<SEC-DOCUMENT>0001206774-12-000792.txt : 20120223
<SEC-HEADER>0001206774-12-000792.hdr.sgml : 20120223
<ACCEPTANCE-DATETIME>20120223155401
ACCESSION NUMBER:		0001206774-12-000792
CONFORMED SUBMISSION TYPE:	40-F
PUBLIC DOCUMENT COUNT:		14
CONFORMED PERIOD OF REPORT:	20111231
FILED AS OF DATE:		20120223
DATE AS OF CHANGE:		20120223

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			Ballard Power Systems Inc.
		CENTRAL INDEX KEY:			0001453015
		STANDARD INDUSTRIAL CLASSIFICATION:	ELECTRICAL INDUSTRIAL APPARATUS [3620]
		IRS NUMBER:				000000000

	FILING VALUES:
		FORM TYPE:		40-F
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-53543
		FILM NUMBER:		12633781

	BUSINESS ADDRESS:	
		STREET 1:		9000 GLENLYON PARKWAY
		CITY:			BURNABY
		STATE:			A1
		ZIP:			V5J 5J8
		BUSINESS PHONE:		206-903-8850

	MAIL ADDRESS:	
		STREET 1:		9000 GLENLYON PARKWAY
		CITY:			BURNABY
		STATE:			A1
		ZIP:			V5J 5J8

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	7076991 Canada Inc.
		DATE OF NAME CHANGE:	20090102
</SEC-HEADER>
<DOCUMENT>
<TYPE>40-F
<SEQUENCE>1
<FILENAME>ballard_40-f.htm
<DESCRIPTION>ANNUAL REPORTS FILED BY CERTAIN CANADIAN ISSUERS
<TEXT>

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<P align=center><B><FONT face="Times New Roman" size=2>UNITED STATES<BR></FONT></B><B><FONT face="Times New Roman" size=2>SECURITIES AND EXCHANGE COMMISSION<BR></FONT></B><B><FONT face="Times New Roman" size=2>Washington, D.C. 20549</FONT></B><FONT face="Times New Roman" size=2>
</FONT></P>
<P align=center><B><FONT face="Times New Roman">Form 40-F</FONT></B><FONT face="Times New Roman" size=2>
</FONT></P>
<P align=center><B><FONT STYLE="font-family: Wingdings 2" size=2>&#163;</FONT> <FONT face="Times New Roman" size=2>REGISTRATION STATEMENT PURSUANT TO
SECTION 12 OF THE SECURITIES<BR></FONT></B><B><FONT face="Times New Roman" size=2>EXCHANGE
ACT OF 1934</FONT></B><FONT face="Times New Roman" size=2> </FONT></P>
<P align=center><B><FONT face="Times New Roman" size=2>OR</FONT></B><FONT face="Times New Roman" size=2>
</FONT></P>
<P align=center><FONT face="Times New Roman" size=2></FONT><B><FONT STYLE="font-family: Wingdings 2" size=2>&#83;</FONT> <FONT face="Times New Roman" size=2>ANNUAL
REPORT PURSUANT TO SECTION 13(A) OR 15(D) OF THE
SECURITIES<BR></FONT></B><B><FONT face="Times New Roman" size=2>EXCHANGE ACT OF
1934</FONT></B><FONT face="Times New Roman" size=2> </FONT></P>
<DIV align=center>
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="10%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="36%"><B><FONT face="Times New Roman" size=2>For the fiscal year ended
      December 31, 2011</FONT></B></TD>
    <TD noWrap align=left width="32%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD noWrap align=left width="32%"><B><FONT face="Times New Roman" size=2>Commission File Number
      000-53543</FONT></B></TD></TR></TABLE></DIV><BR>
<P align=center><B><FONT face="Times New Roman">Ballard Power Systems
Inc.<BR></FONT></B><FONT face="Times New Roman" size=2>(Exact name of Registrant as
specified in its charter) </FONT></P>
<P align=center><B><FONT face="Times New Roman" size=2>Not Applicable</FONT></B><FONT face="Times New Roman" size=2> <BR></FONT><FONT face="Times New Roman" size=2>(Translation of
Registrant&#146;s name in English (if applicable)) </FONT></P>
<P align=center><B><FONT face="Times New Roman" size=2>CANADA<BR></FONT></B><FONT face="Times New Roman" size=2>(Province or other jurisdiction of incorporation or organization)
</FONT></P>
<P align=center><B><FONT face="Times New Roman" size=2>3620<BR></FONT></B><FONT face="Times New Roman" size=2>(Primary Standard Industrial Classification Code Number (if applicable))
</FONT></P>
<P align=center><B><FONT face="Times New Roman" size=2>Not applicable<BR></FONT></B><FONT face="Times New Roman" size=2>(I.R.S. Employer Identification Number (if applicable))
</FONT></P>
<P align=center><B><FONT face="Times New Roman" size=2>9000 Glenlyon
Parkway<BR></FONT></B><B><FONT face="Times New Roman" size=2>Burnaby, British Columbia V5J
5J8<BR></FONT></B><B><FONT face="Times New Roman" size=2>(604) 454-0900<BR></FONT></B><FONT face="Times New Roman" size=2>(Address and telephone number of Registrant&#146;s principal
executive offices) </FONT></P>
<P align=center><B><FONT face="Times New Roman" size=2>CT Corporation
System<BR></FONT></B><B><FONT face="Times New Roman" size=2>111 8</FONT></B><B><FONT face="Times New Roman" size=1>th</FONT></B><B><FONT face="Times New Roman" size=2>
Avenue<BR></FONT></B><B><FONT face="Times New Roman" size=2>New York, New York
10011<BR></FONT></B><B><FONT face="Times New Roman" size=2>(212)
894-8940<BR></FONT></B><FONT face="Times New Roman" size=2>(Name, address (including zip
code) and telephone number (including area code)<BR>of agent for service in the
United States) </FONT></P>
<P align=left><FONT face="Times New Roman" size=2>Securities registered or to be registered
pursuant to Section 12(b) of the Act. </FONT></P>
<DIV align=center>
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="10%" border=0>

  <TR vAlign=bottom>
    <TD NOWRAP WIDTH="25%" STYLE="text-align: center"><U><FONT face="Times New Roman" size=2>Title of each
      class</FONT></U></TD>
    <TD noWrap style="text-align: center" width="26%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD NOWRAP ALIGN="LEFT" WIDTH="48%" STYLE="text-align: center"><U><FONT face="Times New Roman" size=2>Name of each
      exchange on which registered</FONT></U></TD></TR>
  <TR vAlign=bottom>
    <TD NOWRAP ALIGN="LEFT" WIDTH="30%" STYLE="text-align: center"><B><FONT face="Times New Roman" size=2>Common Shares</FONT></B></TD>
    <TD noWrap align=left width="30%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD NOWRAP ALIGN="LEFT" WIDTH="40%" STYLE="text-align: center"><B><FONT face="Times New Roman" size=2>NASDAQ Global
    Market</FONT></B></TD></TR></TABLE></DIV><BR>
<HR align=center width="100%" noShade SIZE=2>

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>

<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="94%"><FONT face="Times New Roman" size=2>Securities registered or to be registered
      pursuant to Section 12(g) of the Act.</FONT></TD>
    <TD noWrap align=left width="3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD noWrap align=left width="3%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="94%"></TD>
    <TD noWrap align=right width="3%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Times New Roman" size=2>Not Applicable</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="94%"><FONT face="Times New Roman" size=2>Securities for which there is a reporting
      obligation pursuant to Section 15(d) of the Act.</FONT></TD>
    <TD noWrap align=right width="3%"></TD>
    <TD noWrap align=right width="3%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="94%"></TD>
    <TD noWrap align=right width="3%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Times New Roman" size=2>Not
Applicable</FONT></TD></TR></TABLE><BR>
<P align=justify><FONT face="Times New Roman" size=2>For annual reports, indicate by check
mark the information filed with this Form: </FONT></P>
<DIV align=center>
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="10%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="30%"><FONT STYLE="font-family: Wingdings 2" size=2>&#83;</FONT> <FONT face="Times New Roman" size=2></FONT><FONT face="Times New Roman" size=2>Annual information form</FONT></TD>
    <TD noWrap align=left width="30%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD noWrap align=left width="40%"><FONT STYLE="font-family: Wingdings 2" size=2>&#83;</FONT> <FONT face="Times New Roman" size=2></FONT><FONT face="Times New Roman" size=2>Audited annual financial
  statements</FONT></TD></TR></TABLE></DIV><BR>
<P align=justify><FONT face="Times New Roman" size=2>Indicate the number of outstanding
shares of each of the issuer's classes of capital or common stock as of the
close of the period covered by the annual report. </FONT></P>
<P align=center><B><FONT face="Times New Roman" size=2>84,550,524 Common
Shares</FONT></B><FONT face="Times New Roman" size=2> </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2>Indicate by check mark whether the
Registrant (1) has filed all reports required to be filed by Section 13 or 15(d)
of the Exchange Act during the preceding 12 months (or for such shorter period
that the Registrant was required to file such reports) and (2) has been subject
to such filing requirements for the past 90 days. </FONT></P>
<DIV align=center>
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="10%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="33%"><FONT face="Times New Roman" size=2>Yes </FONT><FONT STYLE="font-family: Wingdings 2" size=2>&#83;</FONT><FONT face="Times New Roman" size=2></FONT></TD>
    <TD noWrap align=left width="34%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD noWrap align=left width="33%"><FONT face="Times New Roman" size=2>No </FONT><FONT STYLE="font-family: Wingdings 2" size=2>&#163;</FONT></TD></TR></TABLE></DIV><BR>
<P align=justify><FONT face="Times New Roman" size=2>Indicate by check mark whether the
registrant has submitted electronically and posted on its corporate Web site, if
any, every Interactive Data File required to be submitted and posted pursuant to
Rule 405 of Regulation S-T (&#167;232.405 of this chapter) during the preceding 12
months (or for such shorter period that the Registrant was required to submit
and post such files.) </FONT></P>
<DIV align=center>
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="10%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="33%"><FONT face="Times New Roman" size=2>Yes </FONT><FONT STYLE="font-family: Wingdings 2" size=2>&#163;</FONT><FONT face="Times New Roman" size=2></FONT></TD>
    <TD noWrap align=left width="34%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD noWrap align=left width="33%"><FONT face="Times New Roman" size=2>No </FONT><FONT STYLE="font-family: Wingdings 2" size=2>&#163;</FONT></TD></TR></TABLE></DIV><BR>
<P align=justify><FONT face="Times New Roman" size=2>The Annual Report on Form 40-F shall be
incorporated by reference into or as an exhibit to, as applicable, the
Registrant's Registration Statement under the Securities Act of 1933: Form S-8
(File No. 333-156553 and 333-161807). </FONT></P>
<HR align=center width="100%" noShade SIZE=2>

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=center><B><FONT face="Times New Roman" size=2>Principal Documents</FONT></B><FONT face="Times New Roman" size=2> </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2>The following documents that are filed
as exhibits to this annual report are incorporated by reference herein:
</FONT></P>
<UL style="FONT-SIZE: 10pt; TEXT-ALIGN: justify">
  <LI>
  <P align=justify><FONT face="Times New Roman" size=2>the Company&#146;s Annual Information Form
  for the year ended December 31, 2011; </FONT></P></li>
  <LI>
  <P align=justify><FONT face="Times New Roman" size=2>the Company&#146;s Audited Consolidated
  Financial Statements for the years ended December 31, 2011 and 2010; and
  </FONT></P></li>
  <LI>
  <P align=justify><FONT face="Times New Roman" size=2>the Company&#146;s Management Discussion
  and Analysis for the year ended December 31, 2011. </FONT></P></LI></UL>
<P align=center><B><FONT face="Times New Roman" size=2>Disclosure Controls and
Procedures</FONT></B><FONT face="Times New Roman" size=2> </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2>The required disclosure is included in
&#147;Management&#146;s Discussion and Analysis,&#148; which is incorporated herein by
reference to Exhibit 99.2. </FONT></P>
<P align=center><B><FONT face="Times New Roman" size=2>Management&#146;s Annual Report on
Internal Control Over Financial Reporting</FONT></B><FONT face="Times New Roman" size=2>
</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2>The required disclosure is included in
&#147;Management&#146;s Discussion and Analysis,&#148; which is incorporated herein by
reference to Exhibit 99.2. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2>The Registrant's independent registered
public accounting firm, KPMG LLP, independently assessed the effectiveness of
the Registrant's internal control over financial reporting. KPMG LLP's
attestation is located in the Report of Independent Registered Public Accounting
Firm, which is incorporated herein by reference to Exhibit 99.1. </FONT></P>
<P align=center><B><FONT face="Times New Roman" size=2>Audit Committee and Audit Committee
Financial Expert</FONT></B><FONT face="Times New Roman" size=2> </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2>The required disclosure is included in
the Annual Information Form, under the heading &#147;Board Committees - Audit
Committee,&#148; which is incorporated herein by reference to Exhibit 99.3.
</FONT></P>
<P align=center><B><FONT face="Times New Roman" size=2>Code of Ethics</FONT></B><FONT face="Times New Roman" size=2> </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2>The Registrant has adopted a code of
ethics that applies to all members of its Board of Directors, as well as its
officers and employees. A copy of the code of ethics was previously filed with
the Securities and Exchange Commission, is posted on the Registrant&#146;s Internet
website at www.ballard.com, and is available in print to any person without
charge, upon written request to the corporate secretary of the Registrant. No
waivers of the code of ethics have been granted to any principal officer of the
Registrant or any person performing similar functions. </FONT></P>
<P align=center><B><FONT face="Times New Roman" size=2>Principal Accountant Fees and
Services</FONT></B><FONT face="Times New Roman" size=2> </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2>The required disclosure is included in
the Annual Information Form, under the heading &#147;Board Committees - Audit
Committee,&#148; which is incorporated herein by reference to Exhibit 99.3
</FONT></P>
<HR align=center width="100%" noShade SIZE=2>

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=center><B><FONT face="Times New Roman" size=2>Off-Balance Sheet
Arrangements</FONT></B><FONT face="Times New Roman" size=2> </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2>The required disclosure is included in
&#147;Management&#146;s Discussion and Analysis,&#148; which is incorporated herein by
reference to Exhibit 99.2. </FONT></P>
<P align=center><B><FONT face="Times New Roman" size=2>Tabular Disclosure of Contractual
Obligations</FONT></B><FONT face="Times New Roman" size=2> </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2>The required disclosure is included in
&#147;Management&#146;s Discussion and Analysis,&#148; which is incorporated herein by
reference to Exhibit 99.2. </FONT></P>
<P align=center><B><FONT face="Times New Roman" size=2>NASDAQ Corporate
Governance</FONT></B><FONT face="Times New Roman" size=2> </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2>Pursuant to Rule 5615(a)(3) of the
Nasdaq Stock Market, Inc. Marketplace Rules, the Registrant relies on an
exemption from Rule 5620(c) of the Marketplace Rules, requiring that each
Nasdaq-quoted company have in place a minimum quorum requirement for shareholder
meetings of 33 1/3% of the outstanding shares of the company's voting common
stock. The Company's by-laws currently provide that a quorum is met if holders
of at least 5% of the votes eligible to be cast at a meeting are present or
represented by proxy at a shareholder meeting. At the Company's 2011 Annual
General Meeting of Shareholders, holders of 39.73% of the common shares were
present or represented by proxy at the meeting. </FONT></P>
<P align=center><B><FONT face="Times New Roman" size=2>Undertaking</FONT></B><FONT face="Times New Roman" size=2> </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2>The Registrant undertakes to make
available, in person or by telephone, representatives to respond to inquiries
made by the Commission staff, and to furnish promptly, when requested to do so
by the Commission staff, information relating to: the securities registered
pursuant to Form 40-F; the securities in relation to which the obligation to
file an annual report on Form 40-F arises; or transactions in said securities.
</FONT></P>
<P align=center><B><FONT face="Times New Roman" size=2>Consent to Service of
Process</FONT></B><FONT face="Times New Roman" size=2> </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2>The Registrant has previously filed
with the Commission an Appointment of Agent for Service of Process and
Undertaking on Form F-X. </FONT></P>
<HR align=center width="100%" noShade SIZE=2>

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=center><B><FONT face="Times New Roman" size=2>SIGNATURES</FONT></B><FONT face="Times New Roman" size=2> </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2>Pursuant to the requirements of the
Exchange Act, the Registrant certifies that it meets all of the requirements for
filing on Form 40-F and has duly caused this annual report to be signed on its
behalf by the undersigned, thereto duly authorized. </FONT></P>
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="10%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="28%"><FONT face="Times New Roman" size=2>Registrant:&nbsp;&nbsp;&nbsp;&nbsp;
    </FONT></TD>
    <TD noWrap align=left width="71%"><B><FONT face="Times New Roman" size=2>Ballard Power Systems
      Inc.</FONT></B></TD></TR></TABLE><BR>
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="10%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="28%"><FONT face="Times New Roman" size=2>By
      (Signature&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD noWrap align=left width="71%"><FONT face="Times New Roman" size=2>/s/ John W. Sheridan</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="28%"><FONT face="Times New Roman" size=2>and Title)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="71%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="28%"></TD>
    <TD noWrap align=left width="71%"><FONT face="Times New Roman" size=2>John W. Sheridan</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="28%"></TD>
    <TD noWrap align=left width="71%"><FONT face="Times New Roman" size=2>President and Chief Executive
      Officer&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </FONT></TD></TR></TABLE><BR>
<P align=justify><FONT face="Times New Roman" size=2>Date: February 23, 2012 </FONT></P>
<HR align=center width="100%" noShade SIZE=2>

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=center><B><FONT face="Times New Roman" size=2>EXHIBIT LIST</FONT></B><FONT face="Times New Roman" size=2> </FONT></P>
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=left width="2%"><FONT face="Times New Roman" size=2>Exhibit</FONT></TD>
    <TD vAlign=top noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top align=left width="2%"><FONT face="Times New Roman" size=2>Description</FONT></TD>
    <TD vAlign=top noWrap align=left width="94%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top noWrap align=center width="2%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>99.1</FONT></TD>
    <TD vAlign=top noWrap align=center width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top align=center width="96%" bgColor=#c0c0c0 colSpan=2>
      <P align=justify><FONT face="Times New Roman" size=2>Ballard Power Systems Inc. Consolidated Financial
      Statements for the years ended December 31, 2011 and 2010</FONT></P></TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top noWrap align=left width="2%"></TD>
    <TD vAlign=top noWrap align=left width="1%"></TD>
    <TD vAlign=top align=left width="96%" colSpan=2><FONT face="Times New Roman" size=2>&nbsp; </FONT></TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top noWrap align=center width="2%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>99.2</FONT></TD>
    <TD vAlign=top noWrap align=center width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD vAlign=top align=center width="96%" bgColor=#c0c0c0 colSpan=2>
      <P align=justify><FONT face="Times New Roman" size=2>Ballard Power Systems Inc. Management&#146;s Discussion and
      Analysis for the year ended December 31, 2011</FONT></P></TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top noWrap align=left width="2%"></TD>
    <TD vAlign=top noWrap align=left width="1%"></TD>
    <TD vAlign=top align=left width="96%" colSpan=2><FONT face="Times New Roman" size=2>&nbsp; </FONT></TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top noWrap align=center width="2%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>99.3</FONT></TD>
    <TD vAlign=top noWrap align=center width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top align=center width="96%" bgColor=#c0c0c0 colSpan=2>
      <P align=justify><FONT face="Times New Roman" size=2>Annual Information Form for Ballard Power Systems Inc.
      dated as of February 23, 2012</FONT></P></TD></TR>
  <TR>
    <TD vAlign=top noWrap align=left width="2%"></TD>
    <TD vAlign=top noWrap align=left width="1%"></TD>
    <TD vAlign=top align=left width="96%" colSpan=2>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top noWrap align=center width="2%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>99.4</FONT></TD>
    <TD vAlign=top noWrap align=center width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top align=left width="96%" bgColor=#c0c0c0 colSpan=2><FONT face="Times New Roman" size=2>Certifications pursuant to Section 302 of the
      Sarbanes-Oxley Act of 2002</FONT></TD></TR>
  <TR>
    <TD vAlign=top noWrap align=left width="2%"></TD>
    <TD vAlign=top noWrap align=left width="1%"></TD>
    <TD vAlign=top align=left width="96%" colSpan=2>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top noWrap align=center width="2%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>99.5</FONT></TD>
    <TD vAlign=top noWrap align=center width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top align=left width="96%" bgColor=#c0c0c0 colSpan=2><FONT face="Times New Roman" size=2>Certifications pursuant to Section 906 of the
      Sarbanes-Oxley Act of 2002</FONT></TD></TR>
  <TR>
    <TD vAlign=top noWrap align=left width="2%"></TD>
    <TD vAlign=top noWrap align=left width="1%"></TD>
    <TD vAlign=top align=left width="96%" colSpan=2>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top noWrap align=center width="2%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>99.6</FONT></TD>
    <TD vAlign=top noWrap align=center width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top align=left width="96%" bgColor=#c0c0c0 colSpan=2><FONT face="Times New Roman" size=2>Consent of KPMG LLP</FONT></TD></TR></TABLE><BR>
<P align=center><FONT face="Times New Roman" size=2>5 </FONT></P>
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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>exhibit99-1.htm
<DESCRIPTION>BALLARD POWER SYSTEMS INC. CONSOLIDATED FINANCIAL STATEMENTS
<TEXT>

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<DIV>
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

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    <TD noWrap align=left width="25%">&nbsp;</TD>
    <TD noWrap align=left width="60%">
      <DIV><BR>&nbsp;<BR><BR><BR><BR>&nbsp;</DIV>
      <DIV>&nbsp;</DIV>
      <DIV>&nbsp;</DIV>
      <DIV>&nbsp;</DIV>
      <DIV>&nbsp;</DIV></TD>
    <TD noWrap align=left width="15%">&nbsp;</TD></TR>
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    <TD noWrap align=left width="25%">&nbsp;</TD>
    <TD noWrap align=left width="60%"><FONT style="FONT-FAMILY: arial" size=2>Consolidated Financial Statements<BR>(Expressed in U.S.
      dollars)</FONT></TD>
    <TD noWrap align=left width="15%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="25%">&nbsp;</TD>
    <TD noWrap align=left width="60%"><FONT style="FONT-FAMILY: arial" size=2>&nbsp; </FONT></TD>
    <TD noWrap align=left width="15%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="25%">&nbsp;</TD>
    <TD noWrap align=left width="60%"><FONT style="DISPLAY: inline; FONT-WEIGHT: bold"><FONT style="FONT-FAMILY: arial" size=4>BALLARD POWER SYSTEMS
    INC.</FONT></FONT></TD>
    <TD noWrap align=left width="15%">&nbsp;</TD></TR>
  <TR>
    <TD noWrap align=left width="25%">&nbsp;</TD>
    <TD noWrap align=left width="60%">&nbsp; </TD>
    <TD noWrap align=left width="15%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="25%">&nbsp;</TD>
    <TD noWrap align=left width="60%"><FONT style="FONT-FAMILY: arial" size=2>
      <P align=justify><FONT face="Arial" size=2>Years ended December 31,
      2011, and 2010</FONT></P></FONT></TD>
    <TD noWrap align=left width="15%">&nbsp;</TD></TR>
  <TR>
    <TD noWrap align=left width="25%">&nbsp;</TD>
    <TD noWrap align=left width="60%">
      <DIV>&nbsp;</DIV>
      <DIV>&nbsp;</DIV>
      <DIV>&nbsp;</DIV>
      <DIV>&nbsp;</DIV>
      <DIV>&nbsp;</DIV>
      <DIV>&nbsp;</DIV>
      <DIV>&nbsp;</DIV>
      <DIV>&nbsp;</DIV>
      <DIV>&nbsp;</DIV>
      <DIV>&nbsp;</DIV>
      <DIV>&nbsp;</DIV></TD>
    <TD noWrap align=left width="15%">&nbsp;</TD></TR></TABLE></DIV>
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<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=justify><B><FONT face="Arial" size=4>MANAGEMENT&#146;S REPORT
</FONT></B></P>
<P style="PADDING-LEFT: 15pt" align=left><B><FONT face="Arial">Management&#146;s Responsibility for the Financial Statements
and</FONT></B><B><FONT face="Arial" size=2> </FONT></B><B><FONT face="Arial"><BR>
Report on Internal Control over Financial
Reporting</FONT></B></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>The
consolidated financial statements contained in this Annual Report have been
prepared by management in accordance with International Financial Reporting
Standards (&#147;IFRS&#148;) as issued by the International Accounting Standards Board.
The integrity and objectivity of the data in these consolidated financial
statements are management&#146;s responsibility. Management is also responsible for
all other information in the Annual Report and for ensuring that this
information is consistent, where appropriate, with the information and data
contained in the consolidated financial statements. </FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>Management is responsible for establishing and maintaining adequate
internal control over financial reporting. Internal control over financial
reporting is a process designed to provide reasonable assurance regarding the
reliability of financial reporting and the preparation of consolidated financial
statements for external reporting purposes in accordance with IFRS. Internal
control over financial reporting may not prevent or detect fraud or
misstatements because of limitations inherent in any system of internal control.
Management has assessed the effectiveness of the Corporation&#146;s internal control
over financial reporting based on the framework in Internal Control &#150; Integrated
Framework issued by the Committee of Sponsoring Organizations of the Treadway
Commission, and concluded that the Corporation&#146;s internal control over financial
reporting was effective as of December 31, 2011. In addition, management
maintains disclosure controls and procedures to provide reasonable assurance
that material information is communicated to management and appropriately
disclosed. Some of the assets and liabilities include amounts, which are based
on estimates and judgments, as their final determination is dependent on future
events. </FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>The
Board of Directors oversees management&#146;s responsibilities for financial
reporting through the Audit Committee, which consists of four directors who are
independent and not involved in the daily operations of the Corporation. The
Audit Committee meets on a regular basis with management and the external and
internal auditors to discuss internal controls over the financial reporting
process, auditing matters and financial reporting issues. The Audit Committee is
responsible for appointing the external auditors (subject to shareholder
approval), and reviewing and approving all financial disclosure contained in our
public documents and related party transactions. </FONT></P>
<HR align=center width="100%" noShade SIZE=2>

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>The
external auditors, KPMG LLP, have audited the financial statements and expressed
an unqualified opinion thereon. KPMG has also expressed an unqualified opinion
on the effective operation of the internal controls over financial reporting as
of December 31, 2011. The external auditors have full access to management and
the Audit Committee with respect to their findings concerning the fairness of
financial reporting and the adequacy of internal controls. </FONT></P>
<DIV style="PADDING-LEFT: 15pt">
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="98%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="50%"><FONT face="Arial" size=1>&#147;JOHN SHERIDAN&#148;</FONT></TD>
    <TD noWrap align=left width="49%"><FONT face="Arial" size=1>&#147;TONY GUGLIELMIN&#148;</FONT></TD></TR>
  <TR>
    <TD width="99%" colSpan=2>&nbsp; </TD></TR>
  <TR>
    <TD width="99%" colSpan=2>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="50%"><FONT face="Arial" size=2>JOHN SHERIDAN</FONT></TD>
    <TD noWrap align=left width="49%"><FONT face="Arial" size=2>TONY GUGLIELMIN</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="50%"><FONT face="Arial" size=2>President and</FONT></TD>
    <TD noWrap align=left width="49%"><FONT face="Arial" size=2>Vice President and</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="50%"><FONT face="Arial" size=2>Chief Executive
Officer</FONT></TD>
    <TD noWrap align=left width="49%"><FONT face="Arial" size=2>Chief Financial
  Officer</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="50%"><FONT face="Arial" size=2>February 22, 2012</FONT></TD>
    <TD noWrap align=left width="49%"><FONT face="Arial" size=2>February 22,
  2012</FONT></TD></TR></TABLE></DIV><BR>
<HR align=center width="100%" noShade SIZE=2>

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR>
    <TD width="33%"><IMG src="exhibit99-1x4x1.jpg" border=0></TD>
    <TD width="33%"></TD>
    <TD width="33%" colSpan=2></TD></TR>
  <TR>
    <TD width="33%" ></TD>
    <TD vAlign=top width="33%" ><STRONG><FONT face=Arial size=1>KPMG
    LLP</FONT></STRONG></TD>
    <TD vAlign=top width="1%" ><FONT face=Arial size=1>Telephone&nbsp;&nbsp; </FONT></TD>
    <TD vAlign=top width="32%" ><FONT face=Arial size=1>(604) 691-3000</FONT></TD></TR>
  <TR>
    <TD width="33%" ></TD>
    <TD vAlign=top width="33%" ><STRONG><FONT face=Arial size=1>Chartered
      Accountants</FONT></STRONG></TD>
    <TD vAlign=top width="1%" ><FONT face=Arial size=1>Fax</FONT></TD>
    <TD vAlign=top width="32%" ><FONT face=Arial size=1>(604) 691-3031</FONT></TD></TR>
  <TR>
    <TD width="33%" ></TD>
    <TD vAlign=top width="33%" ><FONT face=Arial size=1>PO Box 10426 777 Dunsmuir
      Street</FONT></TD>
    <TD vAlign=top width="1%" ><FONT face=Arial size=1>Internet</FONT></TD>
    <TD vAlign=top width="32%" ><FONT face=Arial size=1>www.kpmg.ca</FONT></TD></TR>
  <TR>
    <TD width="33%" ></TD>
    <TD vAlign=top width="33%" ><FONT face=Arial size=1>Vancouver BC V7Y 1K3</FONT></TD>
    <TD vAlign=top width="1%" ></TD>
    <TD vAlign=top width="32%" ></TD></TR>
  <TR style="LINE-HEIGHT: normal">
    <TD width="33%"></TD>
    <TD vAlign=top width="33%"><FONT face=Arial size=1>Canada</FONT></TD>
    <TD vAlign=top width="1%"><FONT face=Arial size=1></FONT></TD>
    <TD vAlign=top width="32%"><FONT face=Arial size=1></FONT></TD></TR></TABLE><BR>
<P align=center><BR><B><FONT face="Arial" size=4></FONT></B>&nbsp;</P>
<P align=center><B><FONT face="Arial" size=4>REPORT OF INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM </FONT></B></P>
<P align=justify><FONT face="Arial" size=2>To the Shareholders and Board of
Directors of Ballard Power Systems Inc.</FONT></P>
<P align=justify><FONT face="Arial" size=2>We have audited the accompanying
consolidated statements of financial position of Ballard Power Systems Inc. as
at December 31, 2011, December 31, 2010 and January 1, 2010 and the related
consolidated statements of comprehensive loss, changes in equity and cash flows
for the years ended December 31, 2011 and December 31, 2010. These consolidated
financial statements are the responsibility of the Company&#146;s management. Our
responsibility is to express an opinion on these consolidated financial
statements based on our audits. </FONT></P>
<P align=justify><FONT face="Arial" size=2>We conducted our audits in
accordance with Canadian generally accepted auditing standards and the standards
of the Public Company Accounting Oversight Board (United States). Those
standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
</FONT></P>
<P align=justify><FONT face="Arial" size=2>In our opinion, the consolidated
financial statements referred to above present fairly, in all material respects,
the consolidated financial position of the Company as at December 31, 2011,
December 31, 2010 and January 1, 2010, and its consolidated financial
performance and its consolidated cash flows for the years ended December 31,
2011 and December 31, 2010 in conformity with International Financial Reporting
Standards </FONT><FONT face="Arial" size=2>as issued by the International
Accounting Standards Board</FONT><FONT face="Arial" size=2>.</FONT><B><FONT face="Arial" size=2> </FONT></B></P>
<P align=justify><FONT face="Arial" size=2>We also have audited, in
accordance with the standards of the Public Company Accounting Oversight Board
(United States), the Company&#146;s internal control over financial reporting as of
December 31, 2011, based on the criteria established in Internal Control &#150;
Integrated Framework issued by the Committee of Sponsoring Organizations of the
Treadway Commission (COSO), and our report dated February 22, 2012 expressed an
unqualified opinion on the effectiveness of the Company&#146;s internal control over
financial reporting. </FONT></P>
<P><IMG src="exhibit99-1x4x2.jpg" border=0> <BR><FONT face="Arial" size=2>Chartered Accountants<BR>Vancouver, Canada<BR>February 22,
2012</FONT></P>
<P><FONT face=Arial size=2></FONT>&nbsp;</P>
<P><FONT face=Arial size=2></FONT>&nbsp;</P>
<P><FONT face=Arial size=2></FONT>&nbsp;</P>
<DIV align=center>
<TABLE cellSpacing=0 cellPadding=0 width="30%" border=0>

  <TR>
    <TD noWrap width="100%">
      <P align=left><FONT face="Arial" size=1>KPMG LLP is a Canadian limited
      liability partnership and a member firm of the KPMG<BR>network of
      independent member firms affiliated with KPMG International
      Cooperative<BR>(&#147;KPMG International&#148;), a Swiss entity.<BR></FONT><FONT face="Arial" size=1>KPMG Canada provides services to KPMG
      LLP.</FONT></P></TD></TR></TABLE></DIV><BR>
<HR align=center width="100%" noShade SIZE=2>

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR>
    <TD width="33%"><IMG src="exhibit99-1x4x1.jpg" border=0></TD>
    <TD width="33%"></TD>
    <TD width="33%" colSpan=2></TD></TR>
  <TR>
    <TD width="33%" ></TD>
    <TD vAlign=top width="33%" ><STRONG><FONT face=Arial size=1>KPMG
    LLP</FONT></STRONG></TD>
    <TD vAlign=top width="1%" ><FONT face=Arial size=1>Telephone&nbsp;&nbsp; </FONT></TD>
    <TD vAlign=top width="32%" ><FONT face=Arial size=1>(604) 691-3000</FONT></TD></TR>
  <TR>
    <TD width="33%" ></TD>
    <TD vAlign=top width="33%" ><STRONG><FONT face=Arial size=1>Chartered
      Accountants</FONT></STRONG></TD>
    <TD vAlign=top width="1%" ><FONT face=Arial size=1>Fax</FONT></TD>
    <TD vAlign=top width="32%" ><FONT face=Arial size=1>(604) 691-3031</FONT></TD></TR>
  <TR>
    <TD width="33%" ></TD>
    <TD vAlign=top width="33%" ><FONT face=Arial size=1>PO Box 10426 777 Dunsmuir
      Street</FONT></TD>
    <TD vAlign=top width="1%" ><FONT face=Arial size=1>Internet</FONT></TD>
    <TD vAlign=top width="32%" ><FONT face=Arial size=1>www.kpmg.ca</FONT></TD></TR>
  <TR>
    <TD width="33%" ></TD>
    <TD vAlign=top width="33%" ><FONT face=Arial size=1>Vancouver BC V7Y 1K3</FONT></TD>
    <TD vAlign=top width="1%" ></TD>
    <TD vAlign=top width="32%" ></TD></TR>
  <TR style="LINE-HEIGHT: normal">
    <TD width="33%"></TD>
    <TD vAlign=top width="33%"><FONT face=Arial size=1>Canada</FONT></TD>
    <TD vAlign=top width="1%"><FONT face=Arial size=1></FONT></TD>
    <TD vAlign=top width="32%"><FONT face=Arial size=1></FONT></TD></TR></TABLE><BR>
<P align=center><BR><B><FONT face="Arial" size=4></FONT></B>&nbsp;</P>
<P align=left><B><FONT face="Arial" size=4>REPORT OF INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM </FONT></B></P>
<P align=justify><FONT face="Arial" size=2>To the Shareholders and Board of
Directors of Ballard Power Systems Inc. </FONT></P>
<P align=justify><FONT face="Arial" size=2>We have audited Ballard Power
Systems Inc&#146;s (&#147;the Company&#148;) internal control over financial reporting as of
December 31, 2011, based on the criteria established in</FONT><I><FONT face="Arial" size=2> </FONT></I><FONT face="Arial" size=2>Internal Control
&#150; Integrated Framework issued by the Committee of Sponsoring Organizations of
the Treadway Commission (COSO). The Company&#146;s management is responsible for
maintaining effective internal control over financial reporting and for its
assessment of the effectiveness of internal control over financial reporting,
included in the section entitled &#147;Management&#146;s Report on Disclosure Controls and
Procedures and Internal Controls over Financial Reporting&#148; under the heading
&#147;Internal control over financial reporting&#148; included in Management Discussion
and Analysis. Our responsibility is to express an opinion on the Company&#146;s
internal control over financial reporting based on our audit. </FONT></P>
<P align=justify><FONT face="Arial" size=2>We conducted our audit in
accordance with the standards of the Public Company Accounting Oversight Board
(United States). Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether effective internal control over
financial reporting was maintained in all material respects. Our audit included
obtaining an understanding of internal control over financial reporting,
assessing the risk that a material weakness exists, and testing and evaluating
the design and operating effectiveness of internal control based on the assessed
risk. Our audit also included performing such other procedures as we considered
necessary in the circumstances. We believe that our audit provides a reasonable
basis for our opinion. </FONT></P>
<P align=justify><FONT face="Arial" size=2>A company&#146;s internal control over
financial reporting is a process designed to provide reasonable assurance
regarding the reliability of financial reporting and the preparation of
financial statements for external purposes in accordance with generally accepted
accounting principles. A company&#146;s internal control over financial reporting
includes those policies and procedures that (1) pertain to the maintenance of
records that, in reasonable detail, accurately and fairly reflect the
transactions and dispositions of the assets of the company; (2) provide
reasonable assurance that transactions are recorded as necessary to permit
preparation of financial statements in accordance with generally accepted
accounting principles, and that receipts and expenditures of the company are
being made only in accordance with authorizations of management and directors of
the company; and (3) provide reasonable assurance regarding prevention or timely
detection of unauthorized acquisition, use, or disposition of the company&#146;s
assets that could have a material effect on the financial statements.
</FONT></P>
<P align=justify><FONT face="Arial" size=2>Because of its inherent
limitations, internal control over financial reporting may not prevent or detect
misstatements. Also, projections of any evaluation of effectiveness to future
periods are subject to the risk that controls may become inadequate because of
changes in conditions, or that the degree of compliance with the policies or
procedures may deteriorate.</FONT></P>


<P align=justify><FONT face="Arial" size=2>In our opinion, the Company maintained, in all
material respects, effective internal control over financial reporting as of
December 31, 2011, based on the criteria established in Internal Control &#150;
Integrated Framework issued by the Committee of Sponsoring Organizations of the
Treadway Commission (COSO).</FONT></P>
<P align=justify><FONT face=Arial size=2></FONT>&nbsp;</P>
<P align=justify>&nbsp;</P>
<P align=justify>&nbsp;</P>
<DIV align=center>
<TABLE cellSpacing=0 cellPadding=0 width="30%" border=0>

  <TR>
    <TD noWrap width="100%">
      <P align=left><FONT face="Arial" size=1>KPMG LLP is a Canadian limited
      liability partnership and a member firm of the KPMG<BR>network of
      independent member firms affiliated with KPMG International
      Cooperative<BR>(&#147;KPMG International&#148;), a Swiss entity.<BR></FONT><FONT face="Arial" size=1>KPMG Canada provides services to KPMG
      LLP.</FONT></P></TD></TR></TABLE></DIV><BR>


<HR align=center width="100%" noShade SIZE=2>

<P></P>
<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR>
    <TD width="50%"><IMG src="exhibit99-1x6x1.jpg" border=0></TD>
    <TD width="50%"></TD></TR>
  <TR>
    <TD width="50%"></TD>
    <TD align=right width="50%"><EM><FONT face=Arial size=2>February 22,
      2012</FONT></EM></TD></TR></TABLE><BR>
<P align=justify><FONT face="Arial" size=2>We also have audited, in
accordance with the Canadian generally accepted auditing standards and the
standards of the Public Company Accounting Oversight Board (United States), the
consolidated statements of financial position of the Company as of December 31,
2011, December 31, 2010 and January 1, 2010, and the related consolidated
statements of comprehensive loss, changes in equity and cash flows for the years
ended December 31, 2011 and December 31, 2010, and our report dated February 22,
2012 expressed an unqualified opinion on those consolidated financial
statements.</FONT></P>
<P align=justify><FONT face="Arial" size=2><IMG src="exhibit99-1x4x2.jpg" border=0><BR>Chartered Accountants<BR>Vancouver, Canada<BR>February 22,
2012</FONT></P>
<HR align=center width="100%" noShade SIZE=2>

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=justify><B><FONT face="Arial">BALLARD POWER SYSTEMS
INC.<BR></FONT></B><FONT face="Arial" size=2>Consolidated Statement of
Financial Position<BR></FONT><FONT face="Arial" size=1>(Expressed in
thousands of U.S. dollars)</FONT><FONT face="Arial" size=2></FONT></P>
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="78%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="4%" colSpan=2><FONT face="Arial" size=2><B>December 31,</B></FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="4%" colSpan=2><FONT face="Arial" size=2>December 31,</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="4%" colSpan=2><FONT face="Arial" size=2>January 1,</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="78%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face="Arial" size=2>Note</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face="Arial" size=2><B>2011</B></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face="Arial" size=2>2010</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face="Arial" size=2>2010</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="78%" bgColor=#c0c0c0><FONT face="Arial" size=2><B>Assets</B></FONT></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR>
    <TD width="100%" colSpan=13><FONT face="Arial" size=2>&nbsp;</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="78%" bgColor=#c0c0c0><FONT face="Arial" size=2>Current assets:</FONT></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="78%"><FONT face="Arial" size=2>Cash and cash equivalents</FONT></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=2><B>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B></FONT></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=2><B>20,316</B></FONT></TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=2>51,937</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=2>43,299</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="78%" bgColor=#c0c0c0><FONT face="Arial" size=2>Short-term investments</FONT></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=2>&nbsp;</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=2><B>25,878</B></FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=2>&nbsp;</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=2>22,508</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=2>38,932</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="78%"><FONT face="Arial" size=2>Trade and other receivables</FONT></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=2>6</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=2><B>17,164</B></FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=2>11,614</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=2>12,903</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="78%" bgColor=#c0c0c0><FONT face="Arial" size=2>Inventories</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=2>7</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=2>&nbsp;</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=2><B>13,614</B></FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=2>12,382</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=2>9,168</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="78%"><FONT face="Arial" size=2>Prepaid expenses and other current assets</FONT></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face="Arial" size=2><B>934</B></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face="Arial" size=2>957</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face="Arial" size=2>2,114</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face="Arial" size=2>&nbsp;</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="78%" bgColor=#c0c0c0><FONT face="Arial" size=2>Total current assets</FONT></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=2><B>77,906</B></FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=2>99,398</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=2>106,416</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR>
    <TD width="100%" colSpan=13><FONT face="Arial" size=2>&nbsp;</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="78%" bgColor=#c0c0c0><FONT face="Arial" size=2>Property, plant and equipment</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=2>8</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=2><B>35,085</B></FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=2>36,945</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=2>39,517</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="78%"><FONT face="Arial" size=2>Intangible assets</FONT></TD>
    <TD noWrap align=right width="3%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=2>9</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=2><B>2,249</B></FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=2>2,975</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=2>824</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="78%" bgColor=#c0c0c0><FONT face="Arial" size=2>Goodwill</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=2>10</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=2><B>48,106</B></FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=2>48,106</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=2>48,106</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="78%"><FONT face="Arial" size=2>Investments</FONT></TD>
    <TD noWrap align=right width="3%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=2>11</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=2><B>635</B></FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=2>673</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=2>&nbsp;</FONT></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=2>632</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="78%" bgColor=#c0c0c0><FONT face="Arial" size=2>Long-term trade receivables</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=2>6</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=2><B>1,126</B></FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=2>1,596</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=2>&nbsp;</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=2>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="78%"><FONT face="Arial" size=2>Other long-term assets</FONT></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face="Arial" size=2><B>183</B></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face="Arial" size=2>334</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face="Arial" size=2>50</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="78%" bgColor=#c0c0c0><FONT face="Arial" size=2>Total assets</FONT></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=2><B>$</B></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=2><B>165,290</B></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=2>190,027</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=2>195,545</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR>
    <TD width="100%" colSpan=13><FONT face="Arial" size=2>&nbsp;</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="78%" bgColor=#c0c0c0><FONT face="Arial" size=2><B>Liabilities</B></FONT></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR>
    <TD width="100%" colSpan=13><FONT face="Arial" size=2>&nbsp;</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="78%" bgColor=#c0c0c0><FONT face="Arial" size=2>Current liabilities:</FONT></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="78%"><FONT face="Arial" size=2>Bank operating line</FONT></TD>
    <TD noWrap align=right width="3%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=2>12</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=2><B>$</B></FONT></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=2><B>4,587</B></FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=2>$</FONT></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=2>-</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=2>$</FONT></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=2>-</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="78%" bgColor=#c0c0c0><FONT face="Arial" size=2>Trade and other payables</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=2>13</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=2><B>22,834</B></FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=2>21,885</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=2>16,509</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="78%"><FONT face="Arial" size=2>Deferred revenue</FONT></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=2><B>3,560</B></FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=2>2,506</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=2>1,607</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="78%" bgColor=#c0c0c0><FONT face="Arial" size=2>Provisions</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=2>14</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=2><B>9,573</B></FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=2>10,019</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=2>11,625</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="78%"><FONT face="Arial" size=2>Finance lease liability</FONT></TD>
    <TD noWrap align=right width="3%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=2>12 &amp;15</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=2><FONT face="Arial" size=2></FONT></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face="Arial" size=2><B>978</B></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face="Arial" size=2>681</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face="Arial" size=2>316</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="78%" bgColor=#c0c0c0><FONT face="Arial" size=2>Total current liabilities</FONT></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=2><B>41,532</B></FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=2>35,091</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=2>30,057</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR>
    <TD width="100%" colSpan=13><FONT face="Arial" size=2>&nbsp;</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="78%" bgColor=#c0c0c0><FONT face="Arial" size=2>Finance lease liability</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=2>12 &amp; 15</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=2><B>13,749</B></FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=2>13,354</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=2>1,739</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="78%"><FONT face="Arial" size=2>Deferred gain</FONT></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=2><B>5,653</B></FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=2>5,947</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=2>-</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="78%" bgColor=#c0c0c0><FONT face="Arial" size=2>Provisions</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=2>14</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=2><B>4,733</B></FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=2>3,102</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=2>2,848</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="78%"><FONT face="Arial" size=2>Convertible debenture</FONT></TD>
    <TD noWrap align=right width="3%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=2>16</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=2><B>1,592</B></FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=2>-</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=2>-</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="78%" bgColor=#c0c0c0><FONT face="Arial" size=2>Employee future benefits</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=2>17</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=2><B>5,686</B></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=2>2,950</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=2>3,311</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="78%"><FONT face="Arial" size=2>Total liabilities</FONT></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=2><B>72,945</B></FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=2>60,444</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=2>37,955</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR>
    <TD width="100%" colSpan=13><FONT face="Arial" size=2>&nbsp;</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="78%" bgColor=#c0c0c0><FONT face="Arial" size=2>Equity:</FONT></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="78%"><FONT face="Arial" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Share capital</FONT></TD>
    <TD noWrap align=right width="3%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=2>18</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=2><B>837,686</B></FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=2>836,245</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=2>835,565</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="78%" bgColor=#c0c0c0><FONT face="Arial" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Treasury
    shares</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=2>18</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=2><B>(515</B></FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=2><B>)</B></FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=2>(670</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=2>)</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=2>(207</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=2>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="78%"><FONT face="Arial" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contributed surplus</FONT></TD>
    <TD noWrap align=right width="3%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=2>18</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=2><B>289,219</B></FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=2>289,444</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=2>285,814</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="78%" bgColor=#c0c0c0><FONT face="Arial" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accumulated
      deficit</FONT></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=2><B>(1,031,279</B></FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=2><B>)</B></FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=2>(995,023</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=2>)</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=2>(963,582</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=2>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="78%"><FONT face="Arial" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign currency reserve</FONT></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face="Arial" size=2><B>209</B></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face="Arial" size=2>-</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face="Arial" size=2>-</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="78%" bgColor=#c0c0c0><FONT face="Arial" size=2>Total equity attributable to equity
    holders</FONT></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=2><B>95,320</B></FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=2>129,996</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=2>157,590</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="78%"><FONT face="Arial" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dantherm Power A/S non-controlling
      interests</FONT></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face="Arial" size=2><B>(2,975</B></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face="Arial" size=2><B>)</B></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face="Arial" size=2>(413</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face="Arial" size=2>)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face="Arial" size=2>-</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="78%" bgColor=#c0c0c0><FONT face="Arial" size=2>Total equity</FONT></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=2><B>92,345</B></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=2>129,583</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=2>157,590</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="78%"><FONT face="Arial" size=2>Total liabilities and equity</FONT></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face="Arial" size=2><B>$</B></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT face="Arial" size=2><B>165,290</B></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face="Arial" size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT face="Arial" size=2>190,027</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face="Arial" size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT face="Arial" size=2>195,545</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD></TR></TABLE><BR>
<P align=justify><FONT face="Arial" size=2>See accompanying notes to
consolidated financial statements.</FONT></P>
<P align=justify><FONT face="Arial" size=2>Approved on behalf of the
Board:</FONT></P>
<DIV>
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="25%"><FONT style="FONT-FAMILY: arial" size=2>"Ed Kilroy"</FONT></TD>
    <TD noWrap align=left width="75%"><FONT style="FONT-FAMILY: arial" size=2>"Ian Bourne"</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="25%"><FONT style="FONT-FAMILY: arial" size=2>Director</FONT></TD>
    <TD noWrap align=left width="75%"><FONT style="FONT-FAMILY: arial" size=2>Director</FONT></TD></TR></TABLE><BR>
<HR align=center width="100%" noShade SIZE=2>
</DIV>
<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=justify><B><FONT face="Arial">BALLARD POWER SYSTEMS
INC.<BR></FONT></B><FONT face="Arial" size=2>Consolidated Statement of
Comprehensive Loss<BR>For the year ended December 31<BR></FONT><FONT face="Arial" size=1>(</FONT><FONT face="Arial" size=1>Expressed in
thousands of U.S. dollars, except per share amounts and number of
shares)</FONT><FONT face="Arial" size=1></FONT></P>
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="83%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face="Arial" size=2>Note</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face="Arial" size=2><B>2011</B></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face="Arial" size=2>2010</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%" bgColor=#c0c0c0><FONT face="Arial" size=2><B>Revenues:</B></FONT></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%"><FONT face="Arial" size=2>Product and service revenues</FONT></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=2><B>$</B></FONT></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=2><B>76,009</B></FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=2>$</FONT></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=2>65,019</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%" bgColor=#c0c0c0><FONT face="Arial" size=2>Cost of product and service revenues</FONT></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=2><B>62,124</B></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=2>54,887</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%"><FONT face="Arial" size=2>Gross margin</FONT></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face="Arial" size=2><B>13,885</B></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face="Arial" size=2>10,132</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD></TR>
  <TR>
    <TD width="100%" bgColor=#ffffff colSpan=10>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%" bgColor=#c0c0c0><FONT face="Arial" size=2><B>Operating expenses:</B></FONT></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%" bgColor=#ffffff><FONT face="Arial" size=2>Research and product development</FONT></TD>
    <TD noWrap align=left width="3%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="3%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=right width="3%" bgColor=#ffffff><FONT face="Arial" size=2><B>25,480</B></FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=right width="3%" bgColor=#ffffff><FONT face="Arial" size=2>28,749</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%" bgColor=#c0c0c0><FONT face="Arial" size=2>General and administrative</FONT></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=2><B>12,500</B></FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=2>14,777</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%" bgColor=#ffffff><FONT face="Arial" size=2>Sales and marketing</FONT></TD>
    <TD noWrap align=left width="3%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="3%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#ffffff><FONT face="Arial" size=2><B>9,488</B></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#ffffff><FONT face="Arial" size=2>9,113</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#ffffff></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%" bgColor=#c0c0c0><FONT face="Arial" size=2>Total operating expenses</FONT></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=2><B>47,468</B></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=2>52,639</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR>
    <TD width="100%" bgColor=#ffffff colSpan=10>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%" bgColor=#c0c0c0><FONT face="Arial" size=2>Results from operating activities</FONT></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=2><B>(33,583</B></FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=2><B>)</B></FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=2>(42,507</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=2>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%" bgColor=#ffffff><FONT face="Arial" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Finance income (loss)
      and other</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#ffffff></TD>
    <TD noWrap align=right width="3%" bgColor=#ffffff><FONT face="Arial" size=2>26</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=right width="3%" bgColor=#ffffff><FONT face="Arial" size=2><B>195</B></FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=right width="3%" bgColor=#ffffff><FONT face="Arial" size=2>(104</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff><FONT face="Arial" size=2>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%" bgColor=#c0c0c0><FONT face="Arial" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Finance
    expense</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=2>26</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=2><B>(1,392</B></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=2><B>)</B></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=2>(861</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=2>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%" bgColor=#ffffff><FONT face="Arial" size=2>Net finance expense</FONT></TD>
    <TD noWrap align=left width="3%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="3%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=right width="3%" bgColor=#ffffff><FONT face="Arial" size=2><B>(1,197</B></FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff><FONT face="Arial" size=2><B>)</B></FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=right width="3%" bgColor=#ffffff><FONT face="Arial" size=2>(965</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff><FONT face="Arial" size=2>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%" bgColor=#c0c0c0><FONT face="Arial" size=2>Gain on sale of property, plant and
    equipment</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=2>8</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=2><B>734</B></FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=2>4</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%" bgColor=#ffffff><FONT face="Arial" size=2>Gain on sale of assets</FONT></TD>
    <TD noWrap align=left width="3%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="3%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=right width="3%" bgColor=#ffffff><FONT face="Arial" size=2><B>-</B></FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=right width="3%" bgColor=#ffffff><FONT face="Arial" size=2>8,032</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%" bgColor=#c0c0c0><FONT face="Arial" size=2>Impairment loss on property, plant and
      equipment</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=2>8</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=2><B>(1,727</B></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=2><B>)</B></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=2>-</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%" bgColor=#ffffff><FONT face="Arial" size=2>Loss before income taxes</FONT></TD>
    <TD noWrap align=left width="3%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="3%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=right width="3%" bgColor=#ffffff><FONT face="Arial" size=2><B>(35,773</B></FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff><FONT face="Arial" size=2><B>)</B></FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=right width="3%" bgColor=#ffffff><FONT face="Arial" size=2>(35,436</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff><FONT face="Arial" size=2>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%" bgColor=#c0c0c0><FONT face="Arial" size=2>Income tax expense</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=2>22</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=2><B>(383</B></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=2><B>)</B></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=2>(3</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=2>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%" bgColor=#ffffff><FONT face="Arial" size=2><B>Net loss</B></FONT></TD>
    <TD noWrap align=left width="3%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="3%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=right width="3%" bgColor=#ffffff><FONT face="Arial" size=2><B>(36,156</B></FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff><FONT face="Arial" size=2><B>)</B></FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=right width="3%" bgColor=#ffffff><FONT face="Arial" size=2>(35,439</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff><FONT face="Arial" size=2>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%" bgColor=#c0c0c0><FONT face="Arial" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign currency
      translation differences</FONT></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=2><B>363</B></FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=2>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%" bgColor=#ffffff><FONT face="Arial" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Defined benefit plan
      actuarial gains (losses)</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#ffffff></TD>
    <TD noWrap align=right width="3%" bgColor=#ffffff><FONT face="Arial" size=2>17</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=right width="3%" bgColor=#ffffff><FONT face="Arial" size=2><B>(2,905</B></FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff><FONT face="Arial" size=2><B>)</B></FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=right width="3%" bgColor=#ffffff><FONT face="Arial" size=2>112</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%" bgColor=#c0c0c0><FONT face="Arial" size=2>Net gain on hedge of forward contracts</FONT></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=2><B>20</B></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=2>-</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%" bgColor=#ffffff><FONT face="Arial" size=2><B>Comprehensive loss</B></FONT></TD>
    <TD noWrap align=left width="3%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="3%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#ffffff><FONT face="Arial" size=2><B>$</B></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#ffffff><FONT face="Arial" size=2><B>(38,678</B></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#ffffff><FONT face="Arial" size=2><B>)</B></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#ffffff><FONT face="Arial" size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#ffffff><FONT face="Arial" size=2>(35,327</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#ffffff><FONT face="Arial" size=2>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%" bgColor=#c0c0c0><FONT face="Arial" size=2><B>Net loss attributable to:</B></FONT></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%" bgColor=#ffffff><FONT face="Arial" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ballard Power Systems
      Inc.</FONT></TD>
    <TD noWrap align=left width="3%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="3%" bgColor=#ffffff>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff><FONT face="Arial" size=2><B>$</B></FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#ffffff><FONT face="Arial" size=2><B>(33,420</B></FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff><FONT face="Arial" size=2><B>)</B></FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff><FONT face="Arial" size=2>$</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#ffffff><FONT face="Arial" size=2>(31,532</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff><FONT face="Arial" size=2>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%" bgColor=#c0c0c0><FONT face="Arial" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dantherm Power A/S
      non-controlling interest</FONT></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD NOWRAP STYLE="text-align: left; width: 1%; background-color: #c0c0c0; border-bottom: Black 1pt solid"></TD>
    <TD NOWRAP STYLE="text-align: right; width: 3%; background-color: #c0c0c0; border-bottom: Black 1pt solid"><FONT face="Arial" size=2><B>(2,736</B></FONT></TD>
    <TD NOWRAP STYLE="text-align: left; width: 1%; background-color: #c0c0c0; border-bottom: Black 1pt solid"><FONT face="Arial" size=2><B>)</B></FONT></TD>
    <TD NOWRAP STYLE="text-align: left; width: 1%; background-color: #c0c0c0; border-bottom: Black 1pt solid"></TD>
    <TD NOWRAP STYLE="text-align: right; width: 3%; background-color: #c0c0c0; border-bottom: Black 1pt solid"><FONT face="Arial" size=2>(3,907</FONT></TD>
    <TD NOWRAP STYLE="text-align: left; width: 1%; background-color: #c0c0c0; border-bottom: Black 1pt solid"><FONT face="Arial" size=2>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%" bgColor=#ffffff><FONT face="Arial" size=2>Net loss</FONT></TD>
    <TD noWrap align=left width="3%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="3%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#ffffff><FONT face="Arial" size=2><B>$</B></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#ffffff><FONT face="Arial" size=2><B>(36,156</B></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#ffffff><FONT face="Arial" size=2><B>)</B></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#ffffff><FONT face="Arial" size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#ffffff><FONT face="Arial" size=2>(35,439</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#ffffff><FONT face="Arial" size=2>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%" bgColor=#c0c0c0><FONT face="Arial" size=2><B>Comprehensive loss attributable
to:</B></FONT></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%" bgColor=#ffffff><FONT face="Arial" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ballard Power Systems
      Inc.</FONT></TD>
    <TD noWrap align=left width="3%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="3%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff><FONT face="Arial" size=2><B>$</B></FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#ffffff><FONT face="Arial" size=2><B>(36,116</B></FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff><FONT face="Arial" size=2><B>)</B></FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff><FONT face="Arial" size=2>$</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#ffffff><FONT face="Arial" size=2>(31,420</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff><FONT face="Arial" size=2>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%" bgColor=#c0c0c0><FONT face="Arial" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dantherm Power A/S
      non-controlling interest</FONT></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=2><B>(2,562</B></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=2><B>)</B></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=2>(3,907</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=2>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%" bgColor=#ffffff><FONT face="Arial" size=2>Comprehensive loss</FONT></TD>
    <TD noWrap align=left width="3%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="3%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#ffffff><FONT face="Arial" size=2><B>$</B></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#ffffff><FONT face="Arial" size=2><B>(38,678</B></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#ffffff><FONT face="Arial" size=2><B>)</B></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#ffffff><FONT face="Arial" size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#ffffff><FONT face="Arial" size=2>(35,327</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#ffffff><FONT face="Arial" size=2>)</FONT></TD></TR>
  <TR>
    <TD noWrap align=left width="83%" bgColor=#ffffff>&nbsp;&nbsp;&nbsp; </TD>
    <TD noWrap align=left width="3%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="3%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#ffffff></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#ffffff></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#ffffff></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%" bgColor=#c0c0c0><FONT face="Arial" size=2><B>Basic and diluted loss per share attributable
      to</B></FONT></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=2><B>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B></FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=2><B>(0.40</B></FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=2><B>)</B></FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=2>(0.37</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=2>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%" bgColor=#c0c0c0><FONT face="Arial" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<STRONG>Ballard Power
      Systems Inc.</STRONG></FONT></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%" bgColor=#ffffff><FONT face="Arial" size=2><B>Weighted average number of common shares
      outstanding</B></FONT></TD>
    <TD noWrap align=left width="3%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="3%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#ffffff><FONT face="Arial" size=2><B>84,440,970</B></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#ffffff>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#ffffff><FONT face="Arial" size=2>84,102,315</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#ffffff></TD></TR></TABLE><BR>
<P align=justify><FONT face="Arial" size=1><FONT face="Arial" size=2>See
accompanying notes to consolidated financial statements.</FONT></FONT></P>
<HR align=center width="100%" noShade SIZE=2>

