxes of $217,200 (May 31, 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)
MAY 31, 2000


6.      BANK INDEBTEDNESS




                                         May 31,         May 31,      August 31,
                                            2000            1999            1999
                                 --------------- --------------- ---------------

        Demand loan                $   2,000,051   $   2,500,000   $      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 May 31, 2000, the Company had incentive stock options outstanding
        enabling the holders to purchase common shares of the Company as
        follows:


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

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


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 $20,000, $Nil and $90,170 for the periods ended May 31,
        2000, May 31, 1999 and August 31, 1999, respectively.


                                       May 31,         May 31,      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)
MAY 31, 2000


9.      CONTINGENT LIABILITIES


        At May 31, 2000, May 31, 1999 and August 31, 1999, the Company had an
        un-utilized line-of-credit of approximately $4,500,000, $4,000,000, and
        $6,400,000, respectively.



10.     SUPPLEMENTAL DISCLOSURE WITH RESPECT TO CASH FLOWS'


                                                       May 31,         May 31,
                                                          2000            1999
                                                 --------------- ---------------

        Cash paid for:
            Interest                             $      77,503   $     102,746
            Income taxes                               577,857         302,417



        Significant  non-cash  transactions  for the nine month period ended May
        31, 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 nine month period ended May
        31, 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)
MAY 31, 2000


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

         Following is a summary of segmented information for the nine month
         periods ended May 31, 2000 and 1999 and the year ended August 31, 1999:

<TABLE>
<CAPTION>

                                                      May 31,         May 31,      August 31,
                                                         2000            1999            1999
                                                --------------  --------------  --------------
<S>                                             <C>             <C>             <C>
         Sales to unaffiliated customers:
             Building Materials:
                United States                   $   16,581,802  $   17,802,645  $   27,707,986
                South Pacific                           45,602         248,575         316,757
             Industrial tools                          807,729         824,621       1,077,530
                                                --------------  --------------  --------------

                                                $   17,435,133  $   18,875,841  $   29,102,273
                                                ==============  ==============  ==============

         Income from operations:
             Building Materials:
                United States                   $      878,108  $    1,052,861  $    1,583,793
                South Pacific                          (93,317)       (133,225)       (138,126)
             Industrial tools                          121,301          80,825         116,902
             General corporate                         (76,200)        (96,350)       (111,654)
                                                --------------  --------------  --------------

                                                $      829,892  $      904,111  $    1,450,915
                                                ==============  ==============  ==============
         Identifiable assets:
             Building Materials:
                United States                   $    8,584,550  $    9,517,339  $    6,521,677
                South Pacific                          250,280         615,543         464,719
             Industrial tools                          126,919         123,376         117,549
             General corporate                         115,651          11,181         110,306
                                                --------------  --------------  --------------

                                                $    9,077,400  $   10,267,439  $    7,214,251
                                                ==============  ==============  ==============
         Depreciation and amortization:
             Building Materials:
                United States                   $       87,743  $      100,217  $      152,591
                South Pacific                            1,716           6,033          16,250
             Industrial tools                              824           1,355           1,594
                                                --------------  --------------  --------------

                                                $       90,283  $      107,605  $      170,435
                                                ==============  ==============  ==============

         Capital expenditures:
             Building Materials:
                United States                   $       32,319  $       57,358  $      112,411
                South Pacific                               -            2,273              -
                                                --------------  --------------  --------------

                                                $       32,319  $       59,631  $      112,411
                                                ==============  ==============  ==============
</TABLE>