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=justify><B><FONT face="Arial">BALLARD POWER SYSTEMS
INC.<BR></FONT></B><FONT face="Arial" size=2>Consolidated Statement of
Changes in Equity<BR></FONT><FONT face="Arial" size=1>(Expressed in thousands
of U.S. dollars except per share amounts and number of shares)</FONT></P>
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=left width="59%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=left width="3%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=left width="2%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=left width="3%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=left width="3%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=left width="3%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=left width="3%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-LEFT: #000000 1pt dashed" noWrap align=right width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=right width="4%" colSpan=2><FONT face=Arial size=1>Dantherm</FONT></TD>
    <TD style="BORDER-RIGHT: #000000 1pt dashed; BORDER-TOP: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=left width="3%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="59%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center" noWrap width="27%" colSpan=16><FONT face=Arial size=1>Ballard Power Systems Inc.
      Equity</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt dashed; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face=Arial size=1>Power A/S</FONT></TD>
    <TD style="BORDER-RIGHT: #000000 1pt dashed; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="59%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="4%" colSpan=2><FONT face=Arial size=1>Foreign</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt dashed" noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="4%" colSpan=2><FONT face=Arial size=1>Non-</FONT></TD>
    <TD style="BORDER-RIGHT: #000000 1pt dashed" noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="59%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=Arial size=1>Number
    of</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="2%"><FONT face=Arial size=1>Share</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="4%" colSpan=2><FONT face=Arial size=1>Treasury</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="4%" colSpan=2><FONT face=Arial size=1>Contributed</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="4%" colSpan=2><FONT face=Arial size=1>Accumulated</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="4%" colSpan=2><FONT face=Arial size=1>currency</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt dashed" noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="4%" colSpan=2><FONT face=Arial size=1>controlling</FONT></TD>
    <TD style="BORDER-RIGHT: #000000 1pt dashed" noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="4%" colSpan=2><FONT face=Arial size=1>Total</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="59%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=Arial size=1>shares</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%"><FONT face=Arial size=1>capital</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face=Arial size=1>shares</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face=Arial size=1>surplus</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face=Arial size=1>deficit</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face=Arial size=1>reserve</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt dashed; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face=Arial size=1>interests</FONT></TD>
    <TD style="BORDER-RIGHT: #000000 1pt dashed; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face=Arial size=1>equity</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="59%" bgColor=#c0c0c0><FONT face=Arial size=1>Balance, January 1, 2010</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=1>83,973,988</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=1>$</FONT></TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=Arial size=1>835,565</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=1>$</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=1>(207</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=1>)</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=1>$</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=1>285,814</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=1>$</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=1>(963,582</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=1>)</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=1>$<STRONG>&nbsp;&nbsp;&nbsp;</STRONG></FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=1>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-LEFT: #000000 1pt dashed" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=1>$</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=1>-</FONT></TD>
    <TD style="BORDER-RIGHT: #000000 1pt dashed" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=1>$<STRONG>&nbsp;&nbsp;&nbsp;</STRONG></FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=1>157,590</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="59%"><FONT face=Arial size=1>Acquisition of
      Dantherm Power A/S</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=Arial size=1>-</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="2%"><FONT face=Arial size=1>-</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=Arial size=1>-</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=Arial size=1>-</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=Arial size=1>-</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=Arial size=1>-</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt dashed" noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=Arial size=1>3,543</FONT></TD>
    <TD style="BORDER-RIGHT: #000000 1pt dashed" noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=Arial size=1>3,543</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="59%"><FONT face=Arial size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Power A/S</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt dashed" noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD style="BORDER-RIGHT: #000000 1pt dashed" noWrap align=left width="1%">&nbsp;&nbsp;&nbsp; </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="59%" bgColor=#c0c0c0><FONT face=Arial size=1>Additional investment in Dantherm</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=1>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=Arial size=1>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=1>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=1>915</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=1>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=1>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-LEFT: #000000 1pt dashed" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=1>(49</FONT></TD>
    <TD style="BORDER-RIGHT: #000000 1pt dashed" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=1>)</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=1>866</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="59%" bgColor=#c0c0c0><FONT face=Arial size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Power A/S</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-LEFT: #000000 1pt dashed" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-RIGHT: #000000 1pt dashed" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="59%"><FONT face=Arial size=1>Net
    loss</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=Arial size=1>-</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="2%"><FONT face=Arial size=1>-</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=Arial size=1>-</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=Arial size=1>-</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=Arial size=1>(31,532</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face=Arial size=1>)</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=Arial size=1>-</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt dashed" noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=Arial size=1>(3,907</FONT></TD>
    <TD style="BORDER-RIGHT: #000000 1pt dashed" noWrap align=left width="1%"><FONT face=Arial size=1>)</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=Arial size=1>(35,439</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face=Arial size=1>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="59%" bgColor=#c0c0c0><FONT face=Arial size=1>Defined benefit plan actuarial gain</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=1>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=Arial size=1>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=1>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=1>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=1>112</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=1>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-LEFT: #000000 1pt dashed" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=1>-</FONT></TD>
    <TD style="BORDER-RIGHT: #000000 1pt dashed" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=1>112</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="59%"><FONT face=Arial size=1>Non-dilutive
      financing</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=Arial size=1>-</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="2%"><FONT face=Arial size=1>-</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=Arial size=1>-</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=Arial size=1>(22</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face=Arial size=1>)</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=Arial size=1>-</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=Arial size=1>-</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt dashed" noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=Arial size=1>-</FONT></TD>
    <TD style="BORDER-RIGHT: #000000 1pt dashed" noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=Arial size=1>(22</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face=Arial size=1>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="59%" bgColor=#c0c0c0><FONT face=Arial size=1>Purchase of treasury shares</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=1>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=Arial size=1>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=1>(559</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=1>)</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=1>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=1>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=1>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-LEFT: #000000 1pt dashed" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=1>-</FONT></TD>
    <TD style="BORDER-RIGHT: #000000 1pt dashed" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=1>(559</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=1>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="59%"><FONT face=Arial size=1>RSUs and DSUs
      redeemed</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=Arial size=1>101,986</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="2%"><FONT face=Arial size=1>542</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=Arial size=1>96</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=Arial size=1>(800</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face=Arial size=1>)</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=Arial size=1>(21</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face=Arial size=1>)</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=Arial size=1>-</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt dashed" noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=Arial size=1>-</FONT></TD>
    <TD style="BORDER-RIGHT: #000000 1pt dashed" noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=Arial size=1>(183</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face=Arial size=1>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="59%" bgColor=#c0c0c0><FONT face=Arial size=1>Options exercised</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=1>72,491</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=Arial size=1>138</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=1>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=1>(47</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=1>)</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=1>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=1>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-LEFT: #000000 1pt dashed" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=1>-</FONT></TD>
    <TD style="BORDER-RIGHT: #000000 1pt dashed" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=1>91</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="59%"><FONT face=Arial size=1>Share distribution plan</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=Arial size=1>-</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%"><FONT face=Arial size=1>-</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=Arial size=1>-</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=Arial size=1>3,584</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=Arial size=1>-</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=Arial size=1>-</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt dashed; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=Arial size=1>-</FONT></TD>
    <TD style="BORDER-RIGHT: #000000 1pt dashed; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=Arial size=1>3,584</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="59%" bgColor=#c0c0c0><FONT face=Arial size=1>Balance, December 31, 2010</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=1>84,148,465</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=Arial size=1>836,245</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=1>(670</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=1>)</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=1>289,444</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=1>(995,023</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=1>)</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=1>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-LEFT: #000000 1pt dashed" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=1>(413</FONT></TD>
    <TD style="BORDER-RIGHT: #000000 1pt dashed" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=1>)</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=1>129,583</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="59%"><B><FONT face=Arial size=1>Net
      loss</FONT></B></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="3%"><B><FONT face=Arial size=1>-</FONT></B></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="2%"><B><FONT face=Arial size=1>-</FONT></B></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><B><FONT face=Arial size=1>-</FONT></B></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><B><FONT face=Arial size=1>-</FONT></B></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><B><FONT face=Arial size=1>(33,420</FONT></B></TD>
    <TD noWrap align=left width="1%"><B><FONT face=Arial size=1>)</FONT></B></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><B><FONT face=Arial size=1>-</FONT></B></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt dashed" noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><B><FONT face=Arial size=1>(2,736</FONT></B></TD>
    <TD style="BORDER-RIGHT: #000000 1pt dashed" noWrap align=left width="1%"><B><FONT face=Arial size=1>)</FONT></B></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><B><FONT face=Arial size=1>(36,156</FONT></B></TD>
    <TD noWrap align=left width="1%"><B><FONT face=Arial size=1>)</FONT></B></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="59%" bgColor=#c0c0c0><B><FONT face=Arial size=1>Foreign currency translation for</FONT></B></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=Arial size=1>-</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0><B><FONT face=Arial size=1>-</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=Arial size=1>-</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=Arial size=1>-</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=Arial size=1>-</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=Arial size=1>189</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-LEFT: #000000 1pt dashed" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=Arial size=1>174</FONT></B></TD>
    <TD style="BORDER-RIGHT: #000000 1pt dashed" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=Arial size=1>363</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="59%" bgColor=#c0c0c0><FONT face=Arial size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<STRONG>foreign
      operations</STRONG></FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-LEFT: #000000 1pt dashed" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-RIGHT: #000000 1pt dashed" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="59%"><B><FONT face=Arial size=1>Defined
      benefit plan actuarial loss</FONT></B></TD>
    <TD noWrap align=right width="1%">&nbsp;</TD>
    <TD noWrap align=right width="3%"><B><FONT face=Arial size=1>-</FONT></B></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="2%"><B><FONT face=Arial size=1>-</FONT></B></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><B><FONT face=Arial size=1>-</FONT></B></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><B><FONT face=Arial size=1>-</FONT></B></TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><B><FONT face=Arial size=1>(2,905</FONT></B></TD>
    <TD noWrap align=left width="1%"><B><FONT face=Arial size=1>)</FONT></B></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><B><FONT face=Arial size=1>-</FONT></B></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt dashed" noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><B><FONT face=Arial size=1>-</FONT></B></TD>
    <TD style="BORDER-RIGHT: #000000 1pt dashed" noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><B><FONT face=Arial size=1>(2,905</FONT></B></TD>
    <TD noWrap align=left width="1%"><B><FONT face=Arial size=1>)</FONT></B></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="59%" bgColor=#c0c0c0><B><FONT face=Arial size=1>Net gain on hedge of forward contracts</FONT></B></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=Arial size=1>-</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0><B><FONT face=Arial size=1>-</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=Arial size=1>-</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=Arial size=1>-</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=Arial size=1>-</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=Arial size=1>20</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-LEFT: #000000 1pt dashed" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=Arial size=1>-</FONT></B></TD>
    <TD style="BORDER-RIGHT: #000000 1pt dashed" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=Arial size=1>20</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="59%"><B><FONT face=Arial size=1>Non-dilutive
      financing</FONT></B></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="3%"><B><FONT face=Arial size=1>-</FONT></B></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="2%"><B><FONT face=Arial size=1>-</FONT></B></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><B><FONT face=Arial size=1>-</FONT></B></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><B><FONT face=Arial size=1>(60</FONT></B></TD>
    <TD noWrap align=left width="1%"><B><FONT face=Arial size=1>)</FONT></B></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><B><FONT face=Arial size=1>-</FONT></B></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><B><FONT face=Arial size=1>-</FONT></B></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt dashed" noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><B><FONT face=Arial size=1>-</FONT></B></TD>
    <TD style="BORDER-RIGHT: #000000 1pt dashed" noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><B><FONT face=Arial size=1>(60</FONT></B></TD>
    <TD noWrap align=left width="1%"><B><FONT face=Arial size=1>)</FONT></B></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="59%" bgColor=#c0c0c0><B><FONT face=Arial size=1>Purchase of treasury shares</FONT></B></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=Arial size=1>-</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0><B><FONT face=Arial size=1>-</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=Arial size=1>(327</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=Arial size=1>)</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=Arial size=1>-</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=Arial size=1>-</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=Arial size=1>-</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-LEFT: #000000 1pt dashed" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=Arial size=1>-</FONT></B></TD>
    <TD style="BORDER-RIGHT: #000000 1pt dashed" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=Arial size=1>(327</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=Arial size=1>)</FONT></B></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="59%"><B><FONT face=Arial size=1>RSUs
      redeemed</FONT></B></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="3%"><B><FONT face=Arial size=1>376,225</FONT></B></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="2%"><B><FONT face=Arial size=1>1,393</FONT></B></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><B><FONT face=Arial size=1>482</FONT></B></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><B><FONT face=Arial size=1>(2,769</FONT></B></TD>
    <TD noWrap align=left width="1%"><B><FONT face=Arial size=1>)</FONT></B></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><B><FONT face=Arial size=1>69</FONT></B></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><B><FONT face=Arial size=1>-</FONT></B></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt dashed" noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><B><FONT face=Arial size=1>-</FONT></B></TD>
    <TD style="BORDER-RIGHT: #000000 1pt dashed" noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><B><FONT face=Arial size=1>(825</FONT></B></TD>
    <TD noWrap align=left width="1%"><B><FONT face=Arial size=1>)</FONT></B></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="59%" bgColor=#c0c0c0><B><FONT face=Arial size=1>Options exercised</FONT></B></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=Arial size=1>25,834</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0><B><FONT face=Arial size=1>48</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=Arial size=1>-</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=Arial size=1>(8</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=Arial size=1>)</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=Arial size=1>-</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=Arial size=1>-</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-LEFT: #000000 1pt dashed" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=Arial size=1>-</FONT></B></TD>
    <TD style="BORDER-RIGHT: #000000 1pt dashed" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=Arial size=1>40</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="59%"><B><FONT face=Arial size=1>Share distribution
    plan</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><B><FONT face=Arial size=1>-</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%"><B><FONT face=Arial size=1>-</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><B><FONT face=Arial size=1>-</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><B><FONT face=Arial size=1>2,612</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><B><FONT face=Arial size=1>-</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><B><FONT face=Arial size=1>-</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt dashed; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><B><FONT face=Arial size=1>-</FONT></B></TD>
    <TD style="BORDER-RIGHT: #000000 1pt dashed; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><B><FONT face=Arial size=1>2,612</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="59%" bgColor=#c0c0c0><B><FONT face=Arial size=1>Balance, December 31,
      2011</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=Arial size=1>84,550,524</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=Arial size=1>$&nbsp;&nbsp;&nbsp;</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="2%" bgColor=#c0c0c0><B><FONT face=Arial size=1>837,686</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=Arial size=1>$&nbsp;&nbsp;&nbsp;</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=Arial size=1>(515</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><STRONG><FONT face=Arial size=1>)</FONT></STRONG></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=Arial size=1>$&nbsp;&nbsp;&nbsp;</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=Arial size=1>289,219</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=Arial size=1>$</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=Arial size=1>(1,031,279</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=Arial size=1>)</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=Arial size=1>$</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=Arial size=1>209</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-LEFT: #000000 1pt dashed; BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=Arial size=1>$&nbsp;&nbsp;&nbsp;</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=Arial size=1>(2,975</FONT></B></TD>
    <TD style="BORDER-RIGHT: #000000 1pt dashed; BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><STRONG><FONT face=Arial size=1>)</FONT></STRONG></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=Arial size=1>$</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=Arial size=1>92,345</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR></TABLE><BR>
<P align=justify><FONT face="Arial" size=1><FONT face="Arial" size=1>See accompanying
notes to consolidated financial statements</FONT>.</FONT></P>
<HR align=center width="100%" noShade SIZE=2>

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=justify><B><FONT face="Arial">BALLARD POWER SYSTEMS
INC.<BR></FONT></B><FONT face="Arial" size=2>Consolidated Statement of Cash
Flows<BR>For the year ended December 31<BR></FONT><FONT face="Arial" size=1>(Expressed in thousands of U.S. dollars)</FONT><FONT face="Arial" size=2> </FONT></P>


<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="85%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%"><FONT face="Arial" size=1>Note</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><B><FONT face="Arial" size=1>2011</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face="Arial" size=1>2010</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="85%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>Cash provided by (used
    for):</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="85%"><B><FONT face="Arial" size=1>Operating activities:</FONT></B></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="85%" bgColor=#c0c0c0><FONT face="Arial" size=1>Net loss for the
      year</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></B></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>(36,156</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>)</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$<STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </STRONG></FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>(35,439</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="85%"><FONT face="Arial" size=1>Adjustments for:</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="85%" bgColor=#c0c0c0><FONT face="Arial" size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Compensatory
      shares</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>2,646</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>3,579</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="85%"><FONT face="Arial" size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Employee future
      benefits</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><B><FONT face="Arial" size=1>(172</FONT></B></TD>
    <TD noWrap align=left width="1%"><B><FONT face="Arial" size=1>)</FONT></B></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>(246</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="85%" bgColor=#c0c0c0><FONT face="Arial" size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation
      and amortization</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>5,906</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>8,615</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="85%"><FONT face="Arial" size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gain (loss) on
      sale of property, plant and equipment</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="2%"><FONT face="Arial" size=1>8</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><B><FONT face="Arial" size=1>(734</FONT></B></TD>
    <TD noWrap align=left width="1%"><B><FONT face="Arial" size=1>)</FONT></B></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>16</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="85%" bgColor=#c0c0c0><FONT face="Arial" size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gain on sale of
      assets</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>-</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>(7,921</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="85%"><FONT face="Arial" size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Impairment loss
      on property, plant and equipment</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><B><FONT face="Arial" size=1>1,727</FONT></B></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="85%" bgColor=#c0c0c0><FONT face="Arial" size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unrealized
      loss/(gain) on forward contracts</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>285</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>(1,404</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="85%">&nbsp;</TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><B><FONT face="Arial" size=1>(26,498</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><B><FONT face="Arial" size=1>)</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face="Arial" size=1>(32,800</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="85%" bgColor=#c0c0c0><FONT face="Arial" size=1>Changes in
      non-cash working capital:</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="85%"><FONT face="Arial" size=1>Trade and other
      receivables</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><B><FONT face="Arial" size=1>(4,317</FONT></B></TD>
    <TD noWrap align=left width="1%"><B><FONT face="Arial" size=1>)</FONT></B></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>(65</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="85%" bgColor=#c0c0c0><FONT face="Arial" size=1>Inventories</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>(1,293</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>)</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>(2,350</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="85%"><FONT face="Arial" size=1>Prepaid expenses and other
      current assets</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><B><FONT face="Arial" size=1>42</FONT></B></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>1,276</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="85%" bgColor=#c0c0c0><FONT face="Arial" size=1>Trade and other
      payables</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>(1,691</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>)</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>2,915</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="85%"><FONT face="Arial" size=1>Deferred revenue</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><B><FONT face="Arial" size=1>1,052</FONT></B></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>965</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="85%" bgColor=#c0c0c0><FONT face="Arial" size=1>Accrued warranty
      liabilities</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>(516</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>)</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>747</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="85%">&nbsp;</TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><B><FONT face="Arial" size=1>(6,723</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><B><FONT face="Arial" size=1>)</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face="Arial" size=1>3,488</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="85%" bgColor=#c0c0c0><FONT face="Arial" size=1>Cash used by
      operating activities</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>(33,221</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>)</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>(29,312</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD></TR>
  <TR>
    <TD width="99%" colSpan=10>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="85%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>Investing activities:</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR>
    <TD width="99%" colSpan=10>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="85%" bgColor=#c0c0c0><FONT face="Arial" size=1>Net decrease
      (increase) in short-term investments</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>(3,370</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>)</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>17,738</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="85%"><FONT face="Arial" size=1>Additions to property, plant and
      equipment</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><B><FONT face="Arial" size=1>(4,107</FONT></B></TD>
    <TD noWrap align=left width="1%"><B><FONT face="Arial" size=1>)</FONT></B></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>(3,453</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="85%" bgColor=#c0c0c0><FONT face="Arial" size=1>Net proceeds on
      sale of property, plant and equipment and other</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>3,666</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>20,012</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="85%"><FONT face="Arial" size=1>Net proceeds on monetization of
      other long-term assets</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><B><FONT face="Arial" size=1>-</FONT></B></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>3,355</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="85%" bgColor=#c0c0c0><FONT face="Arial" size=1>Net investments
      in associated companies</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face="Arial" size=1>11</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>36</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>(33</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="85%" bgColor=#ffffff><FONT face="Arial" size=1>Other investment
      activities</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="2%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=right width="3%" bgColor=#ffffff><B><FONT face="Arial" size=1>-</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=right width="3%" bgColor=#ffffff><FONT face="Arial" size=1>(152</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff><FONT face="Arial" size=1>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="85%" bgColor=#c0c0c0><FONT face="Arial" size=1>Business
      acquisition including cash acquired</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>-</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>877</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="85%">&nbsp;</TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><B><FONT face="Arial" size=1>(3,775</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><B><FONT face="Arial" size=1>)</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face="Arial" size=1>38,344</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="85%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>Financing activities:</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="85%"><FONT face="Arial" size=1>Non-dilutive financing</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><B><FONT face="Arial" size=1>(60</FONT></B></TD>
    <TD noWrap align=left width="1%"><B><FONT face="Arial" size=1>)</FONT></B></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>(22</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="85%" bgColor=#c0c0c0><FONT face="Arial" size=1>Purchase of
      treasury shares</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>(327</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>)</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>(559</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="85%"><FONT face="Arial" size=1>Payment of finance lease
      liabilities</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><B><FONT face="Arial" size=1>(830</FONT></B></TD>
    <TD noWrap align=left width="1%"><B><FONT face="Arial" size=1>)</FONT></B></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>(770</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="85%" bgColor=#c0c0c0><FONT face="Arial" size=1>Net proceeds
      from bank operating line</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face="Arial" size=1>12</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>4,587</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="85%"><FONT face="Arial" size=1>Net proceeds on issuance of
      share capital</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="2%">&nbsp;</TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><B><FONT face="Arial" size=1>40</FONT></B></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>91</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="85%" bgColor=#c0c0c0><FONT face="Arial" size=1>Proceeds on
      issuance of convertible debenture from</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face="Arial" size=1>16</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>1,718</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="85%" bgColor=#c0c0c0><FONT face="Arial" size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dantherm Power
      A/S non-controlling interests</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="85%"><FONT face="Arial" size=1>Contribution from Dantherm Power
      A/S non-controlling interests</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><B><FONT face="Arial" size=1>-</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face="Arial" size=1>866</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="85%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>5,128</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>(394</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD></TR>
  <TR>
    <TD width="99%" colSpan=10>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="85%" bgColor=#c0c0c0><FONT face="Arial" size=1>Effect of
      exchange rate fluctuations on cash and cash equivalents held</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>247</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR>
    <TD width="99%" colSpan=10>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="85%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>Increase (decrease) in cash and cash
      equivalents</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>(31,621</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>)</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>8,638</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="85%"><B><FONT face="Arial" size=1>Cash and cash equivalents, beginning of period</FONT></B></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><B><FONT face="Arial" size=1>51,937</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face="Arial" size=1>43,299</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="85%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>Cash and cash equivalents, end of
      period</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>$</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>20,316</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>51,937</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR></TABLE><BR>
<P align=justify><FONT face="Arial" size=1>Supplemental disclosure of cash
flow information (note 24).<BR>See accompanying notes to consolidated financial
statements. </FONT></P>
<HR align=center width="100%" noShade SIZE=2>

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<DIV>
<TABLE style="LINE-HEIGHT: normal; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="100%"><FONT style="FONT-FAMILY: arial" size=2><FONT style="DISPLAY: inline; FONT-WEIGHT: bold">BALLARD POWER SYSTEMS
      INC.<BR></FONT>Notes to Consolidated Financial Statements<BR><FONT style="FONT-FAMILY: arial" size=1>Years ended December 31, 2011, and
      2010<BR>(Tabular amounts expressed in thousands of U.S. dollars, except
      per share amounts and number of shares)<BR></FONT><FONT style="FONT-FAMILY: arial" size=2><FONT style="DISPLAY: inline; FONT-WEIGHT: bold">&nbsp;</FONT></FONT></FONT></TD></TR></TABLE></DIV><BR>
<P align=justify><B><FONT face="Arial" size=2>1.</FONT></B><B><FONT face="Arial" size=2> </FONT></B><B><FONT face="Arial" size=2>Reporting
entity: </FONT></B></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>The
principal business of Ballard Power Systems Inc. (the &#147;Corporation&#148;) is the
design, development, manufacture, sale and service of fuel cell products for a
variety of applications, focusing on motive power (material handling and buses)
and stationary power (back-up power and distributed generation) markets; and
engineering services for a variety of fuel cell applications. A fuel cell is an
environmentally clean electrochemical device that combines hydrogen fuel with
oxygen (from the air) to produce electricity. The Corporation&#146;s technology is
based on proton exchange membrane (&#147;PEM&#148;) fuel cells.</FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>The
Corporation is a company domiciled in Canada and its registered office is
located at 9000 Glenlyon Parkway, Burnaby, British Columbia, Canada, V5J 5J8.
The consolidated financial statements of the Corporation as at and for the year
ended December 31, 2011 comprise the Corporation and its subsidiaries (note
3(a)). </FONT></P>
<P align=justify><B><FONT face="Arial" size=2>2.</FONT></B><B><FONT face="Arial" size=2> </FONT></B><B><FONT face="Arial" size=2>Basis of
preparation: </FONT></B></P>
<P align=justify><FONT face="Arial" size=2>(a)</FONT><FONT face="Arial" size=2> </FONT><FONT face="Arial" size=2>Statement of compliance: </FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>These
consolidated financial statements of the Corporation have been prepared in
accordance with International Financial Reporting Standards (&#147;IFRS&#148;) as issued
by the International Accounting Standards Board (&#147;IASB&#148;). These are the
Corporation&#146;s first consolidated annual financial statements prepared in
accordance with IFRS, and IFRS 1 </FONT><I><FONT face="Arial" size=2>First-Time Adoption of International Financial Reporting
Standards</FONT></I><FONT face="Arial" size=2>, has been applied.</FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>An
explanation of how the transition to IFRS has affected the reported financial
position, financial performance and cash flows of the Corporation is provided in
note 27. </FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>The
consolidated financial statements were authorized for issue by the Board of
Directors on February 22, 2012. </FONT></P>
<P align=justify><FONT face="Arial" size=2>(b)</FONT><FONT face="Arial" size=2> </FONT><FONT face="Arial" size=2>Basis of measurement: </FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>The
consolidated financial statements have been prepared on the historical cost
basis except for the following material items in the statement of financial
position: </FONT></P>
<UL style="PADDING-LEFT: 15pt; text-align: justify; FONT-SIZE: 10pt">
  <LI><FONT face="Arial" size=2>Financial instruments classified as fair
  value through profit or loss and available-for-sale are measured at fair
  value;<BR>&nbsp;</FONT></LI>
  <LI><FONT face="Arial" size=2>Derivative financial instruments are measured
  at fair value; and<BR>&nbsp;</FONT></LI>
  <LI><FONT face="Arial" size=2>Employee future benefit plan assets are
  measured at fair value, determined directly by reference to quoted market
  prices. </FONT></LI></UL>
<P align=right><FONT face="Arial" size=1>11</FONT></P>
<HR align=center width="100%" noShade SIZE=2>

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<DIV>
<TABLE style="LINE-HEIGHT: normal; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="100%"><FONT style="FONT-FAMILY: arial" size=2><FONT style="DISPLAY: inline; FONT-WEIGHT: bold">BALLARD POWER SYSTEMS
      INC.<BR></FONT>Notes to Consolidated Financial Statements<BR><FONT style="FONT-FAMILY: arial" size=1>Years ended December 31, 2011, and
      2010<BR>(Tabular amounts expressed in thousands of U.S. dollars, except
      per share amounts and number of shares)<BR></FONT><FONT style="FONT-FAMILY: arial" size=2><FONT style="DISPLAY: inline; FONT-WEIGHT: bold">&nbsp;</FONT></FONT></FONT></TD></TR></TABLE></DIV><BR>
<P align=justify><B><FONT face="Arial" size=2>2. Basis of preparation
(cont&#146;d): </FONT></B></P>
<P align=justify><FONT face="Arial" size=2>(c)</FONT><FONT face="Arial" size=2> </FONT><FONT face="Arial" size=2>Functional and presentation
currency: </FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>These consolidated financial
statements are presented in U.S. dollars, which is the Corporation&#146;s functional
currency.</FONT></P>
<P align=justify><FONT face="Arial" size=2>(d) Use of estimates and
judgments: </FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>The preparation of the
consolidated financial statements in conformity with IFRS requires the
Corporation&#146;s management to make judgments, estimates and assumptions that
affect the amounts reported in these consolidated financial statements and
notes. Actual results could differ from those estimates.</FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>Estimates and underlying
assumptions are reviewed on an ongoing basis. Revisions to accounting estimates
are recognized in the period in which the estimates are revised and in any
future periods affected. </FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>Significant areas requiring
management to make estimates include revenue recognition, product warranty
provision, the net realizable value of inventory, recoverability of intangibles
and goodwill, and employee future benefits. These estimates and judgments are
further discussed in note 4. </FONT></P>
<P align=justify><B><FONT face="Arial" size=2>3.</FONT></B><B><FONT face="Arial" size=2> </FONT></B><B><FONT face="Arial" size=2>Significant
accounting policies: </FONT></B></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>The accounting policies set out
below have been applied consistently to all periods presented in these
consolidated financial statements and in preparing the opening IFRS statement of
financial position at January 1, 2010 for the purposes of the transition to
IFRS, unless otherwise indicated. </FONT></P>
<P align=justify><FONT face="Arial" size=2>(a) Basis of consolidation:
</FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>The consolidated financial
statements include the accounts of the Corporation and its principal
subsidiaries as follows:</FONT><FONT face="Arial" size=2> </FONT></P>
<div style="PADDING-LEFT: 15pt; width: 100%">
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="87%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="12%" colSpan=5><FONT face="Arial" size=1>Percentage
      ownership</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="87%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD noWrap align=left width="4%"></TD>
    <TD noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD noWrap align=right width="4%"><FONT face="Arial" size=1>January 1,</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="87%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%"><FONT face="Arial" size=1>2011</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%"><FONT face="Arial" size=1>2010</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%"><FONT face="Arial" size=1>2010</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="87%" bgColor=#c0c0c0><FONT face="Arial" size=1>Ballard Material
      Products Inc.</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face="Arial" size=1>100%</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1></FONT></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face="Arial" size=1>100%</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1></FONT></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face="Arial" size=1>100%</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="87%"><FONT face="Arial" size=1>Ballard Power
    Corporation</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="2%"><FONT face="Arial" size=1>100%</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=1></FONT></TD>
    <TD noWrap align=right width="4%"><FONT face="Arial" size=1>100%</FONT></TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=right width="4%"><FONT face="Arial" size=1>100%</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="87%" bgColor=#c0c0c0><FONT face="Arial" size=1>Dantherm Power A/S</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="2%" bgColor=#c0c0c0><FONT face="Arial" size=1>52%</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="4%" bgColor=#c0c0c0><FONT face="Arial" size=1>45% - 52%</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="4%" bgColor=#c0c0c0><FONT face="Arial" size=1>-</FONT></TD></TR></TABLE></div><BR>
<P align=right><FONT face="Arial" size=1>12</FONT></P>
<HR align=center width="100%" noShade SIZE=2>

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<DIV>
<TABLE style="LINE-HEIGHT: normal; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="100%"><FONT style="FONT-FAMILY: arial" size=2><FONT style="DISPLAY: inline; FONT-WEIGHT: bold">BALLARD POWER SYSTEMS
      INC.<BR></FONT>Notes to Consolidated Financial Statements<BR><FONT style="FONT-FAMILY: arial" size=1>Years ended December 31, 2011, and
      2010<BR>(Tabular amounts expressed in thousands of U.S. dollars, except
      per share amounts and number of shares)<BR></FONT><FONT style="FONT-FAMILY: arial" size=2><FONT style="DISPLAY: inline; FONT-WEIGHT: bold">&nbsp;</FONT></FONT></FONT></TD></TR></TABLE></DIV><BR>
<P align=justify><B><FONT face="Arial" size=2>3. Significant accounting
policies (cont&#146;d): </FONT></B></P>
<P align=justify><FONT face="Arial" size=2>(a) Basis of consolidation
(cont&#146;d): </FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>Subsidiaries are entities over which the Corporation exercises control,
where control is defined as the power to govern financial and operating
policies, generally owning greater than 50% of the voting rights. The financial
statements of subsidiaries are included in the consolidated financial statements
from the date that control commences until the date that control ceases.
Intercompany balances and transactions are eliminated in the consolidated
financial statements. </FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>The
Corporation acquired a 45% interest in Dantherm Power A/S on January 18, 2010.
In August 2010, the Corporation acquired an additional 7% interest in Dantherm
Power A/S. As the Corporation obtained control over Dantherm Power A/S as of the
date of acquisition of the 45% interest, Dantherm Power A/S has been
consolidated since January 18, 2010. </FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>Acquisitions of non-controlling interest are accounted as transactions
with equity holders in their capacity as equity holders; therefore no goodwill
is recognized as a result of such transactions. </FONT></P>
<P align=justify><FONT face="Arial" size=2>(b) Foreign currency: </FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>(i) Foreign currency transactions </FONT></P>
<P style="PADDING-LEFT: 28pt" align=justify><FONT face="Arial" size=2>Transactions in foreign currencies are translated to the respective
functional currencies of the Corporation and its subsidiaries at the exchange
rate in effect at the transaction date. Monetary assets and liabilities
denominated in other than the functional currency are translated at the exchange
rates in effect at the balance sheet date. The resulting exchange gains and
losses are recognized in earnings. Non-monetary assets and liabilities
denominated in other than the functional currency that are measured at fair
value are translated to the functional currency at the exchange rate at the date
that the fair value was determined. Non-monetary items that are measured in
terms of historical cost in other than the functional currency are translated
using the exchange rate at the date of the transaction. </FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>(ii)
Foreign operations </FONT></P>
<P style="PADDING-LEFT: 28pt" align=justify><FONT face="Arial" size=2>The
assets and liabilities of foreign operations are translated to presentation
currency at exchange rates at the reporting date. The income and expenses of
foreign operations are translated to presentation currency at exchange rates at
the dates of the transactions. Foreign currency differences are recognized in
other comprehensive income. </FONT></P>
<P align=right><FONT face="Arial" size=1>13</FONT></P>
<HR align=center width="100%" noShade SIZE=2>

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<DIV>
<TABLE style="LINE-HEIGHT: normal; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="100%"><FONT style="FONT-FAMILY: arial" size=2><FONT style="DISPLAY: inline; FONT-WEIGHT: bold">BALLARD POWER SYSTEMS
      INC.<BR></FONT>Notes to Consolidated Financial Statements<BR><FONT style="FONT-FAMILY: arial" size=1>Years ended December 31, 2011, and
      2010<BR>(Tabular amounts expressed in thousands of U.S. dollars, except
      per share amounts and number of shares)<BR></FONT><FONT style="FONT-FAMILY: arial" size=2><FONT style="DISPLAY: inline; FONT-WEIGHT: bold">&nbsp;</FONT></FONT></FONT></TD></TR></TABLE></DIV><BR>
<P align=justify><B><FONT face="Arial" size=2>3. Significant accounting
policies (cont&#146;d): </FONT></B></P>
<P align=justify><FONT face="Arial" size=2>(c) Financial instruments:
</FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>(i) Financial assets
</FONT></P>
<P style="PADDING-LEFT: 27pt" align=justify><FONT face="Arial" size=2>The Corporation initially
recognizes loans and receivables and deposits on the date that they are
originated and all other financial assets on the trade date at which the
Corporation becomes a party to the contractual provisions of the instrument. The
Corporation derecognizes a financial asset when the contractual rights to the
cash flows from the asset expire, or when it transfers substantially all the
risks and rewards of ownership of the financial asset.</FONT></P>
<P style="PADDING-LEFT: 27pt" align=justify><I><FONT face="Arial" size=2>Financial assets at fair
value through profit or loss </FONT></I></P>
<P style="PADDING-LEFT: 27pt" align=justify><FONT face="Arial" size=2>Financial assets are classified
at fair value through profit or loss if they are held for trading or if the
Corporation manages such investments and makes purchase and sale decisions based
on their fair value in accordance with the Corporation&#146;s documented risk
management or investment strategy. Financial assets at fair value through profit
or loss are measured at fair value, and changes therein are recognized in net
loss.</FONT></P>
<P style="PADDING-LEFT: 27pt" align=justify><FONT face="Arial" size=2>The Corporation&#146;s short-term
investments, consisting of highly liquid interest bearing securities with
maturities at the date of purchase between three months and three years, are
classified as held for trading.</FONT></P>
<P style="PADDING-LEFT: 27pt" align=justify><FONT face="Arial" size=2>The Corporation also
periodically enters into platinum futures and foreign exchange forward contracts
to limit its exposure to platinum price and foreign currency rate fluctuations.
These derivatives are recognized initially at fair value and are recorded as
either assets or liabilities based on their fair value. Subsequent to initial
recognition, these derivatives are measured at fair value and changes to their
value are recorded through net loss, unless these financial instruments are
designated as hedges (note 3 (c)(iv)). </FONT></P>
<P style="PADDING-LEFT: 27pt" align=justify><I><FONT face="Arial" size=2>Loans and receivables
</FONT></I></P>
<P style="PADDING-LEFT: 27pt" align=justify><FONT face="Arial" size=2>Loans and receivables are
financial assets with fixed or determinable payments that are not quoted in an
active market. Such assets are recognized initially at fair value and
subsequently at amortized cost using the effective interest method, less any
impairment losses. Loans and receivables are comprised of the Corporation&#146;s
trade and other receivables.</FONT></P>
<P align=right><FONT face="Arial" size=1>14</FONT></P>
<HR align=center width="100%" noShade SIZE=2>

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<DIV>
<TABLE style="LINE-HEIGHT: normal; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="100%"><FONT style="FONT-FAMILY: arial" size=2><FONT style="DISPLAY: inline; FONT-WEIGHT: bold">BALLARD POWER SYSTEMS
      INC.<BR></FONT>Notes to Consolidated Financial Statements<BR><FONT style="FONT-FAMILY: arial" size=1>Years ended December 31, 2011, and
      2010<BR>(Tabular amounts expressed in thousands of U.S. dollars, except
      per share amounts and number of shares)<BR></FONT><FONT style="FONT-FAMILY: arial" size=2><FONT style="DISPLAY: inline; FONT-WEIGHT: bold">&nbsp;</FONT></FONT></FONT></TD></TR></TABLE></DIV><BR>
<P align=justify><B><FONT face="Arial" size=2>3. Significant accounting
policies (cont&#146;d): </FONT></B></P>
<P align=justify><FONT face="Arial" size=2>(c) Financial instruments
(cont&#146;d): </FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>(i) Financial assets (cont&#146;d) </FONT></P>
<P style="PADDING-LEFT: 28pt" align=justify><I><FONT face="Arial" size=2>Cash and cash equivalents</FONT></I><FONT face="Arial" size=2>
</FONT></P>
<P style="PADDING-LEFT: 28pt" align=justify><FONT face="Arial" size=2>Cash
and cash equivalents consist of cash on deposit and highly liquid short-term
interest-bearing securities with maturities at the date of purchase of three
months or less. </FONT></P>
<P style="PADDING-LEFT: 28pt" align=justify><I><FONT face="Arial" size=2>Available-for-sale financial assets </FONT></I></P>
<P style="PADDING-LEFT: 28pt" align=justify><FONT face="Arial" size=2>Available-for-sale financial assets are non-derivative financial
assets that are designated as available-for-sale and that are not classified in
any of the previous categories. The Corporation&#146;s investment in Chrysalix Energy
Limited Partnership (&#147;Chrysalix&#148;) is classified as available-for-sale financial
assets. Subsequent to initial recognition, they are measured at fair value and
changes therein, other than impairment losses and foreign currency differences,
are recognized in other comprehensive income. When an investment is
derecognized, the cumulative gain or loss in other comprehensive income is
transferred to profit or loss. </FONT></P>
<P style="PADDING-LEFT: 28pt" align=justify><I><FONT face="Arial" size=2>Determination of fair value </FONT></I></P>
<P style="PADDING-LEFT: 28pt" align=justify><FONT face="Arial" size=2>The
fair value of financial assets at fair value through profit or loss and
available-for-sale are determined by reference to their quoted closing bid price
at the reporting date if they are traded in an active market. For derivative
instruments (foreign exchange forward contracts, platinum futures contracts),
fair value is estimated by Management based on their listed market price or
broker quotes that include adjustments to take account of the credit risk of the
Corporation and the counterparty when appropriate. The fair value of loans and
receivables is estimated as the present value of future cash flows, discounted
at the market rate of interest at the reporting date.</FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>(ii)
Financial liabilities </FONT></P>
<P style="PADDING-LEFT: 28pt" align=justify><FONT face="Arial" size=2>Financial liabilities comprise the Corporation&#146;s trade and other
payables. The financial liabilities are initially recognized on the date they
are originated and are derecognized when the contractual obligations are
discharged or cancelled or expire. These financial liabilities are recognized
initially at fair value and subsequently are measured at amortized costs using
the effective interest method, when materially different from the initial
amount. Fair value is determined based on the present value of future cash
flows, discounted at the market rate of interest. </FONT></P>
<P align=right><FONT face="Arial" size=1>15</FONT></P>
<HR align=center width="100%" noShade SIZE=2>

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<DIV>
<TABLE style="LINE-HEIGHT: normal; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="100%"><FONT style="FONT-FAMILY: arial" size=2><FONT style="DISPLAY: inline; FONT-WEIGHT: bold">BALLARD POWER SYSTEMS
      INC.<BR></FONT>Notes to Consolidated Financial Statements<BR><FONT style="FONT-FAMILY: arial" size=1>Years ended December 31, 2011, and
      2010<BR>(Tabular amounts expressed in thousands of U.S. dollars, except
      per share amounts and number of shares)<BR></FONT><FONT style="FONT-FAMILY: arial" size=2><FONT style="DISPLAY: inline; FONT-WEIGHT: bold">&nbsp;</FONT></FONT></FONT></TD></TR></TABLE></DIV><BR>
<P align=justify><B><FONT face="Arial" size=2>3. Significant accounting
policies (cont&#146;d): </FONT></B></P>
<P align=justify><FONT face="Arial" size=2>(c) Financial instruments
(cont&#146;d): </FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>(iii)
Share capital </FONT></P>
<P style="PADDING-LEFT: 30pt" align=justify><FONT face="Arial" size=2>Share
capital is classified as equity. Incremental costs directly attributable to the
issue of shares and share options are recognized as a deduction from equity.
When share capital is repurchased, the amount of the consideration paid,
including directly attributable costs, is recognized as a deduction from equity.
Repurchased shares are classified as treasury shares and are presented as a
deduction from equity. When treasury shares are subsequently reissued, the
amount received is recognized as an increase in equity, and the resulting
surplus or deficit on the transaction is transferred to or from retained
earnings. </FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>(iv)
Derivative financial instruments, including hedge accounting </FONT></P>
<P style="PADDING-LEFT: 30pt" align=justify><FONT face="Arial" size=2>The
Corporation holds derivative financial instruments to hedge its foreign currency
risk exposures that are designated as the hedging instrument in a hedge
relationship. </FONT></P>
<P style="PADDING-LEFT: 30pt" align=justify><FONT face="Arial" size=2>On
initial designation of the hedge, the Corporation formally documents the
relationship between the hedging instrument and hedged item, including the risk
management objectives and strategy in undertaking the hedge transaction,
together with the methods that will be used to assess the effectiveness of the
hedging relationship.</FONT></P>
<P style="PADDING-LEFT: 30pt" align=justify><FONT face="Arial" size=2>The
Corporation makes an assessment, both at the inception of the hedge relationship
as well as on an ongoing basis, whether the hedging instruments are expected to
be &#147;highly effective&#148; in offsetting the changes in the fair value or cash flows
of the respective hedged items during the period for which the hedge is
designated, and whether the actual results of each hedge are within a range of
80-125 percent. For a cash flow hedge of a forecast transaction, the transaction
should be highly probable to occur and should present an exposure to variations
in cash flows that could ultimately affect reported net income. </FONT></P>
<P style="PADDING-LEFT: 30pt" align=justify><FONT face="Arial" size=2>Derivatives are recognized initially at fair value; attributable
transaction costs are recognized in profit or loss as incurred. Subsequent to
initial recognition, derivatives are measured at fair value, and changes therein
are accounted for as described below. </FONT></P>
<P align=right><FONT face="Arial" size=1>16</FONT></P>
<HR align=center width="100%" noShade SIZE=2>

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<DIV>
<TABLE style="LINE-HEIGHT: normal; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="100%"><FONT style="FONT-FAMILY: arial" size=2><FONT style="DISPLAY: inline; FONT-WEIGHT: bold">BALLARD POWER SYSTEMS
      INC.<BR></FONT>Notes to Consolidated Financial Statements<BR><FONT style="FONT-FAMILY: arial" size=1>Years ended December 31, 2011, and
      2010<BR>(Tabular amounts expressed in thousands of U.S. dollars, except
      per share amounts and number of shares)<BR></FONT><FONT style="FONT-FAMILY: arial" size=2><FONT style="DISPLAY: inline; FONT-WEIGHT: bold">&nbsp;</FONT></FONT></FONT></TD></TR></TABLE></DIV><BR>
<P align=justify><B><FONT face="Arial" size=2>3. Significant accounting
policies (cont&#146;d): </FONT></B></P>
<P align=justify><FONT face="Arial" size=2>(c) Financial instruments
(cont&#146;d): </FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>(iv) Derivative financial
instruments, including hedge accounting (cont&#146;d) </FONT></P>
<P style="PADDING-LEFT: 30pt" align=justify><I><FONT face="Arial" size=2>Cash flow hedges
</FONT></I></P>
<P style="PADDING-LEFT: 30pt" align=justify><FONT face="Arial" size=2>When a derivative is designated
as the hedging instrument in a hedge of the variability in cash flows
attributable to a particular risk associated with a recognized asset or
liability or a highly probable forecast transaction that could affect profit or
loss, the effective portion of changes in the fair value of the derivative is
recognized in other comprehensive income and presented in unrealized
gains/losses on cash flow hedges in equity. The amount recognized in other
comprehensive income is removed and included in profit or loss in the same
period as the hedged cash flows affect profit or loss under the same line item
in the statement of comprehensive income as the hedged item. Any ineffective
portion of changes in the fair value of the derivative is recognized immediately
in profit or loss. </FONT></P>
<P style="PADDING-LEFT: 30pt" align=justify><FONT face="Arial" size=2>If the hedging instrument no
longer meets the criteria for hedge accounting, expires or is sold, terminated,
exercised, or the designation is revoked, then hedge accounting is discontinued
prospectively. The cumulative gain or loss previously recognized in other
comprehensive income and presented in unrealized gains/losses on cash flow
hedges in equity remains there until the forecast transaction affects profit or
loss.</FONT></P>
<P style="PADDING-LEFT: 30pt" align=justify><FONT face="Arial" size=2>If the forecast transaction is
no longer expected to occur, then the balance in other comprehensive income is
recognized immediately in profit or loss. In other cases the amount recognized
in other comprehensive income is transferred to profit or loss in the same
period that the hedged item affects profit or loss. </FONT></P>
<P style="PADDING-LEFT: 30pt" align=justify><I><FONT face="Arial" size=2>Other non-trading
derivatives </FONT></I></P>
<P style="PADDING-LEFT: 30pt" align=justify><FONT face="Arial" size=2>When a derivative financial
instrument is not held for trading, and is not designated in a qualifying hedge
relationship, all changes in its fair value are recognized immediately in profit
or loss. </FONT></P>
<P align=right><FONT face="Arial" size=1>17</FONT></P>
<HR align=center width="100%" noShade SIZE=2>

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<DIV>
<TABLE style="LINE-HEIGHT: normal; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="100%"><FONT style="FONT-FAMILY: arial" size=2><FONT style="DISPLAY: inline; FONT-WEIGHT: bold">BALLARD POWER SYSTEMS
      INC.<BR></FONT>Notes to Consolidated Financial Statements<BR><FONT style="FONT-FAMILY: arial" size=1>Years ended December 31, 2011, and
      2010<BR>(Tabular amounts expressed in thousands of U.S. dollars, except
      per share amounts and number of shares)<BR></FONT><FONT style="FONT-FAMILY: arial" size=2><FONT style="DISPLAY: inline; FONT-WEIGHT: bold">&nbsp;</FONT></FONT></FONT></TD></TR></TABLE></DIV><BR>
<P align=justify><B><FONT face="Arial" size=2>3. Significant accounting
policies (cont&#146;d): </FONT></B></P>
<P align=justify><FONT face="Arial" size=2>(d) Inventories: </FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>Inventories are recorded at the
lower of cost and net realizable value. The cost of inventories is based on the
first-in first-out principle, and includes expenditures incurred in acquiring
the inventories, production or conversion costs and other costs incurred in
bringing them to their existing location and condition. In the case of
manufactured inventories and work in progress, cost includes materials, labor
and appropriate share of production overhead based on normal operating capacity.
Costs of materials are determined on an average per unit basis.</FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>Net realizable value is the
estimated selling price in the ordinary course of business, less the estimated
costs of completion and selling expenses. In establishing any impairment of
inventory, management estimates the likelihood that inventory carrying values
will be affected by changes in market demand, technology and design, which would
impair the value of inventory on hand. </FONT></P>
<P align=justify><FONT face="Arial" size=2>(e) Property, plant and equipment:
</FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>Property, plant and equipment
are measured at cost less accumulated depreciation and accumulated impairment
losses. Cost includes expenditure that is directly attributable to the
acquisition of the asset. The cost of self-constructed assets includes the cost
of materials, costs directly attributable to bringing the assets to a working
condition for their intended use, and the costs of dismantling and removing
items and restoring the site on which they are located. </FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>When parts of an item of
property, plant and equipment have different useful lives, they are accounted
for as separate items (major components). </FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>Property, plant and equipment
are depreciated from the date of acquisition or, in respect of internally
constructed assets, from the time an asset is completed and ready for use, using
the straight-line method less its residual value over the estimated useful lives
of the assets as follows: </FONT></P>
<div style="PADDING-LEFT: 15pt; width: 100%">
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=left width="49%" bgColor=#c0c0c0><FONT face="Arial" size=1>Building</FONT></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=right width="50%" bgColor=#c0c0c0><FONT face="Arial" size=1>20 years</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="49%"><FONT face="Arial" size=1>Building under finance
      lease</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="50%"><FONT face="Arial" size=1>15 years</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="49%" bgColor=#c0c0c0><FONT face="Arial" size=1>Computer
      equipment</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="50%" bgColor=#c0c0c0><FONT face="Arial" size=1>3 to 7
      years</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="49%"><FONT face="Arial" size=1>Furniture and fixtures</FONT></TD>
    <TD noWrap align=right width="1%">&nbsp;</TD>
    <TD noWrap align=right width="50%"><FONT face="Arial" size=1>5 to 14 years</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="49%" bgColor=#c0c0c0><FONT face="Arial" size=1>Furniture and
      fixtures under finance lease</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="50%" bgColor=#c0c0c0><FONT face="Arial" size=1>5
  years</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="49%"><FONT face="Arial" size=1>Leasehold improvements</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="50%"><FONT face="Arial" size=1>The shorter of initial term of
      the respective lease and</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="49%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="50%"><FONT face="Arial" size=1>estimated useful
  life</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="49%" bgColor=#c0c0c0><FONT face="Arial" size=1>Production and
      test equipment</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="50%" bgColor=#c0c0c0><FONT face="Arial" size=1>4 to 15
      years</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="49%"><FONT face="Arial" size=1>Production and test equipment under finance
      lease</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="50%"><FONT face="Arial" size=1>5 years</FONT></TD></TR></TABLE></div><BR>
<P align=right><FONT face="Arial" size=1>18</FONT></P>
<HR align=center width="100%" noShade SIZE=2>

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<DIV>
<TABLE style="LINE-HEIGHT: normal; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="100%"><FONT style="FONT-FAMILY: arial" size=2><FONT style="DISPLAY: inline; FONT-WEIGHT: bold">BALLARD POWER SYSTEMS
      INC.<BR></FONT>Notes to Consolidated Financial Statements<BR><FONT style="FONT-FAMILY: arial" size=1>Years ended December 31, 2011, and
      2010<BR>(Tabular amounts expressed in thousands of U.S. dollars, except
      per share amounts and number of shares)<BR></FONT><FONT style="FONT-FAMILY: arial" size=2><FONT style="DISPLAY: inline; FONT-WEIGHT: bold">&nbsp;</FONT></FONT></FONT></TD></TR></TABLE></DIV><BR>
<P align=justify><B><FONT face="Arial" size=2>3. Significant accounting
policies (cont&#146;d): </FONT></B></P>
<P align=justify><FONT face="Arial" size=2>(e) Property, plant and equipment
(cont&#146;d): </FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>Depreciation methods, useful
lives and residual values are reviewed at each financial year-end and adjusted
if appropriate.</FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>Gains and losses on disposal of
property, plant and equipment are determined by comparing the proceeds from
disposal with the carrying amount of property, plant and equipment, and are
recognized net within other income in profit or loss.</FONT></P>
<P align=justify><FONT face="Arial" size=2>(f) Leases:</FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>Leases where the Corporation
assumes substantially all the risks and rewards of ownership are classified as
finance leases. Upon initial recognition the leased asset is measured at an
amount equal to the lower of its fair value and the present value of the minimum
lease payments. Subsequent to initial recognition, the asset is accounted for in
accordance with the accounting policy applicable to that asset. Other leases are
operating leases and not recognized in the statement of financial
position.</FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>Minimum lease payments made
under finance leases are apportioned between the finance expense and the
reduction of the outstanding liability. The finance expense is allocated to each
period during the lease term so as to produce a constant periodic rate of
interest on the remaining balance of the liability. </FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>Payments made under operating
leases are recognized in income on a straight-line basis over the term of the
lease. Lease incentives received are recognized as a reduction to the lease
expense over the term of the lease. </FONT></P>
<P align=justify><FONT face="Arial" size=2>(g) Goodwill and intangible
assets: </FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>Goodwill is recognized as the
fair value of the consideration transferred including the recognized amount of
any non-controlling interest in the acquiree, less the fair value of the net
identifiable assets acquired and liabilities assumed, as of the acquisition
date. Subsequent to initial recognition, goodwill is measured at cost less
accumulated impairment losses.</FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>Goodwill acquired in a business
combination is allocated to groups of cash generating units that are expected to
benefit from the synergies of the combination. </FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>Intangible assets consist of
fuel cell technology acquired from third parties and are recorded at cost less
accumulated amortization and impairment losses. Intangible assets less their
residual values are amortized over their estimated useful lives of 5 years using
the straight-line method from the date that they are available for use.
Amortization methods, useful lives and residual values are reviewed annually and
adjusted if appropriate. </FONT></P>
<P align=right><FONT face="Arial" size=1>19</FONT></P>
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<DIV>
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  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="100%"><FONT style="FONT-FAMILY: arial" size=2><FONT style="DISPLAY: inline; FONT-WEIGHT: bold">BALLARD POWER SYSTEMS
      INC.<BR></FONT>Notes to Consolidated Financial Statements<BR><FONT style="FONT-FAMILY: arial" size=1><FONT face="Arial" size=1>Years ended December 31, 2011, and
      2010<BR></FONT><FONT face="Arial" size=1>(Tabular amounts expressed in
      thousands of U.S. dollars, except per share amounts and number of
      shares)</FONT><BR></FONT><FONT style="FONT-FAMILY: arial" size=2><FONT style="DISPLAY: inline; FONT-WEIGHT: bold">&nbsp;</FONT></FONT></FONT></TD></TR></TABLE></DIV>
<P align=justify><B><FONT face="Arial" size=2>3. Significant accounting
policies (cont&#146;d): </FONT></B></P>
<P align=justify><FONT face="Arial" size=2>(g) Goodwill and intangible assets
(cont&#146;d): </FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>Costs
incurred in establishing and maintaining patents and license agreements are
expensed in the period incurred.</FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>Research costs are expensed as they are incurred. Product development
costs are expensed as incurred except when they meet specific criteria for
capitalization. Development activities involve a plan or design for the
production of new or substantially improved products and processes. Development
costs are capitalized only if costs can be measured reliably, the product or
process is technically and commercially feasible, future economic benefits are
probable and the Corporation intends to and has sufficient resources to complete
development to use or sell the asset. Capitalized development costs are measured
at cost less accumulated amortization and accumulated impairment losses.
Capitalized development costs, if any, are amortized when commercial production
begins, using the straight-line method over a period of 5 years.</FONT></P>
<P align=justify><FONT face="Arial" size=2>(h) Impairment: </FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>(i)
Financial assets </FONT></P>
<P style="PADDING-LEFT: 27pt" align=justify><FONT face="Arial" size=2>Financial assets not carried at fair value through profit or loss are
assessed for impairment at each reporting date by determining whether there is
objective evidence that indicates that a loss event has occurred after the
initial recognition of the asset, and that the loss event had a negative effect
on the estimated future cash flows of that asset that can be estimated
reliably.</FONT></P>
<P style="PADDING-LEFT: 27pt" align=justify><FONT face="Arial" size=2>Impairment losses on available-for-sale investment securities are
recognized by transferring the cumulative loss that has been recognized in other
comprehensive income, and presented in accumulated other comprehensive loss in
equity, to net loss. The cumulative loss that is removed from other
comprehensive income and recognized in net loss is the difference between the
acquisition cost, net of any principal repayment and amortization, and the
current fair value less any impairment loss previously recognized in net loss.
If subsequently the fair value of an impaired available-for-sale security
increases, then the impairment loss is reversed, with the amount of the reversal
recognized in net loss. However, any subsequent recovery in the fair value of an
impaired available for sale equity security is recognized in other comprehensive
income. </FONT></P>
<P align=right><FONT face="Arial" size=1>20 </FONT></P>
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<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<DIV>
<TABLE style="LINE-HEIGHT: normal; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="100%"><FONT style="FONT-FAMILY: arial" size=2><FONT style="DISPLAY: inline; FONT-WEIGHT: bold">BALLARD POWER SYSTEMS
      INC.<BR></FONT>Notes to Consolidated Financial Statements<BR><FONT style="FONT-FAMILY: arial" size=1><FONT face="Arial" size=1>Years ended December 31, 2011, and
      2010<BR></FONT><FONT face="Arial" size=1>(Tabular amounts expressed in
      thousands of U.S. dollars, except per share amounts and number of
      shares)</FONT><BR></FONT><FONT style="FONT-FAMILY: arial" size=2><FONT style="DISPLAY: inline; FONT-WEIGHT: bold">&nbsp;</FONT></FONT></FONT></TD></TR></TABLE>
<P align=justify><B><FONT face="Arial" size=2>3. Significant accounting
policies (cont&#146;d): </FONT></B></P>
<P align=justify><FONT face="Arial" size=2>(h) Impairment (cont&#146;d):
</FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>(ii)
Non-financial assets </FONT></P>
<P style="PADDING-LEFT: 29pt" align=justify><FONT face="Arial" size=2>The
carrying amounts of the Corporation&#146;s non-financial assets other than
inventories are reviewed at each reporting date to determine whether there is
any indication of impairment. If any such indication exists, then the asset&#146;s
recoverable amount is estimated. For goodwill and intangible assets that have
indefinite useful lives, the recoverable amount is estimated
annually.</FONT></P>
<P style="PADDING-LEFT: 29pt" align=justify><FONT face="Arial" size=2>The
recoverable amount of an asset or cash-generating unit is the greater of its
value in use and its fair value less costs to sell. In assessing value in use,
the estimated future cash flows are discounted to their present value using a
pre-tax discount rate that reflects current market assessments of the time value
of money and the risks specific to the asset. Fair value less costs to sell is
defined as the estimated price that would be received on the sale of the asset
in an orderly transaction between market participants at the measurement date.
For the purposes of impairment testing, assets that cannot be tested
individually are grouped together into the smallest group of assets that
generates cash inflows from continuing use that are largely independent of the
cash inflows of other groups of assets. Cash-generating units to which goodwill
has been allocated reflects the lowest level at which goodwill is monitored for
internal reporting purposes. </FONT></P>
<P style="PADDING-LEFT: 29pt" align=justify><FONT face="Arial" size=2>An
impairment loss is recognized if the carrying amount of an asset or its
cash-generating unit exceeds its estimated recoverable amount. Impairment losses
are recognized in net loss. Impairment losses recognized in respect of the
cash-generating units are allocated first to reduce the carrying amount of any
goodwill allocated to the units, and then to reduce the carrying amounts of the
other assets in the unit on a pro-rata basis. </FONT></P>
<P style="PADDING-LEFT: 29pt" align=justify><FONT face="Arial" size=2>An
impairment loss in respect of goodwill is not reversed. In respect of other
assets, impairment losses recognized in prior periods are assessed at each
reporting date for any indications that the loss has decreased or no longer
exists. An impairment loss is reversed only to the extent that the asset&#146;s
carrying amount does not exceed the carrying amount that would have been
determined, net of depreciation or amortization, if no impairment loss had been
recognized. </FONT></P>
<P align=justify><FONT face="Arial" size=2>(i) Provisions: </FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>A
provision is recognized if, as a result of a past event, the Corporation has a
present legal or constructive obligation that can be estimated reliably, and it
is probable that an outflow of economic benefits will be required to settle the
obligation. Provisions are determined by discounting the expected future cash
flows at a pre-tax rate that reflects current market assessments of the time
value of money and the risk specific to the liability. The unwinding of the
discount is recognized as a finance cost. </FONT></P>
<P align=right><FONT face="Arial" size=1>21 </FONT></P>
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</DIV>
<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<DIV>
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  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="100%"><FONT style="FONT-FAMILY: arial" size=2><FONT style="DISPLAY: inline; FONT-WEIGHT: bold">BALLARD POWER SYSTEMS
      INC.<BR></FONT>Notes to Consolidated Financial Statements<BR><FONT style="FONT-FAMILY: arial" size=1><FONT face="Arial" size=1>Years ended December 31, 2011, and
      2010<BR></FONT><FONT face="Arial" size=1>(Tabular amounts expressed in
      thousands of U.S. dollars, except per share amounts and number of
      shares)</FONT><BR></FONT><FONT style="FONT-FAMILY: arial" size=2><FONT style="DISPLAY: inline; FONT-WEIGHT: bold">&nbsp;</FONT></FONT></FONT></TD></TR></TABLE></DIV>
<P align=justify><B><FONT face="Arial" size=2>3. Significant accounting
policies (cont&#146;d): </FONT></B></P>
<P align=justify><FONT face="Arial" size=2>(i) Provisions (cont&#146;d):
</FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2><i>Warranty provision </i></FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>A
provision for warranty costs is recorded on product sales at the time the sale
is recognized. In establishing the warranty provision, management estimates the
likelihood that products sold will experience warranty claims and the estimated
cost to resolve claims received, taking into account the nature of the contract
and past and projected experience with the products. </FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><I><FONT face="Arial" size=2>Decommissioning liabilities </FONT></I></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>Legal
obligations to retire tangible long-lived assets are recorded at fair value at
acquisition with a corresponding increase in asset value. These include assets
leased under operating leases. The liability is accreted over the life of the
asset to fair value and the increase in asset value is depreciated over the
remaining useful life of the asset. </FONT></P>
<P align=justify><FONT face="Arial" size=2>(j) Revenue recognition:
</FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>The
Corporation generates revenues primarily from product sales and services.
Product revenues are derived primarily from standard equipment and material
sales contracts and from long-term fixed price contracts. Service revenues are
derived primarily from cost-plus reimbursable contracts.</FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>On
standard equipment and material sales contracts, revenues are recognized when
(i) significant risks and rewards of ownership of the goods has been transferred
to the buyer; (ii) the Corporation retains neither continuing managerial
involvement to the degree usually associated with ownership nor effective
control over the goods sold; (iii) the amount of revenue can be measured
reliably; (iv) it is probable that the economic benefits associated with the
sale will accrue to the Corporation; and (v) the costs incurred, or to be
incurred, in respect of the transaction can be measured reliably. Provisions are
made at the time of sale for warranties.</FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>On
cost-plus reimbursable contracts, revenues are recognized as costs are incurred,
and include applicable fees earned as services are provided.</FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>On
long-term fixed price service contracts, revenues are recognized on the
percentage-of-completion basis over the duration of the contract, which consists
of recognizing revenue on a given contract proportionately with its percentage
of completion at any given time. The percentage of completion is determined by
dividing the cumulative costs incurred as at the balance sheet date by the sum
of incurred and anticipated costs for completing a contract.</FONT></P>
<P align=right><FONT face="Arial" size=1>22 </FONT></P>
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<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<DIV>
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  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="100%"><FONT style="FONT-FAMILY: arial" size=2><FONT style="DISPLAY: inline; FONT-WEIGHT: bold">BALLARD POWER SYSTEMS
      INC.<BR></FONT>Notes to Consolidated Financial Statements<BR><FONT style="FONT-FAMILY: arial" size=1><FONT face="Arial" size=1>Years ended December 31, 2011, and
      2010<BR></FONT><FONT face="Arial" size=1>(Tabular amounts expressed in
      thousands of U.S. dollars, except per share amounts and number of
      shares)</FONT><BR></FONT><FONT style="FONT-FAMILY: arial" size=2><FONT style="DISPLAY: inline; FONT-WEIGHT: bold">&nbsp;</FONT></FONT></FONT></TD></TR></TABLE></DIV>
<P align=justify><B><FONT face="Arial" size=2>3. Significant accounting
policies (cont&#146;d): </FONT></B></P>
<P align=justify><FONT face="Arial" size=2>(j) Revenue recognition (cont&#146;d):
</FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>The
cumulative effect of changes to anticipated revenues and anticipated costs for
completing a contract are recognized in the period in which the revisions are
identified. In the event that the anticipated costs exceed the anticipated
revenues on a contract, such loss is recognized in its entirety in the period it
becomes known. </FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>Deferred revenue represents cash received from customers in excess of
revenue recognized on uncompleted contracts.</FONT></P>
<P align=justify><FONT face="Arial" size=2>(k) Finance income and costs:
</FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>Finance
income comprises of interest income on funds invested, gains on the disposal of
available-for-sale financial assets and changes in the fair value of financial
assets at fair value through profit or loss. Interest income is recognized as it
accrues in income, using the effective interest method. </FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>Finance
costs comprise interest expense on capital leases, unwinding of the discount on
provisions, changes in the fair value of financial assets at fair value through
profit or loss and impairment losses recognized on financial assets. </FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>Foreign
currency gains and losses are reported on a net basis. </FONT></P>
<P align=justify><FONT face="Arial" size=2>(l) Income taxes: </FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>The
Corporation follows the asset and liability method of accounting for income
taxes. Under this method, deferred income taxes are recognized for the deferred
income tax consequences attributable to differences between the financial
statement carrying values of assets and liabilities and their respective income
tax bases (temporary differences) and for loss carry-forwards. The resulting
changes in the net deferred tax asset or liability are included in
income.</FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>Deferred tax assets and liabilities are measured using enacted, or
substantively enacted, tax rates expected to apply to taxable income in the
years in which temporary differences are expected to be recovered or settled.
The effect on deferred income tax assets and liabilities, of a change in tax
rates, is included in income in the period that includes the substantive
enactment date. Deferred income tax assets are reviewed at each reporting date
and are reduced to the extent that it is no longer probable that the related tax
benefit will be realized.</FONT></P>
<P align=right><FONT face="Arial" size=1>23 </FONT></P>
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<DIV>
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  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="100%"><FONT style="FONT-FAMILY: arial" size=2><FONT style="DISPLAY: inline; FONT-WEIGHT: bold">BALLARD POWER SYSTEMS
      INC.<BR></FONT>Notes to Consolidated Financial Statements<BR><FONT style="FONT-FAMILY: arial" size=1><FONT face="Arial" size=1>Years ended December 31, 2011, and
      2010<BR></FONT><FONT face="Arial" size=1>(Tabular amounts expressed in
      thousands of U.S. dollars, except per share amounts and number of
      shares)</FONT><BR></FONT><FONT style="FONT-FAMILY: arial" size=2><FONT style="DISPLAY: inline; FONT-WEIGHT: bold">&nbsp;</FONT></FONT></FONT></TD></TR></TABLE></DIV>
<P align=justify><B><FONT face="Arial" size=2>3. Significant accounting
policies (cont&#146;d): </FONT></B></P>
<P align=justify><FONT face="Arial" size=2>(m) Employee benefits: </FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2><i>Defined contribution plans</i> </FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>A
defined contribution plan is a post-employment benefit plan under which an
entity pays fixed contributions into a separate entity and will have no legal or
constructive obligation to pay further amounts. Obligations for contributions to
defined contribution pension plans are recognized as an employee benefit expense
in profit or loss in the periods during which services are rendered by
employees. Prepaid contributions are recognized as an asset to the extent that a
cash refund or a reduction in future payments is available. Contributions to a
defined contribution plan that are due more than 12 months after the end of the
period in which the employees render the service are discounted to their present
value. </FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><I><FONT face="Arial" size=2>Defined benefit plans </FONT></I></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>A
defined benefit plan is a post-employment benefit plan other than a defined
contribution plan. The Corporation&#146;s net obligation in respect of defined
benefit pension plans is calculated separately for each plan by estimating the
amount of future benefit that employees have earned in return for their service
in the current and prior periods; that benefit is discounted to determine its
present value. Any unrecognized past service costs and the fair value of any
plan assets are deducted. The discount rate is the yield at the reporting date
on AA credit-rated bonds that have maturity dates approximating the terms of the
Corporation&#146;s obligations and that are denominated in the same currency in which
the benefits are expected to be paid. The calculation is performed annually by a
qualified actuary using the projected unit credit method.</FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>When
the calculation results in a benefit to the Corporation, the recognized asset is
limited to the total of any unrecognized past service costs and the present
value of economic benefits available in the form of any future refunds from the
plan or reductions in future contributions to the plan. In order to calculate
the present value of economic benefits, consideration is given to any minimum
funding requirements that apply to any plan in the Corporation. An economic
benefit is available to the Corporation if it is realizable during the life of
the plan, or on settlement of the plan liabilities. </FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>As a
result of the curtailment of the pension plan in 2009, there is no current
service cost associated with the plan.</FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>The
Corporation recognizes all actuarial gains and losses arising from defined
benefit plans immediately in other comprehensive income, and reports them in
retained earnings. </FONT></P>
<P align=right><FONT face="Arial" size=1>24 </FONT></P>
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<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<DIV>
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  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="100%"><FONT style="FONT-FAMILY: arial" size=2><FONT style="DISPLAY: inline; FONT-WEIGHT: bold">BALLARD POWER SYSTEMS
      INC.<BR></FONT>Notes to Consolidated Financial Statements<BR><FONT style="FONT-FAMILY: arial" size=1><FONT face="Arial" size=1>Years ended December 31, 2011, and
      2010<BR></FONT><FONT face="Arial" size=1>(Tabular amounts expressed in
      thousands of U.S. dollars, except per share amounts and number of
      shares)</FONT><BR></FONT><FONT style="FONT-FAMILY: arial" size=2><FONT style="DISPLAY: inline; FONT-WEIGHT: bold">&nbsp;</FONT></FONT></FONT></TD></TR></TABLE></DIV>
<P align=justify><B><FONT face="Arial" size=2>3. Significant accounting
policies (cont&#146;d): </FONT></B></P>
<P align=justify><FONT face="Arial" size=2>(m) Employee benefits (cont&#146;d):
</FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2><I>Other long-term employee benefits </I></FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>The
Corporation&#146;s net obligation in respect of long-term employee benefits other
than pension plans is the amount of future benefit that employees have earned in
return for their service in the current and prior periods; that benefit is
discounted to determine its present value, and the fair value of any related
assets is deducted. The discount rate is the yield at the reporting date on AA
credit-rated bonds that have maturity dates approximating the terms of the
Corporation&#146;s obligations. The calculation is performed using the projected unit
credit method. Any actuarial gains and losses are recognized in other
comprehensive income or loss in the period in which they arise. </FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><I><FONT face="Arial" size=2>Termination benefits </FONT></I></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>Termination benefits are recognized as an expense when the Corporation is
committed demonstrably, without realistic possibility of withdrawal, to a formal
detailed plan to either terminate employment before the normal retirement date,
or to provide termination benefits as a result of an offer made to encourage
voluntary redundancy. Termination benefits for voluntary redundancies are
recognized as an expense if the Corporation has made an offer of voluntary
redundancy, it is probable that the offer will be accepted, and the number of
acceptances can be estimated reliably. If benefits are payable more than 12
months after the reporting period, then they are discounted to their present
value. </FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><I><FONT face="Arial" size=2>Short-term employee benefits </FONT></I></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>Short-term employee benefit obligations are measured on an undiscounted
basis and are expensed as the related service is provided. </FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>A
liability is recognized for the amount expected to be paid under short-term cash
bonus or profit sharing plans if the Corporation has a present legal or
constructive obligation to pay this amount as a result of past service provided
by the employee, and the obligation can be estimated reliably. </FONT></P>
<P align=right><FONT face="Arial" size=1>25 </FONT></P>
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<DIV>
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  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="100%"><FONT style="FONT-FAMILY: arial" size=2><FONT style="DISPLAY: inline; FONT-WEIGHT: bold">BALLARD POWER SYSTEMS
      INC.<BR></FONT>Notes to Consolidated Financial Statements<BR><FONT style="FONT-FAMILY: arial" size=1><FONT face="Arial" size=1>Years ended December 31, 2011, and
      2010<BR></FONT><FONT face="Arial" size=1>(Tabular amounts expressed in
      thousands of U.S. dollars, except per share amounts and number of
      shares)</FONT><BR></FONT><FONT style="FONT-FAMILY: arial" size=2><FONT style="DISPLAY: inline; FONT-WEIGHT: bold">&nbsp;</FONT></FONT></FONT></TD></TR></TABLE></DIV>
<P align=justify><B><FONT face="Arial" size=2>3. Significant accounting
policies (cont&#146;d): </FONT></B></P>
<P align=justify><FONT face="Arial" size=2>(n) Share-based compensation
plans: </FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>The
Corporation uses the fair-value based method of accounting for share-based
compensation for all awards of shares and share options granted. The resulting
compensation expense, based on the fair value of the awards granted, excluding
the impact of any non-market service and performance vesting conditions, is
charged to income over the period that the employees unconditionally become
entitled to the award, with a corresponding increase to contributed surplus.
Fair values of share options are calculated using the Black-Scholes valuation
method as of the grant date and adjusted for estimated forfeitures. For awards
with graded vesting, the fair value of each tranche is calculated separately and
recognized over its respective vesting period. Non-market vesting conditions are
considered in making assumptions about the number of awards that are expected to
vest. At each reporting date, the Corporation reassesses its estimates of the
number of awards that are expected to vest and recognizes the impact of any
revision in the income statement with a corresponding adjustment to contributed
surplus. </FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>The
Corporation issues shares and share options under its share-based compensation
plans as described in note 18. Any consideration paid by employees on exercise
of share options or purchase of shares, together with the amount initially
recorded in contributed surplus, is credited to share capital. </FONT></P>
<P align=justify><FONT face="Arial" size=2>(o) Earnings (loss) per share:
</FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>Basic
earnings (loss) per share is computed using the weighted average number of
common shares outstanding during the period, adjusted for treasury shares.
Diluted earnings per share is calculated using the treasury stock
method.</FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>Under
the treasury stock method, the dilution is calculated based upon the number of
common shares issued should deferred share units (&#147;DSUs&#148;), restricted share
units (&#147;RSUs&#148;), and &#147;in the money&#148; options, if any, be exercised. When the
effects of outstanding stock-based compensation arrangements would be
anti-dilutive, diluted loss per share is not calculated. </FONT></P>
<P align=justify><FONT face="Arial" size=2>(p) Government assistance and
investment tax credits: </FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>Government assistance and investment tax credits are recorded as either a
reduction of the cost of the applicable assets, or credited against the related
expense incurred in the statement of comprehensive loss, as determined by the
terms and conditions of the agreements under which the assistance is provided to
the Corporation or the nature of the expenditures which gave rise to the
credits. Government assistance and investment tax credit receivables are
recorded when their receipt is reasonably assured. </FONT></P>
<P align=right><FONT face="Arial" size=1>26 </FONT></P>
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<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<DIV>
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  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="100%"><FONT style="FONT-FAMILY: arial" size=2><FONT style="DISPLAY: inline; FONT-WEIGHT: bold">BALLARD POWER SYSTEMS
      INC.<BR></FONT>Notes to Consolidated Financial Statements<BR><FONT style="FONT-FAMILY: arial" size=1><FONT face="Arial" size=1>Years ended December 31, 2011, and
      2010<BR></FONT><FONT face="Arial" size=1>(Tabular amounts expressed in
      thousands of U.S. dollars, except per share amounts and number of
      shares)</FONT><BR></FONT><FONT style="FONT-FAMILY: arial" size=2><FONT style="DISPLAY: inline; FONT-WEIGHT: bold">&nbsp;</FONT></FONT></FONT></TD></TR></TABLE></DIV>
<P align=justify><B><FONT face="Arial" size=2>3. Significant accounting
policies (cont&#146;d): </FONT></B></P>
<P align=justify><FONT face="Arial" size=2>(q) Segment reporting: </FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>An
operating segment is a component of the Corporation that engages in business
activities from which it may earn revenues and incur expenses, including
revenues and expenses that relate to transactions with any of the Corporation&#146;s
other components. Segment results include items directly attributable to a
segment as well as those that can be allocated on a reasonable basis.
Unallocated items comprise mainly corporate assets, head office expenses, and
income tax assets and liabilities. </FONT></P>
<P align=justify><B><FONT face="Arial" size=2>4.</FONT></B><B><FONT face="Arial" size=2> </FONT></B><B><FONT face="Arial" size=2>Critical
accounting estimates and judgments: </FONT></B></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>The
preparation of the consolidated financial statements requires the Corporation&#146;s
management to make judgments, estimates and assumptions that affect the amounts
reported in the consolidated financial statements and the accompanying notes.
Actual results may differ from those estimates.</FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>Estimates and judgments are continually evaluated and are based on
historical experience and other factors including expectations of future events
that are believed to be reasonable under the circumstances. The estimates and
assumptions critical to the determination of carrying value of assets and
liabilities are discussed below: </FONT></P>
<P align=justify><FONT face="Arial" size=2>(a) Revenue: </FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>Revenues under certain contracts for product and engineering development
services, provide for receipt of payment based on achieving defined milestones
or on the performance of work under product development programs. Revenues are
recognized under these contracts based on management&#146;s estimate of progress
achieved against these milestones or on the proportionate performance method of
accounting. Changes in management&#146;s estimated costs to complete a contract may
result in an adjustment to previously recognized revenues.</FONT></P>
<P align=justify><FONT face="Arial" size=2>(b) Warranty Provision:
</FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>In
establishing the warranty provision, management estimates the likelihood that
products sold will experience warranty claims and the cost to resolve claims
received. In making such determinations, the Corporation uses estimates based on
the nature of the contract and past and projected experience with the products.
Should these estimates prove to be incorrect, the Corporation may incur costs
different from those provided for in the warranty provision. Management reviews
warranty assumptions and makes adjustments to the provision at each reporting
date based on the latest information available, including the expiry of
contractual obligations. Adjustments to the warranty provision are recorded in
cost of product and service revenues.</FONT></P>
<P align=right><FONT face="Arial" size=1>27 </FONT></P>
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<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<DIV>
<TABLE style="LINE-HEIGHT: normal; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="100%"><FONT style="FONT-FAMILY: arial" size=2><FONT style="DISPLAY: inline; FONT-WEIGHT: bold">BALLARD POWER SYSTEMS
      INC.<BR></FONT>Notes to Consolidated Financial Statements<BR><FONT style="FONT-FAMILY: arial" size=1><FONT face="Arial" size=1>Years ended December 31, 2011, and
      2010<BR></FONT><FONT face="Arial" size=1>(Tabular amounts expressed in
      thousands of U.S. dollars, except per share amounts and number of
      shares)</FONT><BR></FONT><FONT style="FONT-FAMILY: arial" size=2><FONT style="DISPLAY: inline; FONT-WEIGHT: bold">&nbsp;</FONT></FONT></FONT></TD></TR></TABLE></DIV>
<P align=justify><B><FONT face="Arial" size=2>4. Critical accounting
estimates and judgments (cont&#146;d): </FONT></B></P>
<P align=justify><FONT face="Arial" size=2>(c) Inventory: </FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>In
determining the lower of cost and net realizable value of inventory and in
establishing the appropriate impairment amount for inventory obsolescence,
management estimates the likelihood that inventory carrying values will be
affected by changes in market pricing or demand for the products and by changes
in technology or design which could make inventory on hand obsolete or
recoverable at less than the recorded value. Management performs regular reviews
to assess the impact of changes in technology and design, sales trends and other
changes on the carrying value of inventory. Where it is determined that such
changes have occurred and will have an impact on the value of inventory on hand,
appropriate adjustments are made. If there is a subsequent increase in the value
of inventory on hand, reversals of previous write-downs to net realizable value
are made. Unforeseen changes in these factors could result in additional
inventory provisions, or reversals of previous provisions, being
required.</FONT></P>
<P align=justify><FONT face="Arial" size=2>(d) Goodwill: </FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>The
values associated with goodwill involve significant estimates and assumptions,
including those with respect to future cash inflows and outflows, discount
rates, asset lives and determination of cash generating units. At least
annually, the carrying value of goodwill is reviewed for potential impairment.
Among other things, this review considers the fair value of the cash-generating
units based on discounted estimated future cash flows. These significant
estimates require considerable judgment, which could affect the Corporation&#146;s
future results if the current estimates of future performance and fair values
change.</FONT></P>
<P align=justify><FONT face="Arial" size=2>(e) Employee future benefits:
</FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>The
present value of the defined benefit obligation is determined by discounting the
estimated future cash outflows using interest rates of high-quality corporate
bonds that have terms to maturity approximating the terms of the related pension
liability. Determination of benefit expense requires assumptions such as the
discount rate to measure obligations, expected plan investment performance,
expected healthcare cost trend rate, and retirement ages of employees. Actual
results will differ from the recorded amounts based on these estimates and
assumptions. </FONT></P>
<P align=right><FONT face="Arial" size=1>28 </FONT></P>
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<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<DIV>
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  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="100%"><FONT style="FONT-FAMILY: arial" size=2><FONT style="DISPLAY: inline; FONT-WEIGHT: bold">BALLARD POWER SYSTEMS
      INC.<BR></FONT>Notes to Consolidated Financial Statements<BR><FONT style="FONT-FAMILY: arial" size=1><FONT face="Arial" size=1>Years ended December 31, 2011, and
      2010<BR></FONT><FONT face="Arial" size=1>(Tabular amounts expressed in
      thousands of U.S. dollars, except per share amounts and number of
      shares)</FONT><BR></FONT><FONT style="FONT-FAMILY: arial" size=2><FONT style="DISPLAY: inline; FONT-WEIGHT: bold">&nbsp;</FONT></FONT></FONT></TD></TR></TABLE></DIV>
<P align=justify><B><FONT face="Arial" size=2>5. Recent accounting
pronouncements:</FONT></B></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>The
following is an overview of accounting standard changes that the Corporation
will be required to adopt in future years. Except as otherwise noted below for
IFRS 9, IAS 32 and amendments to IFRS 7, the standards are effective for the
annual periods beginning on or after January 1, 2013, with earlier application
permitted. The Corporation does not expect to adopt any of these standards
before their effective dates. The Corporation continues to evaluate the impacts
of these standards on its financial statements.</FONT></P>
<P align=justify><FONT face="Arial" size=2>(a) IFRS 9 &#150;</FONT><I><FONT face="Arial" size=2> Financial Instruments: </FONT></I></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>IFRS 9
introduces new requirements for the classification and measurement of financial
assets. IFRS 9 requires all recognized financial assets that are within the
scope of IAS 39 <I>Financial Instruments: Recognition and Measurement</I> to be subsequently measured at amortized cost or fair
value. Specifically, financial assets that are held within a business model
whose objective is to collect the contractual cash flows, and that have
contractual cash flows that are solely payments of principal and interest on the
principal outstanding are generally measured at amortized cost at the end of
subsequent accounting periods. All other financial assets including equity
investments are measured at their fair values at the end of subsequent
accounting periods.</FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>Requirements for financial liabilities were added in October 2010 and
they largely carried forward existing requirements in IAS 39 </FONT><I><FONT face="Arial" size=2>Financial Instruments &#150; Recognition and
Measurement</FONT></I><FONT face="Arial" size=2>, except that fair value
changes due to credit risk for liabilities designated at fair value through
profit and loss would generally be recorded in other comprehensive income. IFRS
9 is effective for annual periods beginning on or after January 1, 2015.
</FONT></P>
<P align=justify><FONT face="Arial" size=2>(b) IFRS 10 &#150; </FONT><I><FONT face="Arial" size=2>Consolidated Financial Statements: </FONT></I></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>IFRS 10
requires an entity to consolidate an investee when it is exposed, or has rights,
to variable returns from its involvement with the investee and has the ability
to affect those returns through its power over the investee. Under existing
IFRS, consolidation is required when an entity has the power to govern the
financial and operating policies of an entity so as to obtain benefits from its
activities. IFRS 10 replaces SIC-12 </FONT><I><FONT face="Arial" size=2>Consolidation &#150; Special Purpose Entities </FONT></I><FONT face="Arial" size=2>and parts of IAS 27 </FONT><I><FONT face="Arial" size=2>Consolidated
and Separate Financial Statements</FONT></I><FONT face="Arial" size=2>.
</FONT></P>
<P align=justify><FONT face="Arial" size=2>(c) IFRS 11 &#150; </FONT><I><FONT face="Arial" size=2>Joint Arrangements: </FONT></I></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>IFRS 11
requires a venturer to classify its interest in a joint arrangement as a joint
venture or joint operation. Joint ventures will be accounted for using the
equity method of accounting whereas for a joint operation the venturer will
recognize its share of the assets, liabilities, revenue and expenses of the
joint operation. Under existing IFRS, entities have the choice to
proportionately consolidate or equity account for interests in joint ventures.
IFRS 11 supersedes IAS 31 </FONT><I><FONT face="Arial" size=2>Interests in
Joint Ventures</FONT></I><FONT face="Arial" size=2>, and SIC-13
</FONT><I><FONT face="Arial" size=2>Jointly Controlled Entities &#150;
Non-monetary Contributions by Venturers</FONT></I><FONT face="Arial" size=2>.
</FONT></P>
<P align=right><FONT face="Arial" size=1>29</FONT></P>
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<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<DIV>
<TABLE style="LINE-HEIGHT: normal; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="100%"><FONT style="FONT-FAMILY: arial" size=2><FONT style="DISPLAY: inline; FONT-WEIGHT: bold">BALLARD POWER SYSTEMS
      INC.<BR></FONT>Notes to Consolidated Financial Statements<BR><FONT style="FONT-FAMILY: arial" size=1>Years ended December 31, 2011, and
      2010<BR>(Tabular amounts expressed in thousands of U.S. dollars, except
      per share amounts and number of shares)<BR></FONT><FONT style="FONT-FAMILY: arial" size=2><FONT style="DISPLAY: inline; FONT-WEIGHT: bold">&nbsp;</FONT></FONT></FONT></TD></TR></TABLE></DIV>
<P align=justify><B><FONT face="Arial" size=2>5. Recent accounting
pronouncements (cont&#146;d):</FONT></B></P>
<P align=justify><FONT face="Arial" size=2>(d) IFRS 12 &#150; </FONT><I><FONT face="Arial" size=2>Disclosure of Interests in Other Entities:
</FONT></I></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>IFRS 12
establishes disclosure requirements for interests in other entities, such as
joint arrangements, associates, special purpose vehicles, and off balance sheet
vehicles. The standard carries forward existing disclosures and also introduces
significant additional disclosure requirements that address the nature of, and
risks associated with, an entity&#146;s interests in other entities. </FONT></P>
<P align=justify><FONT face="Arial" size=2>(e) IFRS 13 &#150; </FONT><I><FONT face="Arial" size=2>Fair Value Measurement:</FONT></I><FONT face="Arial" size=2> </FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>Under
existing IFRS, guidance on measuring and disclosing fair value is dispersed
among the specific standards requiring fair value measurements. IFRS 13 is a
more comprehensive standard for fair value measurement and disclosure
requirements for use across all IFRS standards. The new standard clarifies that
fair value is the price that would be received to sell an asset, or paid to
transfer a liability in an orderly transaction between market participants, at
the measurement date. It also establishes disclosures about fair value
measurement. </FONT></P>
<P align=justify><FONT face="Arial" size=2>(f) Amendments to IAS 19 &#150;
</FONT><I><FONT face="Arial" size=2>Employee Benefits: </FONT></I></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>The
amendments to IAS 19 make significant changes to the recognition and measurement
of defined benefit pension expense and termination benefits, and to enhance the
disclosures for all employee benefits. Actuarial gains and losses are renamed
&#147;remeasurements&#148; and will be recognized immediately in other comprehensive
income (&#147;OCI&#148;). Remeasurements recognized in OCI will not be recycled through
profit or loss in subsequent periods. The amendments also accelerate the
recognition of past service costs whereby they are recognized in the period of a
plan amendment. The annual expense for a funded benefit plan will be computed
based on the application of the discount rate to the net defined benefit asset
or liability. The amendments to IAS 19 will also impact the presentation of
pension expense as benefit cost will be split between (i) the cost of benefits
accrued in the current period (service cost) and benefit changes (past-service
cost, settlements and curtailments); and (ii) finance expense or income.
</FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>A
number of other amendments have been made to recognition, measurement and
classification, including those re-defining short-term and other long-term
benefits guidance on the treatment of taxes related to benefit plans, guidance
on risk/cost sharing factors and expanded disclosures. </FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>The
Corporation&#146;s current accounting policy for employee benefits for the
presentation of pension expense and the immediate recognition of actuarial gains
and losses in OCI is consistent with the requirements in the new standard,
however, additional disclosures and the computation of annual expense based on
the application of the discount rate to the net defined benefit asset or
liability will be required in relation to the revised standard. </FONT></P>
<P align=right><FONT face="Arial" size=1>30 </FONT></P>
<HR align=center width="100%" noShade SIZE=2>

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<DIV>
<TABLE style="LINE-HEIGHT: normal; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="100%"><FONT style="FONT-FAMILY: arial" size=2><FONT style="DISPLAY: inline; FONT-WEIGHT: bold">BALLARD POWER SYSTEMS
      INC.<BR></FONT>Notes to Consolidated Financial Statements<BR><FONT style="FONT-FAMILY: arial" size=1>Years ended December 31, 2011, and
      2010<BR>(Tabular amounts expressed in thousands of U.S. dollars, except
      per share amounts and number of shares)<BR></FONT><FONT style="FONT-FAMILY: arial" size=2><FONT style="DISPLAY: inline; FONT-WEIGHT: bold">&nbsp;</FONT></FONT></FONT></TD></TR></TABLE></DIV>
<P align=justify><B><FONT face="Arial" size=2>5. Recent accounting
pronouncements (cont&#146;d):</FONT></B></P>
<P align=justify><FONT face="Arial" size=2>(g) Amendments to IAS 1 &#150;
</FONT><I><FONT face="Arial" size=2>Financial Statement Presentation:
</FONT></I></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>The
amendments to IAS 1 require entities to separate items presented in OCI into two
groups based on whether or not they may be recycled to profit or loss in the
future. Items that will not be recycled, such as remeasurements resulting from
the amendments to IAS 19, will be presented separately from items that may be
recycled in the future, such as deferred gains and losses on cash flow hedges.
Entities that choose to present OCI items before tax will be required to show
the amount of tax related to the two groups separately. </FONT></P>
<P align=justify><FONT face="Arial" size=2>(h) Amendments to other
standards</FONT><I><FONT face="Arial" size=2>: </FONT></I></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>In
addition, there have been amendments to existing standards, including IFRS 7
</FONT><I><FONT face="Arial" size=2>Financial Instruments:
Disclosure</FONT></I><FONT face="Arial" size=2>, IAS 27 </FONT><I><FONT face="Arial" size=2>Separate Financial Statements</FONT></I><FONT face="Arial" size=2>, IAS 28 </FONT><I><FONT face="Arial" size=2>Investments in Associates and Joint Ventures</FONT></I><FONT face="Arial" size=2>, and IAS 32 </FONT><I><FONT face="Arial" size=2>Financial Instruments: Presentation</FONT></I><FONT face="Arial" size=2>. IFRS 7 amendments require disclosure about the effects of offsetting
financial assets and financial liabilities and related arrangements on an
entity&#146;s financial position. IAS 27 addresses accounting for subsidiaries,
jointly controlled entities and associates in non-consolidated financial
statements. IAS 28 has been amended to include joint ventures in its scope and
to address the changes in IFRS 10 to 13. IAS 32 addresses inconsistencies when
applying the offsetting requirements, and is effective for annual periods
beginning on or after January 1, 2014. </FONT></P>
<P align=justify><B><FONT face="Arial" size=2>6. Trade and other receivables:
</FONT></B></P>
<DIV style="PADDING-LEFT: 15pt; FLOAT: left; WIDTH: 100%">
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=left width="86%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" align=left width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=right width="4%" colSpan=2><FONT face="Arial" size=1>December 31,</FONT></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=right width="4%" colSpan=2><FONT face="Arial" size=1>December 31,</FONT></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=right width="2%" colSpan=2><FONT face="Arial" size=1>January 1,</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="86%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face="Arial" size=1>2011</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face="Arial" size=1>2010</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" colSpan=2><FONT face="Arial" size=1>2010</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="86%" bgColor=#c0c0c0><FONT face="Arial" size=1>Trade
      receivables</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>16,343</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>12,584</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>12,847</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="86%"><FONT face="Arial" size=1>Other</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face="Arial" size=1>1,947</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face="Arial" size=1>626</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face="Arial" size=1>56</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="86%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>18,290</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>13,210</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>12,903</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="86%"><FONT face="Arial" size=1>Less: Non-current trade receivables</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face="Arial" size=1>(1,126</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face="Arial" size=1>(1,596</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face="Arial" size=1>-</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="86%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>17,164</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>11,614</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>12,903</FONT></TD></TR></TABLE><BR></DIV><BR clear=all>
<P align=justify><B><FONT face="Arial" size=2>7. Inventories: </FONT></B></P>
<DIV style="PADDING-LEFT: 15pt; FLOAT: left; WIDTH: 100%">
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD NOWRAP STYLE="border-top: Black 1.5pt solid; border-bottom: Black 1pt none; text-align: left; width: 85%"></TD>
    <TD NOWRAP STYLE="border-top: Black 1.5pt solid; border-bottom: Black 1pt none; text-align: left; width: 1%"></TD>
    <TD NOWRAP COLSPAN="2" STYLE="border-top: Black 1.5pt solid; border-bottom: Black 1pt none; text-align: right; width: 4%"><FONT face="Arial" size=1>December 31,</FONT></TD>
    <TD STYLE="border-top: Black 1.5pt solid; border-bottom: Black 1pt none; text-align: right; width: 1%"></TD>
    <TD NOWRAP COLSPAN="2" STYLE="border-top: Black 1.5pt solid; border-bottom: Black 1pt none; text-align: right; width: 4%"><FONT face="Arial" size=1>December 31,</FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 1.5pt solid; border-bottom: Black 1pt none; text-align: right; width: 1%"></TD>
    <TD NOWRAP COLSPAN="2" STYLE="border-top: Black 1.5pt solid; border-bottom: Black 1pt none; text-align: right; width: 4%"><FONT face="Arial" size=1>January 1,</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD NOWRAP STYLE="text-align: left; width: 85%; border-bottom: Black 1pt solid"></TD>
    <TD NOWRAP STYLE="text-align: left; width: 1%; border-bottom: Black 1pt solid">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD NOWRAP COLSPAN="2" STYLE="text-align: right; width: 4%; border-bottom: Black 1pt solid"><FONT face="Arial" size=1>2011</FONT></TD>
    <TD NOWRAP STYLE="text-align: right; width: 1%; border-bottom: Black 1pt solid">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD NOWRAP COLSPAN="2" STYLE="text-align: right; width: 4%; border-bottom: Black 1pt solid"><FONT face="Arial" size=1>2010</FONT></TD>
    <TD NOWRAP STYLE="text-align: right; width: 1%; border-bottom: Black 1pt solid">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD NOWRAP COLSPAN="2" STYLE="text-align: right; width: 4%; border-bottom: Black 1pt solid"><FONT face="Arial" size=1>2010</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="85%" bgColor=#c0c0c0><FONT face="Arial" size=1>Raw materials
      and consumables</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>8,353</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>6,962</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>5,928</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD NOWRAP STYLE="border-bottom: Black 1pt none; text-align: left; width: 85%"><FONT face="Arial" size=1>Work-in-progress</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt none; text-align: left; width: 1%"></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt none; text-align: left; width: 1%"></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt none; text-align: right; width: 3%"><FONT face="Arial" size=1>1,820</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt none; text-align: left; width: 1%"></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt none; text-align: left; width: 1%"></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt none; text-align: right; width: 3%"><FONT face="Arial" size=1>2,951</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt none; text-align: left; width: 1%">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt none; text-align: left; width: 1%"></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt none; text-align: right; width: 3%"><FONT face="Arial" size=1>2,018</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD NOWRAP STYLE="text-align: left; width: 85%; background-color: #c0c0c0; border-bottom: Black 1pt solid"><FONT face="Arial" size=1>Finished
      goods</FONT></TD>
    <TD NOWRAP STYLE="text-align: left; width: 1%; background-color: #c0c0c0; border-bottom: Black 1pt solid"></TD>
    <TD NOWRAP STYLE="text-align: left; width: 1%; background-color: #c0c0c0; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; width: 3%; background-color: #c0c0c0; border-bottom: Black 1pt solid"><FONT face="Arial" size=1>3,441</FONT></TD>
    <TD NOWRAP STYLE="text-align: left; width: 1%; background-color: #c0c0c0; border-bottom: Black 1pt solid"></TD>
    <TD NOWRAP STYLE="text-align: left; width: 1%; background-color: #c0c0c0; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; width: 3%; background-color: #c0c0c0; border-bottom: Black 1pt solid"><FONT face="Arial" size=1>2,469</FONT></TD>
    <TD NOWRAP STYLE="text-align: left; width: 1%; background-color: #c0c0c0; border-bottom: Black 1pt solid"></TD>
    <TD NOWRAP STYLE="text-align: left; width: 1%; background-color: #c0c0c0; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; width: 3%; background-color: #c0c0c0; border-bottom: Black 1pt solid"><FONT face="Arial" size=1>1,222</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="85%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT face="Arial" size=1>13,614</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT face="Arial" size=1>12,382</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT face="Arial" size=1>9,168</FONT></TD></TR></TABLE></DIV><BR clear=all><BR>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>In
2011, changes in raw materials and consumables, finished goods and
work-in-progress recognized as cost of product and service revenues amounted to
$37,227,000 (2010 - $33,522,000). </FONT></P>
<P align=right><FONT face="Arial" size=1>31 </FONT></P>
<HR align=center width="100%" noShade SIZE=2>

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<DIV>
<TABLE style="LINE-HEIGHT: normal; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="100%"><FONT style="FONT-FAMILY: arial" size=2><FONT style="DISPLAY: inline; FONT-WEIGHT: bold">BALLARD POWER SYSTEMS
      INC.<BR></FONT>Notes to Consolidated Financial Statements<BR><FONT style="FONT-FAMILY: arial" size=1>Years ended December 31, 2011, and
      2010<BR>(Tabular amounts expressed in thousands of U.S. dollars, except
      per share amounts and number of shares)<BR></FONT><FONT style="FONT-FAMILY: arial" size=2><FONT style="DISPLAY: inline; FONT-WEIGHT: bold">&nbsp;</FONT></FONT></FONT></TD></TR></TABLE></DIV>
<P align=justify><B><FONT face="Arial" size=2>7. Inventories (cont&#146;d):
</FONT></B></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>In
2011, the write-down of inventories to net realizable value amounted to $486,000
(2010 - $604,000). There were no reversals of previously recorded write-downs in
2011 or 2010. Write-downs and reversals are included in either cost of product
and service revenues, or research and product development expense, depending on
the nature of inventory.</FONT></P>
<P align=justify><B><FONT face="Arial" size=2>8. Property, plant and
equipment: </FONT></B></P>
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=left width="79%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=right width="4%" colSpan=2><FONT face="Arial" size=1>Balance at</FONT></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=right width="3%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=right width="3%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=right width="4%" colSpan=2><FONT face="Arial" size=1>Balance at</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="79%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="4%" colSpan=2><FONT face="Arial" size=1>December</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="3%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="3%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="4%" colSpan=2><FONT face="Arial" size=1>December</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="79%"><B><FONT face="Arial" size=1>Cost</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face="Arial" size=1>31, 2010</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face="Arial" size=1>Additions</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face="Arial" size=1>Disposals</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face="Arial" size=1>31, 2011</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="79%" bgColor=#c0c0c0><FONT face="Arial" size=1>Land</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>1,220</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>1,220</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="79%"><FONT face="Arial" size=1>Building</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>3,666</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>3,666</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="79%" bgColor=#c0c0c0><FONT face="Arial" size=1>Building under
      finance lease</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>12,180</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>12,180</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="79%"><FONT face="Arial" size=1>Computer equipment</FONT></TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>6,339</FONT></TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>403</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>(319</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>6,423</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="79%" bgColor=#c0c0c0><FONT face="Arial" size=1>Furniture and
      fixtures</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>741</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>93</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>834</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="79%"><FONT face="Arial" size=1>Furniture and fixtures under
      finance lease</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>317</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>317</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="79%" bgColor=#c0c0c0><FONT face="Arial" size=1>Leasehold
      improvements</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>7,518</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>2,568</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>10,086</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="79%"><FONT face="Arial" size=1>Production and test
      equipment</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>45,382</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>2,785</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>(3,076</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>45,091</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="79%" bgColor=#c0c0c0><FONT face="Arial" size=1>Production and test equipment under
      finance lease</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>2,078</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>1,589</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>-</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>3,667</FONT></TD></TR>
  <TR>
    <TD width="99%" colSpan=13>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="79%" bgColor=#c0c0c0><FONT face="Arial" size=1>Total</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>79,124</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>7,755</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>(3,395</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>83,484</FONT></TD></TR></TABLE>
<DIV></DIV><BR>
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=left width="75%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=right width="4%" colSpan=2><FONT face="Arial" size=1>Balance at</FONT></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=right width="3%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=right width="3%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=right width="3%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=right width="4%" colSpan=2><FONT face="Arial" size=1>Balance at</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="75%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="4%" colSpan=2><FONT face="Arial" size=1>December</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="3%"></TD>
    <TD align=right width="1%"></TD>
    <TD align=right width="4%" colSpan=2><FONT face="Arial" size=1>Impairment</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="3%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="4%" colSpan=2><FONT face="Arial" size=1>December</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="75%"><B><FONT face="Arial" size=1>Depreciation and impairment loss</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face="Arial" size=1>31, 2010</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="4%" colSpan=2><FONT face="Arial" size=1>Depreciation</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face="Arial" size=1>loss</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face="Arial" size=1>Disposals</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face="Arial" size=1>31, 2011</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="75%" bgColor=#c0c0c0><FONT face="Arial" size=1>Land</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>-</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="75%"><FONT face="Arial" size=1>Building</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>2,044</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>155</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>2,199</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="75%" bgColor=#c0c0c0><FONT face="Arial" size=1>Building under
      finance lease</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>652</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>836</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>1,488</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="75%"><FONT face="Arial" size=1>Computer equipment</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>5,347</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>345</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>(16</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>5,676</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="75%" bgColor=#c0c0c0><FONT face="Arial" size=1>Furniture and
      fixtures</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>682</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>106</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>788</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="75%"><FONT face="Arial" size=1>Furniture and fixtures under
      finance lease</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>37</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>37</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="75%" bgColor=#c0c0c0><FONT face="Arial" size=1>Leasehold
      improvements</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>4,442</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>521</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>4,963</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="75%"><FONT face="Arial" size=1>Production and test
      equipment</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>28,889</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>3,292</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>1,727</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>(1,102</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>32,806</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="75%" bgColor=#c0c0c0><FONT face="Arial" size=1>Production and
      test equipment under finance</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>123</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>319</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>442</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="75%" bgColor=#c0c0c0><FONT face="Arial" size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      lease</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%" bgColor=#c0c0c0></TD></TR>
  <TR>
    <TD width="100%" colSpan=16>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="75%" bgColor=#c0c0c0><FONT face="Arial" size=1>Total</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>42,179</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>5,611</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>1,727</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>(1,118</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>48,399</FONT></TD></TR></TABLE><BR>
<P align=right><FONT face="Arial" size=1>32 </FONT></P>
<HR align=center width="100%" noShade SIZE=2>

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<DIV>
<TABLE style="LINE-HEIGHT: normal; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="100%"><FONT style="FONT-FAMILY: arial" size=2><FONT style="DISPLAY: inline; FONT-WEIGHT: bold">BALLARD POWER SYSTEMS
      INC.<BR></FONT>Notes to Consolidated Financial Statements<BR><FONT style="FONT-FAMILY: arial" size=1>Years ended December 31, 2011, and
      2010<BR>(Tabular amounts expressed in thousands of U.S. dollars, except
      per share amounts and number of shares)<BR></FONT><FONT style="FONT-FAMILY: arial" size=2><FONT style="DISPLAY: inline; FONT-WEIGHT: bold">&nbsp;</FONT></FONT></FONT></TD></TR></TABLE></DIV>
<P align=justify><B><FONT face="Arial" size=2>8. Property, plant and
equipment (cont&#146;d): </FONT></B></P>
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=left width="70%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=right width="3%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=right width="4%" colSpan=2><FONT face=Arial size=1>Acquisitions</FONT></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=right width="3%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=right width="3%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=right width="4%" colSpan=2><FONT face=Arial size=1>Asset</FONT></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=right width="3%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="70%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="4%" colSpan=2><FONT face=Arial size=1>Balance at</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="4%" colSpan=2><FONT face=Arial size=1>through</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="3%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="3%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="4%" colSpan=2><FONT face=Arial size=1>de-recognition</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="4%" colSpan=2><FONT face=Arial size=1>Balance at</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="70%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="4%" colSpan=2><FONT face=Arial size=1>January 1,</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="4%" colSpan=2><FONT face=Arial size=1>business</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="4%" colSpan=2><FONT face=Arial size=1>Other</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="3%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=Arial size=1>and</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="4%" colSpan=2><FONT face=Arial size=1>December</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="70%"><B><FONT face=Arial size=1>Cost</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face=Arial size=1>2010</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2>&nbsp; <FONT face=Arial size=1>&nbsp;combination</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face=Arial size=1>additions</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face="Times New Roman" size=1><FONT face=Arial>Disposals
      <FONT size=+0></FONT></FONT></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=Arial size=1>reclassification</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face=Arial size=1>31, 2010</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="70%" bgColor=#c0c0c0><FONT face=Arial size=1>Land</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=1>4,803</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=1>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=1>-</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=Arial size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=1>(3,583</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=1>)</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=1>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=1>1,220</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="70%"><FONT face=Arial size=1>Building</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=Arial size=1>13,596</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=Arial size=1>-</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=Arial size=1>-</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=Arial size=1>(10,357</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face=Arial size=1>)</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=Arial size=1>427</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=Arial size=1>3,666</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="70%" bgColor=#c0c0c0><FONT face=Arial size=1>Building under finance lease</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=1>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=1>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=1>12,180</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=1>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=1>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=1>12,180</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="70%"><FONT face=Arial size=1>Computer
      equipment</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=Arial size=1>11,421</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=Arial size=1>113</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=Arial size=1>366</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=Arial size=1>-</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=Arial size=1>(5,561</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face=Arial size=1>)</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=Arial size=1>6,339</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="70%" bgColor=#c0c0c0><FONT face=Arial size=1>Furniture and fixtures</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=1>4,692</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=1>58</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=1>48</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=1>(479</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=1>)</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=1>(3,578</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=1>)</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=1>741</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="70%"><FONT face=Arial size=1>Leasehold
      improvements</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=Arial size=1>9,201</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=Arial size=1>376</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=Arial size=1>78</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=Arial size=1>(1,745</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face=Arial size=1>)</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=Arial size=1>(392</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face=Arial size=1>)</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=Arial size=1>7,518</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="70%" bgColor=#c0c0c0><FONT face=Arial size=1>Production and test equipment</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=1>67,651</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=1>136</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=1>3,163</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=1>(662</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=1>)</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=1>(24,906</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=1>)</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=1>45,382</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="70%"><FONT face=Arial size=1>Production and
      test equipment</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=Arial size=1>2,078</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=Arial size=1>-</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=Arial size=1>-</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=Arial size=1>-</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=Arial size=1>-</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=Arial size=1>2,078</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="70%"><FONT face=Arial size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      under finance lease</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%"></TD></TR>
  <TR>
    <TD width="100%" colSpan=19>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="70%" bgColor=#c0c0c0><FONT face=Arial size=1>Total</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=1>113,442</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=1>683</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=1>15,835</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=Arial size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=1>(16,826</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=1>)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=1>(34,010</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=1>)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=1>79,124</FONT></TD></TR>
  <TR>
    <TD width="100%" colSpan=19>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-TOP: #000000 1.5pt solid; WIDTH: 70%; TEXT-ALIGN: left" noWrap width="70%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; WIDTH: 1%; TEXT-ALIGN: right" noWrap width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; WIDTH: 1%; TEXT-ALIGN: right" noWrap width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; WIDTH: 3%; TEXT-ALIGN: right" noWrap width="3%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; WIDTH: 1%; TEXT-ALIGN: right" noWrap width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; WIDTH: 4%; TEXT-ALIGN: right" noWrap width="4%" colSpan=2><FONT face=Arial size=1>Acquisitions</FONT></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; WIDTH: 1%; TEXT-ALIGN: right" noWrap width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; WIDTH: 1%; TEXT-ALIGN: right" noWrap width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; WIDTH: 3%; TEXT-ALIGN: right" noWrap width="3%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; WIDTH: 1%; TEXT-ALIGN: right" noWrap width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; WIDTH: 1%; TEXT-ALIGN: right" noWrap width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; WIDTH: 3%; TEXT-ALIGN: right" noWrap width="3%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; WIDTH: 1%; TEXT-ALIGN: right" noWrap width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; WIDTH: 4%; TEXT-ALIGN: right" noWrap width="4%" colSpan=2><FONT face=Arial size=1>Asset</FONT></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; WIDTH: 1%; TEXT-ALIGN: right" noWrap width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; WIDTH: 1%; TEXT-ALIGN: right" noWrap width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; WIDTH: 3%; TEXT-ALIGN: right" noWrap width="3%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="70%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="4%" colSpan=2><FONT face=Arial size=1>Balance at</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="4%" colSpan=2><FONT face=Arial size=1>through</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="3%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="3%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="4%" colSpan=2><FONT face=Arial size=1>de-recognition</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="4%" colSpan=2><FONT face=Arial size=1>Balance at</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="70%"><B><FONT face=Arial size=1>Depreciation
      and</FONT></B></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="4%" colSpan=2><FONT face=Arial size=1>January 1,</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="4%" colSpan=2><FONT face=Arial size=1>business</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="3%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="3%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="4%" colSpan=2><FONT face=Arial size=1>and</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="4%" colSpan=2><FONT face=Arial size=1>December</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="70%"><B><FONT face=Arial size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; impairment loss</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=Arial size=1>2010</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face=Arial size=1>combination</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face=Arial size=1>Depreciation</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face=Arial size=1>Disposals</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face=Arial size=1>reclassification</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face=Arial size=1>31, 2010</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="70%" bgColor=#c0c0c0><FONT face=Arial size=1>Land</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=1>$</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=1>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=1>$</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=1>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=1>$</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=1>-</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=1>$</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=1>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=1>$</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=1>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=1>$</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=1>-</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="70%"><FONT face=Arial size=1>Building</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=Arial size=1>5,661</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=Arial size=1>-</FONT></TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=Arial size=1>216</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=Arial size=1>(3,979</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face=Arial size=1>)</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=Arial size=1>146</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=Arial size=1>2,044</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="70%" bgColor=#c0c0c0><FONT face=Arial size=1>Building under finance lease</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=1>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=1>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=1>652</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=1>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=1>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=1>652</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="70%"><FONT face=Arial size=1>Computer
      equipment</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=right width="3%"><FONT face=Arial size=1>10,319</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=Arial size=1>47</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=Arial size=1>905</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=Arial size=1>-</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=right width="3%"><FONT face=Arial size=1>(5,924</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face=Arial size=1>)</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=Arial size=1>5,347</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="70%" bgColor=#c0c0c0><FONT face=Arial size=1>Furniture and fixtures</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=1>4,629</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=1>20</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=1>30</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=1>(378</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=1>)</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=1>(3,619</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=1>)</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=1>682</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="70%"><FONT face=Arial size=1>Leasehold
      improvements</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=Arial size=1>5,824</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=right width="3%"><FONT face=Arial size=1>60</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=Arial size=1>578</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=Arial size=1>(626</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face=Arial size=1>)</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=Arial size=1>(1,394</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face=Arial size=1>)</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=Arial size=1>4,442</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="70%" bgColor=#c0c0c0><FONT face=Arial size=1>Production and test equipment</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=1>47,492</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=1>20</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=1>3,946</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=1>(517</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=1>)</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=1>(22,052</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=1>)</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=1>28,889</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="70%"><FONT face=Arial size=1>Production and
      test equipment</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=Arial size=1>-</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=Arial size=1>-</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=Arial size=1>123</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=Arial size=1>-</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=Arial size=1>-</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=Arial size=1>123</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="70%"><FONT face=Arial size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      under finance lease</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%"></TD></TR>
  <TR>
    <TD width="100%" colSpan=19>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="70%" bgColor=#c0c0c0><FONT face=Arial size=1>Total</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=1>73,925</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=1>147</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=1>6,450</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=1>(5,500</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=1>)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=1>(32,843</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=1>)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=1>42,179</FONT></TD></TR></TABLE>

<BR>
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=left width="85%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=right width="4%" colSpan=2><FONT face="Arial" size=1>Balance at</FONT></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=right width="4%" colSpan=2><FONT face="Arial" size=1>Balance at</FONT></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=right width="4%" colSpan=2><FONT face="Arial" size=1>Balance at</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="85%"></TD>
    <TD noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD noWrap align=right width="4%" colSpan=2><FONT face="Arial" size=1>December
      31,</FONT></TD>
    <TD noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD noWrap align=right width="4%" colSpan=2><FONT face="Arial" size=1>December
      31,</FONT></TD>
    <TD noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD noWrap align=right width="4%" colSpan=2><FONT face="Arial" size=1>January
    1,</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="85%"><B><FONT face="Arial" size=1>Carrying amounts</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face="Arial" size=1>2011</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face="Arial" size=1>2010</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face="Arial" size=1>2010</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="85%" bgColor=#c0c0c0><FONT face="Arial" size=1>Land</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>1,220</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>1,220</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>4,803</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="85%"><FONT face="Arial" size=1>Building</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>1,467</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>1,622</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>7,935</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="85%" bgColor=#c0c0c0><FONT face="Arial" size=1>Building under
      finance lease</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>10,692</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>11,528</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>-</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="85%"><FONT face="Arial" size=1>Computer equipment</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>747</FONT></TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>992</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>1,102</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="85%" bgColor=#c0c0c0><FONT face="Arial" size=1>Furniture and
      fixtures</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>46</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>59</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>63</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="85%"><FONT face="Arial" size=1>Furniture and fixtures under
      finance lease</FONT></TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>280</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>-</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="85%" bgColor=#c0c0c0><FONT face="Arial" size=1>Leasehold
      improvements</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>5,123</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>3,076</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>3,377</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="85%"><FONT face="Arial" size=1>Production and test
      equipment</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>12,285</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>16,493</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>20,159</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="85%" bgColor=#c0c0c0><FONT face="Arial" size=1>Production and test equipment under finance
      lease</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>3,225</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>1,955</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>2,078</FONT></TD></TR>
  <TR>
    <TD width="100%" colSpan=10>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" vAlign=bottom noWrap align=left width="85%"><FONT face="Arial" size=1>Total</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" vAlign=bottom noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" vAlign=bottom noWrap align=left width="1%"><FONT face="Arial" size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" vAlign=bottom noWrap align=right width="3%"><FONT face="Arial" size=1>35,085</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" vAlign=bottom noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" vAlign=bottom noWrap align=left width="1%"><FONT face="Arial" size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" vAlign=bottom noWrap align=right width="3%"><FONT face="Arial" size=1>36,945</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" vAlign=bottom noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" vAlign=bottom noWrap align=left width="1%"><FONT face="Arial" size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" vAlign=bottom noWrap align=right width="3%"><FONT face="Arial" size=1>39,517</FONT></TD></TR></TABLE><BR>
<P align=right><FONT face="Arial" size=1>33 </FONT></P>
<HR align=center width="100%" noShade SIZE=2>

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<DIV>
<TABLE style="LINE-HEIGHT: normal; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="100%"><FONT style="FONT-FAMILY: arial" size=2><FONT style="DISPLAY: inline; FONT-WEIGHT: bold">BALLARD POWER SYSTEMS
      INC.<BR></FONT>Notes to Consolidated Financial Statements<BR><FONT style="FONT-FAMILY: arial" size=1>Years ended December 31, 2011, and
      2010<BR>(Tabular amounts expressed in thousands of U.S. dollars, except
      per share amounts and number of shares)<BR></FONT><FONT style="FONT-FAMILY: arial" size=2><FONT style="DISPLAY: inline; FONT-WEIGHT: bold">&nbsp;</FONT></FONT></FONT></TD></TR></TABLE></DIV>
<P align=justify><B><FONT face="Arial" size=2>8. Property, plant and
equipment (cont&#146;d): </FONT></B></P>
<P style="PADDING-LEFT: 15pt" align=justify><I><FONT face="Arial" size=2>Leased assets</FONT></I></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>The
Corporation leases certain assets under finance lease agreements including the
Corporation&#146;s head office building in Burnaby, British Columbia and certain
production and test equipment. </FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>In June
2011, the Corporation completed a sale and leaseback agreement whereby the
Corporation sold certain property, plant and equipment in return for gross cash
proceeds of $1,922,000. The Corporation then leased the assets back for a term
of 5 years. On the closing of the transaction, the Corporation recorded a
deferred gain of $150,000, which is recognized to income on a straight-line
basis over the term of the 5-year lease. The lease transaction qualifies as a
finance lease (note 15). As a result, on the closing of the transaction, the
Corporation recorded assets under finance lease and a corresponding obligation
under finance lease of $1,906,000.</FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><I><FONT face="Arial" size=2>Disposals</FONT></I></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>In
March 2011, the Corporation completed a sub-lease agreement with Mercedes-Benz
Canada Inc. (&#147;MBC&#148;) for the rental of 21,000 square feet of surplus production
space in the Corporation&#146;s specialized fuel cell manufacturing facility. As part
of the sub-lease agreement, certain production and test equipment with a net
book value of $471,000 were sold to MBC in advance of the sub-lease for cash
proceeds of $1,639,000. At December 31, 2011, selling costs of
$479,000</FONT><B><FONT face="Arial" size=2> </FONT></B><FONT face="Arial" size=2>were incurred to-date and estimated additional costs of
$25,000</FONT><B><FONT face="Arial" size=2> </FONT></B><FONT face="Arial" size=2>were accrued against the disposition. As a result, a total gain on sale
of assets of $663,000 was recognized from the transaction. The remaining
$71,000</FONT><B><FONT face="Arial" size=2> </FONT></B><FONT face="Arial" size=2>gain on sale of property, plant and equipment recognized during the year
relates to other miscellaneous asset dispositions. </FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><I><FONT face="Arial" size=2>Impairment loss </FONT></I></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>During
the year ended December 31, 2011, impairment losses of $1,727,000 (2010 - $nil)
were recognized with respect to obsolescence of production and test equipment.
No impairment losses were reversed in 2011 or 2010. </FONT></P>
<P align=right><FONT face="Arial" size=1>34 </FONT></P>
<HR align=center width="100%" noShade SIZE=2>

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<DIV>
<TABLE style="LINE-HEIGHT: normal; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="100%"><FONT style="FONT-FAMILY: arial" size=2><FONT style="DISPLAY: inline; FONT-WEIGHT: bold">BALLARD POWER SYSTEMS
      INC.<BR></FONT>Notes to Consolidated Financial Statements<BR><FONT style="FONT-FAMILY: arial" size=1>Years ended December 31, 2011, and
      2010<BR>(Tabular amounts expressed in thousands of U.S. dollars, except
      per share amounts and number of shares)<BR></FONT><FONT style="FONT-FAMILY: arial" size=2><FONT style="DISPLAY: inline; FONT-WEIGHT: bold">&nbsp;</FONT></FONT></FONT></TD></TR></TABLE></DIV>
<P align=justify><B><FONT face="Arial" size=2>9. Intangible assets:
</FONT></B></P>
<DIV style="PADDING-LEFT: 15pt; FLOAT: left; WIDTH: 100%">
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=left width="84%"><FONT face="Arial" size=1>Fuel cell technology</FONT></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=right width="3%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" align=right width="4%" colSpan=2><FONT face="Arial" size=1>Accumulated</FONT></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=right width="4%" colSpan=2><FONT face="Arial" size=1>Net carrying</FONT></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="84%"><FONT face="Arial" size=1>Balance</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face="Arial" size=1>Cost</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="4%" colSpan=2><FONT face="Arial" size=1>amortization</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face="Arial" size=1>amount</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="84%" bgColor=#c0c0c0><FONT face="Arial" size=1>At January 1,
      2010</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>40,567</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>39,743</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>824</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="84%"><FONT face="Arial" size=1>Acquisition through business
      combination</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>2,876</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>2,876</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="84%" bgColor=#c0c0c0><FONT face="Arial" size=1>Amortization</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>-</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>725</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>(725</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="84%"><FONT face="Arial" size=1>At December 31, 2010</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>43,443</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>40,468</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>2,975</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="84%" bgColor=#c0c0c0><FONT face="Arial" size=1>Amortization</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>-</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>726</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>(726</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="84%"><FONT face="Arial" size=1>At December 31, 2011</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><FONT face="Arial" size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT face="Arial" size=1>43,443</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT face="Arial" size=1>41,194</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT face="Arial" size=1>2,249</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD></TR></TABLE></DIV><BR clear=all><BR>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>During
2010, the Corporation acquired $2,876,000 in fuel cell technology as part of the
acquisition of Dantherm Power A/S. </FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>Amortization and impairment losses of fuel cell technology and
development costs are allocated to research and product development expense.
There were no impairment losses recorded in 2011 and 2010. </FONT></P>
<P align=justify><B><FONT face="Arial" size=2>10. Goodwill: </FONT></B></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>For the
purpose of impairment testing, goodwill is allocated to the Corporation&#146;s
cash-generating units which represent the lowest level within the Corporation at
which the goodwill is monitored for internal management purposes, which is not
higher than the Corporation&#146;s operating segments (note 25). </FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>The
aggregate carrying amount of goodwill allocated to each cash-generating unit is
as follows: </FONT></P>
<DIV style="PADDING-LEFT: 15pt; FLOAT: left; WIDTH: 100%">
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=left width="85%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=right width="4%" colSpan=2><FONT face="Arial" size=1>December 31,</FONT></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=right width="4%" colSpan=2><FONT face="Arial" size=1>December 31,</FONT></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=right width="4%" colSpan=2><FONT face="Arial" size=1>January 1,</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="85%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face="Arial" size=1>2011</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face="Arial" size=1>2010</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face="Arial" size=1>2010</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="85%" bgColor=#c0c0c0><FONT face="Arial" size=1>Fuel cell
      products</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>46,291</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>46,291</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>46,291</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="85%"><FONT face="Arial" size=1>Contract automotive</FONT></TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>-</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="85%" bgColor=#c0c0c0><FONT face="Arial" size=1>Material products</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>1,815</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>1,815</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>1,815</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="85%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT face="Arial" size=1>48,106</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT face="Arial" size=1>48,106</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT face="Arial" size=1>48,106</FONT></TD></TR></TABLE></DIV><BR clear=all><BR>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>The
impairment testing for the above cash-generating units requires a comparison of
the carrying value of the asset to the higher of (i) value in use; and (ii) fair
value less costs to sell. Value in use is defined as the present value of future
cash flows expected to be derived from the asset in its current state.
</FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>The
Corporation&#146;s fair value test is in effect a modified market capitalization
assessment, whereby the fair value of the Fuel Cell Products segment is
calculated by first calculating the value of the Corporation at December 31,
2011 based on the average closing share price in the month of December, adding a
reasonable estimated control premium of 25% to 30% to determine the
Corporation&#146;s enterprise value on a controlling basis, and deducting the fair
value of the Materials Product and Contract Automotive segments from this
enterprise value, arriving at the fair value of the Fuel Cell Products
segment.</FONT></P>
<P align=right><FONT face="Arial" size=1>35 </FONT></P>

<HR align=center width="100%" noShade SIZE=2>

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<DIV>
<DIV>
<TABLE style="LINE-HEIGHT: normal; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="100%"><FONT style="FONT-FAMILY: arial" size=2><FONT style="DISPLAY: inline; FONT-WEIGHT: bold">BALLARD POWER SYSTEMS
      INC.<BR></FONT>Notes to Consolidated Financial Statements<BR><FONT style="FONT-FAMILY: arial" size=1>Years ended December 31, 2011, and
      2010<BR>(Tabular amounts expressed in thousands of U.S. dollars, except
      per share amounts and number of shares)<BR></FONT><FONT style="FONT-FAMILY: arial" size=2><FONT style="DISPLAY: inline; FONT-WEIGHT: bold">&nbsp;</FONT></FONT></FONT></TD></TR></TABLE></DIV>
<P align=justify><B><FONT face="Arial" size=2>10. Goodwill (cont&#146;d):
</FONT></B></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>Based
on the fair value test, the Corporation has determined that the fair value of
the Fuel Cell Products segment exceeds it carrying value by approximately 15% to
20% as of December 31, 2011. The fair value of the Material Products segment,
determined using an estimated market value as a multiple of revenues, is
substantially in excess of its carrying value of December 31, 2011.</FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>In
addition to the fair value test, the Corporation also performed a value in use
test on the Fuel Cell Products segment, comparing the carrying value of the
segment to the present value of future cash flows expected to be derived from
the segment. The principal factors used in the discounted cash flow analysis
requiring judgment are the projected results of operations, the discount rate
based on the weighted average cost of capital (&#147;WACC&#148;), and terminal value
assumptions for each reporting unit. The Corporation&#146;s value in use test was
based on a WACC of 17.5% to 20%; an average estimated compound annual growth
rate of approximately 40% from 2011 to 2016; and a terminal year earnings before
interest, taxes, depreciation and amortization (&#147;EBITDA&#148;) multiplied by a
terminal value multiplier of 4.0. The value in use assessment resulted in a
significantly higher value than as determined under the fair value, less costs
to sell, assessment.</FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>As the
recoverable amount of each cash-generating unit was determined to be greater
than its carrying amount, no impairment loss was recorded. </FONT></P>
<P align=justify><B><FONT face="Arial" size=2>11. Investments:</FONT></B></P>
<P style="PADDING-LEFT: 15pt"><FONT face="Arial" size=2>Investments are
comprised of the following:</FONT></P></DIV>
<P align=justify><B><FONT face="Arial" size=2></FONT></B></P>
<DIV style="PADDING-LEFT: 15pt; FLOAT: left; WIDTH: 100%">
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=left width="73%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; text-align: center" noWrap width="8%" colSpan=4><FONT face="Arial" size=1>December 31, 2011</FONT></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; text-align: center" noWrap width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; text-align: center" noWrap width="8%" colSpan=4><FONT face="Arial" size=1>December 31, 2010</FONT></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; text-align: center" noWrap width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; text-align: center" noWrap width="8%" colSpan=4><FONT face="Arial" size=1>January 1, 2010</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="73%"></TD>
    <TD noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="3%"></TD>
    <TD noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>Percentage</FONT></TD>
    <TD noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1></FONT></TD>
    <TD noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD noWrap align=right width="3%"><FONT face=Arial size=1>Percentage</FONT></TD>
    <TD noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="3%"></TD>
    <TD noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>Percentage</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="73%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face="Arial" size=1>Amount</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face="Arial" size=1>ownership</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face="Arial" size=1>Amount</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=Arial size=1>ownership</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face="Arial" size=1>Amount</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face="Arial" size=1>ownership</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="73%" bgColor=#c0c0c0><FONT face="Arial" size=1>Chrysalix Energy
      Limited Partnership</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>627</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>15.0%</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>663</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=1>&nbsp;15.0%</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1></FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>632</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>15.0%</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="73%"><FONT face="Arial" size=1>Other</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face="Arial" size=1>8</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face="Arial" size=1>10</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face="Arial" size=1>-</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="73%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>635</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>673</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>632</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="3%" bgColor=#c0c0c0></TD></TR></TABLE></DIV><BR clear=all><BR>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>Chrysalix Energy Limited Partnership (&#147;Chrysalix&#148;) is accounted for as an
available-for-sale financial asset and recorded at fair value. </FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>During
2011, the Corporation made additional capital contributions of $103,000 (2010 -
$67,000) in Chrysalix, which was offset by cash distributions received from
Chrysalix of $139,000 (2010 - $36,000). </FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>The
Corporation maintains a 19.9% interest in AFCC Automotive Fuel Cell Cooperation
Corp. (&#147;AFCC&#148;), which is accounted for as an available-for-sale financial asset
and recorded at fair value of $1. The Corporation has no obligation to fund any
of AFCC&#146;s operating expenses. </FONT></P>
<P align=right><FONT face="Arial" size=1>36 </FONT></P>
<HR align=center width="100%" noShade SIZE=2>

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<DIV>
<TABLE style="LINE-HEIGHT: normal; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="100%"><FONT style="FONT-FAMILY: arial" size=2><FONT style="DISPLAY: inline; FONT-WEIGHT: bold">BALLARD POWER SYSTEMS
      INC.<BR></FONT>Notes to Consolidated Financial Statements<BR><FONT style="FONT-FAMILY: arial" size=1>Years ended December 31, 2011, and
      2010<BR>(Tabular amounts expressed in thousands of U.S. dollars, except
      per share amounts and number of shares)<BR></FONT><FONT style="FONT-FAMILY: arial" size=2><FONT style="DISPLAY: inline; FONT-WEIGHT: bold">&nbsp;</FONT></FONT></FONT></TD></TR></TABLE></DIV>
<P align=justify><B><FONT face="Arial" size=2>12. Bank
facilities:</FONT></B></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>In June
2011, the Corporation entered into a demand revolving facility (&#147;Bank Operating
Line&#148;) in which an operating line of credit of up to CDN $10,000,000 was made
available to be drawn upon by the Corporation. The Bank Operating Line is
utilized to assist in financing the day-to-day operating activities and
short-term working capital requirements of the business. Outstanding amounts are
charged interest at the bank&#146;s prime rate minus 0.50% per annum and are
repayable on demand by the bank. During 2011, the Corporation was advanced
$14,265,000</FONT><B><FONT face="Arial" size=2> </FONT></B><FONT face="Arial" size=2>under the bank operating line of which $9,678,000 was
repaid during the year. At December 31, 2011, $4,587,000 was outstanding on the
Bank Operating Line. </FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>The
Corporation also has a CDN $3,323,000 capital leasing facility (&#147;Leasing
Facility&#148;) which can be utilized to finance the acquisition and lease of
operating equipment (notes 8 &amp; 15). Interest is charged on outstanding
amounts at the bank&#146;s prime rate per annum and is repayable on demand by the
bank. </FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>Both
the Bank Operating Line and Leasing Facility are secured by a hypothecation of
the Corporation&#146;s cash, cash equivalents and short-term
investments.</FONT><B><FONT face="Arial" size=2> </FONT></B></P>
<P align=justify><B><FONT face="Arial" size=2>13. Trade and other payables:
</FONT></B></P>
<DIV style="PADDING-LEFT: 15pt; FLOAT: left; WIDTH: 100%">
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=left width="84%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=right width="4%" colSpan=2><FONT face="Arial" size=1>December 31,</FONT></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=right width="4%" colSpan=2><FONT face="Arial" size=1>December 31,</FONT></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=right width="4%" colSpan=2><FONT face="Arial" size=1>January 1,</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="84%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face="Arial" size=1>2011</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face="Arial" size=1>2010</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face="Arial" size=1>2010</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="84%" bgColor=#c0c0c0><FONT face="Arial" size=1>Trade accounts
      payable</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>10,195</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>8,453</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>6,670</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="84%"><FONT face="Arial" size=1>Compensation payable</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>6,615</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>9,159</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>5,235</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="84%" bgColor=#c0c0c0><FONT face="Arial" size=1>Other
      liabilities</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>5,568</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>3,919</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>2,861</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="84%"><FONT face="Arial" size=1>Taxes payable</FONT></TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>456</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>354</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>302</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="84%" bgColor=#c0c0c0><FONT face="Arial" size=1>Accrued monetization costs</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>-</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>-</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>1,441</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="84%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT face="Arial" size=1>22,834</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT face="Arial" size=1>21,885</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT face="Arial" size=1>16,509</FONT></TD></TR></TABLE></DIV><BR clear=all><BR>
<P align=right><FONT face="Arial" size=1>37 </FONT></P>
<HR align=center width="100%" noShade SIZE=2>

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<DIV>
<TABLE style="LINE-HEIGHT: normal; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="100%"><FONT style="FONT-FAMILY: arial" size=2><FONT style="DISPLAY: inline; FONT-WEIGHT: bold">BALLARD POWER SYSTEMS
      INC.<BR></FONT>Notes to Consolidated Financial Statements<BR><FONT style="FONT-FAMILY: arial" size=1>Years ended December 31, 2011, and
      2010<BR>(Tabular amounts expressed in thousands of U.S. dollars, except
      per share amounts and number of shares)<BR></FONT><FONT style="FONT-FAMILY: arial" size=2><FONT style="DISPLAY: inline; FONT-WEIGHT: bold">&nbsp;</FONT></FONT></FONT></TD></TR></TABLE></DIV>
<P align=justify><B><FONT face="Arial" size=2>14. Provisions: </FONT></B></P>
<DIV style="PADDING-LEFT: 15pt; FLOAT: left; WIDTH: 100%">
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=left width="74%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=right width="3%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=right width="3%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=right width="4%" colSpan=2><FONT face="Arial" size=1>Warranty</FONT></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=right width="1%">&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=right width="4%" colSpan=2><FONT face=Arial size=1>Decommissioning</FONT></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=right width="3%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="74%"><FONT face="Arial" size=1>Balance</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face="Arial" size=1>Legal</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face=Arial size=1>Restructuring</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face="Arial" size=1>provision</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face="Arial" size=1>liabilities</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face="Arial" size=1>Total</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="74%" bgColor=#c0c0c0><FONT face="Arial" size=1>At January 1,
      2010</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>1,675</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$<FONT face="Times New Roman" size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    </FONT></FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>2,137</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$<FONT face="Times New Roman" size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    </FONT></FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>7,813</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$<FONT face="Times New Roman" size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    </FONT></FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>2,848</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$<FONT face="Times New Roman" size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    </FONT></FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>14,473</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="74%"><FONT face="Arial" size=1>Assumed through
    business</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>10</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>10</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="74%"><FONT face="Arial" size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      combination</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="74%" bgColor=#c0c0c0><FONT face="Arial" size=1>Provisions made
      during the year</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>52</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>305</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>2,410</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>84</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>2,851</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="74%"><FONT face="Arial" size=1>Provisions used during the
      year</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>(401</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>(2,380</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>(614</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>(3,395</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="74%" bgColor=#c0c0c0><FONT face="Arial" size=1>Provisions
      reversed during the</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>(38</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>(10</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>(1,504</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>(1,552</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="74%" bgColor=#c0c0c0><FONT face="Arial" size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; year</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="74%"><FONT face="Arial" size=1>Effect of movements in</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>83</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>26</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>455</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>170</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>734</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="74%"><FONT face="Arial" size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; exchange
      rates</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="74%" bgColor=#c0c0c0><FONT face="Arial" size=1>At December 31,
      2010</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>1,371</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>78</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>8,570</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>3,102</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>13,121</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="74%"><FONT face="Arial" size=1>Provisions made during the
      year</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>50</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>1,356</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>2,097</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>1,706</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>5,209</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="74%" bgColor=#c0c0c0><FONT face="Arial" size=1>Provisions used
      during the year</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>(897</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>(401</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>(716</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>(2,014</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="74%"><FONT face="Arial" size=1>Provisions reversed during
      the</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>(1,721</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>(1,721</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="74%"><FONT face="Arial" size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; year</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="74%" bgColor=#c0c0c0><FONT face="Arial" size=1>Effect of
      movements in</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>(4</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>(29</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>(181</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>(75</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>(289</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="74%" bgColor=#c0c0c0><FONT face="Arial" size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; exchange
      rates</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="74%"><FONT face="Arial" size=1>At December 31, 2011</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT face="Arial" size=1>520</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT face="Arial" size=1>1,004</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT face="Arial" size=1>8,049</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT face="Arial" size=1>4,733</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT face="Arial" size=1>14,306</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD></TR>
  <TR>
    <TD width="100%" colSpan=17>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="74%" bgColor=#c0c0c0><FONT face="Arial" size=1>Current</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>520</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>1,004</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>8,049</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>9,573</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="74%"><FONT face="Arial" size=1>Non-current</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face="Arial" size=1>-</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face="Arial" size=1>-</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face="Arial" size=1>-</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face="Arial" size=1>4,733</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face="Arial" size=1>4,733</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="74%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>520</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>1,004</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>8,049</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>4,733</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>14,306</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR></TABLE></DIV><BR clear=all><BR>
<P style="PADDING-LEFT: 15pt" align=justify><I><FONT face="Arial" size=2>Restructuring</FONT></I></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>The
restructuring provision of $2,137,000 as at January 1, 2010, relates to the
remaining restructuring and related charges from the organizational
restructuring and the elimination of 117 positions in 2009. In 2010, the
Corporation completed an organizational restructuring at Dantherm Power A/S
resulting in restructuring and related charges of $285,000 primarily for
severance expense on elimination of 8 positions. In 2011, a leadership
restructuring, which reduced the number of executive officers at both the
Corporation and at Dantherm Power A/S resulted in the recognition of $1,356,000
of restructuring charges. The estimated restructuring costs primarily include
employee termination benefits and are expected to be finalized and paid in 2012.
Restructuring charges are recognized in general and administrative expenses.
</FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><I><FONT face="Arial" size=2>Warranty provision </FONT></I></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>During
the year the warranty provision decreased by $521,000. A portion of the
provision, $1,721,000, was reversed during the year due primarily to contractual
expirations, reductions in estimated costs to repair, and improved lifetimes,
and reliability of the Corporation&#146;s fuel cell products. Warranty expenditures
during the year of $716,000 also decreased the warranty provision. </FONT></P>
<P align=right><FONT face="Arial" size=1>38 </FONT></P>
<HR align=center width="100%" noShade SIZE=2>

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<DIV>
<TABLE style="LINE-HEIGHT: normal; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="100%"><FONT style="FONT-FAMILY: arial" size=2><FONT style="DISPLAY: inline; FONT-WEIGHT: bold">BALLARD POWER SYSTEMS
      INC.<BR></FONT>Notes to Consolidated Financial Statements<BR><FONT style="FONT-FAMILY: arial" size=1>Years ended December 31, 2011, and
      2010<BR>(Tabular amounts expressed in thousands of U.S. dollars, except
      per share amounts and number of shares)<BR></FONT><FONT style="FONT-FAMILY: arial" size=2><FONT style="DISPLAY: inline; FONT-WEIGHT: bold">&nbsp;</FONT></FONT></FONT></TD></TR></TABLE></DIV>
<P align=justify><B><FONT face="Arial" size=2>14. Provisions (cont&#146;d):
</FONT></B></P>
<P style="PADDING-LEFT: 15pt" align=justify><I><FONT face="Arial" size=2>Decommissioning liabilities </FONT></I></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>Provisions for decommissioning liabilities have been recorded for the
Corporation&#146;s two leased locations, the head office building and manufacturing
facility, and are related to site restoration obligations at the end of the
lease terms. Due to the long-term nature of the liability, the most significant
uncertainty in estimating the provision is the costs that will be
incurred.</FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>The
Corporation has determined a range of reasonable possible outcomes of the total
costs for the manufacturing facility. In determining the fair value of the
decommissioning liabilities, the estimated future cash flows have been
discounted at 3% per annum. The total undiscounted amount of the estimated cash
flows required to settle this obligation is $3,912,000. The obligation will be
settled at the end of the term of the operating lease, which extends to 2019.
The provision has increased during the period due to accretion costs.
</FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>At
December 31, 2011, the Corporation assessed that a fair value of $1,615,000 of
decommissioning liabilities, discounted at 2% per annum was appropriate to
record for the Corporation&#146;s head office building. The total undiscounted amount
of the estimated cash flows required to settle this obligation is $2,233,000.
The obligation will be settled at the end of the lease term, which extends to
2025.</FONT></P>
<P align=justify><B><FONT face="Arial" size=2>15. Finance lease liability
</FONT></B></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>The
Corporation leases certain assets under finance lease agreements (note 8). The
finance leases have imputed interest rates ranging between 2.25% to 7.35% per
annum and expire between December 2014 and February 2025.</FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>The
future minimum lease payments for the Corporation&#146;s finance leases are as
follows: </FONT></P>
<DIV style="PADDING-LEFT: 15pt; FLOAT: left; WIDTH: 100%">
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="94%"><FONT face="Arial" size=1>Year ending December
31</FONT></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="94%" bgColor=#c0c0c0><FONT face="Arial" size=1>2012</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>1,882</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="94%"><FONT face="Arial" size=1>2013</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>1,882</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="94%" bgColor=#c0c0c0><FONT face="Arial" size=1>2014</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>2,279</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="94%"><FONT face="Arial" size=1>2015</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>1,697</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="94%" bgColor=#c0c0c0><FONT face="Arial" size=1>2016</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>1,872</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="94%"><FONT face="Arial" size=1>Thereafter</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face="Arial" size=1>12,266</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="94%" bgColor=#c0c0c0><FONT face="Arial" size=1>Total minimum
      lease payments</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>21,878</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="94%"><FONT face="Arial" size=1>Less imputed interest</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face="Arial" size=1>(7,151</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="94%" bgColor=#c0c0c0><FONT face="Arial" size=1>Total finance
      lease liability</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>14,727</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="94%"><FONT face="Arial" size=1>Current portion of finance lease liability</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face="Arial" size=1>978</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="94%" bgColor=#c0c0c0><FONT face="Arial" size=1>Non-current portion of finance lease
      liability</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>13,749</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR></TABLE></DIV><BR clear=all><BR>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>At
December 31, 2011, $3,113,000 was outstanding on the Leasing Facility which is
included in the finance lease liability. The remaining $11,614,000 finance lease
liability relates to the lease of the Corporation&#146;s head office building.
</FONT></P>
<P align=right><FONT face="Arial" size=1>39 </FONT></P>
<HR align=center width="100%" noShade SIZE=2>

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<TABLE style="LINE-HEIGHT: normal; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="100%"><FONT style="FONT-FAMILY: arial" size=2><FONT style="DISPLAY: inline; FONT-WEIGHT: bold">BALLARD POWER SYSTEMS
      INC.<BR></FONT>Notes to Consolidated Financial Statements<BR><FONT style="FONT-FAMILY: arial" size=1>Years ended December 31, 2011, and
      2010<BR>(Tabular amounts expressed in thousands of U.S. dollars, except
      per share amounts and number of shares)<BR></FONT><FONT style="FONT-FAMILY: arial" size=2><FONT style="DISPLAY: inline; FONT-WEIGHT: bold">&nbsp;</FONT></FONT></FONT></TD></TR></TABLE><BR>
<P align=justify><B><FONT face="Arial" size=2>16. Convertible
debenture</FONT></B></P>
<DIV style="PADDING-LEFT: 15pt; WIDTH: 100%">
<P align=justify><FONT face="Arial" size=2>The convertible debenture relates
to financing to Dantherm Power A/S by the non-controlling partners and is
redeemable at the option of Dantherm Power A/S subject to approval by all
convertible debenture holders on or after January 1, 2013 including interest
which is accrued at 12%. Prior to December 31, 2013 (the &#147;Maturity Date&#148;), the
convertible debenture holders may elect to convert all or part of the debenture
into shares of Dantherm Power A/S at a conversion price equal to DKK 3.40 per
share. This conversion feature was determined to have a nominal value. The
Maturity Date may be extended to December 31, 2014 with approval of the
subscribers. </FONT></P></DIV>
<P align=justify><B><FONT face="Arial" size=2>17. Employee future
benefits:</FONT></B><FONT face="Arial" size=2> </FONT></P>
<DIV style="PADDING-LEFT: 15pt; WIDTH: 100%">
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD NOWRAP STYLE="border-top: Black 1.5pt solid; border-bottom: Black 1pt solid; text-align: left; width: 87%"></TD>
    <TD NOWRAP COLSPAN="5" STYLE="border-top: Black 1.5pt solid; border-bottom: Black 1pt solid; text-align: center; width: 5%"><FONT face="Arial" size=1>2011</FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 1.5pt solid; border-bottom: Black 1pt solid; text-align: center; width: 1%"></TD>
    <TD NOWRAP COLSPAN="5" STYLE="border-top: Black 1.5pt solid; border-bottom: Black 1pt solid; text-align: center; width: 5%"><FONT face="Arial" size=1>2010</FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 1.5pt solid; border-bottom: Black 1pt solid; text-align: left; width: 1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="87%"></TD>
    <TD noWrap align=right width="2%" colSpan=2><FONT face="Arial" size=1>Pension</FONT></TD>
    <TD noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD noWrap align=right width="2%" colSpan=2><FONT face="Arial" size=1>Other</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="2%" colSpan=2><FONT face="Arial" size=1>Pension</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="2%" colSpan=2><FONT face="Arial" size=1>Other</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="87%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" colSpan=2><FONT face="Arial" size=1>plan</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" colSpan=2><FONT face="Arial" size=1>benefit plan</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" colSpan=2><FONT face="Arial" size=1>plan</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" colSpan=2><FONT face="Arial" size=1>benefit plan</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="87%" bgColor=#c0c0c0><FONT face="Arial" size=1>Plan
      assets</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>8,223</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>8,360</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="87%"><FONT face="Arial" size=1>Plan obligations</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face="Arial" size=1>(13,329</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face="Arial" size=1>(580</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face="Arial" size=1>(10,819</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face="Arial" size=1>(491</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="87%" bgColor=#c0c0c0><FONT face="Arial" size=1>Employee future benefit plans deficit</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>(5,106</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>(580</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>(2,459</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>(491</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD></TR></TABLE><BR>
<P align=justify><FONT face="Arial" size=2>The Corporation maintains a
defined benefit pension plan covering employees in the United States. The
benefits under the pension plan are based on years of service and salary levels
accrued as of December 31, 2009. In 2009, amendments were made to the defined
benefit pension plan to freeze benefits accruing to employees at their
respective years of service and salary levels obtained as of December 31, 2009.
Certain employees in the United States are also eligible for post-retirement
healthcare, life insurance and other benefits.</FONT></P>
<P align=justify><FONT face="Arial" size=2>The Corporation accrues the
present value of its obligations under employee future benefit plans and the
related costs, net of the present value of plan assets.</FONT></P>
<P align=justify><FONT face="Arial" size=2>The measurement date used to
determine pension and other post-retirement benefit obligations and expense is
December 31 of each year. The most recent actuarial valuation of the employee
future benefit plans for funding purposes was as of January 1, 2011. The next
actuarial valuation of the employee future benefit plans for funding purposes is
expected to be as of January 1, 2012.</FONT></P>
</DIV>
<P align=right><FONT face="Arial" size=1>40</FONT></P>
<HR align=center width="100%" noShade SIZE=2>

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<TABLE style="LINE-HEIGHT: normal; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="100%"><FONT style="FONT-FAMILY: arial" size=2><FONT style="DISPLAY: inline; FONT-WEIGHT: bold">BALLARD POWER SYSTEMS
      INC.<BR></FONT>Notes to Consolidated Financial Statements<BR><FONT style="FONT-FAMILY: arial" size=1>Years ended December 31, 2011, and
      2010<BR>(Tabular amounts expressed in thousands of U.S. dollars, except
      per share amounts and number of shares)<BR></FONT><FONT style="FONT-FAMILY: arial" size=2><FONT style="DISPLAY: inline; FONT-WEIGHT: bold">&nbsp;</FONT></FONT></FONT></TD></TR></TABLE><BR>
<P align=justify><B><FONT face="Arial" size=2>17. Employee future benefits
(cont&#146;d):</FONT></B></P>
<DIV style="PADDING-LEFT: 15pt; WIDTH: 100%">
<P align=justify><FONT face="Arial" size=2>The Corporation expects
contributions of approximately $600,000 to be paid to its defined benefit plans
in 2012. Information about the Corporation&#146;s employee future benefit plans, in
aggregate, is as follows:</FONT></P>
<P align=justify><FONT face="Arial" size=2>Movement in the present value of
the defined benefit plan obligations: </FONT></P>
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="83%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="7%" colSpan=5><FONT face="Arial" size=1>2011</FONT></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="7%" colSpan=5><FONT face="Arial" size=1>2010</FONT></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="3%" colSpan=2><FONT face="Arial" size=1>Pension</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="3%" colSpan=2><FONT face="Arial" size=1>Other</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="3%" colSpan=2><FONT face="Arial" size=1>Pension</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="3%" colSpan=2><FONT face="Arial" size=1>Other</FONT></TD>
    <TD noWrap align=right width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="83%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" colSpan=2><FONT face="Arial" size=1>Plan</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" colSpan=2><FONT face="Arial" size=1>benefit plan</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" colSpan=2><FONT face="Arial" size=1>plan</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" colSpan=2><FONT face="Arial" size=1>benefit plan</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%" bgColor=#c0c0c0><FONT face="Arial" size=1>Defined benefit
      plan obligations at January 1</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face="Arial" size=1>10,819</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face="Arial" size=1>491</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face="Arial" size=1>9,800</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face="Arial" size=1>616</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%"><FONT face="Arial" size=1>Current service cost</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="2%"><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="2%"><FONT face="Arial" size=1>6</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="2%"><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="2%"><FONT face="Arial" size=1>3</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%" bgColor=#c0c0c0><FONT face="Arial" size=1>Interest
      cost</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face="Arial" size=1>587</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face="Arial" size=1>25</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face="Arial" size=1>579</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face="Arial" size=1>35</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%"><FONT face="Arial" size=1>Benefits paid</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="2%"><FONT face="Arial" size=1>(251</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="2%"><FONT face="Arial" size=1>(44</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="2%"><FONT face="Arial" size=1>(217</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="2%"><FONT face="Arial" size=1>(31</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%" bgColor=#c0c0c0><FONT face="Arial" size=1>Benefits
      payable</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face="Arial" size=1>48</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face="Arial" size=1>36</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="83%"><FONT face="Arial" size=1>Actuarial (gains) losses in other comprehensive
      income</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%"><FONT face="Arial" size=1>2,126</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%"><FONT face="Arial" size=1>102</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%"><FONT face="Arial" size=1>621</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%"><FONT face="Arial" size=1>(132</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="83%" bgColor=#c0c0c0><FONT face="Arial" size=1>Defined benefit plan obligations at December
      31</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="2%" bgColor=#c0c0c0><FONT face="Arial" size=1>13,329</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="2%" bgColor=#c0c0c0><FONT face="Arial" size=1>580</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="2%" bgColor=#c0c0c0><FONT face="Arial" size=1>10,819</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="2%" bgColor=#c0c0c0><FONT face="Arial" size=1>491</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR></TABLE><BR>
<P align=justify><FONT face="Arial" size=2>Movement in the present value of
plan assets:</FONT></P>
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="87%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="5%" colSpan=5><FONT face="Arial" size=1>2011</FONT></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="5%" colSpan=5><FONT face="Arial" size=1>2010</FONT></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=right width="87%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="2%" colSpan=2><FONT face="Arial" size=1>Pension</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="2%" colSpan=2><FONT face="Arial" size=1>Other</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="2%" colSpan=2><FONT face="Arial" size=1>Pension</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="2%" colSpan=2><FONT face="Arial" size=1>Other</FONT></TD>
    <TD noWrap align=right width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="87%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" colSpan=2><FONT face="Arial" size=1>plan</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" colSpan=2><FONT face="Arial" size=1>benefit plan</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" colSpan=2><FONT face="Arial" size=1>plan</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" colSpan=2><FONT face="Arial" size=1>benefit plan</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="87%" bgColor=#c0c0c0><FONT face="Arial" size=1>Fair value of
      plan assets at January 1</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>8,360</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>7,105</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="87%"><FONT face="Arial" size=1>Expected return on plan
      assets</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face="Arial" size=1>582</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face="Arial" size=1>502</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="87%" bgColor=#c0c0c0><FONT face="Arial" size=1>Employer&#146;s
      contributions</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>210</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>44</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>370</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>28</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="87%"><FONT face="Arial" size=1>Benefits paid</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face="Arial" size=1>(252</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face="Arial" size=1>(44</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face="Arial" size=1>(218</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face="Arial" size=1>(28</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="87%" bgColor=#c0c0c0><FONT face="Arial" size=1>Actuarial (losses) gains in other comprehensive
      income</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>(677</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>-</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>601</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="87%"><FONT face="Arial" size=1>Fair value of plan assets at December 31</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><FONT face="Arial" size=1>8,223</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><FONT face="Arial" size=1>-</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><FONT face="Arial" size=1>8,360</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><FONT face="Arial" size=1>-</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD></TR></TABLE><BR>
<P align=justify><FONT face="Arial" size=2>Pension plan assets
comprise:</FONT></P>
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="94%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" colSpan=2><FONT face="Arial" size=1>2011</FONT></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" colSpan=2><FONT face="Arial" size=1>2010</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="94%" bgColor=#c0c0c0><FONT face="Arial" size=1>Cash and cash
      equivalents</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>3</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>%</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>2</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>%</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="94%"><FONT face="Arial" size=1>Equity securities</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face="Arial" size=1>70</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=1>%</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face="Arial" size=1>71</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=1>%</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="94%" bgColor=#c0c0c0><FONT face="Arial" size=1>Debt securities</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>27</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>%</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>27</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>%</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="94%"><FONT face="Arial" size=1>Total</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><FONT face="Arial" size=1>100</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>%</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><FONT face="Arial" size=1>100</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>%</FONT></TD></TR></TABLE></DIV><BR>
<P align=right><FONT face="Arial" size=1>41</FONT></P>
<HR align=center width="100%" noShade SIZE=2>

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<TABLE style="LINE-HEIGHT: normal; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="100%"><FONT style="FONT-FAMILY: arial" size=2><FONT style="DISPLAY: inline; FONT-WEIGHT: bold">BALLARD POWER SYSTEMS
      INC.<BR></FONT>Notes to Consolidated Financial Statements<BR><FONT style="FONT-FAMILY: arial" size=1>Years ended December 31, 2011, and
      2010<BR>(Tabular amounts expressed in thousands of U.S. dollars, except
      per share amounts and number of shares)<BR></FONT><FONT style="FONT-FAMILY: arial" size=2><FONT style="DISPLAY: inline; FONT-WEIGHT: bold">&nbsp;</FONT></FONT></FONT></TD></TR></TABLE><BR>
<P align=justify><B><FONT face="Arial" size=2>17. Employee future benefits
(cont&#146;d): </FONT></B></P>
<DIV style="PADDING-LEFT: 15pt; WIDTH: 100%">
<P align=justify><FONT face="Arial" size=2>Expense recognized in net income:
</FONT></P>
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="87%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="5%" colSpan=5><FONT face="Arial" size=1>2011</FONT></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="5%" colSpan=5><FONT face="Arial" size=1>2010</FONT></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=right width="87%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="2%" colSpan=2><FONT face="Arial" size=1>Pension</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="2%" colSpan=2><FONT face="Arial" size=1>Other</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="2%" colSpan=2><FONT face="Arial" size=1>Pension</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="2%" colSpan=2><FONT face="Arial" size=1>Other</FONT></TD>
    <TD noWrap align=right width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="87%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" colSpan=2><FONT face="Arial" size=1>plan</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" colSpan=2><FONT face="Arial" size=1>benefit plan</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" colSpan=2><FONT face="Arial" size=1>plan</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" colSpan=2><FONT face="Arial" size=1>benefit plan</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="87%" bgColor=#c0c0c0><FONT face="Arial" size=1>Current service
      cost</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>6</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>3</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="87%"><FONT face="Arial" size=1>Interest on
obligations</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face="Arial" size=1>587</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face="Arial" size=1>25</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face="Arial" size=1>579</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face="Arial" size=1>35</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="87%" bgColor=#c0c0c0><FONT face="Arial" size=1>Expected
      (return) on plan assets</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>(582</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>(502</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="87%"><FONT face="Arial" size=1>Benefits payable</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face="Arial" size=1>48</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face="Arial" size=1>-</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face="Arial" size=1>36</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face="Arial" size=1>-</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="87%" bgColor=#c0c0c0><FONT face="Arial" size=1>Expense recognized in net income</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>53</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>31</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>113</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>38</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" vAlign=top noWrap align=left width="87%"><FONT face="Arial" size=1>Actuarial (gain) loss on plan assets and plan
      obligations<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;recognized in
      other comprehensive income</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" vAlign=top noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" vAlign=top noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" vAlign=top noWrap align=right width="1%"><FONT face="Arial" size=1>2,803</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" vAlign=top noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" vAlign=top noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" vAlign=top noWrap align=right width="1%"><FONT face="Arial" size=1>102</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" vAlign=top noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" vAlign=top noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" vAlign=top noWrap align=right width="1%"><FONT face="Arial" size=1>20</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" vAlign=top noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" vAlign=top noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" vAlign=top noWrap align=right width="1%"><FONT face="Arial" size=1>(132</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" vAlign=top noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" vAlign=top noWrap align=left width="87%" bgColor=#c0c0c0><FONT face="Arial" size=1>Total expense (income) recognized in
      net income and<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;other
      comprehensive income</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" vAlign=top noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>2,856</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" vAlign=top noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>133</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" vAlign=top noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>133</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" vAlign=top noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>(94</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD></TR></TABLE><BR>
<P align=justify><FONT face="Arial" size=2>The expense recognized in net
income is recorded in Finance expense.</FONT></P>
<P align=justify><FONT face="Arial" size=2>Expense (income) recognized in
other comprehensive income:</FONT></P>
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="87%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="5%" colSpan=5><FONT face="Arial" size=1>2011</FONT></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="5%" colSpan=5><FONT face="Arial" size=1>2010</FONT></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=right width="87%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="2%" colSpan=2><FONT face="Arial" size=1>Pension</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="2%" colSpan=2><FONT face="Arial" size=1>Other</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="2%" colSpan=2><FONT face="Arial" size=1>Pension</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="2%" colSpan=2><FONT face="Arial" size=1>Other</FONT></TD>
    <TD noWrap align=right width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="87%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" colSpan=2><FONT face="Arial" size=1>plan</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" colSpan=2><FONT face="Arial" size=1>benefit plan</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" colSpan=2><FONT face="Arial" size=1>plan</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" colSpan=2><FONT face="Arial" size=1>benefit plan</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top noWrap align=left width="87%" bgColor=#c0c0c0><FONT face="Arial" size=1>Actuarial (gain) loss on defined benefit plan
      obligations</FONT></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=top noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>2,126</FONT></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=top noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>102</FONT></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=top noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>621</FONT></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=top noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>(132</FONT></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top noWrap align=left width="87%"><FONT face="Arial" size=1>Expected return
      on plan assets</FONT></TD>
    <TD vAlign=top noWrap align=left width="1%"></TD>
    <TD vAlign=top noWrap align=left width="1%"></TD>
    <TD vAlign=top noWrap align=right width="1%"><FONT face="Arial" size=1>582</FONT></TD>
    <TD vAlign=top noWrap align=left width="1%"></TD>
    <TD vAlign=top noWrap align=left width="1%"></TD>
    <TD vAlign=top noWrap align=right width="1%"><FONT face="Arial" size=1>-</FONT></TD>
    <TD vAlign=top noWrap align=left width="1%"></TD>
    <TD vAlign=top noWrap align=left width="1%"></TD>
    <TD vAlign=top noWrap align=right width="1%"><FONT face="Arial" size=1>502</FONT></TD>
    <TD vAlign=top noWrap align=left width="1%"></TD>
    <TD vAlign=top noWrap align=left width="1%"></TD>
    <TD vAlign=top noWrap align=right width="1%"><FONT face="Arial" size=1>-</FONT></TD>
    <TD vAlign=top noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top noWrap align=left width="87%" bgColor=#c0c0c0><FONT face="Arial" size=1>Actual (return) loss on plan assets</FONT></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>68</FONT></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>-</FONT></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>(1,137</FONT></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>-</FONT></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=left width="87%"><FONT face="Arial" size=1>Plan expenses</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=right width="1%"><FONT face="Arial" size=1>27</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=right width="1%"><FONT face="Arial" size=1>-</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=right width="1%"><FONT face="Arial" size=1>34</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=right width="1%"><FONT face="Arial" size=1>-</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" vAlign=top noWrap align=left width="87%" bgColor=#c0c0c0><FONT face="Arial" size=1>Actuarial (gain) loss recognized in
      other
      comprehensive<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;income</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" vAlign=top noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>2,803</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" vAlign=top noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>102</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" vAlign=top noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>20</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" vAlign=top noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>(132</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD></TR></TABLE><BR>
<P align=justify><FONT face="Arial" size=2>Cumulative actuarial gains and
losses recognized in other comprehensive income:</FONT></P>
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="87%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="5%" colSpan=5><FONT face="Arial" size=1>2011</FONT></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="5%" colSpan=5><FONT face="Arial" size=1>2010</FONT></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=right width="87%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="2%" colSpan=2><FONT face="Arial" size=1>Pension</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="2%" colSpan=2><FONT face="Arial" size=1>Other</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="2%" colSpan=2><FONT face="Arial" size=1>Pension</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="2%" colSpan=2><FONT face="Arial" size=1>Other</FONT></TD>
    <TD noWrap align=right width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="87%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" colSpan=2><FONT face="Arial" size=1>plan</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" colSpan=2><FONT face="Arial" size=1>benefit plan</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" colSpan=2><FONT face="Arial" size=1>plan</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" colSpan=2><FONT face="Arial" size=1>benefit plan</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="87%" bgColor=#c0c0c0><FONT face="Arial" size=1>Cumulative
      amount at January 1</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>20</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>(132</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="87%"><FONT face="Arial" size=1>Recognized during the period</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face="Arial" size=1>2,803</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face="Arial" size=1>102</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face="Arial" size=1>20</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face="Arial" size=1>(132</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="87%" bgColor=#c0c0c0><FONT face="Arial" size=1>Cumulative amount at December 31</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>2,823</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>(30</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>20</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>(132</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD></TR></TABLE></DIV><BR>
<P align=right><FONT face="Arial" size=1>42</FONT></P>
<HR align=center width="100%" noShade SIZE=2>

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<TABLE style="LINE-HEIGHT: normal; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="100%"><FONT style="FONT-FAMILY: arial" size=2><FONT style="DISPLAY: inline; FONT-WEIGHT: bold">BALLARD POWER SYSTEMS
      INC.<BR></FONT>Notes to Consolidated Financial Statements<BR><FONT style="FONT-FAMILY: arial" size=1>Years ended December 31, 2011, and
      2010<BR>(Tabular amounts expressed in thousands of U.S. dollars, except
      per share amounts and number of shares)<BR></FONT><FONT style="FONT-FAMILY: arial" size=2><FONT style="DISPLAY: inline; FONT-WEIGHT: bold">&nbsp;</FONT></FONT></FONT></TD></TR></TABLE><BR>
<P align=justify><B><FONT face="Arial" size=2>17. Employee future benefits
(cont&#146;d): </FONT></B></P>
<DIV style="PADDING-LEFT: 15pt; WIDTH: 100%">
<P align=justify><FONT face="Arial" size=2>The significant actuarial
assumptions adopted in measuring the fair value of benefit obligations at
December 31, 2011 and 2010 were as follows: </FONT></P>
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="92%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="3%" colSpan=3><FONT face="Arial" size=1>2011</FONT></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="3%" colSpan=3><FONT face="Arial" size=1>2010</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="92%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face="Arial" size=1>Pension</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face="Arial" size=1>Other</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face="Arial" size=1>Pension</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face="Arial" size=1>Other</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="92%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face="Arial" size=1>plan</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face="Arial" size=1>benefit plan</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face="Arial" size=1>plan</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face="Arial" size=1>benefit plan</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="92%" bgColor=#c0c0c0><FONT face="Arial" size=1>Discount
      rate</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>4.3%</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>4.3%</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>5.5%</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>5.5%</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="92%"><FONT face="Arial" size=1>Rate of compensation increase</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><FONT face="Arial" size=1>n/a</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><FONT face="Arial" size=1>n/a</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><FONT face="Arial" size=1>n/a</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><FONT face="Arial" size=1>n/a</FONT></TD></TR></TABLE><BR>
<P align=justify><FONT face="Arial" size=2>The significant actuarial
assumptions adopted in determining net expense for the years ended December 31,
2010 and 2009 were as follows: </FONT></P>
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="92%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="3%" colSpan=3><FONT face="Arial" size=1>2011</FONT></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="3%" colSpan=3><FONT face="Arial" size=1>2010</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="92%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face="Arial" size=1>Pension</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face="Arial" size=1>Other</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face="Arial" size=1>Pension</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face="Arial" size=1>Other</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="92%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face="Arial" size=1>plan</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face="Arial" size=1>benefit plan</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face="Arial" size=1>plan</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face="Arial" size=1>benefit plan</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="92%" bgColor=#c0c0c0><FONT face="Arial" size=1>Discount
      rate</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>5.5%</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>5.5%</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>6.0%</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>6.0%</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="92%"><FONT face="Arial" size=1>Expected return on plan
      assets</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face="Arial" size=1>7.0%</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face="Arial" size=1>7.0%</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face="Arial" size=1>7.0%</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face="Arial" size=1>n/a</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="92%" bgColor=#c0c0c0><FONT face="Arial" size=1>Rate of compensation increase</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>n/a</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>n/a</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>n/a</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>n/a</FONT></TD></TR></TABLE><BR>
<P align=justify><FONT face="Arial" size=2>The assumed health care cost trend
rates applicable to the other benefit plans at December 31, 2010 and 2009 were
as follows: </FONT></P>
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="96%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face="Arial" size=1>2011</FONT></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face="Arial" size=1>2010</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="96%" bgColor=#c0c0c0><FONT face="Arial" size=1>Initial medical
      health care cost trend rate</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>8.0%</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>8.5%</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="96%"><FONT face="Arial" size=1>Initial dental health care cost
      trend rate</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face="Arial" size=1>5.0%</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face="Arial" size=1>5.0%</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="96%" bgColor=#c0c0c0><FONT face="Arial" size=1>Cost trend rate
      declines to medical and dental</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>5.0%</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>5.0%</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="96%"><FONT face="Arial" size=1>Year that the medical rate
      reaches the rate it is assumed to remain at</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face="Arial" size=1>2017</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face="Arial" size=1>2017</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="96%" bgColor=#c0c0c0><FONT face="Arial" size=1>Year that the dental rate reaches the rate it is
      assumed to remain at</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>2009</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>2009</FONT></TD></TR></TABLE><BR>
<P align=justify><FONT face="Arial" size=2>A one-percentage-point change in
assumed health care cost trend rates would not have a material impact on the
Corporation&#146;s financial statements. </FONT></P></DIV>
<P align=right><FONT face="Arial" size=1>43</FONT></P>
<HR align=center width="100%" noShade SIZE=2>

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<TABLE style="LINE-HEIGHT: normal; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="100%"><FONT style="FONT-FAMILY: arial" size=2><FONT style="DISPLAY: inline; FONT-WEIGHT: bold">BALLARD POWER SYSTEMS
      INC.<BR></FONT>Notes to Consolidated Financial Statements<BR><FONT style="FONT-FAMILY: arial" size=1>Years ended December 31, 2011, and
      2010<BR>(Tabular amounts expressed in thousands of U.S. dollars, except
      per share amounts and number of shares)<BR></FONT><FONT style="FONT-FAMILY: arial" size=2><FONT style="DISPLAY: inline; FONT-WEIGHT: bold">&nbsp;</FONT></FONT></FONT></TD></TR></TABLE><BR>
<P align=justify><B><FONT face="Arial" size=2>18. Equity: </FONT></B></P>
<P align=justify><FONT face="Arial" size=2>(a)</FONT><FONT face="Arial" size=2> </FONT><FONT face="Arial" size=2>Authorized and issued: </FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>Unlimited number of common shares, voting, without par value.</FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>Unlimited
number of preferred shares, issuable in series. </FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>At
December 31, 2011, 84,550,524 (2010 &#150; 84,148,465) common shares are issued and
outstanding. </FONT></P>
<P align=justify><FONT face="Arial" size=2>(b)</FONT><FONT face="Arial" size=2> </FONT><FONT face="Arial" size=2>Share option plan: </FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>The
Corporation has options outstanding under a consolidated share option plan. All
directors, officers and employees of the Corporation, and its subsidiaries, are
eligible to participate in the share option plans although as a matter of
policy, options are currently not issued to directors. Option exercise prices
are denominated in both Canadian and U.S. dollars, depending on the residency of
the recipient. Canadian dollar denominated options have been converted to U.S.
dollars using the year-end exchange rate for presentation purposes.</FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>All
options have a term of seven to ten years from the date of grant unless
otherwise determined by the board of directors. One-third of the options vest
and may be exercised, at the beginning of each of the second, third and fourth
years after granting. </FONT></P>
<DIV style="PADDING-LEFT: 15pt; WIDTH: 100%">
<P align=justify><FONT face="Arial" size=2>As at December 31, 2011, options
outstanding from the consolidated share option plan was as follows:</FONT></P>
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=left width="95%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=right width="1%"><FONT face="Arial" size=1>Options for</FONT></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=right width="2%" colSpan=2><FONT face="Arial" size=1>Weighted average</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="95%"><FONT face="Arial" size=1>Balance</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face="Arial" size=1>common shares</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" colSpan=2><FONT face="Arial" size=1>exercise price</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="95%" bgColor=#c0c0c0><FONT face="Arial" size=1>At January 1,
      2010</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>5,867,851</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>19.18</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="95%"><FONT face="Arial" size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Options
      granted</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face="Arial" size=1>1,709,737</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face="Arial" size=1>2.31</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="95%" bgColor=#c0c0c0><FONT face="Arial" size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Options
      exercised</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>(72,491</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>1.30</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="95%"><FONT face="Arial" size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Options
      forfeited</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face="Arial" size=1>(589,408</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face="Arial" size=1>9.48</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="95%" bgColor=#c0c0c0><FONT face="Arial" size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Options
      expired</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>(233,100</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>190.90</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="95%"><FONT face="Arial" size=1>At December 31, 2010</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face="Arial" size=1>6,682,589</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face="Arial" size=1>10.84</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="95%" bgColor=#c0c0c0><FONT face="Arial" size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Options
      granted</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>1,874,369</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>1.99</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="95%"><FONT face="Arial" size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Options
      exercised</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face="Arial" size=1>(25,834</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face="Arial" size=1>1.27</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="95%" bgColor=#c0c0c0><FONT face="Arial" size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Options
      forfeited</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>(260,016</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>7.62</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="95%"><FONT face="Arial" size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Options
      expired</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face="Arial" size=1>(655,139</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face="Arial" size=1>46.52</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="95%" bgColor=#c0c0c0><FONT face="Arial" size=1>At December 31, 2011</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>7,615,969</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>5.54</FONT></TD></TR></TABLE></DIV><BR>
<P align=right><FONT face="Arial" size=1>44</FONT></P>
<HR align=center width="100%" noShade SIZE=2>

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<TABLE style="LINE-HEIGHT: normal; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="100%"><FONT style="FONT-FAMILY: arial" size=2><FONT style="DISPLAY: inline; FONT-WEIGHT: bold">BALLARD POWER SYSTEMS
      INC.<BR></FONT>Notes to Consolidated Financial Statements<BR><FONT style="FONT-FAMILY: arial" size=1>Years ended December 31, 2011, and
      2010<BR>(Tabular amounts expressed in thousands of U.S. dollars, except
      per share amounts and number of shares)<BR></FONT><FONT style="FONT-FAMILY: arial" size=2><FONT style="DISPLAY: inline; FONT-WEIGHT: bold">&nbsp;</FONT></FONT></FONT></TD></TR></TABLE><BR>
<P align=justify><B><FONT face="Arial" size=2>18. Equity (cont&#146;d):
</FONT></B></P>
<P align=justify><FONT face="Arial" size=2>(b)</FONT><FONT face="Arial" size=2> </FONT><FONT face="Arial" size=2>Share option plan
(cont&#146;d):</FONT></P>
<DIV style="PADDING-LEFT: 15pt; WIDTH: 100%">
<P align=justify><FONT face="Arial" size=2>The following table summarizes
information about the Corporation&#146;s share options outstanding as at December 31,
2011: </FONT></P>
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="5%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="75%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="11%" colSpan=6><FONT face="Arial" size=1>Options
      outstanding</FONT></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="7%" colSpan=4><FONT face="Arial" size=1>Options
      exercisable</FONT></TD></TR>
  <TR>
    <TD noWrap align=right width="5%"></TD>
    <TD noWrap align=right width="75%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="3%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=Arial size=1>Weighted</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="2%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="3%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="2%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=right width="5%"></TD>
    <TD noWrap align=right width="75%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="3%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>average</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="3%" colSpan=2><FONT face="Arial" size=1>Weighted</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="3%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="3%" colSpan=2><FONT face="Arial" size=1>Weighted</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=right width="5%"></TD>
    <TD noWrap align=right width="75%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="3%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>remaining</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="3%" colSpan=2><FONT face="Arial" size=1>average</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="3%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="3%" colSpan=2><FONT face="Arial" size=1>average</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=right width="5%"></TD>
    <TD noWrap align=right width="75%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>Number</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>contractual life</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="3%" colSpan=2><FONT face="Arial" size=1>exercise</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>Number</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="3%" colSpan=2><FONT face="Arial" size=1>exercise</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="5%"><FONT face="Arial" size=1>Range of exercise price</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="75%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face="Arial" size=1>outstanding</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face="Arial" size=1>(years)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" colSpan=2><FONT face="Arial" size=1>price</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face="Arial" size=1>exercisable</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" colSpan=2><FONT face="Arial" size=1>price</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face="Arial" size=1>$1.01 &#150;
      $1.92</FONT></TD>
    <TD noWrap align=right width="75%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>1,794,152</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>4.9</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face="Arial" size=1>1.54</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>965,601</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face="Arial" size=1>1.56</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=right width="5%"><FONT face="Arial" size=1>$2.06 &#150; $2.36</FONT></TD>
    <TD noWrap align=right width="75%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>3,104,218</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>5.7</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="2%"><FONT face="Arial" size=1>2.21</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>540,950</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="2%"><FONT face="Arial" size=1>2.35</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face="Arial" size=1>$3.05 &#150;
      $5.00</FONT></TD>
    <TD noWrap align=right width="75%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>569,034</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>3.2</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face="Arial" size=1>4.74</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>569,034</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face="Arial" size=1>4.74</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=right width="5%"><FONT face="Arial" size=1>$5.69 &#150; $7.82</FONT></TD>
    <TD noWrap align=right width="75%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>1,405,766</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>3.3</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="2%"><FONT face="Arial" size=1>7.19</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>1,405,766</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="2%"><FONT face="Arial" size=1>7.19</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face="Arial" size=1>$10.00 &#150;
      $14.43</FONT></TD>
    <TD noWrap align=right width="75%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>292,955</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>1.5</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face="Arial" size=1>13.57</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>292,955</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face="Arial" size=1>13.57</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="5%"><FONT face="Arial" size=1>$17.99 &#150; $38.10</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="75%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face="Arial" size=1>449,844</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face="Arial" size=1>0.4</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%"><FONT face="Arial" size=1>35.12</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face="Arial" size=1>449,844</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%"><FONT face="Arial" size=1>35.12</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="5%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="75%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>7,615,969</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>4.4</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="2%" bgColor=#c0c0c0><FONT face="Arial" size=1>5.54</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>4,224,150</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="2%" bgColor=#c0c0c0><FONT face="Arial" size=1>8.37</FONT></TD></TR></TABLE><BR>
<P align=justify><FONT face="Arial" size=2>The Corporation uses the
fair-value method for recording employee and director share option grants.
During 2011, compensation expense of $1,743,000 (2010 - $1,634,000) was recorded
in net income as a result of fair value accounting for share options granted.
The share options granted during the year had a weighted average fair value of
$1.14 (2010 - $1.23) and vesting periods of three years. </FONT></P>
<P align=justify><FONT face="Arial" size=2>The fair values of the options
granted were determined using the Black-Scholes valuation model under the
following weighted average assumptions:</FONT></P>
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="96%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face="Arial" size=1>2011</FONT></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face="Arial" size=1>2010</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="96%" bgColor=#c0c0c0><FONT face="Arial" size=1>Expected
      life</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>5
years</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>5
  years</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="96%"><FONT face="Arial" size=1>Expected dividends</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face="Arial" size=1>Nil</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face="Arial" size=1>Nil</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="96%" bgColor=#c0c0c0><FONT face="Arial" size=1>Expected
      volatility</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>63%</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>65%</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="96%"><FONT face="Arial" size=1>Risk-free interest rate</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><FONT face="Arial" size=1>3%</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><FONT face="Arial" size=1>3%</FONT></TD></TR></TABLE></DIV><BR>
<P align=justify><FONT face="Arial" size=2>(c) Share distribution plan:
</FONT></P>
<DIV style="PADDING-LEFT: 15pt; WIDTH: 100%">
<P align=justify><FONT face="Arial" size=2>The Corporation has a consolidated
share distribution plan that permits the issuance of common shares for no cash
consideration to employees of the Corporation to recognize their past
contribution and to encourage future contribution to the Corporation. At
December 31, 2011, there were 440,268 (2010 &#150; 1,089,491) shares available to be
issued under this plan. </FONT></P>
<P align=justify><FONT face="Arial" size=2>No compensation expense was
recorded against income during the years ended December 31, 2011 and 2010 for
shares distributed, and to be distributed, under the plan.</FONT></P></DIV>
<P align=right><FONT face="Arial" size=1>45</FONT></P>
<HR align=center width="100%" noShade SIZE=2>

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<TABLE style="LINE-HEIGHT: normal; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="100%"><FONT style="FONT-FAMILY: arial" size=2><FONT style="DISPLAY: inline; FONT-WEIGHT: bold">BALLARD POWER SYSTEMS
      INC.<BR></FONT>Notes to Consolidated Financial Statements<BR><FONT style="FONT-FAMILY: arial" size=1>Years ended December 31, 2011, and
      2010<BR>(Tabular amounts expressed in thousands of U.S. dollars, except
      per share amounts and number of shares)<BR></FONT><FONT style="FONT-FAMILY: arial" size=2><FONT style="DISPLAY: inline; FONT-WEIGHT: bold">&nbsp;</FONT></FONT></FONT></TD></TR></TABLE><BR>
<P align=justify><B><FONT face="Arial" size=2>18. Equity (cont&#146;d):
</FONT></B></P>
<P align=justify><FONT face="Arial" size=2>(d) Deferred Share
Units:</FONT></P>
<DIV style="PADDING-LEFT: 15pt; WIDTH: 100%">
<P align=justify><FONT face="Arial" size=2>Deferred share units (&#147;DSUs&#148;) are
granted to the board of directors and executives. Eligible directors may elect
to receive all or part of their annual retainers and executives may elect to
receive all or part of their annual bonuses in DSUs. Each DSU is redeemable for
one common share in the capital of the Corporation after the director or
executive ceases to provide services to the Corporation. Shares will be issued
from the Corporation&#146;s share distribution plan.</FONT></P>
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="90%"><FONT face="Arial" size=1>Balance</FONT></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="8%"><FONT face="Arial" size=1>DSUs for common shares</FONT></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="90%" bgColor=#c0c0c0><FONT face="Arial" size=1>At January 1,
      2010</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="8%" bgColor=#c0c0c0><FONT face="Arial" size=1>316,152</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="90%"><FONT face="Arial" size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;DSUs exercised</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="8%"><FONT face="Arial" size=1>(25,355</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="90%" bgColor=#c0c0c0><FONT face="Arial" size=1>At December 31, 2010 and 2011</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="8%" bgColor=#c0c0c0><FONT face="Arial" size=1>290,797</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR></TABLE><BR>
<P align=justify><FONT face="Arial" size=2>No compensation expense was
recorded against income during the years ended December 31, 2011 and
2010.</FONT></P></DIV>
<P align=justify><FONT face="Arial" size=2>(e) Restricted Share
Units:</FONT></P>
<DIV style="PADDING-LEFT: 15pt; WIDTH: 100%">
<P align=justify><FONT face="Arial" size=2>Restricted share units (&#147;RSUs&#148;)
are granted to employees and executives. Each RSU is convertible into one common
share. The RSUs vest after a specified number of years from the date of
issuance, and under certain circumstances, are contingent on achieving specified
performance criteria. </FONT></P>
<P align=justify><FONT face="Arial" size=2>The Corporation has two plans
under which RSUs may be granted, the consolidated share distribution plan and
the market purchase RSU plan. Awards under the consolidated share distribution
plan (note 18 (c)) are satisfied by the issuance of treasury shares on maturity.
Awards granted under the market purchase RSU Plan are satisfied by shares
purchased on the open market by a trust established for that purpose. During
2011, the Corporation repurchased 230,211 (2010 &#150; 269,877) common shares through
the trust for cash consideration of $327,000 (2010 &#150; $559,000) for the purpose
of funding future grants under the Market Purchase RSU Plan. As at December 31,
2011 the Corporation held 309,089 shares as treasury shares. </FONT></P></DIV>
<P align=right><FONT face="Arial" size=1>46</FONT></P>
<HR align=center width="100%" noShade SIZE=2>

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<TABLE style="LINE-HEIGHT: normal; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="100%"><FONT style="FONT-FAMILY: arial" size=2><FONT style="DISPLAY: inline; FONT-WEIGHT: bold">BALLARD POWER SYSTEMS
      INC.<BR></FONT>Notes to Consolidated Financial Statements<BR><FONT style="FONT-FAMILY: arial" size=1>Years ended December 31, 2011, and
      2010<BR>(Tabular amounts expressed in thousands of U.S. dollars, except
      per share amounts and number of shares)<BR></FONT><FONT style="FONT-FAMILY: arial" size=2><FONT style="DISPLAY: inline; FONT-WEIGHT: bold">&nbsp;</FONT></FONT></FONT></TD></TR></TABLE><BR>
<P align=justify><B><FONT face="Arial" size=2>18. Equity (cont&#146;d):
</FONT></B></P>
<P align=justify><FONT face="Arial" size=2>(e) Restricted Share Units
(cont&#146;d):</FONT></P>
<DIV style="PADDING-LEFT: 15pt; WIDTH: 100%">
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD NOWRAP STYLE="border-top: Black 1.5pt solid; border-bottom: Black 1pt none; text-align: left; width: 93%"></TD>
    <TD NOWRAP STYLE="border-top: Black 1.5pt solid; border-bottom: Black 1pt none; text-align: right; width: 1%"></TD>
    <TD NOWRAP COLSPAN="5" STYLE="border-top: Black 1.5pt solid; border-bottom: Black 1pt none; text-align: center; width: 5%"><FONT face="Arial" size=1>RSUs for common
      shares</FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 1.5pt solid; border-bottom: Black 1pt none; text-align: left; width: 1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="93%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face="Arial" size=1>Share</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face="Arial" size=1>Market</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="93%"><FONT face="Arial" size=1>Balance</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face="Arial" size=1>Distribution Plan</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face="Arial" size=1>Purchase Plan</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face="Arial" size=1>Total RSUs</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="93%" bgColor=#c0c0c0><FONT face="Arial" size=1>At January 1,
      2010</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>1,241,016</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>380,733</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>1,621,749</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="93%"><FONT face="Arial" size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;RSUs
    granted</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face="Arial" size=1>893,370</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face="Arial" size=1>893,370</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="93%" bgColor=#c0c0c0><FONT face="Arial" size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;RSUs
      exercised</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>(154,006</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>(38,990</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>(192,996</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="93%"><FONT face="Arial" size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;RSUs
      forfeited</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face="Arial" size=1>(235,040</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face="Arial" size=1>(176,015</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face="Arial" size=1>(411,055</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="93%" bgColor=#c0c0c0><FONT face="Arial" size=1>At December 31,
      2010</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>851,970</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>1,059,098</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>1,911,068</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="93%"><FONT face="Arial" size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;RSUs
    granted</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face="Arial" size=1>1,351,516</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face="Arial" size=1>1,351,516</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="93%" bgColor=#c0c0c0><FONT face="Arial" size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;RSUs
      exercised</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>(660,522</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>(371,626</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>(1,032,148</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="93%"><FONT face="Arial" size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;RSUs
      forfeited</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face="Arial" size=1>(4,975</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face="Arial" size=1>(52,084</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face="Arial" size=1>(57,059</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="93%" bgColor=#c0c0c0><FONT face="Arial" size=1>At December 31, 2011</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>186,473</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>1,986,904</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>2,173,377</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR></TABLE><BR>
<P align=justify><FONT face="Arial" size=2>The fair value of RSU grants is
measured based on the stock price of the shares underlying the RSU on the date
of grant. During 2011, compensation expense of $870,000 (2010 - $1,944,000) was
recorded against income.</FONT></P></DIV>
<P align=justify><B><FONT face="Arial" size=2>19. Operating leases:
</FONT></B></P>
<DIV style="PADDING-LEFT: 15pt; WIDTH: 100%">
<P align=justify><FONT face="Arial" size=2>The Corporation leases a facility
at its Burnaby, Canada location, which has been assessed as an operating lease.
The facility has a lease term expiring in 2019, with renewal options after that
date. </FONT></P>
<P align=justify><FONT face="Arial" size=2>At December 31, 2011, the
Corporation is committed to payments under operating leases as follows:
</FONT></P>
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=left width="98%" bgColor=#c0c0c0><FONT face="Arial" size=1>Less than 1 year</FONT></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>2,465</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="98%"><FONT face="Arial" size=1>1-3 years</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face="Arial" size=1>4,987</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="98%" bgColor=#c0c0c0><FONT face="Arial" size=1>4-5
    years</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>5,379</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="98%"><FONT face="Arial" size=1>Thereafter</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face="Arial" size=1>10,739</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="98%" bgColor=#c0c0c0><FONT face="Arial" size=1>Total minimum lease payments</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>23,570</FONT></TD></TR></TABLE></DIV><BR>
<P align=justify><B><FONT face="Arial" size=2>20. Commitments and
contingencies: </FONT></B></P>
<DIV style="PADDING-LEFT: 15pt; WIDTH: 100%">
<P align=justify><FONT face="Arial" size=2>The Corporation has agreed to pay
royalties in respect of sales of certain fuel cell-based stationary power
products under two development programs with Canadian government agencies. The
total combined royalty is limited in any year to 4% of revenue from such
products. Under the terms of the Utilities Development Program (Phase 1) with
the Governments of Canada and British Columbia, total royalties are payable to a
maximum equal to the original amount of the government contributions of
CDN$10,702,000. During 2009, a Canadian government agency agreed to terminate
potential royalties payable of CDN $5,351,000 in respect of future sales of fuel
cell based stationary power products under the Utilities Development Program
(Phase 1). As at December 31, 2011, no royalties have been incurred for Phase
1.</FONT></P></DIV>
<P align=right><FONT face="Arial" size=1>47</FONT></P>
<HR align=center width="100%" noShade SIZE=2>

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<TABLE style="LINE-HEIGHT: normal; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="100%"><FONT style="FONT-FAMILY: arial" size=2><FONT style="DISPLAY: inline; FONT-WEIGHT: bold">BALLARD POWER SYSTEMS
      INC.<BR></FONT>Notes to Consolidated Financial Statements<BR><FONT style="FONT-FAMILY: arial" size=1>Years ended December 31, 2011, and
      2010<BR>(Tabular amounts expressed in thousands of U.S. dollars, except
      per share amounts and number of shares)<BR></FONT><FONT style="FONT-FAMILY: arial" size=2><FONT style="DISPLAY: inline; FONT-WEIGHT: bold">&nbsp;</FONT></FONT></FONT></TD></TR></TABLE><BR>
<P align=justify><B><FONT face="Arial" size=2>20. Commitments and
contingencies (cont&#146;d): </FONT></B></P>
<DIV style="PADDING-LEFT: 15pt; WIDTH: 100%">
<P align=justify><FONT face="Arial" size=2>Under the terms of the Utilities
Development Program (Phase 2) with Technology Partnerships Canada (&#147;TPC&#148;) total
royalties are payable to a maximum of CDN$38,329,000. As at December 31, 2011, a
total of CDN $5,320,000 in royalty repayments have been incurred for Phase 2.
The Corporation has made no Phase 2 royalty repayments in 2011 and 2010.
</FONT></P>
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=left width="95%" bgColor=#c0c0c0><FONT face="Arial" size=1>Original maximum payable amount under Phase 1 and
      2</FONT></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>CDN$</FONT></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>49,031</FONT></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="95%"><FONT face="Arial" size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Termination
      of potential royalties payable</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face="Arial" size=1>(5,350</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="95%" bgColor=#c0c0c0><FONT face="Arial" size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prior year
      payments applied</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>(5,320</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="95%"><FONT face="Arial" size=1>Maximum payable amount, December 31, 2011</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>CDN$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><FONT face="Arial" size=1>38,361</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD></TR>
  <TR>
    <TD width="100%" colSpan=6>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="95%" bgColor=#c0c0c0><FONT face="Arial" size=1>Maximum payable amount, December 31, 2011</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD NOWRAP ALIGN="LEFT" WIDTH="1%" BGCOLOR="#c0c0c0" STYLE="border-bottom: #000000 1.5pt solid; text-align: right"><FONT face="Arial" size=1>US$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>37,719</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR></TABLE><BR>
<P align=justify><FONT face="Arial" size=2>At December 31, 2011, the
Corporation has outstanding commitments aggregating up to a maximum of $867,000
(2010 - $1,156,000) relating primarily to purchases of property, plant and
equipment.</FONT></P>
<P align=justify><FONT face="Arial" size=2>The Corporation is also committed
to make future investments totaling $98,000 in Chrysalix (note 11). </FONT></P>
<P align=justify><FONT face="Arial" size=2>The Corporation has agreed to pay
royalties in respect of sales of Ballard fuel cells or fuel cell systems under a
July 31, 1996 Fuel Cell Bus Program Agreement (&#147;FC Bus Agreement&#148;), with
Province of British Columbia, BC Transit, and BC Transportation Financing
Authority (&#147;BCTFA&#148;). Under the terms of FC Bus Agreement, the royalty payable is
at a rate of 2% on deferred sales of such products for commercial transit
application to a maximum of $2,163,000 (CDN$ 2,200,000). No royalties have been
paid to date.</FONT></P>
<P align=justify><FONT face="Arial" size=2>On December 31, 2008, the
Corporation completed a restructuring transaction with Superior Plus Income Fund
(&#147;Superior Plus&#148;), which included an indemnification agreement (the &#147;Indemnity
Agreement&#148;), which sets out the parties&#146; continuing obligations to the other.
The Indemnity Agreement provides for the indemnification by each of the parties
to the other for breaches of representations and warranties or covenants, as
well as, in the Corporation&#146;s case, any liability relating to the business which
is suffered by Superior Plus. The Corporation&#146;s indemnity to Superior Plus with
respect to representation relating to the existence of the Corporation&#146;s tax
pools immediately prior to the completion of the Arrangement is limited to an
aggregate of $7,227,000 (CDN $7,350,000) with a threshold amount of $492,000
(CDN $500,000) before there is an obligation to make a payment. The Indemnity
Agreement also provides for adjustments to be paid by the Corporation, or to the
Corporation, depending on the final determination of the amount of 2008 Canadian
non-capital losses, scientific research and development expenditures and
investment tax credits, to the extent that such amounts are more or less than
the amounts estimated at the time the Arrangement was executed. </FONT></P>
<P align=justify><FONT face="Arial" size=2>At December 31, 2011, no amount
payable or receivable has been accrued as a result of the Indemnity Agreement.
</FONT></P></DIV>
<P align=right><FONT face="Arial" size=1>48</FONT></P>
<HR align=center width="100%" noShade SIZE=2>

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<TABLE style="LINE-HEIGHT: normal; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="100%"><FONT style="FONT-FAMILY: arial" size=2><FONT style="DISPLAY: inline; FONT-WEIGHT: bold">BALLARD POWER SYSTEMS
      INC.<BR></FONT>Notes to Consolidated Financial Statements<BR><FONT style="FONT-FAMILY: arial" size=1>Years ended December 31, 2011, and
      2010<BR>(Tabular amounts expressed in thousands of U.S. dollars, except
      per share amounts and number of shares)<BR></FONT><FONT style="FONT-FAMILY: arial" size=2><FONT style="DISPLAY: inline; FONT-WEIGHT: bold">&nbsp;</FONT></FONT></FONT></TD></TR></TABLE><BR>
<P align=justify><B><FONT face="Arial" size=2>21. Personnel expenses:
</FONT></B></P>
<DIV style="PADDING-LEFT: 15pt; WIDTH: 100%">
<P align=justify><FONT face="Arial" size=2>Personnel expenses are included in
cost of product and services revenues, research and product development expense,
general and administrative expense, and sales and marketing expense.</FONT></P>
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=left width="94%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=right width="2%" colSpan=2><FONT face="Arial" size=1>December 31,</FONT></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=right width="2%" colSpan=2><FONT face="Arial" size=1>December 31,</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="94%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" colSpan=2><FONT face="Arial" size=1>2011</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" colSpan=2><FONT face="Arial" size=1>2010</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="94%" bgColor=#c0c0c0><FONT face="Arial" size=1>Salaries and
      employee benefits</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>55,362</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>53,014</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="94%"><FONT face="Arial" size=1>Share-based compensation (note 18)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face="Arial" size=1>2,646</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face="Arial" size=1>3,579</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="94%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>58,008</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>56,593</FONT></TD></TR></TABLE></DIV><BR>
<P align=justify><B><FONT face="Arial" size=2>22. Income taxes:
</FONT></B></P>
<P align=justify><FONT face="Arial" size=2>(a) Current tax
expense:</FONT></P>
<DIV style="PADDING-LEFT: 15pt; WIDTH: 100%">
<P align=justify><FONT face="Arial" size=2>The components of income tax
benefit / (expense) included in the determination of the profit (loss) comprise
of:</FONT></P>
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="93%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" colSpan=2><FONT face="Arial" size=1>2011</FONT></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" colSpan=2><FONT face="Arial" size=1>2010</FONT></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="93%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>Current tax expense</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="93%"><FONT face="Arial" size=1>Current period income
    tax</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD noWrap align=right width="1%"><FONT face="Arial" size=1>102</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD noWrap align=right width="1%"><FONT face="Arial" size=1>3</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="93%" bgColor=#c0c0c0><FONT face="Arial" size=1>Withholding
      tax</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>135</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="93%"><FONT face="Arial" size=1>Adjustment for prior periods</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face="Arial" size=1>146</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face="Arial" size=1>-</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="93%" bgColor=#c0c0c0><FONT face="Arial" size=1>Total current tax expense</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>383</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>3</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR>
    <TD width="100%" colSpan=8>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="93%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>Deferred tax expense</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="93%"><FONT face="Arial" size=1>Origination and reversal of
      temporary differences</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD noWrap align=right width="1%"><FONT face="Arial" size=1>8,907</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD noWrap align=right width="1%"><FONT face="Arial" size=1>61,850</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="93%" bgColor=#c0c0c0><FONT face="Arial" size=1>Adjustments for
      prior periods</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>(907</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>(20,700</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="93%"><FONT face="Arial" size=1>Change in unrecognized deductible temporary
      differences</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face="Arial" size=1>(8,000</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face="Arial" size=1>(41,150</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="93%" bgColor=#c0c0c0><FONT face="Arial" size=1>Total deferred tax expense</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>-</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>-</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" width="100%" colSpan=8>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="93%" bgColor=#c0c0c0><FONT face="Arial" size=1>Total income tax expense</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>383</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>3</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR></TABLE><BR>
<P align=justify><FONT face="Arial" size=2>The Corporation&#146;s effective income
tax rate differs from the combined Canadian federal and provincial statutory
income tax rate for companies. The principal factors causing the difference are
as follows:</FONT></P>
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=right width="93%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=right width="2%" colSpan=2><FONT face="Arial" size=1>2011</FONT></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=right width="2%" colSpan=2><FONT face="Arial" size=1>2010</FONT></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=right width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=left width="93%" bgColor=#c0c0c0><FONT face="Arial" size=1>Net loss before income taxes</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>(36,156</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>(35,439</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top noWrap align=left width="93%"><FONT face="Arial" size=1>Expected tax
      expense (recovery) at 26.5% (2010&#150;28.5%)</FONT></TD>
    <TD vAlign=top noWrap align=left width="1%"></TD>
    <TD vAlign=top noWrap align=left width="1%"><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=top noWrap align=right width="1%"><FONT face="Arial" size=1>(9,581</FONT></TD>
    <TD vAlign=top noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD>
    <TD vAlign=top noWrap align=left width="1%"><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=top noWrap align=right width="1%"><FONT face="Arial" size=1>(10,100</FONT></TD>
    <TD vAlign=top noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top noWrap align=left width="93%" bgColor=#c0c0c0><FONT face="Arial" size=1>Increase (reduction) in income taxes resulting
      from:</FONT></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top noWrap align=left width="93%"><FONT face="Arial" size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-deductible
      portion of capital gain (loss)</FONT></TD>
    <TD vAlign=top noWrap align=left width="1%"></TD>
    <TD vAlign=top noWrap align=left width="1%"></TD>
    <TD vAlign=top noWrap align=right width="1%"><FONT face="Arial" size=1>2,838</FONT></TD>
    <TD vAlign=top noWrap align=left width="1%"></TD>
    <TD vAlign=top noWrap align=left width="1%"></TD>
    <TD vAlign=top noWrap align=right width="1%"><FONT face="Arial" size=1>(1,289</FONT></TD>
    <TD vAlign=top noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top noWrap align=left width="93%" bgColor=#c0c0c0><FONT face="Arial" size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-deductible
      expenses (non-taxable income)</FONT></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>700</FONT></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>1,113</FONT></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top noWrap align=left width="93%"><FONT face="Arial" size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment
      tax credits earned</FONT></TD>
    <TD vAlign=top noWrap align=left width="1%"></TD>
    <TD vAlign=top noWrap align=left width="1%"></TD>
    <TD vAlign=top noWrap align=right width="1%"><FONT face="Arial" size=1>(4,352</FONT></TD>
    <TD vAlign=top noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD>
    <TD vAlign=top noWrap align=left width="1%"></TD>
    <TD vAlign=top noWrap align=right width="1%"><FONT face="Arial" size=1>(4,559</FONT></TD>
    <TD vAlign=top noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top noWrap align=left width="93%" bgColor=#c0c0c0><FONT face="Arial" size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign
      tax rate differences</FONT></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>349</FONT></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>658</FONT></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=left width="93%"><FONT face="Arial" size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Losses and
      other deductions for which no benefit has
      been&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;recorded</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=right width="1%"><FONT face="Arial" size=1>10,429</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=right width="1%"><FONT face="Arial" size=1>14,180</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" vAlign=top noWrap align=left width="93%" bgColor=#c0c0c0><FONT face="Arial" size=1>Income taxes</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" vAlign=top noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>383</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" vAlign=top noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>3</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR></TABLE></DIV><BR>
<P align=right><FONT face="Arial" size=1>49</FONT></P>
<HR align=center width="100%" noShade SIZE=2>

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<DIV>
<TABLE style="LINE-HEIGHT: normal; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="100%"><FONT style="FONT-FAMILY: arial" size=2><FONT style="DISPLAY: inline; FONT-WEIGHT: bold">BALLARD POWER SYSTEMS
      INC.<BR></FONT>Notes to Consolidated Financial Statements<BR><FONT style="FONT-FAMILY: arial" size=1>Years ended December 31, 2011, and
      2010<BR>(Tabular amounts expressed in thousands of U.S. dollars, except
      per share amounts and number of shares)<BR></FONT><FONT style="FONT-FAMILY: arial" size=2><FONT style="DISPLAY: inline; FONT-WEIGHT: bold">&nbsp;</FONT></FONT></FONT></TD></TR></TABLE></DIV><BR>
<P align=justify><B><FONT face="Arial" size=2>22. Income taxes (cont&#146;d):
</FONT></B></P>
<P align=justify><FONT face="Arial" size=2>(b) Recognized deferred tax:
</FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>At December 31, 2011, the
Corporation did not have any deferred tax liabilities resulting from temporary
differences recognized for financial statement and income tax
purposes.</FONT></P>
<P align=justify><FONT face="Arial" size=2>(c) Unrecognized deferred tax:
</FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>At December 31, 2011, the
Corporation did not have any deferred tax liabilities resulting from temporary
differences for financial statement and income tax purposes. </FONT></P>

<div style="PADDING-LEFT: 15pt; width: 100%">
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="90%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face="Arial" size=1>2011</FONT></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face="Arial" size=1>2010</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="90%" bgColor=#c0c0c0><FONT face="Arial" size=1>Deferred tax assets</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="90%"><FONT face="Arial" size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Scientific
      research expenditures</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>11,647</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>9,350</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="90%" bgColor=#c0c0c0><FONT face="Arial" size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investment in
      associated companies</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>2,246</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>2,296</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="90%"><FONT face="Arial" size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued
      warranty liabilities</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>8,454</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>7,965</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="90%" bgColor=#c0c0c0><FONT face="Arial" size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Losses from
      operations carried forward</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>17,373</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>14,695</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="90%"><FONT face="Arial" size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Capital losses
      carried forward</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>30,681</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>30,681</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="90%" bgColor=#c0c0c0><FONT face="Arial" size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; US investment
      tax credits</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>827</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>707</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="90%"><FONT face="Arial" size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investment tax
      credits</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>15,188</FONT></TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>12,049</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="90%" bgColor=#c0c0c0><FONT face="Arial" size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Property, plant
      and equipment and intangible assets</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>48,465</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>49,139</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="90%"><FONT face="Arial" size=1>Deferred tax
      assets offset against deferred tax liabilities</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face="Arial" size=1>-</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face="Arial" size=1>-</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="90%" bgColor=#c0c0c0><FONT face="Arial" size=1>Deferred tax
      asset not recognized</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>134,881</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>126,882</FONT></TD></TR></TABLE></div><BR>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>Deferred tax assets have not
been recognized in respect of these items because it is not probable that future
taxable profit will be available against which the Corporation can utilize the
benefits.</FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>The Corporation has available
to carry forward the following as at December 31: </FONT></P>

<div style="PADDING-LEFT: 15pt; width: 100%">
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="89%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face="Arial" size=1>2011</FONT></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face="Arial" size=1>2010</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="89%" bgColor=#c0c0c0><FONT face="Arial" size=1>Canadian scientific research
      expenditures</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>46,587</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>37,398</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="89%"><FONT face="Arial" size=1>Canadian losses from operations</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>23,075</FONT></TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>19,652</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="89%" bgColor=#c0c0c0><FONT face="Arial" size=1>Canadian investment tax
      credits</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>17,984</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>13,990</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="89%"><FONT face="Arial" size=1>German losses from operations for corporate tax
      purposes</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>227</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>220</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="89%" bgColor=#c0c0c0><FONT face="Arial" size=1>U.S. federal losses from
      operations</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>13,287</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>14,727</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="89%"><FONT face="Arial" size=1>U.S. state losses from operations</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>1,972</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>1,703</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="89%" bgColor=#c0c0c0><FONT face="Arial" size=1>U.S. research and development
      and investment tax credits</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>825</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>707</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="89%"><FONT face="Arial" size=1>U.S. capital losses</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>90,237</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>90,237</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="89%" bgColor=#c0c0c0><FONT face="Arial" size=1>Denmark losses from operations</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>27,534</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>18,359</FONT></TD></TR></TABLE></div><BR>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>The Canadian scientific
research expenditures may be carried forward indefinitely. The Canadian loses
from operations may be used to offset future Canadian taxable income and expire
over the period from 2028 to 2031.</FONT></P>
<P align=right><FONT face="Arial" size=1>50</FONT></P>
<HR align=center width="100%" noShade SIZE=2>

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<DIV>
<TABLE style="LINE-HEIGHT: normal; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="100%"><FONT style="FONT-FAMILY: arial" size=2><FONT style="DISPLAY: inline; FONT-WEIGHT: bold">BALLARD POWER SYSTEMS
      INC.<BR></FONT>Notes to Consolidated Financial Statements<BR><FONT style="FONT-FAMILY: arial" size=1>Years ended December 31, 2011, and
      2010<BR>(Tabular amounts expressed in thousands of U.S. dollars, except
      per share amounts and number of shares)<BR></FONT><FONT style="FONT-FAMILY: arial" size=2><FONT style="DISPLAY: inline; FONT-WEIGHT: bold">&nbsp;</FONT></FONT></FONT></TD></TR></TABLE></DIV><BR>
<P align=justify><B><FONT face="Arial" size=2>22. Income taxes (cont&#146;d):
</FONT></B></P>
<P align=justify><FONT face="Arial" size=2>(c) Unrecognized deferred tax
(cont&#146;d): </FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>The German and Denmark losses
from operations may be used to offset future taxable income in Germany and
Denmark for corporate tax and trade tax purposes and may be carried forward
indefinitely.</FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>The U.S. federal losses from
operations may be used to offset future U.S. taxable income and expire over the
period from 2012 to 2030. The U.S. states losses from operations arising in
California may be used to offset future state taxable income and may be carried
forward for ten years. The U.S. federal and state research and development and
investment tax credits are available to reduce future U.S. taxable income and
expire over the period from 2012 to 2030. The U.S. capital losses are available
to reduce U.S. capital gains and expire over the period from 2012 to 2013.
</FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>The Canadian investment tax
credits may be used to offset future Canadian income taxes otherwise payable and
expire as follows: </FONT></P>

<div style="PADDING-LEFT: 15pt; width: 100%">
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=left width="94%" bgColor=#c0c0c0><FONT face="Arial" size=1>2012</FONT></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>61</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="94%"><FONT face="Arial" size=1>2013</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>119</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="94%" bgColor=#c0c0c0><FONT face="Arial" size=1>2014</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>104</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="94%"><FONT face="Arial" size=1>2015</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>-</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="94%" bgColor=#c0c0c0><FONT face="Arial" size=1>2016</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>93</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="94%"><FONT face="Arial" size=1>2017</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>103</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="94%" bgColor=#c0c0c0><FONT face="Arial" size=1>2029</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>7,245</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="94%"><FONT face="Arial" size=1>2030</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>5,073</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD NOWRAP STYLE="text-align: left; width: 94%; background-color: #c0c0c0; border-bottom: Black 1pt solid"><FONT face="Arial" size=1>2031</FONT></TD>
    <TD NOWRAP STYLE="text-align: left; width: 1%; background-color: #c0c0c0; border-bottom: Black 1pt solid"></TD>
    <TD NOWRAP STYLE="text-align: left; width: 1%; background-color: #c0c0c0; border-bottom: Black 1pt solid"></TD>
    <TD NOWRAP STYLE="text-align: right; width: 3%; background-color: #c0c0c0; border-bottom: Black 1pt solid"><FONT face="Arial" size=1>5,186</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="94%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT face="Arial" size=1>17,984</FONT></TD></TR></TABLE></div><BR>
<P align=justify><B><FONT face="Arial" size=2>23. Related party transactions:
</FONT></B></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>Related parties include
shareholders with a significant ownership interest in the Corporation, together
with its subsidiaries and affiliates. The revenue and costs recognized from
transactions with such parties reflect the prices and terms of sales and
purchase transactions with related parties, which are in accordance with normal
trade practices. Transactions between the Corporation and its subsidiaries are
eliminated on consolidation.</FONT></P>

<div style="PADDING-LEFT: 15pt; width: 100%">
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="90%"><FONT face="Arial" size=1>Balances with related
      parties:</FONT></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" colSpan=2><FONT face="Arial" size=1>2011</FONT></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face="Arial" size=1>2010</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="90%" bgColor=#c0c0c0><FONT face="Arial" size=1>&nbsp;&nbsp;&nbsp;&nbsp; Trade
      receivables</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>153</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="90%"><FONT face="Arial" size=1>&nbsp;&nbsp;&nbsp;&nbsp; Trade payables</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="2%"><FONT face="Arial" size=1>260</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT face="Arial" size=1>517</FONT></TD></TR>
  <TR>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" width="99%" colSpan=7>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="90%"><FONT face="Arial" size=1>Transactions during the year with related
      parties:</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%"><FONT face="Arial" size=1>2011</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face="Arial" size=1>2010</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="90%" bgColor=#c0c0c0><FONT face="Arial" size=1>&nbsp;&nbsp;&nbsp;&nbsp; Revenues</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$</FONT></TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>134</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="90%"><FONT face="Arial" size=1>&nbsp;&nbsp;&nbsp;&nbsp; Purchases</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="2%"><FONT face="Arial" size=1>744</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT face="Arial" size=1>1,301</FONT></TD></TR></TABLE></div><BR>
<P align=right><FONT face="Arial" size=1>51</FONT></P>
<HR align=center width="100%" noShade SIZE=2>

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<DIV>
<TABLE style="LINE-HEIGHT: normal; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="100%"><FONT style="FONT-FAMILY: arial" size=2><FONT style="DISPLAY: inline; FONT-WEIGHT: bold">BALLARD POWER SYSTEMS
      INC.<BR></FONT>Notes to Consolidated Financial Statements<BR><FONT style="FONT-FAMILY: arial" size=1>Years ended December 31, 2011, and
      2010<BR>(Tabular amounts expressed in thousands of U.S. dollars, except
      per share amounts and number of shares)<BR></FONT><FONT style="FONT-FAMILY: arial" size=2><FONT style="DISPLAY: inline; FONT-WEIGHT: bold">&nbsp;</FONT></FONT></FONT></TD></TR></TABLE></DIV><BR>
<P align=justify><B><FONT face="Arial" size=2>23. Related party transactions
(cont&#146;d): </FONT></B></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>The Corporation provides key
management personnel, being board directors and executive officers, certain
benefits, in addition to their salaries. Key management personnel also
participate in the Corporation&#146;s share-based compensation plans (note 18).
</FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>In addition to cash and equity
compensation, the Corporation provides the executive officers with certain
personal benefits, including car allowance, medical benefit program, long and
short-term disability coverage, life insurance and an annual medical and
financial planning allowance.</FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>In accordance with the
employment agreements of the executive officers, the Corporation is required to
provide notice of 12 months plus one month for every year of employment
completed with the Corporation, to a maximum of 24 months, or payment in lieu of
such notice, consisting of the salary, bonus and other benefits that would have
been earned during such notice period. If there is a change of control, and if
the executive officer&#146;s employment is terminated, including a constructive
dismissal, within 2 years following the date of a change of control, the
executive officer is entitled to a payment equivalent to payment in lieu of a 24
month notice period. </FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>Key management personnel
compensation is comprised of: </FONT></P>

<div style="PADDING-LEFT: 15pt; width: 100%">
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="89%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face="Arial" size=1>2011</FONT></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face="Arial" size=1>2010</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="89%" bgColor=#c0c0c0><FONT face="Arial" size=1>Salaries and
      employee benefits</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>3,744</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>4,390</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="89%"><FONT face="Arial" size=1>Post-employment retirement
      benefits</FONT></TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>79</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>75</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="89%" bgColor=#c0c0c0><FONT face="Arial" size=1>Termination
      benefits</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>425</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>-</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="89%"><FONT face="Arial" size=1>Share-based compensation (note 18)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face="Arial" size=1>1,136</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face="Arial" size=1>1,638</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="89%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>5,384</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>6,103</FONT></TD></TR></TABLE></div><BR>
<P align=justify><B><FONT face="Arial" size=2>24. Supplemental disclosure of
cash flow information: </FONT></B></P>

<div style="PADDING-LEFT: 15pt; width: 100%">
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="89%"><FONT face="Arial" size=1>Non-cash financing and
      investing activities:</FONT></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face="Arial" size=1>2011</FONT></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face="Arial" size=1>2010</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="89%" bgColor=#c0c0c0><FONT face="Arial" size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Compensatory
      shares</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>2,046</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>540</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="89%"><FONT face="Arial" size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Assets acquired
      under finance lease (note 8)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT face="Arial" size=1>1,906</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT face="Arial" size=1>12,180</FONT></TD></TR></TABLE></div><BR>
<P align=right><FONT face="Arial" size=1>52 </FONT></P>
<HR align=center width="100%" noShade SIZE=2>

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<DIV>
<TABLE style="LINE-HEIGHT: normal; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="100%"><FONT style="FONT-FAMILY: arial" size=2><FONT style="DISPLAY: inline; FONT-WEIGHT: bold">BALLARD POWER SYSTEMS
      INC.<BR></FONT>Notes to Consolidated Financial Statements<BR><FONT style="FONT-FAMILY: arial" size=1>Years ended December 31, 2011, and
      2010<BR>(Tabular amounts expressed in thousands of U.S. dollars, except
      per share amounts and number of shares)<BR></FONT><FONT style="FONT-FAMILY: arial" size=2><FONT style="DISPLAY: inline; FONT-WEIGHT: bold">&nbsp;</FONT></FONT></FONT></TD></TR></TABLE></DIV><BR>
<P align=justify><B><FONT face="Arial" size=2>25. Operating segments:
</FONT></B></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>The
Corporation&#146;s business operates in three market segments:</FONT></P>
<UL style="PADDING-LEFT: 15pt; FONT-SIZE: 10pt; TEXT-ALIGN: justify">
  <LI><B><FONT face="Arial" size=2>Fuel Cell Products</FONT></B><FONT face="Arial" size=2>: fuel cell products and services for motive power
  (material handling and bus markets) and stationary power (backup power and
  distributed generation markets) applications; and engineering services for a
  variety of fuel cell applications;<BR>&nbsp;</FONT>
  </LI><LI><B><FONT face="Arial" size=2>Contract Automotive</FONT></B><FONT face="Arial" size=2>: contract manufacturing services provided primarily
  for Daimler AG;<BR>&nbsp;</FONT>
  </LI><LI><B><FONT face="Arial" size=2>Material Products</FONT></B><FONT face="Arial" size=2>: carbon fiber products primarily for automotive
  transmissions and gas diffusion layers (&#147;GDL&#148;) for fuel cells.</FONT><B><FONT face="Arial" size=2> </FONT></B></LI></UL>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>In
2011, the Corporation completed its manufacturing services contract for the
supply of automotive fuel cell modules to Daimler AG. As a result, the Contract
Automotive segment will cease to be an operating segment as of December 31,
2011. The Corporation has restated its comparative operating segment information
to align to its current composition of operating segments. Revenues relating to
engineering services previously recorded in the Contract Automotive segment of
$1,460,000 for the year ended December 31, 2010, have been reallocated to the
Fuel Cell Products segment.</FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>Segment
revenues and segment income (loss) represent the primary financial measures used
by senior management in assessing performance and allocating resources, and
include the revenues, cost of product and service revenues and expenses for
which management is held accountable. Segment expenses include research and
product development costs directly attributable to individual segments.
</FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>Costs
associated with shared services and other shared costs are allocated based on
headcount and square footage. Corporate amounts include expenses for research
and product development that are not attributable to individual segments, sales
and marketing, and general and administrative, which apply generally across all
segments and are reviewed separately by senior management. </FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>A
significant portion of the Corporation&#146;s production, testing and lab equipment,
and facilities, as well as intellectual property, are common across the
segments. Therefore, management does not classify asset information on a
segmented basis. Instead, performance assessments of these assets and related
resource allocations are done on a company-wide basis. </FONT></P>
<P align=right><FONT face="Arial" size=1>53</FONT></P>
<HR align=center width="100%" noShade SIZE=2>

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<DIV>
<TABLE style="LINE-HEIGHT: normal; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="100%"><FONT style="FONT-FAMILY: arial" size=2><FONT style="DISPLAY: inline; FONT-WEIGHT: bold">BALLARD POWER SYSTEMS
      INC.<BR></FONT>Notes to Consolidated Financial Statements<BR><FONT style="FONT-FAMILY: arial" size=1>Years ended December 31, 2011, and
      2010<BR>(Tabular amounts expressed in thousands of U.S. dollars, except
      per share amounts and number of shares)<BR></FONT><FONT style="FONT-FAMILY: arial" size=2><FONT style="DISPLAY: inline; FONT-WEIGHT: bold">&nbsp;</FONT></FONT></FONT></TD></TR></TABLE></DIV><BR>
<P align=justify><B><FONT face="Arial" size=2>25. Operating segments
(cont&#146;d): </FONT></B></P>
<DIV style="PADDING-LEFT: 15pt; WIDTH: 100%">
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="88%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face="Arial" size=1>2011</FONT></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face="Arial" size=1>2010</FONT></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="88%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>Total revenues</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="88%"><FONT face="Arial" size=1>Fuel Cell Products</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </FONT></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>46,468</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </FONT></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>34,244</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="88%" bgColor=#c0c0c0><FONT face="Arial" size=1>Contract
      Automotive</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>9,305</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>9,811</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="88%"><FONT face="Arial" size=1>Material Products</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face="Arial" size=1>20,236</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face="Arial" size=1>20,964</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="88%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>76,009</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>65,019</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="88%"><B><FONT face="Arial" size=1>Segment income (loss) for the year </FONT></B><B><FONT face="Arial" size=1><SUP>(1)</SUP></FONT></B></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="88%" bgColor=#c0c0c0><FONT face="Arial" size=1>Fuel Cell
      Products</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>(1,305</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>(8,762</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="88%"><FONT face="Arial" size=1>Contract Automotive</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>1,803</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>1,755</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="88%" bgColor=#c0c0c0><FONT face="Arial" size=1>Material Products</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>5,852</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>7,689</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="88%"><FONT face="Arial" size=1>Total</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>6,350</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>682</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="88%" bgColor=#c0c0c0><FONT face="Arial" size=1>Corporate
      amounts</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="88%"><FONT face="Arial" size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Research and
      product development</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>(17,945</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>(19,299</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="88%" bgColor=#c0c0c0><FONT face="Arial" size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; General and
      administrative</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>(12,500</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>(14,777</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="88%"><FONT face="Arial" size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Sales and
      marketing</FONT></TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>(9,488</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>(9,113</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="88%" bgColor=#c0c0c0><FONT face="Arial" size=1>Net finance
      loss</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>(1,197</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>(965</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="88%"><FONT face="Arial" size=1>Gain on sale of property, plant
      and equipment</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>734</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>4</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="88%" bgColor=#c0c0c0><FONT face="Arial" size=1>Gain on sale of
      assets</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>8,032</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="88%"><FONT face="Arial" size=1>Impairment loss on property, plant and
      equipment</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face="Arial" size=1>(1,727</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face="Arial" size=1>-</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="88%" bgColor=#c0c0c0><FONT face="Arial" size=1>Loss before income tax</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>(35,773</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>(35,436</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD></TR></TABLE><BR>
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD vAlign=top noWrap align=left width="1%"><SUP><FONT face=Arial size=2>(1)</FONT></SUP></TD>
    <TD vAlign=top noWrap align=left width="1%"><FONT face=Arial size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD style="PADDING-TOP: 2pt" vAlign=top noWrap align=left width="98%"><FONT face="Arial" size=1>Research and product development costs directly
      related to segments are included in segment income (loss) for the
      year.</FONT></TD></TR></TABLE></DIV><BR>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>In
2011, sales to a single customer of $18,119,000 exceeded 10% of total revenue,
of which $7,264,000 were included in revenues from the Fuel Cell Products
segment and $10,855,000 were included in revenues from the Contract Automotive
segment. In addition, sales to a single customer group of $11,518,000 in the
Material Products segment exceeded 10% of total revenue. </FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>In
2010, sales to a single customer of $16,359,000 exceeded 10% of total revenue,
of which $8,107,000 were included in revenues from the Fuel Cell Products
segment and $8,252,000 were included in revenues from the Contract Automotive
segment. In addition, sales to a single customer group of $13,586,000 in the
Material Products segment exceeded 10% of total revenue.</FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>Revenues by geographic area, which are attributed to countries based on
customer location for the years ended December 31, is as follows: </FONT></P>
<DIV style="PADDING-LEFT: 15pt; WIDTH: 100%">
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="90%"><FONT face="Arial" size=1>Revenues</FONT></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face="Arial" size=1>2011</FONT></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face="Arial" size=1>2010</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="90%" bgColor=#c0c0c0><FONT face="Arial" size=1>Canada</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>9,320</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>5,070</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="90%"><FONT face="Arial" size=1>U.S.</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>27,842</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>31,179</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="90%" bgColor=#c0c0c0><FONT face="Arial" size=1>Germany</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>19,771</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>17,465</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="90%"><FONT face="Arial" size=1>United Kingdom</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>3,868</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>5,733</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="90%" bgColor=#c0c0c0><FONT face="Arial" size=1>Denmark</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>2,631</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>1,048</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="90%"><FONT face="Arial" size=1>Belgium</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>4,992</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>513</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="90%" bgColor=#c0c0c0><FONT face="Arial" size=1>Brazil</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>2,810</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>-</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="90%"><FONT face="Arial" size=1>Other countries</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face="Arial" size=1>4,775</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face="Arial" size=1>4,011</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="90%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>76,009</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>65,019</FONT></TD></TR></TABLE></DIV><BR>
<P align=right><FONT face="Arial" size=1>54</FONT></P>
<HR align=center width="100%" noShade SIZE=2>

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<DIV>
<TABLE style="LINE-HEIGHT: normal; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="100%"><FONT style="FONT-FAMILY: arial" size=2><FONT style="DISPLAY: inline; FONT-WEIGHT: bold">BALLARD POWER SYSTEMS
      INC.<BR></FONT>Notes to Consolidated Financial Statements<BR><FONT style="FONT-FAMILY: arial" size=1>Years ended December 31, 2011, and
      2010<BR>(Tabular amounts expressed in thousands of U.S. dollars, except
      per share amounts and number of shares)<BR></FONT><FONT style="FONT-FAMILY: arial" size=2><FONT style="DISPLAY: inline; FONT-WEIGHT: bold">&nbsp;</FONT></FONT></FONT></TD></TR></TABLE></DIV><BR>
<P align=justify><B><FONT face="Arial" size=2>25. Operating segments
(cont&#146;d): </FONT></B></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>Non-current assets by geographic area is as follows:</FONT></P>
<DIV style="PADDING-LEFT: 15pt; WIDTH: 100%">
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=left width="84%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=right width="4%" colSpan=2><FONT face="Arial" size=1>December 31,</FONT></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=right width="4%" colSpan=2><FONT face="Arial" size=1>December 31,</FONT></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=right width="4%" colSpan=2><FONT face="Arial" size=1>January 1,</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="84%"><FONT face="Arial" size=1>Non-current assets</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face="Arial" size=1>2011</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face="Arial" size=1>2010</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face="Arial" size=1>2010</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="84%" bgColor=#c0c0c0><FONT face="Arial" size=1>Canada</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      &nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>76,728</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>78,180</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;
      &nbsp;&nbsp; </FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>78,450</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="84%"><FONT face="Arial" size=1>U.S.</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>8,635</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>9,698</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>10,620</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="84%" bgColor=#c0c0c0><FONT face="Arial" size=1>Germany</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>59</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>59</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>59</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="84%"><FONT face="Arial" size=1>Denmark</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face="Arial" size=1>1,962</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face="Arial" size=1>2,692</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face="Arial" size=1>-</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="84%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>87,384</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>90,629</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>89,129</FONT></TD></TR></TABLE></DIV><BR>
<P align=justify><B><FONT face="Arial" size=2>26. Financial instruments:
</FONT></B></P>
<P align=justify><FONT face="Arial" size=2>(a)</FONT><FONT face="Arial" size=2> </FONT><FONT face="Arial" size=2>Fair value: </FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>The
Corporation&#146;s financial instruments consist of cash and cash equivalents,
short-term investments, accounts receivables, long-term investments, accounts
payable and accrued liabilities, and obligations under capital lease. The fair
values of cash, accounts receivable, accounts payable and accrued liabilities
approximate carrying value because of the short-term nature of these
instruments. The Corporation&#146;s long-term investments are not actively traded,
therefore management estimates fair value using valuation techniques that
require inputs that are unobservable, including inputs made available by its
investees (i.e. Level 3 of the fair value hierarchy). The interest rates applied
to the obligations under capital lease are not considered to be materially
different from market rates, thus the carrying value of obligations under
capital lease approximate fair value. The carrying value of cash equivalents and
short-term investments equal their fair values as they are classified as held
for trading.</FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>Fair
value measurements recognized in the balance sheet must be categorized in
accordance with the following levels:</FONT></P>
<DIV style="PADDING-LEFT: 15pt; WIDTH: 100%">
<TABLE style="TEXT-ALIGN: justify" cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD vAlign=top noWrap width="1%"><FONT face="Arial" size=2>(i)</FONT></TD>
    <TD width="98%"><FONT face="Arial" size=2>Level 1: quoted prices
      (unadjusted) in active markets for identical assets or
    liabilities;</FONT></TD></TR>
  <TR>
    <TD width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD width="98%">&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap width="1%"><FONT face="Arial" size=2>(ii)</FONT></TD>
    <TD width="98%"><FONT face="Arial" size=2>Level 2: inputs other than
      quoted prices included in Level 1 that are observable for the asset or
      liability, either directly (i.e. as prices) or indirectly (i.e., derived
      from prices);</FONT></TD></TR>
  <TR>
    <TD width="99%" colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap width="1%"><FONT face="Arial" size=2>(iii)</FONT></TD>
    <TD width="98%"><FONT face="Arial" size=2>Level 3: inputs for the asset
      or liability that are not based on observable market data (unobservable
      inputs).</FONT></TD></TR></TABLE></DIV>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>The
Corporation categorized the fair value measurement of its cash, cash equivalents
and short-term investments in Level 1 as they are primarily derived directly
from reference to quoted (unadjusted) prices in active markets.</FONT></P>
<P align=right><FONT face="Arial" size=1>55</FONT></P>
<HR align=center width="100%" noShade SIZE=2>

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<DIV>
<TABLE style="LINE-HEIGHT: normal; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="100%"><FONT style="FONT-FAMILY: arial" size=2><FONT style="DISPLAY: inline; FONT-WEIGHT: bold">BALLARD POWER SYSTEMS
      INC.<BR></FONT>Notes to Consolidated Financial Statements<BR><FONT style="FONT-FAMILY: arial" size=1>Years ended December 31, 2011, and
      2010<BR>(Tabular amounts expressed in thousands of U.S. dollars, except
      per share amounts and number of shares)<BR></FONT><FONT style="FONT-FAMILY: arial" size=2><FONT style="DISPLAY: inline; FONT-WEIGHT: bold">&nbsp;</FONT></FONT></FONT></TD></TR></TABLE></DIV><BR>
<P align=justify><B><FONT face="Arial" size=2>26. Financial instruments
(cont&#146;d): </FONT></B></P>
<P align=justify><FONT face="Arial" size=2>(b) Financial risk
management:</FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><B><FONT face="Arial" size=2></FONT></B><FONT face="Arial" size=2>The Corporation primarily has exposure to currency
exchange rate risk, interest rate risk and credit risk. These risks arise
primarily from the Corporation&#146;s holdings of U.S. and Canadian dollar
denominated cash and cash equivalents and short-term investments. </FONT></P>

<div style="PADDING-LEFT: 15pt; width: 100%">
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="62%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="18%" colSpan=11><FONT face="Arial" size=1>2011</FONT>
      <FONT face="Arial" size=1></FONT>&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="18%" colSpan=11><FONT face=Arial size=1>2010</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="62%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="4%" colSpan=2><FONT face="Arial" size=1>Canadian</FONT></TD>
    <TD noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD noWrap align=right width="4%" colSpan=2><FONT face="Arial" size=1>U.S.
      dollar</FONT></TD>
    <TD noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD noWrap align=right width="3%" colSpan=2><FONT face="Arial" size=1>Other <SUP>(1)</SUP></FONT></TD>
    <TD noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD noWrap align=right width="4%" colSpan=2><FONT face="Arial" size=1>Total</FONT></TD>
    <TD noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD noWrap align=right width="4%" colSpan=2><FONT face="Arial" size=1>Canadian</FONT></TD>
    <TD noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD noWrap align=right width="4%" colSpan=2><FONT face="Arial" size=1>U.S.
      dollar</FONT></TD>
    <TD noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD noWrap align=right width="3%" colSpan=2><FONT size=1 face="Times New Roman"><FONT face=Arial>Other
      <SUP>(1)</SUP></FONT></FONT></TD>
    <TD noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD noWrap align=right width="4%" colSpan=2><FONT face="Arial" size=1>Total</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="62%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="4%" colSpan=2><FONT face="Arial" size=1>dollar</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="4%" colSpan=2><FONT face="Arial" size=1>portfolio</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="2%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="3%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="4%" colSpan=2><FONT face="Arial" size=1>dollar</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="4%" colSpan=2><FONT face="Arial" size=1>portfolio</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="2%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=left width="3%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="62%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="4%" colSpan=2><FONT face="Arial" size=1>portfolio<SUP>(1)</SUP></FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="3%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%">&nbsp;</TD>
    <TD noWrap align=right width="2%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="3%"></TD>
    <TD align=right width="1%"></TD>
    <TD noWrap align=right width="4%" colSpan=2><FONT face="Arial" size=1>portfolio<SUP>(1)</SUP></FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="3%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="2%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=left width="3%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="62%" bgColor=#c0c0c0><FONT face="Arial" size=1>Cash and
      cash</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="62%" bgColor=#c0c0c0><FONT face="Arial" size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; equivalents</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>9,421</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>10,284</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face="Arial" size=1>611</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>20,316</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>16,759</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>33,947</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </FONT></TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face="Arial" size=1>1,231</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>51,937</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="62%"><FONT face="Arial" size=1>Short-term</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>25,878</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="2%"><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>25,878</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>9,492</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>13,016</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=right width="2%"><FONT face=Arial size=1>-</FONT></TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>22,508</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="62%"><FONT face="Arial" size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; investments</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="2%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="62%" bgColor=#c0c0c0><FONT face="Arial" size=1>Total cash,
      cash</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="62%" bgColor=#c0c0c0><FONT face="Arial" size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; equivalents
and</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="62%" bgColor=#c0c0c0><FONT face="Arial" size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; short-term</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="62%" bgColor=#c0c0c0><FONT face="Arial" size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      investments</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>35,299</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>10,284</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="2%" bgColor=#c0c0c0><FONT face="Arial" size=1>611</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>46,194</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>26,251</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>46,963</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="2%" bgColor=#c0c0c0><FONT face="Arial" size=1>1,231</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>74,445</FONT></TD></TR></TABLE><BR>

<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD vAlign=top noWrap align=left width="1%"><SUP><FONT face=Arial size=2>(1)</FONT></SUP></TD>
    <TD vAlign=top noWrap align=left width="1%"><FONT face=Arial size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD style="PADDING-TOP: 2pt" vAlign=top noWrap align=left width="98%"><FONT face="Arial" size=1>U.S. dollar equivalent</FONT></TD></TR></TABLE>
</div>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>Changes arising from these
risks could impact the Corporation&#146;s reported investment and other income
through either changes to investment income or foreign exchange gains or losses.
Reported finance income and expenses and other income are as follows:
</FONT></P>
<div style="PADDING-LEFT: 15pt; width: 100%">
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="91%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" colSpan=2><FONT face="Arial" size=1>2011</FONT></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" colSpan=2><FONT face="Arial" size=1>2010</FONT></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="91%" bgColor=#c0c0c0><FONT face="Arial" size=1>Investment
      income</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>303</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face="Arial" size=1>323</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="91%"><FONT face="Arial" size=1>Other income</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=right width="1%"><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="2%"><FONT face="Arial" size=1>224</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="91%" bgColor=#c0c0c0><FONT face="Arial" size=1>Pension
      costs</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>(37</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face="Arial" size=1>(124</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="91%"><FONT face="Arial" size=1>Foreign exchange loss</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face="Arial" size=1>(71</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%"><FONT face="Arial" size=1>(527</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="91%" bgColor=#c0c0c0><FONT face="Arial" size=1>Finance income (loss) and
    other</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>195</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="2%" bgColor=#c0c0c0><FONT face="Arial" size=1>(104</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="91%"><FONT face="Arial" size=1>Finance expense</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><FONT face="Arial" size=1>(1,392</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="2%"><FONT face="Arial" size=1>(861</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD></TR></TABLE></div><BR>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>The Corporation did not realize
any material gains or losses on its accounts receivable or its financial
liabilities measured at amortized cost.</FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><I><FONT face="Arial" size=2>Foreign currency exchange
rate risk </FONT></I></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>Foreign currency exchange rate
risk is the risk that the fair value of deferred cash flows of a financial
instrument will fluctuate because of changes in foreign exchange rates. The
Corporation is exposed to currency risks primarily due to its holdings of
Canadian dollar denominated cash equivalents and short-term investments and its
Canadian dollar denominated purchases and accounts payable. Substantially all
receivables are denominated in U.S. dollars.</FONT></P>
<P align=right><FONT face="Arial" size=1>56</FONT></P>
<HR align=center width="100%" noShade SIZE=2>

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<DIV>
<TABLE style="LINE-HEIGHT: normal; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="100%"><FONT style="FONT-FAMILY: arial" size=2><FONT style="DISPLAY: inline; FONT-WEIGHT: bold">BALLARD POWER SYSTEMS
      INC.<BR></FONT>Notes to Consolidated Financial Statements<BR><FONT style="FONT-FAMILY: arial" size=1>Years ended December 31, 2011, and
      2010<BR>(Tabular amounts expressed in thousands of U.S. dollars, except
      per share amounts and number of shares)<BR></FONT><FONT style="FONT-FAMILY: arial" size=2><FONT style="DISPLAY: inline; FONT-WEIGHT: bold">&nbsp;</FONT></FONT></FONT></TD></TR></TABLE></DIV><BR>
<P align=justify><B><FONT face="Arial" size=2>26. Financial instruments
(cont&#146;d): </FONT></B></P>
<P align=justify><FONT face="Arial" size=2>(b) Financial risk management
(cont&#146;d):</FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><I><FONT face="Arial" size=2>Foreign currency exchange
rate risk </FONT></I><FONT face="Arial" size=2>(cont&#146;d)</FONT><I><FONT face="Arial" size=2> </FONT></I></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>The Corporation limits its
exposure to foreign currency risk by holding Canadian denominated cash, cash
equivalents and short-term investments in amounts up to 100% of forecasted
twelve month Canadian dollar net expenditures and up to 50% of the following
twelve months of forecasted Canadian dollar net expenditures, thereby creating a
natural hedge. Periodically, the Corporation also enters into forward foreign
exchange contracts to further limit its exposure. At December 31, 2011, the
Corporation had Canadian dollar cash, cash equivalents and short-term
investments of CDN $35,899,000, and outstanding forward foreign exchange
contracts outstanding to sell a total of CDN $7,000,000 in 2012 at an average
rate of CDN $1.02 to US $1.00. </FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>The following exchange rates
applied during the year ended December 31, 2011: </FONT></P>

<div style="PADDING-LEFT: 15pt; width: 100%">
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="89%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center" noWrap width="4%" colSpan=2><FONT face=Arial size=1></FONT><FONT face=Arial size=1>$U.S. to $1.00 CDN</FONT></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center" noWrap width="4%" colSpan=2><FONT face=Arial size=1></FONT><FONT face=Arial size=1>$CDN to $1.00 $U.S.</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="89%" bgColor=#c0c0c0><FONT face=Arial size=1>January 1, 2011 Opening rate</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=1>1.005</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </FONT></TD>
    <TD  noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=1>0.995</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="89%"><FONT face=Arial size=1>December 31,
      2011 Closing rate</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=Arial size=1>0.983</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=Arial size=1>1.017</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="89%" bgColor=#c0c0c0><FONT face=Arial size=1>Fiscal 2011 Average rate</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=1>1.011</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=1>0.989</FONT></TD></TR></TABLE>
</div><BR>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>Based on cash, cash equivalents
and short-term investments held at December 31, 2011, a 10% increase in the
Canadian dollar against the U.S. dollar, with all other variables held constant,
would result in an increase in foreign exchange gains of approximately
$3,530,000 recorded against net income. </FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>If the Canadian dollar weakened
10% against the U.S. dollar, there would be an equal, and opposite impact, on
net income. This sensitivity analysis includes foreign currency denominated
monetary items, and adjusts their translation at year-end, for a 10% change in
foreign currency rates. </FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><I><FONT face="Arial" size=2>Interest rate risk
</FONT></I></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>Interest rate risk is the risk
that the fair value of deferred cash flows of a financial instrument will
fluctuate because of changes in market interest rates. The Corporation is
exposed to interest rate risk arising primarily from fluctuations in interest
rates on its cash, cash equivalents and short-term investments. The Corporation
limits its exposure to interest rate risk by continually monitoring and
adjusting portfolio duration to align to forecasted cash requirements and
anticipated changes in interest rates. </FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>Based on cash, cash equivalents
and short-term investments at December 31, 2011, a 0.25% decline in interest
rates, with all other variables held constant, would result in a decrease in
investment income $115,000, arising mainly as a result of an increase in the
fair value of fixed rate financial assets classified as held-for-trading. If
interest rates had been 0.25% higher, there would be an equal and opposite
impact on net income. </FONT></P>
<P align=right><FONT face="Arial" size=1>57</FONT></P>
<HR align=center width="100%" noShade SIZE=2>

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<DIV>
<TABLE style="LINE-HEIGHT: normal; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="100%"><FONT style="FONT-FAMILY: arial" size=2><FONT style="DISPLAY: inline; FONT-WEIGHT: bold">BALLARD POWER SYSTEMS
      INC.<BR></FONT>Notes to Consolidated Financial Statements<BR><FONT style="FONT-FAMILY: arial" size=1>Years ended December 31, 2011, and
      2010<BR>(Tabular amounts expressed in thousands of U.S. dollars, except
      per share amounts and number of shares)<BR></FONT><FONT style="FONT-FAMILY: arial" size=2><FONT style="DISPLAY: inline; FONT-WEIGHT: bold">&nbsp;</FONT></FONT></FONT></TD></TR></TABLE></DIV><BR>
<P align=justify><B><FONT face="Arial" size=2>26. Financial instruments
(cont&#146;d): </FONT></B></P>
<P align=justify><FONT face="Arial" size=2>(b) Financial risk management
(cont&#146;d):</FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><I><FONT face="Arial" size=2>Credit risk </FONT></I></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>Credit risk is the risk of
financial loss to the Corporation if a counterparty to a financial instrument
fails to meet its contractual obligations and arises principally from the
Corporation&#146;s cash, cash equivalents, short-term investments and accounts
receivable. The Corporation limits its exposure to credit risk on cash, cash
equivalents and short-term investments by only investing in liquid, investment
grade securities. The Corporation manages its exposure to credit risk on
accounts receivable by assessing the ability of counterparties to fulfill their
obligations under the related contracts prior to entering into such contracts,
and continuously monitors these exposures. </FONT></P>
<P align=justify><B><FONT face="Arial" size=2>27. Transition to IFRS:
</FONT></B></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>As stated in note 2(a), these
are the Corporation&#146;s first consolidated financial statements prepared in
accordance with IFRS. The accounting policies set out in note 3 have been
applied in preparing the financial statements for the year ended December 31,
2011, the comparative information presented in these financial statements for
the year ended December 31, 2010 and in the preparation of the opening IFRS
statement of financial position at January 1, 2010 (the Corporation&#146;s
&#147;Transition Date&#148;). </FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>In preparing its opening IFRS
statement of financial position, the Corporation has adjusted amounts reported
previously in financial statements prepared in accordance with Canadian
Generally Accepted Accounting Principles (&#147;Canadian GAAP&#148;). The following is an
explanation of how the transition from Canadian GAAP to IFRS has affected the
Corporation&#146;s financial position, financial performance and cash flows.
</FONT></P>
<P align=justify><FONT face="Arial" size=2>(i) IFRS 1</FONT><I><FONT face="Arial" size=2>,</FONT></I><FONT face="Arial" size=2> </FONT><I><FONT face="Arial" size=2>First-Time Adoption of International Financial Reporting
Standards</FONT></I><FONT face="Arial" size=2>: </FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>IFRS 1, </FONT><I><FONT face="Arial" size=2>First-Time Adoption of International Financial Reporting
Standard</FONT></I><FONT face="Arial" size=2>, permits those companies
adopting IFRS for the first time to take certain exemptions from the full
requirements of IFRS at the time of transition. The following are the initial
IFRS 1 mandatory elections and optional exemptions applied by the Corporation
upon initial adoption of IFRS from Canadian GAAP: </FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><I><FONT face="Arial" size=2>Estimates:</FONT></I><FONT face="Arial" size=2> </FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>Hindsight is not used to create
or revise estimates. The estimates previously made by the Corporation under
Canadian GAAP were not revised for application of IFRS except where necessary to
reflect any differences in accounting policies. </FONT></P>
<P align=right><FONT face="Arial" size=1>58</FONT></P>
<HR align=center width="100%" noShade SIZE=2>

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<DIV>
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  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="100%"><FONT style="FONT-FAMILY: arial" size=2><FONT style="DISPLAY: inline; FONT-WEIGHT: bold">BALLARD POWER SYSTEMS
      INC.<BR></FONT>Notes to Consolidated Financial Statements<BR><FONT style="FONT-FAMILY: arial" size=1>Years ended December 31, 2011, and
      2010<BR>(Tabular amounts expressed in thousands of U.S. dollars, except
      per share amounts and number of shares)<BR></FONT><FONT style="FONT-FAMILY: arial" size=2><FONT style="DISPLAY: inline; FONT-WEIGHT: bold">&nbsp;</FONT></FONT></FONT></TD></TR></TABLE></DIV><BR>
<P align=justify><B><FONT face="Arial" size=2>27. Transition to IFRS
(cont&#146;d): </FONT></B></P>
<P align=justify><FONT face="Arial" size=2>(i) IFRS 1</FONT><I><FONT face="Arial" size=2>,</FONT></I><FONT face="Arial" size=2> </FONT><I><FONT face="Arial" size=2>First-Time Adoption of International Financial Reporting
Standards </FONT></I><FONT face="Arial" size=2>(cont&#146;d): </FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><I><FONT face="Arial" size=2>Share-based
payments:</FONT></I><FONT face="Arial" size=2> </FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>The Corporation has elected to
apply IFRS 2, </FONT><I><FONT face="Arial" size=2>Share-based
Payments</FONT></I><FONT face="Arial" size=2>, to all equity instruments
granted after November 7, 2002 that had not vested as of the Transition Date and
elected not to apply the standard to any equity instruments issued prior to this
date.</FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><I><FONT face="Arial" size=2>Business
combinations:</FONT></I><FONT face="Arial" size=2> </FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>The Corporation has elected to
prospectively apply IFRS 3, </FONT><I><FONT face="Arial" size=2>Business
Combinations</FONT></I><FONT face="Arial" size=2>, from the Transition Date,
rather than retrospectively restating all business combinations that have
occurred prior to the Transition Date. As such, any goodwill arising from past
business combinations have not been adjusted from the carrying value previously
determined under Canadian GAAP. </FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><I><FONT face="Arial" size=2>Currency translation
differences:</FONT></I><FONT face="Arial" size=2> </FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>The Corporation has elected to
reset its historical cumulative translation gains and losses to nil at the
Transition Date, rather than to retrospectively apply IAS 21, </FONT><I><FONT face="Arial" size=2>The Effects of Changes in Foreign Exchange
Rates</FONT></I><FONT face="Arial" size=2>. Historical cumulative translation
adjustments arose prior to 2001 and totaled $236,000. These were a result of the
consolidation method applied at the time to the Corporation&#146;s German subsidiary.
</FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><I><FONT face="Arial" size=2>Employee
benefits:</FONT></I><FONT face="Arial" size=2> </FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>The Corporation has elected to
disclose comparative information with regards to the defined benefit pension
plan and other benefit plans for the current and previous period, rather than
the previous four periods as required under IAS 19, </FONT><I><FONT face="Arial" size=2>Employee Benefits</FONT></I><FONT face="Arial" size=2>. </FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>In addition, the Corporation
has elected to apply the optional election in IFRS 1 and recognize all
cumulative unrecognized actuarial gains and losses through retained earnings as
at the Transition Date. </FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><I><FONT face="Arial" size=2>Decommissioning liabilities:
</FONT></I></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>The Corporation has elected not
to retrospectively restate its decommissioning liabilities. The Corporation
elected rather to calculate the provision per IFRS 37, </FONT><I><FONT face="Arial" size=2>Provisions, Contingent Liabilities and Contingent
Assets</FONT></I><FONT face="Arial" size=2>, at the Transition Date, as if
the obligation arose at that date. The calculated value was then discounted to
the date the obligation first arose and then the provision was accreted up to
the Transition Date.</FONT></P>
<P align=right><FONT face="Arial" size=1>59</FONT></P>
<HR align=center width="100%" noShade SIZE=2>

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<DIV>
<TABLE style="LINE-HEIGHT: normal; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="100%"><FONT style="FONT-FAMILY: arial" size=2><STRONG>BALLARD POWER
      SYSTEMS INC.<BR></STRONG><FONT face="Arial" size=2>Notes to
      Consolidated Financial Statements<BR></FONT><FONT face="Arial" size=1>Years ended December 31, 2011, and 2010<BR></FONT><FONT face="Arial" size=1>(Tabular amounts expressed in thousands of U.S.
      dollars, except per share amounts and number of shares)</FONT><FONT style="FONT-FAMILY: arial" size=1><BR></FONT><FONT style="FONT-FAMILY: arial" size=2><FONT style="DISPLAY: inline; FONT-WEIGHT: bold">&nbsp;</FONT></FONT></FONT></TD></TR></TABLE></DIV>
<P align=justify><B><FONT face="Arial" size=2>27. Transition to IFRS
(cont&#146;d): </FONT></B></P>
<P align=justify><FONT face="Arial" size=2>(ii) Reconciliations of Canadian
GAAP to IFRS:</FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>Reconciliation of equity from Canadian GAAP to IFRS as
  at:</FONT></P>

<DIV style="PADDING-LEFT: 15pt; WIDTH: 100%">
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="100%" colSpan=9><FONT face=Arial size=2></FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="86%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="4%" colSpan=2><FONT face="Arial" size=1>January
    1,</FONT></TD>
    <TD noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD noWrap align=right width="4%" colSpan=2><FONT face="Arial" size=1>December
      31,</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="86%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face="Arial" size=1>2010</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face="Arial" size=1>2010</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="86%" bgColor=#c0c0c0><FONT face="Arial" size=1>Shareholders&#146;
      equity under Canadian GAAP</FONT></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>158,920</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>127,875</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="86%"><FONT face="Arial" size=1>Differences:</FONT></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="86%" bgColor=#c0c0c0><FONT face="Arial" size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Decommissioning
      liabilities</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>a</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>(1,330</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>(1,381</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="86%"><FONT face="Arial" size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sale and leaseback gain on
      operating lease</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face="Arial" size=1>d</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face="Arial" size=1>-</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face="Arial" size=1>3,089</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="86%" bgColor=#c0c0c0><FONT face="Arial" size=1>Total equity under IFRS</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>157,590</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>129,583</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR>
    <TD width="100%" colSpan=9>&nbsp;&nbsp;&nbsp;&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="100%" colSpan=9><FONT face="Arial" size=2>Reconciliation of comprehensive loss
      from Canadian GAAP to IFRS for the year ended:</FONT></TD></TR>
<TR>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" width="100%" colSpan=9>&nbsp;&nbsp;&nbsp;&nbsp; </TD></TR>

  <TR vAlign=bottom>
    <TD noWrap align=left width="86%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="4%" colSpan=2><FONT face="Arial" size=1>December
      31,</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="86%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face="Arial" size=1>2010</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="86%" bgColor=#c0c0c0><FONT face="Arial" size=1>Net loss and
      comprehensive loss under Canadian GAAP</FONT></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>(38,843</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="86%"><FONT face="Arial" size=1>Differences:</FONT></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="86%" bgColor=#c0c0c0><FONT face="Arial" size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Decommissioning
      liabilities</FONT></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>a</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>(51</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="86%"><FONT face="Arial" size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Share-based payments</FONT></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>b</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>478</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="86%" bgColor=#c0c0c0><FONT face="Arial" size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sale and leaseback gain on
      operating lease</FONT></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>d</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>3,089</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="86%"><FONT face="Arial" size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Defined benefit plan actuarial
      gain</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face="Arial" size=1>e</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face="Arial" size=1>(112</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="86%" bgColor=#c0c0c0><FONT face="Arial" size=1>Total net loss
      under IFRS</FONT></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>(35,439</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="86%"><FONT face="Arial" size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Defined benefit plan actuarial
      gain</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face="Arial" size=1>e</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face="Arial" size=1>112</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="86%" bgColor=#c0c0c0><FONT face="Arial" size=1>Total comprehensive loss under
      IFRS</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>(35,327</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD></TR></TABLE></DIV><BR>
<P align=right><FONT face="Arial" size=1>60</FONT></P>
<HR align=center width="100%" noShade SIZE=2>

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<DIV>
<TABLE style="LINE-HEIGHT: normal; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="100%"><FONT style="FONT-FAMILY: arial" size=2><STRONG>BALLARD POWER
      SYSTEMS INC.<BR></STRONG><FONT face="Arial" size=2>Notes to
      Consolidated Financial Statements<BR></FONT><FONT face="Arial" size=1>Years ended December 31, 2011, and 2010<BR></FONT><FONT face="Arial" size=1>(Tabular amounts expressed in thousands of U.S.
      dollars, except per share amounts and number of shares)</FONT><FONT style="FONT-FAMILY: arial" size=1><BR></FONT><FONT style="FONT-FAMILY: arial" size=2><FONT style="DISPLAY: inline; FONT-WEIGHT: bold">&nbsp;</FONT></FONT></FONT></TD></TR></TABLE></DIV>
<P align=justify><B><FONT face="Arial" size=2>27. Transition to IFRS
(cont&#146;d): </FONT></B></P>
<P align=justify><FONT face="Arial" size=2>(ii) Reconciliations of Canadian
GAAP to IFRS (cont&#146;d): </FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>Reconciliation of the Canadian GAAP consolidated statement of financial
position as at January 1, 2010 to IFRS: </FONT></P>
<DIV style="PADDING-LEFT: 15pt; WIDTH: 100%">
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="76%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="4%" colSpan=2><FONT face="Arial" size=1>Effect
    of</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="4%" colSpan=2><FONT face="Arial" size=1>Effect
    of</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="4%" colSpan=2><FONT face="Arial" size=1>transition
      to</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="4%" colSpan=2><FONT face="Arial" size=1>transition
      to</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="4%" colSpan=2><FONT face="Arial" size=1>Canadian</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="4%" colSpan=2><FONT face="Arial" size=1>IFRS</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="4%" colSpan=2><FONT face="Arial" size=1>IFRS</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="76%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face="Arial" size=1>Note</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face="Arial" size=1>GAAP</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><I><FONT face="Arial" size=1>Adjustments</FONT></I></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><I><FONT face="Arial" size=1>Reclassifications</FONT></I></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face="Arial" size=1>IFRS</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>Assets</FONT></B></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR>
    <TD align=left width="100%" colSpan=15>&nbsp;&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%" bgColor=#c0c0c0><FONT face="Arial" size=1>Current
      assets:</FONT></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%"><FONT face="Arial" size=1>Cash and cash
    equivalents</FONT></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>43,299</FONT></TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=1>$</FONT></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=1>$</FONT></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>43,299</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%" bgColor=#c0c0c0><FONT face="Arial" size=1>Short-term
      investments</FONT></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>38,932</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>38,932</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%"><FONT face="Arial" size=1>Trade and other
      receivables</FONT></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>12,903</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>12,903</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%" bgColor=#c0c0c0><FONT face="Arial" size=1>Inventories</FONT></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>9,168</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>9,168</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%"><FONT face="Arial" size=1>Prepaid expenses and
    other</FONT></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>2,114</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>2,114</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%"><FONT face="Arial" size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;current
    assets</FONT></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%" bgColor=#c0c0c0><FONT face="Arial" size=1>Total current
      assets</FONT></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>106,416</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>106,416</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR>
    <TD align=left width="100%" colSpan=15>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%" bgColor=#c0c0c0><FONT face="Arial" size=1>Property, plant
      and equipment</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>a</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>39,320</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>197</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>39,517</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%"><FONT face="Arial" size=1>Intangible assets</FONT></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>824</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>824</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%" bgColor=#c0c0c0><FONT face="Arial" size=1>Goodwill</FONT></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>48,106</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>48,106</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%"><FONT face="Arial" size=1>Investments</FONT></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>632</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>632</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%" bgColor=#c0c0c0><FONT face="Arial" size=1>Other long-term
      assets</FONT></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>50</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>-</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>-</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>50</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%"><FONT face="Arial" size=1>Total assets</FONT></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT face="Arial" size=1>195,348</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT face="Arial" size=1>197</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT face="Arial" size=1>-</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT face="Arial" size=1>195,545</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD></TR>
  <TR>
    <TD align=left width="100%" colSpan=15>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>Liabilities and Equity</FONT></B></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR>
    <TD align=left width="100%" colSpan=15>&nbsp;&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%" bgColor=#c0c0c0><FONT face="Arial" size=1>Current
      liabilities:</FONT></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%"><FONT face="Arial" size=1>Trade and other
    payables</FONT></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>i</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=1>$</FONT></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>20,321</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=1>$</FONT></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=1>$</FONT></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>(3,812</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=1>$</FONT></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>16,509</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%" bgColor=#c0c0c0><FONT face="Arial" size=1>Deferred
      revenue</FONT></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>1,607</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>1,607</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%"><FONT face="Arial" size=1>Current portion of finance
      lease</FONT></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>316</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>316</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%"><FONT face="Arial" size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;liability</FONT></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%" bgColor=#c0c0c0><FONT face="Arial" size=1>Provisions</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>i</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>7,813</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>-</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>3,812</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>11,625</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%"><FONT face="Arial" size=1>Total current
    liabilities</FONT></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>30,057</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>30,057</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR>
    <TD align=left width="100%" colSpan=15>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%" bgColor=#c0c0c0><FONT face="Arial" size=1>Finance lease
      liability</FONT></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>1,739</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>1,739</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%"><FONT face="Arial" size=1>Provisions</FONT></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>a</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>1,321</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>1,527</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>2,848</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%" bgColor=#c0c0c0><FONT face="Arial" size=1>Employee future
      benefits</FONT></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>3,311</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>-</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>-</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>3,311</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%"><FONT face="Arial" size=1>Total liabilities</FONT></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>36,428</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>1,527</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>37,955</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR>
    <TD align=left width="100%" colSpan=15>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%" bgColor=#c0c0c0><FONT face="Arial" size=1>Equity:</FONT></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%"><FONT face="Arial" size=1>Share capital</FONT></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>835,565</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>835,565</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%" bgColor=#c0c0c0><FONT face="Arial" size=1>Treasury
      shares</FONT></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>(207</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>(207</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%"><FONT face="Arial" size=1>Contributed surplus</FONT></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>b</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>284,510</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>1,304</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>285,814</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%" bgColor=#c0c0c0><FONT face="Arial" size=1>Accumulated
      deficit</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>a, b,
c</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>(960,712</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>(2,870</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>(963,582</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%"><FONT face="Arial" size=1>Accumulated other
      comprehensive</FONT></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>c</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>(236</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>236</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%"><FONT face="Arial" size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;loss</FONT></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%" bgColor=#c0c0c0><FONT face="Arial" size=1>Total
      equity</FONT></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>158,920</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>(1,330</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>-</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>157,590</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%"><FONT face="Arial" size=1>Total liabilities and
      equity</FONT></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT face="Arial" size=1>195,348</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT face="Arial" size=1>197</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT face="Arial" size=1>-</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT face="Arial" size=1>195,545</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%">&nbsp;</TD></TR></TABLE></DIV><BR>
<P align=right><FONT face="Arial" size=1>61</FONT></P>
<HR align=center width="100%" noShade SIZE=2>

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<DIV>
<TABLE style="LINE-HEIGHT: normal; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="100%"><FONT style="FONT-FAMILY: arial" size=2><STRONG>BALLARD POWER
      SYSTEMS INC.<BR></STRONG><FONT face="Arial" size=2>Notes to
      Consolidated Financial Statements<BR></FONT><FONT face="Arial" size=1>Years ended December 31, 2011, and 2010<BR></FONT><FONT face="Arial" size=1>(Tabular amounts expressed in thousands of U.S.
      dollars, except per share amounts and number of shares)</FONT><FONT style="FONT-FAMILY: arial" size=1><BR></FONT><FONT style="FONT-FAMILY: arial" size=2><FONT style="DISPLAY: inline; FONT-WEIGHT: bold">&nbsp;</FONT></FONT></FONT></TD></TR></TABLE></DIV>
<P align=justify><B><FONT face="Arial" size=2>27. Transition to IFRS
(cont&#146;d):</FONT></B></P>
<P align=justify><FONT face="Arial" size=2>(ii) Reconciliations of Canadian
GAAP to IFRS (cont&#146;d):</FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>Reconciliation of the Canadian GAAP consolidated statement of financial
position as at December 31, 2010 to IFRS:</FONT></P>
<DIV style="PADDING-LEFT: 15pt; WIDTH: 100%">
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="75%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="4%" colSpan=2><FONT face="Arial" size=1>Effect
    of</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="4%" colSpan=2><FONT face="Arial" size=1>Effect
    of</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="75%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="4%" colSpan=2><FONT face="Arial" size=1>transition
      to</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="4%" colSpan=2><FONT face="Arial" size=1>transition
      to</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="75%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>Canadian</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="4%" colSpan=2><FONT face="Arial" size=1>IFRS</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="4%" colSpan=2><FONT face="Arial" size=1>IFRS</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="75%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face="Arial" size=1>Note</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face="Arial" size=1>GAAP</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><I><FONT face="Arial" size=1>Adjustments</FONT></I></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><I><FONT face="Arial" size=1>Reclassifications</FONT></I></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face="Arial" size=1>IFRS</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="75%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>Assets</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR>
    <TD align=left width="100%" colSpan=16>&nbsp;&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="75%" bgColor=#c0c0c0><FONT face="Arial" size=1>Current
      assets:</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="75%"><FONT face="Arial" size=1>Cash and cash
    equivalents</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=1>$</FONT></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>51,937</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=1>$</FONT></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=right width="1%"><FONT face="Arial" size=1></FONT></TD>
    <TD noWrap align=left width="1%"><FONT face=Arial size=1>$</FONT></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>51,937</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="75%" bgColor=#c0c0c0><FONT face="Arial" size=1>Short-term
      investments</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>22,508</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>22,508</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="75%"><FONT face="Arial" size=1>Trade and other
      receivables</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>11,614</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>11,614</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="75%" bgColor=#c0c0c0><FONT face="Arial" size=1>Inventories</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>12,382</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>12,382</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="75%"><FONT face="Arial" size=1>Prepaid expenses and
    other</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>957</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>957</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="75%"><FONT face="Arial" size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;current
    assets</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="75%" bgColor=#c0c0c0><FONT face="Arial" size=1>Total current
      assets</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>99,398</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>99,398</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR>
    <TD align=left width="100%" colSpan=16>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="75%" bgColor=#c0c0c0><FONT face="Arial" size=1>Property, plant
      and equipment</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>a</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>36,706</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>239</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>36,945</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="75%"><FONT face="Arial" size=1>Intangible assets</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>2,975</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>2,975</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="75%" bgColor=#c0c0c0><FONT face="Arial" size=1>Goodwill</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>48,106</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>48,106</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="75%"><FONT face="Arial" size=1>Investments</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>673</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>673</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="75%" bgColor=#c0c0c0><FONT face="Arial" size=1>Long-term trade
      receivables</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>1,596</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>1,596</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="75%"><FONT face="Arial" size=1>Other long-term assets</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face="Arial" size=1>334</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face="Arial" size=1>-</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face="Arial" size=1>-</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face="Arial" size=1>334</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="75%" bgColor=#c0c0c0><FONT face="Arial" size=1>Total
      assets</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>189,788</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>239</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>-</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>190,027</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR>
    <TD align=left width="100%" colSpan=16>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="75%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>Liabilities and Equity</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR>
    <TD align=left width="100%" colSpan=16>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="75%" bgColor=#c0c0c0><FONT face="Arial" size=1>Current
      liabilities:</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="75%"><FONT face="Arial" size=1>Trade and other
    payables</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>i</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=1>$</FONT></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>23,334</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=1>$</FONT></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>(1,449</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face=Arial size=1>)</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>21,885</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="75%" bgColor=#c0c0c0><FONT face="Arial" size=1>Deferred
      revenue</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>2,506</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>2,506</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="75%"><FONT face="Arial" size=1>Current portion of finance
      lease</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>681</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>681</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="75%"><FONT face="Arial" size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;liability</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="75%" bgColor=#c0c0c0><FONT face="Arial" size=1>Provisions</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>i</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>8,570</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>-</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>1,449</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>10,019</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="75%"><FONT face="Arial" size=1>Total current
    liabilities</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>35,091</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>35,091</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR>
    <TD align=left width="100%" colSpan=16>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="75%" bgColor=#c0c0c0><FONT face="Arial" size=1>Finance lease
      liability</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>13,354</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>13,354</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="75%"><FONT face="Arial" size=1>Deferred gain</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>d</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>9,036</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>(3,089</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>5,947</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="75%" bgColor=#c0c0c0><FONT face="Arial" size=1>Provisions</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>a</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>1,482</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>1,620</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>3,102</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="75%"><FONT face="Arial" size=1>Employee future
    benefits</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face="Arial" size=1>2,950</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face="Arial" size=1>-</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face="Arial" size=1>-</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face="Arial" size=1>2,950</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="75%" bgColor=#c0c0c0><FONT face="Arial" size=1>Total
      liabilities</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>61,913</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>(1,469</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>60,444</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR>
    <TD align=left width="100%" colSpan=16>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="75%" bgColor=#c0c0c0><FONT face="Arial" size=1>Equity:</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="75%"><FONT face="Arial" size=1>Share capital</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>836,245</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>836,245</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="75%" bgColor=#c0c0c0><FONT face="Arial" size=1>Treasury
      shares</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>(670</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>(670</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="75%"><FONT face="Arial" size=1>Contributed surplus</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>b</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>288,618</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>826</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>289,444</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="75%" bgColor=#c0c0c0><FONT face="Arial" size=1>Accumulated
      deficit</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>a, b, c,
    d</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>(995,669</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>646</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>(995,023</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="75%"><FONT face="Arial" size=1>Accumulated other</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>c</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>(236</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>236</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="75%"><FONT face="Arial" size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;comprehensive
      loss</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="75%" bgColor=#c0c0c0><FONT face="Arial" size=1>Total equity
      attributable to</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>128,288</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>1,708</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>129,996</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="75%" bgColor=#c0c0c0><FONT face="Arial" size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;equity
    holders</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="75%"><FONT face="Arial" size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dantherm Power A/S
      non-</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>(413</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>(413</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="75%"><FONT face="Arial" size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;controlling
      interests</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="75%" bgColor=#c0c0c0><FONT face="Arial" size=1>Total
      equity</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>127,875</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>1,708</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>-</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>129,583</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="75%"><FONT face="Arial" size=1>Total liabilities and
      equity</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT face="Arial" size=1>189,788</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT face="Arial" size=1>239</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT face="Arial" size=1>-</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><FONT face="Arial" size=1></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face=Arial size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT face="Arial" size=1>190,027</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD></TR></TABLE></DIV><BR>
<P align=right><FONT face="Arial" size=1>62</FONT></P>
<HR align=center width="100%" noShade SIZE=2>

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<DIV>
<TABLE style="LINE-HEIGHT: normal; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="100%"><FONT style="FONT-FAMILY: arial" size=2><STRONG>BALLARD POWER
      SYSTEMS INC.<BR></STRONG><FONT face="Arial" size=2>Notes to
      Consolidated Financial Statements<BR></FONT><FONT face="Arial" size=1>Years ended December 31, 2011, and 2010<BR></FONT><FONT face="Arial" size=1>(Tabular amounts expressed in thousands of U.S.
      dollars, except per share amounts and number of shares)</FONT><FONT style="FONT-FAMILY: arial" size=1><BR></FONT><FONT style="FONT-FAMILY: arial" size=2><FONT style="DISPLAY: inline; FONT-WEIGHT: bold">&nbsp;</FONT></FONT></FONT></TD></TR></TABLE></DIV>
<P align=justify><B><FONT face="Arial" size=2>27. Transition to IFRS
(cont&#146;d):</FONT></B><FONT face="Arial" size=2> </FONT></P>
<P align=justify><FONT face="Arial" size=2>(ii) Reconciliations of Canadian
GAAP to IFRS (cont&#146;d): </FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>Reconciliation of the Canadian GAAP consolidated statement of
comprehensive loss for the year-ended December 31, 2010 to IFRS: </FONT></P>
<DIV style="PADDING-LEFT: 15pt; WIDTH: 100%">
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="73%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>Effect of</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>Effect of</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="73%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>transition to</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>transition to</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="73%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>Canadian</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>IFRS</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>IFRS</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="73%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face="Arial" size=1>Note</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face="Arial" size=1>GAAP</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><I><FONT face="Arial" size=1>Adjustments</FONT></I></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><I><FONT face="Arial" size=1>Reclassifications</FONT></I></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face="Arial" size=1>IFRS</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="73%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>Revenues:</FONT></B></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="73%"><FONT face="Arial" size=1>Product and service
      revenues</FONT></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=1>$</FONT></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>65,019</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><FONT face=Arial size=1>$</FONT></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=1>$</FONT></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=1>$</FONT></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>65,019</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="73%" bgColor=#c0c0c0><FONT face="Arial" size=1>Cost of product
      and service</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>a, b</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>54,808</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>79</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>54,887</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="73%" bgColor=#c0c0c0><FONT face="Arial" size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;revenues</FONT></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="73%"><FONT face="Arial" size=1>Gross margin</FONT></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face="Arial" size=1>10,211</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face="Arial" size=1>(79</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face="Arial" size=1>-</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face="Arial" size=1>10,132</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD></TR>
  <TR>
    <TD width="100%" colSpan=16>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="73%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>Operating expenses:</FONT></B></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="73%"><FONT face="Arial" size=1>Research and product</FONT></TD>
    <TD noWrap align=right width="3%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>b, d, j</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>23,812</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>(46</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>4,983</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>28,749</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="73%"><FONT face="Arial" size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;development</FONT></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="73%" bgColor=#c0c0c0><FONT face="Arial" size=1>General and
      administrative</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>b, j</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>13,315</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>(271</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>1,733</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>14,777</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="73%"><FONT face="Arial" size=1>Sales and marketing</FONT></TD>
    <TD noWrap align=right width="3%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>b, j</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>8,861</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>(14</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>266</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>9,113</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="73%" bgColor=#c0c0c0><FONT face="Arial" size=1>Restructuring
      and related costs</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>j</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>285</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>(285</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="73%"><FONT face="Arial" size=1>Acquisition charges</FONT></TD>
    <TD noWrap align=right width="3%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>j</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>243</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>(243</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="73%" bgColor=#c0c0c0><FONT face="Arial" size=1>Depreciation and
      amortization</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>j</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>6,454</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>-</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>(6,454</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>-</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="73%"><FONT face="Arial" size=1>Total operating
    expenses</FONT></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face="Arial" size=1>52,970</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face="Arial" size=1>(331</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face="Arial" size=1>-</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face="Arial" size=1>52,639</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD></TR>
  <TR>
    <TD width="100%" colSpan=16>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="73%" bgColor=#c0c0c0><FONT face="Arial" size=1>Operating
      loss</FONT></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>(42,759</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>252</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>(42,507</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="73%"><FONT face="Arial" size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Finance
    income</FONT></TD>
    <TD noWrap align=right width="3%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>a, e</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>128</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>(232</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>(104</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="73%" bgColor=#c0c0c0><FONT face="Arial" size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Finance
    expense</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>a</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>(974</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>113</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>-</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>(861</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="73%"><FONT face="Arial" size=1>Net finance income
    (loss)</FONT></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>(846</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>(119</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>(965</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="73%" bgColor=#c0c0c0><FONT face="Arial" size=1>Gain on sale of
      assets</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>d</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>4,765</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>3,271</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>-</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>8,036</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="73%"><FONT face="Arial" size=1>Loss before income
    taxes</FONT></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>(38,840</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>3,404</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>(35,436</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="73%" bgColor=#c0c0c0><FONT face="Arial" size=1>Income tax
      (recovery)</FONT></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>3</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>-</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>-</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>3</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="73%"><FONT face="Arial" size=1>Net loss</FONT></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>(38,843</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>3,404</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>(35,439</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="73%" bgColor=#c0c0c0><FONT face="Arial" size=1>Defined benefit
      plan actuarial gain</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>e</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>-</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>112</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>-</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>112</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="73%"><FONT face="Arial" size=1>Comprehensive loss</FONT></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="3%">&nbsp;</TD>
    <TD noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT face="Arial" size=1>(38,843</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face=Arial size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT face="Arial" size=1>3,516</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT face="Arial" size=1>-</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT face="Arial" size=1>(35,327</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD></TR>
  <TR>
    <TD width="100%" colSpan=16>&nbsp; </TD></TR>


  <TR vAlign=bottom>
    <TD noWrap align=left width="73%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>Net loss attributable to:</FONT></B></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="73%"><FONT face="Arial" size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ballard Power Systems
      Inc.</FONT></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=1>$</FONT></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>(34,936</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face=Arial size=1>$</FONT></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>3,404</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=1>$</FONT></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=1>$</FONT></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>(31,532</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="79%" bgColor=#c0c0c0 colSpan=3><FONT face="Arial" size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dantherm Power A/S
      non-controlling interest</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>(3,907</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>-</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>-</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>(3,907</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="73%"><FONT face="Arial" size=1>Net loss</FONT></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT face="Arial" size=1>(38,843</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face=Arial size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT face="Arial" size=1>3,404</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT face="Arial" size=1>-</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT face="Arial" size=1>(35,439</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD></TR>
  <TR>
    <TD width="100%" colSpan=16>&nbsp; </TD></TR>

  <TR vAlign=bottom>
    <TD noWrap align=left width="73%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>Comprehensive loss attributable
      to:</FONT></B></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="73%"><FONT face="Arial" size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ballard Power Systems
      Inc.</FONT></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=1>$</FONT></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>(34,936</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face=Arial size=1>$</FONT></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>3,516</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=1>$</FONT></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=1>$</FONT></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>(31,420</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="79%" bgColor=#c0c0c0 colSpan=3><FONT face="Arial" size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dantherm Power A/S
      non-controlling interest</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>(3,907</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>-</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>-</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>(3,907</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="73%"><FONT face="Arial" size=1>Comprehensive loss</FONT></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT face="Arial" size=1>(38,843</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face=Arial size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT face="Arial" size=1>3,516</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT face="Arial" size=1>-</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT face="Arial" size=1>(35,327</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD></TR>
  <TR>
    <TD noWrap align=left width="73%">&nbsp;&nbsp; </TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD></TR>
  <TR>
    <TD width="100%" colSpan=16>&nbsp; </TD></TR>

  <TR vAlign=bottom>
    <TD noWrap align=left width="73%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>Basic and diluted loss per
      share</FONT></B></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD NOWRAP ALIGN="LEFT" WIDTH="3%" BGCOLOR="#c0c0c0" STYLE="text-align: right"><FONT face="Arial" size=1>(0.42</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=1>)</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD NOWRAP ALIGN="LEFT" WIDTH="3%" BGCOLOR="#c0c0c0" STYLE="text-align: right"><FONT face="Arial" size=1>0.05</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD NOWRAP ALIGN="LEFT" WIDTH="3%" BGCOLOR="#c0c0c0" STYLE="text-align: right"><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD NOWRAP ALIGN="LEFT" WIDTH="3%" BGCOLOR="#c0c0c0" STYLE="text-align: right"><FONT face="Arial" size=1>(0.37</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="73%" bgColor=#c0c0c0><FONT face="Arial" size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<STRONG>attributable to Ballard
      Power</STRONG></FONT></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="73%" bgColor=#c0c0c0><FONT face="Arial" size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<STRONG>Systems
      Inc.</STRONG></FONT></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="79%" colSpan=3><B><FONT face="Arial" size=1>Weighted average number of common</FONT></B></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>84,102,315</FONT></TD>
    <TD noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>84,102,315</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>84,102,315</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>84,102,315</FONT></TD>
    <TD noWrap align=left width="1%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="73%"><FONT face="Arial" size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<STRONG>shares
      outstanding</STRONG></FONT></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="3%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="3%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="3%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="3%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD></TR></TABLE></DIV><BR>
<P align=right><FONT face="Arial" size=1>63 </FONT></P>
<HR align=center width="100%" noShade SIZE=2>

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<DIV>
<TABLE style="LINE-HEIGHT: normal; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="100%"><FONT style="FONT-FAMILY: arial" size=2><STRONG>BALLARD POWER
      SYSTEMS INC.<BR></STRONG><FONT face="Arial" size=2>Notes to
      Consolidated Financial Statements<BR></FONT><FONT face="Arial" size=1>Years ended December 31, 2011, and 2010<BR></FONT><FONT face="Arial" size=1>(Tabular amounts expressed in thousands of U.S.
      dollars, except per share amounts and number of shares)</FONT><FONT style="FONT-FAMILY: arial" size=1><BR></FONT><FONT style="FONT-FAMILY: arial" size=2><FONT style="DISPLAY: inline; FONT-WEIGHT: bold">&nbsp;</FONT></FONT></FONT></TD></TR></TABLE></DIV>
<P align=justify><B><FONT face="Arial" size=2>27. Transition to IFRS
(cont&#146;d):</FONT></B></P>
<P align=justify><FONT face="Arial" size=2>(ii) Reconciliations of Canadian
GAAP to IFRS (cont&#146;d): </FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>The
following is a summary of the effects of the differences between IFRS and
Canadian GAAP on the Corporation&#146;s accounting policies, statement of financial
position, and statement of comprehensive income for periods previously reported
under Canadian GAAP subsequent to the Transition Date to IFRS. The adoption of
IFRS did not change the Corporation&#146;s actual cash flows, but has resulted in
changes to the Corporation&#146;s statements of financial position and comprehensive
loss.</FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>(a)</FONT><FONT face="Arial" size=2> </FONT><FONT face="Arial" size=2>Decommissioning liabilities </FONT></P>
<P style="PADDING-LEFT: 30pt" align=justify><FONT face="Arial" size=2>Under
both Canadian GAAP and IFRS, the Corporation is required to determine a best
estimate of asset retirement obligations (termed decommissioning liabilities
under IFRS) for all of the Corporation&#146;s facilities. Under IFRS, the liability
is measured by applying the risk-free discount rate to the estimated total cost
of decommissioning each reporting period whereas under Canadian GAAP the
liability was measured using a company-specific discount rate. As a result of
the application of a lower discount rate under IFRS, adjustments to increase
provisions and other long-term liabilities and property, plant and equipment
were recorded by the Corporation. The impact arising from the change is
summarized as follows:</FONT></P>
<DIV style="PADDING-LEFT: 30pt; WIDTH: 100%">
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=left width="89%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=right width="4%" colSpan=2><FONT face="Arial" size=1>January 1,</FONT></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=right width="4%" colSpan=2><FONT face="Arial" size=1>December 31,</FONT></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="89%"><B><FONT face="Arial" size=1>Consolidated statement of financial
      position</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face="Arial" size=1>2010</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face="Arial" size=1>2010</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="89%" bgColor=#c0c0c0><FONT face="Arial" size=1>Increase to
      property, plant and equipment</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>197</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>239</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="89%"><FONT face="Arial" size=1>Increase to provisions and other long-term
      liabilities</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face="Arial" size=1>(1,527</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face="Arial" size=1>(1,620</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="89%" bgColor=#c0c0c0><FONT face="Arial" size=1>Increase to accumulated deficit</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>(1,330</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>(1,381</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD></TR>
  <TR>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" width="100%" colSpan=8>&nbsp;&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="89%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD align=right width="4%" colSpan=2><FONT face="Arial" size=1>Year
    ended</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="89%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD align=right width="4%" colSpan=2><FONT face="Arial" size=1>December
      31,</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="89%"><B><FONT face="Arial" size=1>Consolidated statement of comprehensive
      income</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face="Arial" size=1>2010</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="89%" bgColor=#c0c0c0><FONT face="Arial" size=1>Increase to cost
      of product and service revenues</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>(44</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="89%"><FONT face="Arial" size=1>Decrease to finance income and
      other</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>(120</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="89%" bgColor=#c0c0c0><FONT face="Arial" size=1>Decrease to finance expense</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>113</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="89%"><FONT face="Arial" size=1>Increase to net loss and comprehensive
loss</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="3%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT face="Arial" size=1>(51</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD></TR></TABLE></DIV><BR>
<P align=right><FONT face="Arial" size=1>64</FONT></P>
<HR align=center width="100%" noShade SIZE=2>

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<DIV>
<TABLE style="LINE-HEIGHT: normal; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="100%"><FONT style="FONT-FAMILY: arial" size=2><STRONG>BALLARD POWER
      SYSTEMS INC.<BR></STRONG><FONT face="Arial" size=2>Notes to
      Consolidated Financial Statements<BR></FONT><FONT face="Arial" size=1>Years ended December 31, 2011, and 2010<BR></FONT><FONT face="Arial" size=1>(Tabular amounts expressed in thousands of U.S.
      dollars, except per share amounts and number of shares)</FONT><FONT style="FONT-FAMILY: arial" size=1><BR></FONT><FONT style="FONT-FAMILY: arial" size=2><FONT style="DISPLAY: inline; FONT-WEIGHT: bold">&nbsp;</FONT></FONT></FONT></TD></TR></TABLE></DIV>
<P align=justify><B><FONT face="Arial" size=2>27. Transition to IFRS
(cont&#146;d):</FONT></B></P>
<P align=justify><FONT face="Arial" size=2>(ii) Reconciliations of Canadian
GAAP to IFRS (cont&#146;d):</FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>(b)
Share-based payments</FONT></P>
<P style="PADDING-LEFT: 30pt" align=justify><FONT face="Arial" size=2>Under
Canadian GAAP, the Corporation valued stock-based compensation that vests in
tranches as a single grant. IFRS requires that each vesting tranche be valued
individually as a separate grant. Therefore under IFRS, the fair value of each
share-based compensation tranche will be amortized over each tranche&#146;s vesting
period instead of recognizing the entire award on a straight-line basis over the
term of the grant.</FONT></P>
<P style="PADDING-LEFT: 30pt" align=justify><FONT face="Arial" size=2>As a
result of this difference, the Corporation has recorded a charge to contributed
surplus for vested stock-based compensation awards. The impact arising from the
change is summarized as follows:</FONT></P>
<DIV style="PADDING-LEFT: 30pt; WIDTH: 100%">
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=left width="89%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=right width="4%" colSpan=2><FONT face="Arial" size=1>January 1,</FONT></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=right width="4%" colSpan=2><FONT face="Arial" size=1>December 31,</FONT></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="89%"><B><FONT face="Arial" size=1>Consolidated statement of financial
      position</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face="Arial" size=1>2010</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face="Arial" size=1>2010</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="89%" bgColor=#c0c0c0><FONT face="Arial" size=1>Increase to contributed
    surplus</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>(1,304</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>(826</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="89%"><FONT face="Arial" size=1>Increase to accumulated deficit</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT face="Arial" size=1>(1,304</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT face="Arial" size=1>(826</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD></TR>
  <TR>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" width="100%" colSpan=8>&nbsp;&nbsp;&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="89%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="4%" colSpan=2><FONT face="Arial" size=1>Year
    ended</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="89%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="4%" colSpan=2><FONT face="Arial" size=1>December
      31,</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="89%"><B><FONT face="Arial" size=1>Consolidated statement of comprehensive
      income</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face="Arial" size=1>2010</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="89%" bgColor=#c0c0c0><FONT face="Arial" size=1>Increase to cost
      of product and service revenues</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>(35</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="89%"><FONT face="Arial" size=1>Decrease to research and product
      development</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>228</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="89%" bgColor=#c0c0c0><FONT face="Arial" size=1>Decrease to
      general and administrative</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>271</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="89%"><FONT face="Arial" size=1>Decrease to sales and marketing</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face="Arial" size=1>14</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="89%" bgColor=#c0c0c0><FONT face="Arial" size=1>Decrease to net loss and comprehensive
      loss</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>478</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD></TR></TABLE></DIV><BR>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>(c)
Accumulated other comprehensive loss </FONT></P>
<P style="PADDING-LEFT: 30pt" align=justify><FONT face="Arial" size=2>As
stated in note 27(i), the Corporation has elected to reset its historical
cumulative translation loss to nil at the Transition Date and therefore the
Corporation has recorded a charge to accumulated deficit in the IFRS opening
statement of financial position. The impact arising from the change is
summarized as follows:</FONT></P>
<DIV style="PADDING-LEFT: 30pt; WIDTH: 100%">
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=left width="89%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=right width="4%" colSpan=2><FONT face="Arial" size=1>January 1,</FONT></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=right width="4%" colSpan=2><FONT face="Arial" size=1>December 31,</FONT></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="89%"><B><FONT face="Arial" size=1>Consolidated statement of financial
      position</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2>&nbsp; <FONT face="Arial" size=1>2010</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face="Arial" size=1>2010</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="89%" bgColor=#c0c0c0><FONT face="Arial" size=1>Decrease to accumulated other
      comprehensive loss</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>(236</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>(236</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="89%"><FONT face="Arial" size=1>Increase to accumulated deficit</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT face="Arial" size=1>(236</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT face="Arial" size=1>(236</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD></TR></TABLE></DIV><BR>
<P align=right><FONT face="Arial" size=1>65</FONT></P>
<HR align=center width="100%" noShade SIZE=2>

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<DIV>
<TABLE style="LINE-HEIGHT: normal; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="100%"><FONT style="FONT-FAMILY: arial" size=2><STRONG>BALLARD POWER
      SYSTEMS INC.<BR></STRONG><FONT face="Arial" size=2>Notes to
      Consolidated Financial Statements<BR></FONT><FONT face="Arial" size=1>Years ended December 31, 2011, and 2010<BR></FONT><FONT face="Arial" size=1>(Tabular amounts expressed in thousands of U.S.
      dollars, except per share amounts and number of shares)</FONT><FONT style="FONT-FAMILY: arial" size=1><BR></FONT><FONT style="FONT-FAMILY: arial" size=2><FONT style="DISPLAY: inline; FONT-WEIGHT: bold">&nbsp;</FONT></FONT></FONT></TD></TR></TABLE></DIV>
<P align=justify><B><FONT face="Arial" size=2>27. Transition to IFRS
(cont&#146;d):</FONT></B><FONT face="Arial" size=2> </FONT></P>
<P align=justify><FONT face="Arial" size=2>(ii) Reconciliations of Canadian
GAAP to IFRS (cont&#146;d): </FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>(d)
Accelerated recognition of sale and leaseback gains </FONT></P>
<P style="PADDING-LEFT: 30pt" align=justify><FONT face="Arial" size=2>Under
Canadian GAAP, sale and leaseback gains are deferred and amortized over the term
of the lease when the leaseback is classified as an operating lease. Under IFRS,
such gains may be recognized upfront if the sale and leaseback transaction
results in an operating lease, and is undertaken at fair value.</FONT></P>
<P style="PADDING-LEFT: 30pt" align=justify><FONT face="Arial" size=2>As a
result of this difference, the land component of the March 2010 sale and
leaseback of the Corporation&#146;s head office building has been determined to meet
the IFRS criteria to be treated as an operating lease. The unamortized portion
of the deferred gain attributed to the land leaseback has been recognized in
2010 net income and the related deferred gain derecognized in 2010. The impact
arising from the change is summarized as follows:</FONT></P>
<DIV style="PADDING-LEFT: 30pt; WIDTH: 100%">
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=left width="89%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=right width="4%" colSpan=2><FONT face=Arial size=1>January 1,</FONT></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=right width="4%" colSpan=2><FONT face=Arial size=1>December 31,</FONT></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="89%"><B><FONT face=Arial size=1>Consolidated statement of financial
      position</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face=Arial size=1>2010</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face=Arial size=1>2010</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="89%" bgColor=#c0c0c0><FONT face=Arial size=1>Decrease to deferred
gain</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=1>-</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=1>3,089</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="89%"><FONT face=Arial size=1>Decrease to accumulated
    deficit</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face=Arial size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT face=Arial size=1>-</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face=Arial size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT face=Arial size=1>3,089</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD></TR>
  <TR>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" width="100%" colSpan=8>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="89%">&nbsp; </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="4%" colSpan=2><FONT face=Arial size=1>Year
      ended</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="89%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="4%" colSpan=2><FONT face=Arial size=1>December 31,</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="89%"><B><FONT face=Arial size=1>Consolidated statement of
      comprehensive income</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face=Arial size=1>2010</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="89%" bgColor=#c0c0c0><FONT face=Arial size=1>Increase to research and product development</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=1>$</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=1>(182</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=1>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="89%"><FONT face=Arial size=1>Increase to gain on sale of
      assets</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=Arial size=1>3,271</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="89%" bgColor=#c0c0c0><FONT face=Arial size=1>Decrease to net loss and
      comprehensive loss</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=1>3,089</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR></TABLE>
</DIV><BR>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>(e)
Employee future benefits</FONT></P>
<P style="PADDING-LEFT: 30pt" align=justify><FONT face="Arial" size=2>Under
IFRS, actuarial gains and losses arising from defined benefit plans and
post-retirement benefit plans may be recorded immediately in either net income
or other comprehensive income. Under Canadian GAAP, the Corporation&#146;s accounting
policy was to recognize actuarial gains and losses in net income. On adoption of
IFRS, the Corporation has elected to recognize actuarial gains and losses in
other comprehensive income. This is an accounting policy change made by the
Corporation subsequent to the release of its first consolidated interim
financial statements under IFRS. The impact arising from the change from prior
Canadian GAAP is summarized as follows: </FONT></P>
<P align=right><FONT face="Arial" size=1>66</FONT></P>
<HR align=center width="100%" noShade SIZE=2>

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<DIV>
<TABLE style="LINE-HEIGHT: normal; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="100%"><FONT style="FONT-FAMILY: arial" size=2><STRONG>BALLARD POWER
      SYSTEMS INC.<BR></STRONG><FONT face="Arial" size=2>Notes to
      Consolidated Financial Statements<BR></FONT><FONT face="Arial" size=1>Years ended December 31, 2011, and 2010<BR></FONT><FONT face="Arial" size=1>(Tabular amounts expressed in thousands of U.S.
      dollars, except per share amounts and number of shares)</FONT><FONT style="FONT-FAMILY: arial" size=1><BR></FONT><FONT style="FONT-FAMILY: arial" size=2><FONT style="DISPLAY: inline; FONT-WEIGHT: bold">&nbsp;</FONT></FONT></FONT></TD></TR></TABLE></DIV>
<P align=justify><B><FONT face="Arial" size=2>27. Transition to IFRS
(cont&#146;d):</FONT></B><FONT face="Arial" size=2> </FONT></P>
<P align=justify><FONT face="Arial" size=2>(ii) Reconciliations of Canadian
GAAP to IFRS (cont&#146;d): </FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>(e)
Employee future benefits (cont&#146;d) </FONT></P>
<DIV style="PADDING-LEFT: 30pt; WIDTH: 100%">
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=left width="94%" bgColor=#ffffff></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=right width="4%" bgColor=#ffffff colSpan=2><FONT face=Arial size=1>Year ended</FONT></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#ffffff></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="94%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=right width="4%" bgColor=#ffffff colSpan=2><FONT face=Arial size=1>December 31,</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="94%" bgColor=#ffffff><B><FONT face=Arial size=1>Consolidated statement of
      comprehensive income</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" bgColor=#ffffff colSpan=2><FONT face=Arial size=1>2010</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#ffffff></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="94%" bgColor=#c0c0c0><FONT face=Arial size=1>Decrease to finance income and
      other</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=1>(112</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=1>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="94%" bgColor=#ffffff><FONT face=Arial size=1>Increase to net loss</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD noWrap align=right width="3%" bgColor=#ffffff><FONT face=Arial size=1>(112</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff><FONT face=Arial size=1>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="94%" bgColor=#c0c0c0><FONT face=Arial size=1>Increase to defined benefit plan
      actuarial gain</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=1>112</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="94%" bgColor=#ffffff><FONT face=Arial size=1>Comprehensive loss</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#ffffff><FONT face=Arial size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#ffffff><FONT face=Arial size=1>-</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#ffffff></TD></TR></TABLE>
</DIV><BR>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>(f)
Foreign currency translation of subsidiary (Dantherm Power A/S)</FONT></P>
<P style="PADDING-LEFT: 29pt" align=justify><FONT face="Arial" size=2>Under
IFRS, the functional currency of the subsidiary determines the translation
methodology. As Dantherm Power&#146;s functional currency has been assessed as the
Danish Kroner under IFRS, Dantherm Power will be consolidated under IFRS using
the current rate method. Under Canadian GAAP, Dantherm Power was translated
using the temporal method. The impact arising from the change is not considered
to be material. </FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>(g)
Property, plant and equipment </FONT></P>
<P style="PADDING-LEFT: 29pt" align=justify><FONT face="Arial" size=2>Under
IFRS, property, plant and equipment may be accounted for using either a cost or
revaluation model. The Corporation has elected to use the cost model for all
classes of property, plant and equipment. This is consistent with the
Corporation&#146;s accounting policy under Canadian GAAP and hence has no impact on
the Corporation&#146;s property, plant and equipment balances. </FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>(h)
Impairment of assets </FONT></P>
<P style="PADDING-LEFT: 30pt" align=justify><FONT face="Arial" size=2>If
there is an indication that an asset may be impaired, an impairment test must be
performed. Under Canadian GAAP, this is a two-step impairment test in which (i)
undiscounted future cash flows are compared to the carrying value; and (ii) if
those undiscounted cash flows are less than the carrying value, the asset is
written down to fair value.</FONT></P>
<P align=right><FONT face="Arial" size=1>67</FONT></P>
<HR align=center width="100%" noShade SIZE=2>

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<DIV>
<TABLE style="LINE-HEIGHT: normal; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="100%"><FONT style="FONT-FAMILY: arial" size=2><STRONG>BALLARD POWER
      SYSTEMS INC.<BR></STRONG><FONT face="Arial" size=2>Notes to
      Consolidated Financial Statements<BR></FONT><FONT face="Arial" size=1>Years ended December 31, 2011, and 2010<BR></FONT><FONT face="Arial" size=1>(Tabular amounts expressed in thousands of U.S.
      dollars, except per share amounts and number of shares)</FONT><FONT style="FONT-FAMILY: arial" size=1><BR></FONT><FONT style="FONT-FAMILY: arial" size=2><FONT style="DISPLAY: inline; FONT-WEIGHT: bold">&nbsp;</FONT></FONT></FONT></TD></TR></TABLE></DIV>
<P align=justify><B><FONT face="Arial" size=2>27. Transition to IFRS
(cont&#146;d):</FONT></B><FONT face="Arial" size=2> </FONT></P>
<P align=justify><FONT face="Arial" size=2>(ii) Reconciliations of Canadian
GAAP to IFRS (cont&#146;d): </FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>(h)
Impairment of assets (cont&#146;d) </FONT></P>
<P style="PADDING-LEFT: 29pt" align=justify><FONT face="Arial" size=2>Under
IFRS, an entity is required to assess, at the end of each reporting period,
whether there is any indication that an asset may be impaired. If such a
condition exists, the entity shall estimate the recoverable amount of an asset
by performing a one-step impairment test, which requires a comparison of the
carrying value of an asset to the higher of (1) value in use; and (ii) fair
value less costs to sell. Value in use is defined as the present value of future
cash flows expected to be derived from the asset in its current state. In
addition, IFRS requires property, plant and equipment, goodwill and intangible
assets to be assessed for impairment at the cash-generating unit (&#147;CGU&#148;) level,
rather than the reporting unit level considered by Canadian GAAP. As a result of
this difference, in principle, impairment write downs may be more likely under
IFRS than under Canadian GAAP. </FONT></P>
<P style="PADDING-LEFT: 29pt" align=justify><FONT face="Arial" size=2>Also
under IFRS, when circumstances have changed such that impairments have been
reduced, any previous impairment losses on assets other than goodwill and
indefinite-lived intangible assets should be reversed while Canadian GAAP
prohibits the reversal of impairment losses.</FONT></P>
<P style="PADDING-LEFT: 29pt" align=justify><FONT face="Arial" size=2>The
Corporation has concluded that the adoption of these standards does not result
in a change to the carrying value of the Corporation&#146;s property, plant and
equipment, goodwill, and intangible assets on transition to IFRS. </FONT></P>
<P style="PADDING-LEFT: 18pt" align=justify><FONT face="Arial" size=2>(i)</FONT><FONT face="Arial" size=2> </FONT><FONT face="Arial" size=2>Provisions </FONT></P>
<P style="PADDING-LEFT: 29pt" align=justify><FONT face="Arial" size=2>Under
Canadian GAAP, a provision is required to be recorded in the financial
statements when required payment is considered &#147;likely&#148; and can be reasonably
estimated. The threshold for recognition of provisions under IFRS is lower than
that under Canadian GAAP as provisions must be recognized if required payment is
&#147;probable&#148;. Therefore, in principle, it is possible that there may be provisions
which would meet the recognition criteria under IFRS that were not recognized
under Canadian GAAP.</FONT></P>
<P style="PADDING-LEFT: 29pt" align=justify><FONT face="Arial" size=2>There
are also differences in the measurement of provisions under IFRS and Canadian
GAAP, including the requirement under IFRS for provisions to be discounted where
material and the methodology for determining the best estimate where there is a
range of equally possible outcomes. Under IFRS, the mid-point of the range us
used, whereas Canadian GAAP applies the low end of the range. </FONT></P>
<P align=right><FONT face="Arial" size=1>68</FONT></P>
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    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="100%"><FONT style="FONT-FAMILY: arial" size=2><STRONG>BALLARD POWER
      SYSTEMS INC.<BR></STRONG><FONT face="Arial" size=2>Notes to
      Consolidated Financial Statements<BR></FONT><FONT face="Arial" size=1>Years ended December 31, 2011, and 2010<BR></FONT><FONT face="Arial" size=1>(Tabular amounts expressed in thousands of U.S.
      dollars, except per share amounts and number of shares)</FONT><FONT style="FONT-FAMILY: arial" size=1><BR></FONT><FONT style="FONT-FAMILY: arial" size=2><FONT style="DISPLAY: inline; FONT-WEIGHT: bold">&nbsp;</FONT></FONT></FONT></TD></TR></TABLE></DIV>
<P align=justify><B><FONT face="Arial" size=2>27. Transition to IFRS
(cont&#146;d):</FONT></B><FONT face="Arial" size=2> </FONT></P>
<P align=justify><FONT face="Arial" size=2>(ii) Reconciliations of Canadian
GAAP to IFRS (cont&#146;d): </FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>(i)</FONT><FONT face="Arial" size=2> </FONT><FONT face="Arial" size=2>Provisions (cont&#146;d) </FONT></P>
<P style="PADDING-LEFT: 26pt" align=justify><FONT face="Arial" size=2>The
Corporation has concluded that there is no adjustment to the Corporation&#146;s
consolidated financial statements on transition to IFRS for the measurement of
provisions; however, certain reclassifications have been made in the statement
of financial position in classifying provisions. </FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face="Arial" size=2>(j)</FONT><FONT face="Arial" size=2> </FONT><FONT face="Arial" size=2>Functional presentation </FONT></P>
<P style="PADDING-LEFT: 26pt" align=justify><FONT face="Arial" size=2>Under
IFRS, the income statement must be presented on a basis either by function or by
nature. Under Canadian GAAP, the income statement could be presented using a mix
of both function and nature of expenditure. The Corporation has elected to use
the functional classification basis for the presentation of its income
statement.</FONT></P>
<P style="PADDING-LEFT: 26pt" align=justify><FONT face="Arial" size=2>As a
result, the operating expenses of depreciation and amortization, restructuring
charges, and acquisition costs, which are individually presented under Canadian
GAAP, have been reallocated to research and product development, general and
administrative, and sales and marketing expense under IFRS. </FONT></P>
<P align=right><FONT face="Arial" size=1>69</FONT></P>
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<TYPE>EX-99.2
<SEQUENCE>3
<FILENAME>exhibit99-2.htm
<DESCRIPTION>BALLARD POWER SYSTEMS INC. MANAGEMENT'S DISCUSSION AND ANALYSIS
<TEXT>

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<P align=right><IMG src="exhibit99-21x1x1.jpg" border=0></P>
<P align=justify><B><FONT face="Arial" size=2>MANAGEMENT&#146;S DISCUSSION AND
ANALYSIS </FONT></B></P>
<P align=justify><FONT face="Arial" size=2>This discussion and analysis of
financial condition and results of operations of Ballard Power Systems Inc.
(&#147;Ballard&#148;, &#147;the Company&#148;, &#147;we&#148;, &#147;us&#148; or &#147;our&#148;) is prepared as at February 22,
2012 and should be read in conjunction with the audited consolidated financial
statements and accompanying notes for the year ended December 31, 2011. The
results reported herein are presented in U.S. dollars unless otherwise stated and
have been prepared in accordance with International Financial Reporting
Standards (&#147;IFRS&#148;). Additional information relating to the Company, including
our Annual Information Form, are filed with Canadian (</FONT><FONT face="Arial" size=2>www.sedar.com</FONT><FONT face="Arial" size=2>) and
U.S. securities regulatory authorities (</FONT><FONT face="Arial" size=2>www.sec.gov</FONT><FONT face="Arial" size=2>) and are also available
on our website at </FONT><FONT face="Arial" size=2>www.ballard.com</FONT><FONT face="Arial" size=2>.</FONT></P>
<P align=justify><B><FONT face="Arial" size=2>BUSINESS OVERVIEW
</FONT></B></P>
<P align=justify><FONT face="Arial" size=2>At Ballard, we are building a
clean energy growth company. We are recognized as a world leader in proton
exchange membrane (&#147;PEM&#148;) fuel cell development and commercialization. Our
principal business is the design, development, manufacture, sale and service of
fuel cell products for a variety of applications, focusing on motive power
(material handling and buses) and stationary power (backup power and distributed
generation) markets. We also provide engineering services for a variety of fuel
cell applications. </FONT></P>
<P align=justify><FONT face="Arial" size=2>A fuel cell is an environmentally
clean electrochemical device that combines hydrogen fuel with oxygen (from the
air) to produce electricity. The hydrogen fuel can be obtained from natural gas,
kerosene, methanol or other hydrocarbon fuels, or from water through
electrolysis. Ballard fuel cell products feature high fuel efficiency, low
operating temperature, low noise and vibration, compact size, quick response to
changes in electrical demand, modular design and environmental cleanliness.
Embedded in each Ballard PEM fuel cell product lies a stack of unit cells
designed with our proprietary esencia<SUP>TM</SUP> technology which draws on
intellectual property from our patent portfolio together with our extensive
experience in key areas of fuel cell stack operation, system integration, and
fuel processing. </FONT></P>
<P align=justify><FONT face="Arial" size=2>We provide our customers with the
positive economic and environmental benefits unique to fuel cell power. We plan
to build value for our shareholders by developing, manufacturing, selling and
servicing industry-leading fuel cell products to meet the needs of our customers
in select target markets. We are focused on our core competencies of PEM fuel
cell design, development, manufacture, sales and service.</FONT></P>

<P STYLE="text-align: justify"><FONT face="Arial" size=2>Over the past five
years, we have refined the Company&#146;s business strategy to establish a sharp
focus on what we believe to be key growth opportunities with near-term
commercial prospects in our core fuel cell markets. To support this strategy, we
have focused on bolstering our cash reserves to strengthen our capability to
execute on our clean energy growth priorities.</FONT></P>
<P align=justify><FONT face="Arial" size=2>In March 2010, we completed a sale
and leaseback agreement whereby we sold our head office building in Burnaby,
British Columbia in return for gross cash proceeds of $20.4 million and then
leased this property back for an initial 15-year term plus two renewal options.
In December 2009 and July 2010, we completed agreements with a financial
institution to monetize our rights under a Share Purchase Agreement with Ford
Motor Company (&#147;Ford&#148;) relating to our 19.9% equity investment in AFCC
Automotive Fuel Cell Cooperation Corp. (&#147;AFCC&#148;) for an initial cash payment in
2009 of $37.0 million and a subsequent cash payment in 2010 of $5.0 million.</FONT></P>
<P align=right><FONT face="Arial" size=1>Page 1 of 38</FONT></P>
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<P align=right><IMG src="exhibit99-21x1x1.jpg" border=0></P>
<P align=justify><FONT face="Arial" size=2>In March 2011, we completed a
sub-lease agreement with Mercedes-Benz Canada Inc. (&#147;MBC&#148;) for the rental of
21,000 square feet of surplus production space in our specialized fuel cell
manufacturing facility located in Burnaby, British Columbia. This sub-lease is
effective from August 1, 2011 until July 31, 2019 and is expected to result in
annual savings of approximately $1 million in real estate and related overhead
costs.</FONT></P>
<P align=justify><FONT face="Arial" size=2>In June 2011, we obtained a $7.0
million Canadian award agreement from Sustainable Development Technology Canada
(&#147;SDTC&#148;) for the period from 2011 to 2013 to be used to extend the operating
life and lower the product cost of FCgen&#153;-1300, the fuel cell product that
powers Ballard&#146;s CLEARgen&#153; distributed generation system. This award is in
addition to a $4.8 million Canadian award agreement from SDTC announced in 2010
for the period from 2010 to 2012 to be used to further develop fuel cell power
module technology for the transit bus market.</FONT><FONT face="Arial" size=2> </FONT><FONT face="Arial" size=2>These awards are recorded primarily
as a cost offset against our research and product development expenses as the
expenses are incurred on these programs.</FONT></P>
<P align=justify><FONT face="Arial" size=2>We are based in Canada, with head
office, research and development, testing and manufacturing facilities in
Burnaby, British Columbia. In addition, we have sales, research and development
and manufacturing facilities in Lowell, Massachusetts and Hobro,
Denmark.</FONT></P>
<P align=justify><FONT face="Arial" size=2>In 2011, we reported our results
in the following operating segments: </FONT></P>
<P align=justify><FONT face="Arial" size=2>1. </FONT><I><U><FONT face="Arial" size=2>Fuel Cell Products</FONT></U></I><FONT face="Arial" size=2>: fuel cell products and services for motive power (material handling and
bus markets) and stationary power (backup power and distributed generation
markets) applications; and engineering services for a variety of fuel cell
applications;</FONT></P>
<P align=justify><FONT face="Arial" size=2>2. </FONT><I><U><FONT face="Arial" size=2>Contract Automotive</FONT></U></I><FONT face="Arial" size=2>: contract manufacturing services provided primarily for Daimler AG
(&#147;Daimler&#148;);</FONT></P>
<P align=justify><FONT face="Arial" size=2>3. </FONT><I><U><FONT face="Arial" size=2>Material Products</FONT></U></I><FONT face="Arial" size=2>: carbon fiber products primarily for automotive transmissions and gas
diffusion layers (&#147;GDLs&#148;) for fuel cells.</FONT></P>
<P align=justify><FONT face="Arial" size=2>During the last half of 2011, we
refined the Company&#146;s business strategy and established a new engineering
services operating unit in order to leverage our expertise in fuel cell design,
prototyping, manufacturing and servicing. This new operating unit offers a full
suite of fuel cell engineering solutions for a variety of fuel cell applications
and is recorded in our core Fuel Cell Products segment. As a result of this
increased management focus on engineering services, and the completion of our
Contract Automotive manufacturing supply agreement with Daimler in October 2011,
we have made changes to the composition of our operating segments to align to
our current reporting structure. As a result, revenues of $2.1 million for the
first three quarters of 2011, and revenues of $1.5 million for 2010, previously
recorded in our Contract Automotive segment relating to engineering services
have been retroactively restated to the Fuel Cell Products segment. While the
Contract Automotive segment will continue to be reported on in 2012 from a
comparative perspective, it will cease to be an active operating unit as of the
end of 2011.</FONT></P>
<P align=right><FONT face="Arial" size=1>Page 2 of 38 </FONT></P>
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<P align=right><IMG src="exhibit99-21x1x1.jpg" border=0></P>
<P align=justify><B><FONT face="Arial" size=2>SELECTED ANNUAL FINANCIAL
INFORMATION </FONT></B></P>
<div align=justify><FONT face="Arial" size=1>Years ended December
31</FONT><FONT face="Arial" size=1> </FONT><FONT face="Arial" size=1>(Expressed in thousands of U.S. dollars, except per share amounts)
</FONT></div>
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="90%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" colSpan=2><B><FONT face="Arial" size=1>2011</FONT></B></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" colSpan=2><B><FONT face="Arial" size=1>2010</FONT></B></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" colSpan=2><B><FONT face="Arial" size=1>2009</FONT></B></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="90%" bgColor=#c0c0c0><FONT face="Arial" size=1>Revenues</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>76,009</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>65,019</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>46,722</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="90%"><FONT face="Arial" size=1>Net income
      (loss) attributable to Ballard</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><B><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B></TD>
    <TD noWrap align=right width="1%"><B><FONT face="Arial" size=1>(33,420</FONT></B></TD>
    <TD noWrap align=left width="1%"><B><FONT face="Arial" size=1>)</FONT></B></TD>
    <TD noWrap align=left width="1%"><B><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B></TD>
    <TD noWrap align=right width="1%"><B><FONT face="Arial" size=1>(31,532</FONT></B></TD>
    <TD noWrap align=left width="1%"><B><FONT face="Arial" size=1>)</FONT></B></TD>
    <TD noWrap align=left width="1%"><B><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B></TD>
    <TD noWrap align=right width="1%"><B><FONT face="Arial" size=1>(3,258</FONT></B></TD>
    <TD noWrap align=left width="1%"><B><FONT face="Arial" size=1>)</FONT></B></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="90%" bgColor=#c0c0c0><FONT face="Arial" size=1>Net income (loss) per share
      attributable to Ballard</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>(0.40</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>)</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>(0.37</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>)</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>(0.04</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>)</FONT></B></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="90%"><FONT face="Arial" size=1>Adjusted EBITDA (1)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><B><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><B><FONT face="Arial" size=1>(22,295</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><B><FONT face="Arial" size=1>)</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><B><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><B><FONT face="Arial" size=1>(26,163</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><B><FONT face="Arial" size=1>)</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><B><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><B><FONT face="Arial" size=1>(38,974</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><B><FONT face="Arial" size=1>)</FONT></B></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="90%" bgColor=#c0c0c0><FONT face="Arial" size=1>Cash, cash equivalents and short-term investments</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>46,194</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>74,445</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>82,231</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="90%"><FONT face="Arial" size=1>Total assets</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><B><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><B><FONT face="Arial" size=1>165,290</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><B><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><B><FONT face="Arial" size=1>190,027</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><B><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><B><FONT face="Arial" size=1>195,348</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD></TR></TABLE><br>
<TABLE style="TEXT-ALIGN: justify" cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD vAlign=top noWrap><FONT face="Arial" size=1>1</FONT></TD>
    <TD vAlign=top noWrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-TOP: #ffffff 2pt solid" width="100%"><FONT face="Arial" size=1>Adjusted EBITDA is a non-GAAP measure. We use
      certain Non-GAAP measures to assist in assessing our financial
      performance. Non-GAAP measures do not have any standardized meaning
      prescribed by GAAP and are therefore unlikely to be comparable to similar
      measures presented by other companies. See reconciliation to GAAP in the
      Supplemental Non-GAAP Measures section.</FONT></TD></TR></TABLE>
<P align=justify><B><FONT face="Arial" size=2>RESULTS OF OPERATIONS &#150; Fourth
Quarter of 2011 </FONT></B></P>
<P align=justify><B><I><FONT face="Arial" size=2>Revenue and gross margin
</FONT></I></B></P>
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="89%"><EM><FONT face=Arial size=1>(Expressed in thousands of U.S. dollars)</FONT></EM></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="10%" colSpan=10><FONT face=Arial size=1>Three months ended December 31,</FONT></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="89%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" colSpan=2><B><FONT face="Arial" size=1>2011</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" colSpan=2><B><FONT face="Arial" size=1>2010</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" colSpan=2><FONT face="Arial" size=1>$ Change</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face="Arial" size=1>% Change</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="89%" bgColor=#c0c0c0><FONT face="Arial" size=1>Fuel Cell Products</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>16,871</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>13,723</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>3,148</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>23%</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1></FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="89%"><FONT face="Arial" size=1>Contract
      Automotive</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="1%"><B><FONT face="Arial" size=1>101</FONT></B></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face="Arial" size=1>3,014</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face="Arial" size=1>(2,913</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD>
    <TD noWrap align=right width="1%"><FONT face="Arial" size=1>(97%</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="89%" bgColor=#c0c0c0><FONT face="Arial" size=1>Material Products</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>4,024</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>4,346</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>(322</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>(7%</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="89%"><B><FONT face="Arial" size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Revenues</FONT></B></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="1%"><B><FONT face="Arial" size=1>20,996</FONT></B></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face="Arial" size=1>21,083</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face="Arial" size=1>(87</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD>
    <TD noWrap align=right width="1%"><FONT face="Arial" size=1>-%</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; text-align: left; width: 89%; background-color: #c0c0c0"><FONT face="Arial" size=1>Cost of goods sold</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; text-align: left; width: 1%; background-color: #c0c0c0"></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; text-align: right; width: 1%; background-color: #c0c0c0"><B><FONT face="Arial" size=1>16,854</FONT></B></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; text-align: left; width: 1%; background-color: #c0c0c0"></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; text-align: left; width: 1%; background-color: #c0c0c0"></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; text-align: right; width: 1%; background-color: #c0c0c0"><FONT face="Arial" size=1>15,987</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; text-align: left; width: 1%; background-color: #c0c0c0"></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; text-align: left; width: 1%; background-color: #c0c0c0"></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; text-align: right; width: 1%; background-color: #c0c0c0"><FONT face="Arial" size=1>867</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; text-align: left; width: 1%; background-color: #c0c0c0"></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; text-align: right; width: 1%; background-color: #c0c0c0"><FONT face="Arial" size=1>5%</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; text-align: left; width: 1%; background-color: #c0c0c0"><FONT face="Arial" size=1></FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="89%"><B><FONT face="Arial" size=1>Gross Margin</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><B><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><B><FONT face="Arial" size=1>4,142</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><FONT face="Arial" size=1>5,096</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><FONT face="Arial" size=1>(954</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><FONT face="Arial" size=1>(19%</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD NOWRAP STYLE="border-bottom: Black 1.5pt solid; text-align: left; width: 89%; background-color: #c0c0c0"><FONT face="Arial" size=1>Gross Margin %</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1.5pt solid; text-align: left; width: 1%; background-color: #c0c0c0"></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1.5pt solid; text-align: right; width: 1%; background-color: #c0c0c0"><B><FONT face="Arial" size=1>20%</FONT></B></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1.5pt solid; text-align: left; width: 1%; background-color: #c0c0c0"></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1.5pt solid; text-align: left; width: 1%; background-color: #c0c0c0"></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1.5pt solid; text-align: right; width: 1%; background-color: #c0c0c0"><FONT face="Arial" size=1>24%</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1.5pt solid; text-align: left; width: 1%; background-color: #c0c0c0"><FONT face="Arial" size=1></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1.5pt solid; text-align: left; width: 1%; background-color: #c0c0c0"></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1.5pt solid; text-align: right; width: 1%; background-color: #c0c0c0"><FONT face="Arial" size=1>n/a</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1.5pt solid; text-align: left; width: 1%; background-color: #c0c0c0"></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1.5pt solid; text-align: right; width: 1%; background-color: #c0c0c0"><FONT face="Arial" size=1>n/a</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1.5pt solid; text-align: left; width: 1%; background-color: #c0c0c0"></TD></TR></TABLE><BR>
<P align=justify><FONT face="Arial" size=2>Our revenues for the fourth
quarter of 2011 of $21.0 million were flat compared to the fourth quarter of
2010 as increases in our core Fuel Cell Products segment of $3.1 million were
offset by declines in Contract Automotive revenues of $2.9 million and declines
in Material Products revenues of $0.3 million.</FONT></P>
<P align=justify><FONT face="Arial" size=2>In our core Fuel Cell Products
segment, fourth quarter of 2011 revenues increased 23%, or $3.1 million, to
$16.9 million compared to the fourth quarter of 2010, primarily as a result of
our increased focus on building our engineering services business. This increase
in engineering services revenues, combined with relatively stable Stationary
power revenues, was partially offset by lower Motive power market revenues. In
our Motive power market, higher material handling revenues as a result of
increased shipments to support Plug Power Inc.&#146;s GenDrive&#153; systems were more
than offset by lower fuel cell bus revenues. Fuel cell bus revenues in the
fourth quarter of 2011 were lower than anticipated (see 2011 Revenue section) as
new fourth quarter of 2011 shipments to Van Hool NV and UNDP-EMTU Brazil, were
lower than fuel cell bus revenues in the fourth quarter of 2010 arising from
shipments to Daimler and to the Transport for London fuel cell bus program.
Stationary power revenues were relatively stable quarter over quarter as
increased shipments of Dantherm Power backup power system products including a
150kW fuel cell system supplied to Anglo American Platinum Limited, were offset
by a decline in shipments of hydrogen-based backup power units.</FONT></P>
<P align=right><FONT face="Arial" size=1>Page 3 of 38 </FONT></P>
<HR align=center width="100%" noShade SIZE=2>

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=right><IMG src="exhibit99-21x1x1.jpg" border=0></P>
<P align=justify><FONT face="Arial" size=2>The following table provides a
summary of our fourth quarter fuel cell stack shipments): </FONT></P>
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=left width="93%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; text-align: center" noWrap width="5%" colSpan=5><FONT face="Arial" size=1>Three months ended December
      31,</FONT></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="93%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><B><FONT face="Arial" size=1>2011</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face=Arial size=1>2010</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><STRONG></STRONG></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face="Arial" size=1>% Change</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="93%" bgColor=#c0c0c0><FONT face="Arial" size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Material handling</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>799</FONT></B></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>345</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>132%</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1></FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="93%"><FONT face="Arial" size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Backup
      power</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"><B><FONT face="Arial" size=1>124</FONT></B></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face="Arial" size=1>654</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face="Arial" size=1>(81%</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="93%" bgColor=#c0c0c0><FONT face="Arial" size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Distributed generation</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>7</FONT></B></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>52</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>(87%</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="93%"><FONT face="Arial" size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><B><FONT face="Arial" size=1>12</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face="Arial" size=1>68</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face="Arial" size=1>(82%</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="93%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>Fuel Cell Stack
      Shipments</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>942</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>1,119</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>(16%</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD></TR></TABLE><BR>
<P align=justify><FONT face="Arial" size=2>In our Contract Automotive and
Material Products segments, fourth quarter of 2011 revenues declined 44%, or
$3.2 million, to $4.1 million compared to the fourth quarter of 2010. Contract
Automotive segment revenues were down significantly as we completed our supply
agreement with Daimler and made the final shipments of FCvelocity 1100 fuel cell
products for Daimler&#146;s Hyway 2/3 programs in October 2011. Material Products
segment revenues were down slightly as increased volumes of carbon friction
material products were offset by lower fuel cell GDL shipments.</FONT></P>

<P STYLE="text-align: justify"><FONT face="Arial" size=2>Gross margins
declined to $4.1 million, or 20% of revenues, for the fourth quarter of 2011,
compared to $5.1 million, or 24% of revenues, for the fourth quarter of 2010.
The decline in gross margin is primarily as a result of lower shipments of
higher margin fuel cell bus units combined with lower platinum prices in
December 2011 which negatively impacted our fourth quarter platinum recycling
efforts and the mark to market value of our 2012 platinum purchase contracts.
These gross margin declines were partially offset by our ongoing product cost
reduction efforts across all of our platforms.</FONT></P>
<P align=justify><B><I><FONT face="Arial" size=2>Cash Operating Costs
</FONT></I></B></P>
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="88%"><I><FONT face="Arial" size=1>(Expressed
      in thousands of U.S. dollars)</FONT></I></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="10%" colSpan=10><FONT face="Arial" size=1>Three months ended December 31,</FONT></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="88%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" colSpan=2><B><FONT face="Arial" size=1>2011</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" colSpan=2><B><FONT face="Arial" size=1>2010</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" colSpan=2><B><FONT face="Arial" size=1>$ Change</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><B><FONT face="Arial" size=1>% Change</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top noWrap align=left width="88%" bgColor=#c0c0c0><FONT face="Arial" size=1>Research and Product</FONT></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: Silver">
    <TD vAlign=top noWrap align=left width="88%"><FONT face="Arial" size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Development</FONT></TD>
    <TD vAlign=top noWrap align=left width="1%"></TD>
    <TD vAlign=top noWrap align=left width="1%"><B><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B></TD>
    <TD vAlign=top noWrap align=right width="1%"><B><FONT face="Arial" size=1>4,169</FONT></B></TD>
    <TD vAlign=top noWrap align=left width="1%"></TD>
    <TD vAlign=top noWrap align=left width="1%"><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=top noWrap align=right width="1%"><FONT face="Arial" size=1>4,353</FONT></TD>
    <TD vAlign=top noWrap align=left width="1%"></TD>
    <TD vAlign=top noWrap align=left width="1%"><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=top noWrap align=right width="1%"><FONT face="Arial" size=1>(184</FONT></TD>
    <TD vAlign=top noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD>
    <TD vAlign=top noWrap align=right width="1%"><FONT face="Arial" size=1>(4%</FONT></TD>
    <TD vAlign=top noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: transparent">
    <TD NOWRAP STYLE="vertical-align: top; text-align: left; width: 88%"><FONT face="Arial" size=1>General and Administration</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: top; text-align: left; width: 1%"></TD>
    <TD NOWRAP STYLE="vertical-align: top; text-align: left; width: 1%"></TD>
    <TD NOWRAP STYLE="vertical-align: top; text-align: right; width: 1%"><B><FONT face="Arial" size=1>2,308</FONT></B></TD>
    <TD NOWRAP STYLE="vertical-align: top; text-align: left; width: 1%"></TD>
    <TD NOWRAP STYLE="vertical-align: top; text-align: left; width: 1%"></TD>
    <TD NOWRAP STYLE="vertical-align: top; text-align: right; width: 1%"><FONT face="Arial" size=1>3,866</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: top; text-align: left; width: 1%"></TD>
    <TD NOWRAP STYLE="vertical-align: top; text-align: left; width: 1%"></TD>
    <TD NOWRAP STYLE="vertical-align: top; text-align: right; width: 1%"><FONT face="Arial" size=1>(1,558</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: top; text-align: left; width: 1%"><FONT face="Arial" size=1>)</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: top; text-align: right; width: 1%"><FONT face="Arial" size=1>(40%</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: top; text-align: left; width: 1%"><FONT face="Arial" size=1>)</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: Silver">
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=left width="88%"><FONT face="Arial" size=1>Sales and Marketing</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=right width="1%"><B><FONT face="Arial" size=1>1,892</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=right width="1%"><FONT face="Arial" size=1>2,550</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=right width="1%"><FONT face="Arial" size=1>(658</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=right width="1%"><FONT face="Arial" size=1>(26%</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: transparent">
    <TD vAlign=top noWrap align=left width="88%"><B><FONT face="Arial" size=1>Operating costs</FONT></B></TD>
    <TD vAlign=top noWrap align=left width="1%"></TD>
    <TD vAlign=top noWrap align=left width="1%"></TD>
    <TD vAlign=top noWrap align=right width="1%"><B><FONT face="Arial" size=1>8,369</FONT></B></TD>
    <TD vAlign=top noWrap align=left width="1%"></TD>
    <TD vAlign=top noWrap align=left width="1%"></TD>
    <TD vAlign=top noWrap align=right width="1%"><FONT face="Arial" size=1>10,769</FONT></TD>
    <TD vAlign=top noWrap align=left width="1%"></TD>
    <TD vAlign=top noWrap align=left width="1%"></TD>
    <TD vAlign=top noWrap align=right width="1%"><FONT face="Arial" size=1>(2,400</FONT></TD>
    <TD vAlign=top noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD>
    <TD vAlign=top noWrap align=right width="1%"><FONT face="Arial" size=1>(22%</FONT></TD>
    <TD vAlign=top noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: Silver">
    <TD NOWRAP STYLE="border-bottom: #000000 1.5pt solid; vertical-align: top; text-align: left; width: 88%"><FONT face="Arial" size=1>Less: Stock-based
      compensation<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(expense) recovery</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: #000000 1.5pt solid; vertical-align: top; text-align: left; width: 1%"></TD>
    <TD NOWRAP STYLE="border-bottom: #000000 1.5pt solid; vertical-align: top; text-align: left; width: 1%"></TD>
    <TD NOWRAP STYLE="border-bottom: #000000 1.5pt solid; vertical-align: top; text-align: right; width: 1%"><B><FONT face="Arial" size=1>257</FONT></B></TD>
    <TD NOWRAP STYLE="border-bottom: #000000 1.5pt solid; vertical-align: top; text-align: left; width: 1%"></TD>
    <TD NOWRAP STYLE="border-bottom: #000000 1.5pt solid; vertical-align: top; text-align: left; width: 1%"></TD>
    <TD NOWRAP STYLE="border-bottom: #000000 1.5pt solid; vertical-align: top; text-align: right; width: 1%"><FONT face="Arial" size=1>(1,114</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: #000000 1.5pt solid; vertical-align: top; text-align: left; width: 1%"><FONT face="Arial" size=1>)</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: #000000 1.5pt solid; vertical-align: top; text-align: left; width: 1%"></TD>
    <TD NOWRAP STYLE="border-bottom: #000000 1.5pt solid; vertical-align: top; text-align: right; width: 1%"><FONT face="Arial" size=1>1,371</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: #000000 1.5pt solid; vertical-align: top; text-align: left; width: 1%"></TD>
    <TD NOWRAP STYLE="border-bottom: #000000 1.5pt solid; vertical-align: top; text-align: right; width: 1%"><FONT face="Arial" size=1>123%</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: #000000 1.5pt solid; vertical-align: top; text-align: left; width: 1%"><FONT face="Arial" size=1></FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: transparent">
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" vAlign=top noWrap align=left width="88%"><B><FONT face="Arial" size=1>Cash Operating
    Costs</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" vAlign=top noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" vAlign=top noWrap align=left width="1%"><B><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" vAlign=top noWrap align=right width="1%"><B><FONT face="Arial" size=1>8,626</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" vAlign=top noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" vAlign=top noWrap align=left width="1%"><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" vAlign=top noWrap align=right width="1%"><FONT face="Arial" size=1>9,655</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" vAlign=top noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" vAlign=top noWrap align=left width="1%"><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" vAlign=top noWrap align=right width="1%"><FONT face="Arial" size=1>(1,029</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" vAlign=top noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" vAlign=top noWrap align=right width="1%"><FONT face="Arial" size=1>(11%</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" vAlign=top noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD></TR></TABLE><br>
<div align=justify><FONT face="Arial" size=1>Cash Operating Costs is a non-GAAP
measure. We use certain Non-GAAP measures to assist in assessing our financial
performance. Non-GAAP measures do not have any standardized meaning prescribed
by GAAP and are therefore unlikely to be comparable to similar measures
presented by other companies. See reconciliation to GAAP in the Supplemental
Non-GAAP Measures section. Cash Operating Costs adjusts operating expenses for
stock-based compensation expense, depreciation and amortization, restructuring
charges and acquisition costs.</FONT></div>
<P align=right><FONT face="Arial" size=1>Page 4 of 38 </FONT></P>
<HR align=center width="100%" noShade SIZE=2>

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=right><IMG src="exhibit99-21x1x1.jpg" border=0></P>
<P align=justify><FONT face="Arial" size=2>Cash Operating Costs (see
Supplemental Non-GAAP Measures) for the fourth quarter of 2011 were $8.6
million, a decline of $1.0 million, or 11%, compared to the fourth quarter of
2010. The 11% reduction in the fourth quarter of 2011 was driven by lower
general and administrative and sales and marketing expenses primarily as a
result of a downward adjustment to accrued compensation expense as a result of
not achieving our corporate performance targets relating to revenue and Adjusted
EBITDA for the year.</FONT></P>
<P align=justify><FONT face="Arial" size=2>While excluded from Cash Operating
Costs, stock-based compensation expense declined significantly in the fourth
quarter of 2011 to a recovery position, as a result of a downward adjustment to
accrued share-based compensation expense as certain outstanding restricted share
units failed to meet the vesting criteria and were cancelled.</FONT></P>
<P align=justify><B><I><FONT face="Arial" size=2>Adjusted
EBITDA</FONT></I></B><FONT face="Arial" size=2> </FONT></P>
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-TOP: #000000 1.5pt solid" vAlign=top noWrap align=left width="88%"><I><FONT face="Arial" size=1>(Expressed in thousands of
      U.S. dollars)</FONT></I></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" vAlign=top noWrap align=left width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" vAlign=top noWrap align=center width="10%" colSpan=10><FONT face="Arial" size=1>Three months ended
      December 31,</FONT></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" vAlign=top noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=right width="88%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=right width="2%" colSpan=2><B><FONT face="Arial" size=1>2011</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=right width="2%" colSpan=2><FONT face="Arial" size=1>2010</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=right width="2%" colSpan=2><FONT face="Arial" size=1></FONT><FONT face="Arial" size=1>$ Change</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=right width="1%"><FONT face="Arial" size=1>% Change</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=right width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" vAlign=top noWrap align=left width="88%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>Adjusted
      EBITDA</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" vAlign=top noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>(3,765</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>)</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" vAlign=top noWrap align=center width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" vAlign=top noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>(3,588</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" vAlign=top noWrap align=center width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" vAlign=top noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>(177</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" vAlign=top noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>(5%</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD></TR></TABLE><BR>
<P align=justify><FONT face=Arial size=1>EBITDA and Adjusted EBITDA are non-GAAP
measures. We use certain Non-GAAP measures to assist in assessing our financial
performance. Non-GAAP measures do not have any standardized meaning prescribed
by GAAP and are therefore unlikely to be comparable to similar measures
presented by other companies. See reconciliation to GAAP in the Supplemental
Non-GAAP Measures section. Adjusted EBITDA adjusts EBITDA for stock-based
compensation expense, transactional gains and losses, finance and other income,
and acquisition costs.</FONT><FONT face="Arial" size=1> </FONT></P>
<P align=justify><FONT face="Arial" size=2>Adjusted EBITDA (see Supplemental
Non-GAAP Measures) for the fourth quarter of 2011 was ($3.7) million, flat
compared to the fourth quarter of 2010. Gross margin declines of $1.0 million in
the fourth quarter of 2011 were primarily a result of lower shipments of higher
margin fuel cell bus units, combined with lower platinum prices in December 2011
which negatively impacted our fourth quarter platinum recycling proceeds, and
the mark to market value of our 2012 platinum purchase contracts. This decline
in gross margin was offset by lower Cash Operating Costs of $1.0 million
primarily as a result of a downward adjustment to accrued compensation expense
as a result of not achieving our corporate performance targets relating to
revenue and Adjusted EBITDA for the year.</FONT></P>
<P align=justify><B><I><FONT face="Arial" size=2>Net loss attributable to
Ballard </FONT></I></B></P>
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=left width="90%"><I><FONT face="Arial" size=1>(Expressed in thousands of
      U.S. dollars)</FONT></I></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; text-align: center" noWrap width="10%" colSpan=10><FONT face="Arial" size=1>Three months ended December
      31,</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="90%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" colSpan=2><B><FONT face="Arial" size=1>2011</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" colSpan=2><FONT face="Arial" size=1>2010</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" colSpan=2><FONT face="Arial" size=1></FONT><FONT face="Arial" size=1>$ Change</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face="Arial" size=1>% Change</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="90%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>Net loss attributable to
      Ballard</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>(7,289</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>)</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>(8,998</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>1,709</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>19%</FONT></TD></TR></TABLE><BR>
<P align=justify><FONT face="Arial" size=2>Net loss attributable to Ballard
for the fourth quarter of 2011 was ($7.3) million, or ($0.09) per share,
compared to net loss of ($9.0) million, or ($0.11) per share, in the fourth
quarter of 2010. The $1.7 million reduction in net loss for the fourth quarter
of 2011 was driven by lower stock-based compensation expense of $1.4
million.</FONT></P>
<P align=justify><FONT face="Arial" size=2>Net loss in the fourth quarter of
2011 includes a $1.7 million impairment charge related to the write-down of
manufacturing equipment whereas net loss in the fourth quarter of 2010 includes
an acceleration of depreciation expense of $2.3 million. </FONT></P>
<P align=right><FONT face="Arial" size=1>Page 5 of 38 </FONT></P>
<HR align=center width="100%" noShade SIZE=2>

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=right><IMG src="exhibit99-21x1x1.jpg" border=0></P>
<P align=justify><B><I><FONT face="Arial" size=2>Cash provided by operating
activities</FONT></I></B><FONT face="Arial" size=2> </FONT></P>
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=left width="90%"><I><FONT face="Arial" size=1>(Expressed in thousands of
      U.S. dollars)</FONT></I></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; text-align: center" noWrap width="10%" colSpan=10><FONT face="Arial" size=1>Three months ended December
      31,</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="90%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" colSpan=2><B><FONT face="Arial" size=1>2011</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" colSpan=2><FONT face="Arial" size=1>2010</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" colSpan=2><FONT face="Arial" size=1></FONT><FONT face="Arial" size=1>$ Change</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face="Arial" size=1>% Change</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="90%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>Cash provided by operating
      activities</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1><b>$</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>3,876</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face="Arial" size=1></FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>1,794</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>2,082</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>116%</FONT></TD></TR></TABLE><BR>
<P align=justify><FONT face="Arial" size=2>Cash provided by operating
activities in the fourth quarter of 2011 was $3.9 million, an increase of $2.1
million compared to cash provided by operating activities of $1.8 million in the
fourth quarter of 2010. The $2.1 million increase was driven by improvements in
changes of working capital of $1.7 million combined with reductions in cash
operating losses of $0.4 million.</FONT></P>
<P align=justify><B><FONT face="Arial" size=2>RESULTS OF OPERATIONS &#150; 2011
</FONT></B></P>
<P align=justify><B><I><FONT face="Arial" size=2>Revenue and gross margin
</FONT></I></B></P>
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="89%"><EM><FONT face=Arial size=1>(Expressed in thousands of U.S. dollars)</FONT></EM></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="11%" colSpan=11><FONT face=Arial size=1>Years ended December 31,</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="89%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><B><FONT face="Arial" size=1>2011</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" colSpan=2><B><FONT face="Arial" size=1>2010</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" colSpan=2><FONT face="Arial" size=1>$ Change</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face="Arial" size=1>% Change</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="89%" bgColor=#c0c0c0><FONT face="Arial" size=1>Fuel Cell Products</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>46,468</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>34,244</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>12,224</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>36%</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1></FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="89%"><FONT face="Arial" size=1>Contract
      Automotive</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="1%"><B><FONT face="Arial" size=1>9,305</FONT></B></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face="Arial" size=1>9,811</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face="Arial" size=1>(506</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD>
    <TD noWrap align=right width="1%"><FONT face="Arial" size=1>(5%</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="89%" bgColor=#c0c0c0><FONT face="Arial" size=1>Material Products</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>20,236</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>20,964</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>(728</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>(3%</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="89%"><B><FONT face="Arial" size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Revenues</FONT></B></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="1%"><B><FONT face="Arial" size=1>76,009</FONT></B></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face="Arial" size=1>65,019</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face="Arial" size=1>10,990</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face="Arial" size=1>17%</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=1></FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="89%" bgColor=#c0c0c0><FONT face="Arial" size=1>Cost of goods sold</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>62,124</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>54,887</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>7,237</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>13%</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1></FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="89%"><B><FONT face="Arial" size=1>Gross Margin</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><B><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><B><FONT face="Arial" size=1>13,885</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><FONT face="Arial" size=1>10,132</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><FONT face="Arial" size=1>3,753</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><FONT face="Arial" size=1>37%</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1></FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="89%" bgColor=#c0c0c0><FONT face="Arial" size=1>Gross Margin %</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>18%</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face="Arial" size=1></FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>16%</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>n/a</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>n/a</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR></TABLE><BR>
<P align=justify><FONT face="Arial" size=2>Our revenues in 2011 increased
17%, or $11.0 million, to $76.0 million, compared to $65.0 million for 2010. The
17% increase was driven by increases in our core Fuel Cell Products segment of
36%, or $12.2 million, which more than offset minor declines in our Contract
Automotive and Material Products revenues.</FONT></P>
<P align=justify><FONT face="Arial" size=2>While revenue growth for the year
of 17% was less than expected, and less than our original 2011 full year
guidance for growth in excess of 30%, the negative variance was largely
attributable to delays in the timing of module shipments (particularly fuel cell
bus modules to Brazil) initially planned in 2011 that are now expected in 2012.
While we achieved significant revenue growth in 2011, the heightened risk
factors to our original 2011 revenue guidance that were identified in our third
quarter of 2011 Outlook update, ultimately ended up materializing. In
particular, delays in the timing of completion of negotiations with Sao Paulo
Transit Agency in Brazil for a 10 to 30 fuel cell bus RFP, resulted in the
deferral of approximately $5 million of expected 2011 fuel cell bus module
shipments. In addition, unexpected delays in the closing of fuel cell bus
contracts in the United States and Europe, and planned backup power system
contracts in Dantherm Power, resulted in an additional deferral of approximately
$3.5 million from 2011. While delays in the timing of planned shipments
negatively impacted 2011 results, these delays had a positive impact on our
year-end 12-month order book which increased to $45.3 million, an improvement of
29% over 2010. </FONT></P>
<P align=right><FONT face="Arial" size=1>Page 6 of 38 </FONT></P>
<HR align=center width="100%" noShade SIZE=2>

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=right><IMG src="exhibit99-21x1x1.jpg" border=0></P>
<P align=justify><FONT face="Arial" size=2>In our core Fuel Cell Products
segment, 2011 revenues improved 36%, or $12.2 million, to $46.5 million compared
to 2010, due to improvements in both our Motive power and Stationary power
markets, combined with our increased focus on building our engineering services
business. Motive power market increases were driven by higher fuel cell bus
revenues as a result of new shipments in 2011 to Tuttotrasporti, Van Hool NV,
UNDP, Daimler and FTA National Fuel Cell Bus Programs, partially offset by
slightly lower material handling market revenues. Material handling revenues
were down slightly due to a decline in service revenues and a change in sales
mix to lower power units, which offset the overall impact of the increase in
volume in support of Plug Power Inc.&#146;s GenDrive&#153; systems. Stationary power
revenues increased as a result of a change in sales mix to larger scale
hydrogen-based backup power units which offset the overall impact of the decline
in volume, increased shipments of distributed generation units, increased
shipments of Dantherm Power backup power systems, and work performed on the K2
Pure Solutions and Toyota distributed power CLEARgen&#153; fuel cell system
projects.</FONT></P>
<P align=justify><FONT face="Arial" size=2>The following table provides a
summary of our fuel cell stack shipments for the year: </FONT></P>
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=left width="94%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; text-align: center" noWrap width="5%" colSpan=5><FONT face="Arial" size=1>Years ended December 31,</FONT></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="94%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><B><FONT face="Arial" size=1>2011</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face=Arial size=1>2010</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face="Arial" size=1>% Change</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="94%" bgColor=#c0c0c0><FONT face="Arial" size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Material handling</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>1,422</FONT></B></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>1,100</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>29%</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1></FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="94%"><FONT face="Arial" size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Backup
      power</FONT></TD>
    <TD noWrap align=right width="1%"><B><FONT face="Arial" size=1>1,447</FONT></B></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face="Arial" size=1>1,664</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face="Arial" size=1>(13%</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="94%" bgColor=#c0c0c0><FONT face="Arial" size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Distributed generation</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>176</FONT></B></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>52</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>238%</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1></FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="94%"><FONT face="Arial" size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><B><FONT face="Arial" size=1>220</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face="Arial" size=1>198</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face="Arial" size=1>11%</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1></FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="94%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>Fuel Cell Stack
      Shipments</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>3,265</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>3,014</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>8%</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1></FONT></TD></TR></TABLE><BR>
<P align=justify><FONT face="Arial" size=2>In our Contract Automotive and
Material Products segments, 2011 revenues declined 4%, or $1.2 million, to $29.5
million, compared to 2010. Contract Automotive segment revenues of $9.3 million
were down 5%, or $0.5 million, due to slightly lower shipments of FCvelocity
1100 fuel cell products to Daimler. As we have now completed all FCvelocity 1100
shipments to Daimler under our initial supply agreement, this segment will cease
to be an operating unit as of the end of 2011. Material Products segment
revenues of $20.2 million were down 3%, or $0.7 million, as increased shipments
of fuel cell GDL products were offset by lower carbon friction material product
revenues. </FONT></P>
<P align=justify><FONT face="Arial" size=2>Gross margins increased to $13.9
million, or 18% of revenues, for 2011, compared to $10.1 million, or 16% of
revenues, for 2010. The increase in gross margin is primarily as a result of
increased revenues in all of our Fuel Cell Products markets (except material
handling) including increased shipments of higher margin fuel cell bus modules,
combined with our ongoing product cost reduction efforts across all of our
platforms, lower unabsorbed manufacturing overhead as a result of the higher
overall volume, and improved warranty performance on our material handling and
backup power products. These gross margin improvements were partially offset by
lower margins in our Material Products segment. </FONT></P>
<P align=right><FONT face="Arial" size=1>Page 7 of 38 </FONT></P>
<HR align=center width="100%" noShade SIZE=2>

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=right><IMG src="exhibit99-21x1x1.jpg" border=0></P>
<P align=justify><B><I><FONT face="Arial" size=2>Cash Operating Costs
</FONT></I></B></P>
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=left width="89%"><I><FONT face="Arial" size=1>(Expressed in thousands of U.S. dollars)</FONT></I></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="10%" colSpan=10><FONT face="Arial" size=1>Years ended December 31,</FONT></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=right width="89%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=right width="1%"><B><FONT face="Arial" size=1>2011</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=right width="1%"><B><FONT face="Arial" size=1>2010</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=right width="1%"><B><FONT face="Arial" size=1>$ Change</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=right width="1%"><B><FONT face="Arial" size=1>% Change</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=right width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top noWrap align=left width="89%" bgColor=#c0c0c0><FONT face="Arial" size=1>Research and Product
      <BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Development</FONT></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B></TD>
    <TD vAlign=top noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>21,623</FONT></B></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=top noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>23,766</FONT></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=top noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>(2,143</FONT></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD>
    <TD vAlign=top noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>(9%</FONT></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top noWrap align=left width="89%"><FONT face="Arial" size=1>General and Administration</FONT></TD>
    <TD vAlign=top noWrap align=left width="1%"></TD>
    <TD vAlign=top noWrap align=right width="1%"><B><FONT face="Arial" size=1>10,838</FONT></B></TD>
    <TD vAlign=top noWrap align=left width="1%"></TD>
    <TD vAlign=top noWrap align=left width="1%"></TD>
    <TD vAlign=top noWrap align=right width="1%"><FONT face="Arial" size=1>13,044</FONT></TD>
    <TD vAlign=top noWrap align=left width="1%"></TD>
    <TD vAlign=top noWrap align=left width="1%"></TD>
    <TD vAlign=top noWrap align=right width="1%"><FONT face="Arial" size=1>(2,206</FONT></TD>
    <TD vAlign=top noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD>
    <TD vAlign=top noWrap align=right width="1%"><FONT face="Arial" size=1>(17%</FONT></TD>
    <TD vAlign=top noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=left width="89%" bgColor=#c0c0c0><FONT face="Arial" size=1>Sales and
      Marketing</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>9,487</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>8,847</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>640</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>7%</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1></FONT></TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top noWrap align=left width="89%"><B><FONT face="Arial" size=1>Operating costs</FONT></B></TD>
    <TD vAlign=top noWrap align=left width="1%"></TD>
    <TD vAlign=top noWrap align=right width="1%"><B><FONT face="Arial" size=1>41,948</FONT></B></TD>
    <TD vAlign=top noWrap align=left width="1%"></TD>
    <TD vAlign=top noWrap align=left width="1%"></TD>
    <TD vAlign=top noWrap align=right width="1%"><FONT face="Arial" size=1>45,657</FONT></TD>
    <TD vAlign=top noWrap align=left width="1%"></TD>
    <TD vAlign=top noWrap align=left width="1%"></TD>
    <TD vAlign=top noWrap align=right width="1%"><FONT face="Arial" size=1>(3,709</FONT></TD>
    <TD vAlign=top noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD>
    <TD vAlign=top noWrap align=right width="1%"><FONT face="Arial" size=1>(8%</FONT></TD>
    <TD vAlign=top noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" vAlign=top noWrap align=left width="89%" bgColor=#c0c0c0><FONT face="Arial" size=1>Less: Stock-based
      compensation</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" vAlign=top noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>(2,646</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>)</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" vAlign=top noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>(3,579</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" vAlign=top noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>933</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" vAlign=top noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>26%</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1></FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" vAlign=top noWrap align=left width="89%"><B><FONT face="Arial" size=1>Cash Operating
    Costs</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" vAlign=top noWrap align=left width="1%"><B><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" vAlign=top noWrap align=right width="1%"><B><FONT face="Arial" size=1>39,302</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" vAlign=top noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" vAlign=top noWrap align=left width="1%"><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" vAlign=top noWrap align=right width="1%"><FONT face="Arial" size=1>42,078</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" vAlign=top noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" vAlign=top noWrap align=left width="1%"><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" vAlign=top noWrap align=right width="1%"><FONT face="Arial" size=1>(2,776</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" vAlign=top noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" vAlign=top noWrap align=right width="1%"><FONT face="Arial" size=1>(7%</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" vAlign=top noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD></TR></TABLE><br>
<P align=justify><FONT face="Arial" size=1>Cash Operating Costs is a non-GAAP
measure. We use certain Non-GAAP measures to assist in assessing our financial
performance. Non-GAAP measures do not have any standardized meaning prescribed
by GAAP and are therefore unlikely to be comparable to similar measures
presented by other companies. See reconciliation to GAAP in the Supplemental
Non-GAAP Measures section. Cash Operating Costs adjusts operating expenses for
stock-based compensation expense, depreciation and amortization, restructuring
charges and acquisition costs.</FONT></P>
<P align=justify><FONT face="Arial" size=2>Cash Operating Costs (see
Supplemental Non-GAAP Measures) for 2011 were $39.3 million, a decline of $2.8
million, or 7%, compared to 2010. The 7% reduction in 2011 was primarily as a
result of operational efficiencies, the aggressive pursuit of government funding
for our research and product development efforts, the redirection of engineering
resources to revenue bearing engineering service projects, lower accrued
compensation expense as a result of not achieving our corporate performance
targets relating to revenue and Adjusted EBITDA for the year, and by lower
operating costs in Dantherm Power as a result of our cost reduction efforts in
the third quarter of 2010 which included a 25% workforce reduction. These
expense reductions in 2011 were partially offset by increased investment in
sales and marketing capacity in support of commercial efforts, and by the
negative effects (approximately $2.0 million) of a 4% stronger Canadian dollar
relative to the U.S. dollar on our Canadian operating cost base.</FONT></P>
<P align=justify><FONT face="Arial" size=2>While excluded from Cash Operating
Costs, stock-based compensation expense declined 26% in 2011, as compared to
2010, as a result of lower accrued share-based compensation expense as certain
outstanding restricted share units failed to meet the vesting criteria and were
cancelled.</FONT></P>
<P align=justify><B><I><FONT face="Arial" size=2>Adjusted
EBITDA</FONT></I></B><FONT face="Arial" size=2> </FONT></P>
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=left width="90%"><I><FONT face="Arial" size=1>(Expressed in thousands of
      U.S. dollars)</FONT></I></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; text-align: center" noWrap width="10%" colSpan=10><FONT face="Arial" size=1>Years ended December
  31,</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="90%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" colSpan=2><B><FONT face="Arial" size=1>2011</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" colSpan=2><FONT face="Arial" size=1>2010</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" colSpan=2><FONT face="Arial" size=1></FONT><FONT face="Arial" size=1>$ Change</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face="Arial" size=1>% Change</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="90%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>Adjusted
    EBITDA</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>(22,295</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>)</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>(26,163</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>3,868</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>15%</FONT></TD></TR></TABLE><br>
<P align=justify><FONT face="Arial" size=1>EBITDA and Adjusted EBITDA are
non-GAAP measures. We use certain Non-GAAP measures to assist in assessing our
financial performance. Non-GAAP measures do not have any standardized meaning
prescribed by GAAP and are therefore unlikely to be comparable to similar
measures presented by other companies. See reconciliation to GAAP in the
Supplemental Non-GAAP Measures section. Adjusted EBITDA adjusts EBITDA for
stock-based compensation expense, transactional gains and losses, finance and
other income, and acquisition costs. </FONT></P>
<P align=justify><FONT face="Arial" size=2>Adjusted EBITDA (see Supplemental
Non-GAAP Measures) for 2011 was ($22.3) million, an improvement of $3.9 million,
or 15%, compared to 2010. The 15% reduction in Adjusted EBITDA loss in 2011 was
driven by gross margin improvements of $3.8 million primarily as a result of the
17% increase in revenues, and by lower Cash Operating Costs of $2.8 million
primarily as a result of our continued cost optimization efforts, which more
than offset the negative impacts (approximately $2.0 million) of a 4% stronger
Canadian dollar relative to the U.S. dollar on our Canadian operating cost base.
A 1% increase in the Canadian dollar, relative to the U.S. dollar, negatively
impacts annual Cash Operating Costs and Adjusted EBITDA by approximately $0.4
million to $0.5 million. These improvements in Adjusted EBITDA were partially
offset by restructuring charges of $1.4 million in 2011, relating to a corporate
leadership restructuring initiated in September 2011 and a Dantherm Power
leadership restructuring initiated in March 2011, and by a decline in the net
loss attributable to Dantherm Power&#146;s non-controlling interests of $1.2
million.</FONT></P>
<P align=right><FONT face="Arial" size=1>Page 8 of 38 </FONT></P>
<HR align=center width="100%" noShade SIZE=2>

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=right><IMG src="exhibit99-21x1x1.jpg" border=0></P>
<P align=justify><FONT face="Arial" size=2>As part of our focus on
profitability, we have taken steps to reduce our cost base in 2011. In addition
to the measures taken earlier in the year at Dantherm Power to streamline its
organization with the reduction in the number of executive officers, a similar
action was taken at corporate headquarters in September of 2011, with a
reduction in the number of executive officers from six to five. These actions
have resulted in the above noted restructuring charge of $1.4 million for the
year.</FONT></P>
<P align=justify><FONT face="Arial" size=2>While improvement in Adjusted
EBITDA of 15% for the year was less than expected and less than our original
2011 full year guidance for improvement in excess of 40%, the negative variance
was largely attributable to the above noted delays in the timing of fuel cell
bus shipments, combined with the above noted negative foreign exchange impacts
of approximately $2.0 million and restructuring charges of $1.4 million that we
were unable to offset. The heightened risk factors to our original 2011 Adjusted
EBITDA guidance that were identified in our third quarter of 2011 Outlook update
ultimately ended up materializing.</FONT></P>
<P align=justify><B><I><FONT face="Arial" size=2>Net loss attributable to
Ballard </FONT></I></B></P>
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=left width="89%"><I><FONT face="Arial" size=1>(Expressed in thousands of
      U.S. dollars)</FONT></I></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; text-align: center" noWrap width="10%" colSpan=10><FONT face="Arial" size=1>Years ended December 31,</FONT></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; text-align: center" noWrap width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="89%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" colSpan=2><B><FONT face="Arial" size=1>2011</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" colSpan=2><FONT face="Arial" size=1>2010</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" colSpan=2><FONT face="Arial" size=1></FONT><FONT face="Arial" size=1>$ Change</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face="Arial" size=1>% Change</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="89%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>Net loss attributable to
      Ballard</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>(33,420</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>)</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>(31,532</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>(1,888</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=1>)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>(6%</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=1>)</FONT></TD></TR></TABLE><BR>
<P align=justify><FONT face="Arial" size=2>Net loss attributable to Ballard
for 2011 was ($33.4) million, or ($0.40) per share, compared to net loss of
($31.5) million, or ($0.37) per share, in 2010. Net loss in 2010 includes a $4.8
million transactional gain related to the monetization of the Share Purchase
Agreement with Ford, as well as a gain on sale of property, plant and
equipment</FONT><B><I><FONT face="Arial" size=2> </FONT></I></B><FONT face="Arial" size=2>of $3.3 million related to the land portion of the sale
and leaseback of our head office building. Net loss in 2011 includes a $1.7
million impairment charge related to a write-down of manufacturing
equipment.</FONT></P>
<P align=justify><FONT face="Arial" size=2>Excluding the impact of these
transactional gains of $8.1 million in 2010 and impairment charges of $1.7
million in 2011, Normalized Net Loss (see Supplemental Non-GAAP Measures) in
2011 would have improved by $7.9 million, or 20%, as compared to
2010.</FONT></P>
<P align=justify><B><I><FONT face="Arial" size=2>Cash used by operating
activities </FONT></I></B></P>
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=left width="89%"><I><FONT face="Arial" size=1>(Expressed in thousands of
      U.S. dollars)</FONT></I></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; text-align: center" noWrap width="10%" colSpan=10><FONT face="Arial" size=1>Years ended December 31,</FONT></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; text-align: center" noWrap width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="89%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" colSpan=2><B><FONT face="Arial" size=1>2011</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" colSpan=2><FONT face="Arial" size=1>2010</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" colSpan=2><FONT face="Arial" size=1></FONT><FONT face="Arial" size=1>$ Change</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face="Arial" size=1>% Change</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="89%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>Cash used by operating
      activities</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1><b>$</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>(33,221</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>)</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>(29,312</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>(3,909</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=1>)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>(13%</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=1>)</FONT></TD></TR></TABLE><BR>
<P align=justify><FONT face="Arial" size=2>Cash used by operating activities
in 2011 increased by ($3.9) million to ($33.2) million, compared to ($29.3)
million for 2010. The increase in cash used by operating activities of ($3.9)
million was driven by increased working capital requirements of ($10.2) million,
which more than offset reductions in cash operating losses of $6.3
million.</FONT></P>
<P align=right><FONT face="Arial" size=1>Page 9 of 38 </FONT></P>
<HR align=center width="100%" noShade SIZE=2>

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=right><IMG src="exhibit99-21x1x1.jpg" border=0></P>
<P align=justify><FONT face="Arial" size=2>Total working capital requirements
of ($6.7) million in 2011 were driven by higher accounts receivable of $4.3
million as a result of the timing of revenues and the related customer
collections, combined with increased inventory levels of $1.3 million to support
future growth. This compares to total working capital sources of $3.5 million in
2010.</FONT></P>
<P align=justify><B><FONT face="Arial" size=2>OPERATING EXPENSES AND OTHER
ITEMS</FONT></B></P>
<P align=justify><B><I><FONT face="Arial" size=2>Research and product
development expenses </FONT></I></B></P>
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=left width="89%"><I><FONT face="Arial" size=1>(Expressed in thousands of
      U.S. dollars)</FONT></I></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; text-align: center" noWrap width="10%" colSpan=10><FONT face="Arial" size=1>Three months ended December
      31,</FONT></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; text-align: center" noWrap width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="89%"><B><FONT face="Arial" size=1>Research and product
      development</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" colSpan=2><B><FONT face="Arial" size=1>2011</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" colSpan=2><FONT face="Arial" size=1>2010</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" colSpan=2><FONT face="Arial" size=1>$ Change</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face="Arial" size=1>% Change</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="89%" bgColor=#c0c0c0><FONT face="Arial" size=1>Research and product development expense</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>5,125</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>6,887</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>(1,762</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>(26%</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="89%"><FONT face="Arial" size=1>Less: depreciation and
      amortization expense</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><B><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><B><FONT face="Arial" size=1>(956</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><B><FONT face="Arial" size=1>)</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face="Arial" size=1>(2,534</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face="Arial" size=1>1,578</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face="Arial" size=1>62%</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1></FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="89%" bgColor=#c0c0c0><FONT face="Arial" size=1>Research and product
      development</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>4,169</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>4,353</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>(184</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>(4%</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD></TR>
  <TR>
    <TD width="100%" colSpan=12>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=left width="89%"><I><FONT face="Arial" size=1>(Expressed in thousands of
      U.S. dollars)</FONT></I></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; text-align: center" noWrap width="10%" colSpan=10><FONT face="Arial" size=1>Years ended December 31,</FONT></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; text-align: center" noWrap width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="89%"><B><FONT face="Arial" size=1>Research and product
      development</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" colSpan=2><B><FONT face="Arial" size=1>2011</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" colSpan=2><FONT face="Arial" size=1>2010</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" colSpan=2><FONT face="Arial" size=1></FONT><FONT face="Arial" size=1>$ Change</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face="Arial" size=1>% Change</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="89%" bgColor=#c0c0c0><FONT face="Arial" size=1>Research and product development expense</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>25,480</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>28,749</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>(3,269</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>(11%</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="89%"><FONT face="Arial" size=1>Less: depreciation and
      amortization expense</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><B><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><B><FONT face="Arial" size=1>(3,857</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><B><FONT face="Arial" size=1>)</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face="Arial" size=1>(4,983</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face="Arial" size=1>1,126</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face="Arial" size=1>23%</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1></FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="89%" bgColor=#c0c0c0><FONT face="Arial" size=1>Research and product
      development</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>21,623</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>23,766</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>(2,143</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>(9%</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD></TR></TABLE><BR>
<P align=justify><FONT face="Arial" size=2>Research and product development
expenses for the three months ended December 31, 2011 were $5.1 million, a
decrease of $1.8 million, or 26%, compared to the corresponding period of 2010.
Excluding depreciation and amortization expense of $1.0 million and $2.5
million, respectively, research and product development expense declined $0.2
million, or 4%, compared to 2010. Depreciation and amortization expense of $2.5
million in the fourth quarter of 2010 includes a charge related to the
acceleration of depreciation expense of $1.5 million for research and product
development assets that were considered no longer in use or impaired.</FONT></P>
<P align=justify><FONT face="Arial" size=2>Research and product development
expenses for the year ended December 31, 2011 were $25.5 million, a decrease of
$3.3 million, or 11%, compared to 2010. Excluding depreciation and amortization
expense of $3.9 million and $5.0 million, respectively, research and product
development expense declined $2.1 million, or 9%, compared to 2010.</FONT></P>
<P align=justify><FONT face="Arial" size=2>The respective 4% and 9%
reductions in 2011 were primarily as a result of the aggressive pursuit of
government funding for our research and product development efforts, the
redirection of engineering resources to revenue bearing engineering service
projects, lower operating costs in Dantherm Power as a result of our cost
reduction efforts in the third quarter of 2010 which included a 25% workforce
reduction, and downward adjustments to accrued share-based and cash-based
compensation expense in 2011 as a result of not achieving our corporate
performance targets relating to revenue and Adjusted EBITDA for the year.
</FONT></P>
<P align=right><FONT face="Arial" size=1>Page 10 of 38 </FONT></P>
<HR align=center width="100%" noShade SIZE=2>

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=right><IMG src="exhibit99-21x1x1.jpg" border=0></P>
<P align=justify><FONT face="Arial" size=2>Government research funding is
reflected as a cost offset to research and product development expenses. These
expense reductions and improved cost recoveries in 2011 were partially offset by
the negative effects of a 4% stronger Canadian dollar relative to the U.S.
dollar on our Canadian operating cost base.</FONT></P>
<P align=justify><B><I><FONT face="Arial" size=2>General and administrative
expenses </FONT></I></B></P>
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=left width="89%"><I><FONT face="Arial" size=1>(Expressed in thousands of
      U.S. dollars)</FONT></I></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; text-align: center" noWrap width="10%" colSpan=10><FONT face="Arial" size=1>Three months ended December
      31,</FONT></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="89%"><B><FONT face="Arial" size=1>General and
      administrative</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" colSpan=2><B><FONT face="Arial" size=1>2011</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" colSpan=2><FONT face="Arial" size=1>2010</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" colSpan=2><FONT face="Arial" size=1></FONT><FONT face="Arial" size=1>$ Change</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face="Arial" size=1>% Change</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="89%" bgColor=#c0c0c0><FONT face="Arial" size=1>General and administrative expense</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>2,464</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>5,026</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>(2,562</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>(51%</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="89%"><FONT face="Arial" size=1>Less:
      Depreciation and amortization expense</FONT></TD>
    <TD noWrap align=left width="1%"><B><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B></TD>
    <TD noWrap align=right width="1%"><B><FONT face="Arial" size=1>(77</FONT></B></TD>
    <TD noWrap align=left width="1%"><B><FONT face="Arial" size=1>)</FONT></B></TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD noWrap align=right width="1%"><FONT face="Arial" size=1>(1,160</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD noWrap align=right width="1%"><FONT face="Arial" size=1>1,083</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face="Arial" size=1>93%</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=1></FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="89%" bgColor=#c0c0c0><FONT face="Arial" size=1>Less: Restructuring
      expense</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>(79</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>)</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>-</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>(79</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>n/a</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="89%"><FONT face="Arial" size=1>General and
    administrative</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><B><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><B><FONT face="Arial" size=1>2,308</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><FONT face="Arial" size=1>3,866</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><FONT face="Arial" size=1>(1,558</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><FONT face="Arial" size=1>(40%</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD></TR>
  <TR>
    <TD width="100%" colSpan=12>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=left width="89%"><I><FONT face="Arial" size=1>(Expressed in thousands of
      U.S. dollars)</FONT></I></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; text-align: center" noWrap width="10%" colSpan=10><FONT face="Arial" size=1>Years ended December 31,</FONT></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="89%"><B><FONT face="Arial" size=1>General and
      administrative</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" colSpan=2><B><FONT face="Arial" size=1>2011</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" colSpan=2><FONT face="Arial" size=1>2010</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face="Arial" size=1></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face="Arial" size=1>$ Change</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face="Arial" size=1>% Change</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="89%" bgColor=#c0c0c0><FONT face="Arial" size=1>General and administrative expense</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>12,500</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>14,777</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>(2,277</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>(15%</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="89%"><FONT face="Arial" size=1>Less:
      Depreciation and amortization expense</FONT></TD>
    <TD noWrap align=left width="1%"><B><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B></TD>
    <TD noWrap align=right width="1%"><B><FONT face="Arial" size=1>(306</FONT></B></TD>
    <TD noWrap align=left width="1%"><B><FONT face="Arial" size=1>)</FONT></B></TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD noWrap align=right width="1%"><FONT face="Arial" size=1>(1,448</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD noWrap align=right width="1%"><FONT face="Arial" size=1>1,142</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face="Arial" size=1>79%</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=1></FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="89%" bgColor=#c0c0c0><FONT face="Arial" size=1>Less: Restructuring
      expense</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>(1,356</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>)</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>(285</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>(1,071</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>376%</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1></FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="89%"><FONT face="Arial" size=1>General and
    administrative</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><B><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><B><FONT face="Arial" size=1>10,838</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><FONT face="Arial" size=1>13,044</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><FONT face="Arial" size=1>(2,206</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><FONT face="Arial" size=1>(17%</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD></TR></TABLE><BR>
<P align=justify><FONT face="Arial" size=2>General and
administrative</FONT><B><FONT face="Arial" size=2> </FONT></B><FONT face="Arial" size=2>expenses for the three months ended December 31, 2011
were $2.5 million, a decrease of $2.6 million, or 51%, compared to the
corresponding period of 2010. Excluding depreciation and amortization expense
and restructuring charges, general and administrative expense declined $1.6
million, or 40%, compared to 2010. The 40% reduction in the fourth quarter of
2011 was driven by downward adjustments to accrued share-based and cash-based
compensation expense in 2011 as a result of not achieving our corporate
performance targets relating to revenue and Adjusted EBITDA for the year,
combined with lower impairment losses on trade receivables. General and
administrative expense includes impairment losses on trade receivables of $0.3
million and $0.7 million, respectively, in the fourth quarters of 2011 and 2010.
Depreciation and amortization expense of $1.2 million in the fourth quarter of
2010 includes a charge related to the acceleration of depreciation expense of
$0.8 million for information technology assets that were considered no longer in
use or impaired. </FONT></P>
<P align=justify><FONT face="Arial" size=2>General and administrative
expenses for the year ended December 31, 2011 were $12.5 million, a decrease of
$2.3 million, or 15%, compared to 2010. Excluding depreciation and amortization
expense and restructuring charges, general and administrative expense declined
$2.2 million, or 17%, compared to 2010. The 17% expense reduction in 2011 was
driven by lower accrued compensation expense combined with lower impairment
losses on trade receivables and the continued cost optimization efforts across
the company. General and administrative expense includes impairment losses on
trade receivables of $0.1 million and $0.7 million, respectively, in 2011 and
2010. These expense reductions were partially offset by the negative effects of
a 4% stronger Canadian dollar relative to the U.S. dollar on our Canadian
operating cost base.</FONT></P>
<P align=right><FONT face="Arial" size=1>Page 11 of 38 </FONT></P>
<HR align=center width="100%" noShade SIZE=2>

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=right><IMG src="exhibit99-21x1x1.jpg" border=0></P>
<P align=justify><FONT face="Arial" size=2>Restructuring charges of $1.4
million in 2011 relate to a Dantherm Power leadership restructuring initiated in
March 2011 and a corporate leadership restructuring initiated in September 2011,
whereas the restructuring charge of $0.3 million in 2010 relates to a 25%
workforce reduction initiated at Dantherm Power in August 2010. </FONT></P>
<P align=justify><B><I><FONT face="Arial" size=2>Sales and marketing expenses
</FONT></I></B></P>
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=left width="89%"><I><FONT face="Arial" size=1>(Expressed in thousands of
      U.S. dollars)</FONT></I></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; text-align: center" noWrap width="10%" colSpan=10><FONT face="Arial" size=1>Three months ended December
      31,</FONT></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="89%"><B><FONT face="Arial" size=1>Sales and
    marketing</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" colSpan=2><B><FONT face="Arial" size=1>2011</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" colSpan=2><FONT face="Arial" size=1>2010</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" colSpan=2><FONT face="Arial" size=1>$ Change</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face="Arial" size=1>% Change</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="89%" bgColor=#c0c0c0><FONT face="Arial" size=1>Sales and marketing expense</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>1,892</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>2,734</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>(842</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>(31%</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="89%"><FONT face="Arial" size=1>Less: acquisition costs</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><B><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><B><FONT face="Arial" size=1>-</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face="Arial" size=1>(184</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face="Arial" size=1>184</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face="Arial" size=1>100%</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1></FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="89%" bgColor=#c0c0c0><FONT face="Arial" size=1>Sales and marketing</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>1,892</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>2,550</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>(658</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>(26%</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD></TR>
  <TR>
    <TD width="100%" colSpan=12>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=left width="89%"><I><FONT face="Arial" size=1>(Expressed in thousands of
      U.S. dollars)</FONT></I></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; text-align: center" noWrap width="10%" colSpan=10><FONT face="Arial" size=1>Years ended December 31,</FONT></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="89%"><B><FONT face="Arial" size=1>Sales and
    marketing</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" colSpan=2><B><FONT face="Arial" size=1>2011</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" colSpan=2><FONT face="Arial" size=1>2010</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" colSpan=2><FONT face="Arial" size=1>$ Change</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face="Arial" size=1>% Change</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="89%" bgColor=#c0c0c0><FONT face="Arial" size=1>Sales and marketing expense</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>9,487</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>9,113</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>374</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>4%</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1></FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="89%"><FONT face="Arial" size=1>Less: acquisition costs</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><B><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><B><FONT face="Arial" size=1>-</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face="Arial" size=1>(266</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face="Arial" size=1>(266</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face="Arial" size=1>100%</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1></FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="89%" bgColor=#c0c0c0><FONT face="Arial" size=1>Sales and marketing</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>9,487</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>8,847</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>640</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>7%</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1></FONT></TD></TR></TABLE><BR>
<P align=justify><FONT face="Arial" size=2>Sales and
marketing</FONT><B><I><FONT face="Arial" size=2> </FONT></I></B><FONT face="Arial" size=2>expenses for the three months ended December 31, 2011
were $1.9 million, a decrease of $0.8 million, or 31% compared to the
corresponding period of 2010. The 31% reduction in the fourth quarter of 2011
was driven by downward adjustments to accrued share-based and cash-based
compensation expense as a result of not achieving our corporate performance
targets relating to revenue and Adjusted EBITDA for the year. </FONT></P>
<P align=justify><FONT face="Arial" size=2>Sales and
marketing</FONT><B><I><FONT face="Arial" size=2> </FONT></I></B><FONT face="Arial" size=2>expenses for 2011 were $9.5 million, an increase of $0.4
million, or 4% compared to 2010. The 4% increase in 2011 was primarily as a
result of increased investment in sales and marketing capacity in support of
commercial efforts, combined with the negative effects of a 4% stronger Canadian
dollar relative to the U.S. dollar on our Canadian operating cost base. This
increase was partially offset by lower accrued compensation expenses and
acquisition costs of $0.3 million in 2010 related to costs incurred for the
acquisition of Dantherm Power. </FONT></P>
<P align=justify><B><I><FONT face="Arial" size=2>Finance and other income
(loss)</FONT></I></B><B><FONT face="Arial" size=2> </FONT></B><FONT face="Arial" size=2>for the three months ended December, 2011 were $0.1
million, a decrease of $0.5 million, compared to the corresponding period of
2010. Finance and other income (loss)</FONT><B><FONT face="Arial" size=2>
</FONT></B><FONT face="Arial" size=2>for the year ended December 31, 2011
were $0.2 million, an increase of $0.3 million, compared to 2010. The following
table provides a breakdown of our finance and other income (loss) for the
reported periods: </FONT></P>
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=left width="94%"><I><FONT face="Arial" size=1>(Expressed in thousands of
      U.S. dollars)</FONT></I></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; text-align: center" noWrap width="10%" colSpan=10><FONT face="Arial" size=1>Three months ended December
      31,</FONT></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="94%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" colSpan=2><B><FONT face="Arial" size=1>2011</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face="Arial" size=1>2010</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" colSpan=2><FONT face="Arial" size=1>$ Change</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face="Arial" size=1>% Change</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="94%" bgColor=#c0c0c0><FONT face="Arial" size=1>Employee future benefit plan expense</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>(37</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>)</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>(124</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD>
    <TD noWrap style="text-align: center" width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>87</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>70%</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1></FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="94%"><FONT face="Arial" size=1>Investment
      income</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="1%"><B><FONT face="Arial" size=1>77</FONT></B></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face="Arial" size=1>155</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face="Arial" size=1>(78</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD>
    <TD noWrap align=right width="1%"><FONT face="Arial" size=1>(50%</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="94%" bgColor=#c0c0c0><FONT face="Arial" size=1>Foreign exchange gain (loss)</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>38</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>484</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>(446</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>(92%</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="94%"><FONT face="Arial" size=1>Other income</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><B><FONT face="Arial" size=1>-</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face="Arial" size=1>46</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face="Arial" size=1>(46</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face="Arial" size=1>(100%</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="94%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>Finance and other income
      (loss)</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>78</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>561</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid; text-align: center" noWrap width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>(483</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>(86%</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD></TR></TABLE><BR>
<P align=right><FONT face="Arial" size=1>Page 12 of 38 </FONT></P>
<HR align=center width="100%" noShade SIZE=2>

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=right><IMG src="exhibit99-21x1x1.jpg" border=0></P>
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=left width="92%"><I><FONT face="Arial" size=1>(Expressed in thousands of
      U.S. dollars)</FONT></I></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; text-align: center" noWrap width="10%" colSpan=10><FONT face="Arial" size=1>Years ended December 31,</FONT></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="92%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" colSpan=2><B><FONT face="Arial" size=1>2011</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" colSpan=2><FONT face="Arial" size=1>2010</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" colSpan=2><FONT face="Arial" size=1>$ Change</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face="Arial" size=1>% Change</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="92%" bgColor=#c0c0c0><FONT face="Arial" size=1>Employee future benefit plan expense</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>(37</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>)</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>(124</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>87</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>70%</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1></FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="92%"><FONT face="Arial" size=1>Investment
      income</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="1%"><B><FONT face="Arial" size=1>303</FONT></B></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face="Arial" size=1>323</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face="Arial" size=1>(20</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD>
    <TD noWrap align=right width="1%"><FONT face="Arial" size=1>(6%</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="92%" bgColor=#c0c0c0><FONT face="Arial" size=1>Foreign exchange gain (loss)</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>(71</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>)</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>(527</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>456</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>86%</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1></FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="92%"><FONT face="Arial" size=1>Other income</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><B><FONT face="Arial" size=1>-</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face="Arial" size=1>224</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face="Arial" size=1>(224</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face="Arial" size=1>(100%</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="92%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>Finance and other income
      (loss)</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>195</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>(104</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>299</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>288%</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1></FONT></TD></TR></TABLE><BR>
<P align=justify><FONT face="Arial" size=2>Employee future benefit plan
expense for the three months and year ended December 31, 2011 were $0.1 million,
respectively, compared to an expense of and $0.1 million, respectively, for the
corresponding periods of 2010. Employee future benefit plan expense primarily
represents the excess of interest cost over the expected return on plan assets
on a curtailed defined benefit pension plan for our current and former United
States employees.</FONT></P>
<P align=justify><FONT face="Arial" size=2>Investment income approximated
between $0.1 million and $0.3 million, respectively, for the three months and
years ended December 31, 2011 and 2010 and was earned on our cash, cash
equivalents and short-term investments.</FONT></P>
<P align=justify><FONT face="Arial" size=2>Foreign exchange gains and losses
are attributable to the effect of the changes in the value of the Canadian
dollar, relative to the U.S. dollar, on our Canadian dollar-denominated net
monetary position. At December 31, 2011, our Canadian dollar-denominated assets
(cash, cash equivalents and short-term investments approximated our Canadian
dollar-denominated liabilities (capital lease obligations, warranty obligations
and accounts payable and accrued liabilities), resulting in an insignificant
foreign exchange loss in 2011. During 2011, we increased our Canadian dollar
denominated cash reserves to better balance our overall balance sheet exposure
to currency fluctuations. The foreign exchange loss in 2010 of $0.5 million
resulted primarily from the impact of a strengthening Canadian dollar on our
Canadian dollar-denominated net liability position at that time. At December 31,
2010, our Canadian dollar-denominated liabilities (capital lease obligations,
warranty obligations and accounts payable and accrued liabilities) exceeded our
Canadian dollar-denominated assets (cash and short-term investments).
</FONT></P>
<P align=justify><B><I><FONT face="Arial" size=2>Finance
expense</FONT></I></B><FONT face="Arial" size=2> for the three months and
year ended December 31, 2011 was $0.5 million and $1.4 million, respectively,
compared to $0.3 million and $0.9 million, respectively, for the corresponding
periods of 2010. Finance expense relates primarily to the sale and leaseback of
our head office building in Burnaby, British Columbia which was completed on
March 9, 2010. Due to the long term nature of the lease, the leaseback of the
building qualifies as a finance (or capital) lease. </FONT></P>
<P align=justify><B><I><FONT face="Arial" size=2>Gain on sale of property,
plant and equipment </FONT></I></B><FONT face="Arial" size=2>for the year
ended December 31, 2011 was $0.7 million and relates primarily to a gain on sale
of property, plant and equipment to Mercedes-Benz Canada Inc. in conjunction
with the sub-lease of 21,000 square feet of surplus production space in Burnaby,
B.C, effective in August 2011.</FONT></P>
<P align=right><FONT face="Arial" size=1>Page 13 of 38 </FONT></P>
<HR align=center width="100%" noShade SIZE=2>

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>

<P align=right><IMG src="exhibit99-21x1x1.jpg" border=0> </P>
<P align=justify><B><I><FONT face=Arial size=2>Gain on sale of
assets</FONT></I></B><FONT face=Arial size=2> for the year ended December 31,
2010</FONT><B><I><FONT face=Arial size=2> </FONT></I></B><FONT face=Arial size=2>was $8.1 million, and consists of a gain of $4.8 million related to the
monetization of the Share Purchase Agreement with Ford, and a gain of $3.3
million on the land component of the sale and leaseback of our head office
building in Burnaby, B.C. in March, 2010.</FONT></P>
<P STYLE="text-align: justify"><FONT face=Arial size=2>The $4.8 million gain resulted from the
extinguishment of the contingent payment related to the 2009 monetization of our
rights under the Share Purchase Agreement with Ford relating to our 19.9% equity
investment in AFCC. This Share Purchase Agreement has been fully monetized for
$42.0 million, comprising an initial cash payment of $37.0 million received in
2009 and a subsequent contingent cash payment of $5.0 million received in
2010.</FONT></P>
<P align=justify><FONT face=Arial size=2>The $3.3 million gain on the land
component of the sale and leaseback of our head office building in 2010 was
retroactively recorded on our conversion to IFRS. Under former Canadian GAAP,
sale and leaseback gains are deferred and amortized over the term of the lease
when the leaseback is classified as an operating lease. Under IFRS, such gains
are recognized immediately if the sale and leaseback transaction results in an
operating lease, and is undertaken at fair value. As the land component of our
March 2010 sale and leaseback of our head office building was determined to be
an operating lease and therefore met this IFRS criteria for immediate gain
recognition, the unamortized portion of the deferred gain of $3.3 million
attributed to the land leaseback has been recognized in 2010 net income on
application of IFRS, and the related deferred gain of $3.3 million previously
recorded under Canadian GAAP has been derecognized in the presented 2010
comparative financial information. The $6.2 million remaining balance of the
$9.5 million deferred gain initially recorded under former Canadian GAAP on the
closing of this transaction in 2010 relates solely to the building component of
the sale and leaseback transaction. This $6.2 million building component did not
meet the above operating lease criteria as it was determined to be a Finance (or
&#147;capital&#148;) lease under IFRS and therefore remains recorded as a deferred gain
($5.7 million deferred gain as of December 31, 2011) which is being recognized
to income under IFRS on a straight-line basis over the term of the 15-year
lease. </FONT></P>
<P align=justify><B><I><FONT face=Arial size=2>Impairment loss on property,
plant and equipment </FONT></I></B><FONT face=Arial size=2>for the three months
and year ended December 31, 2011 was $1.7 million and consists primarily of an
impairment charge related to a write-down of manufacturing equipment.
</FONT></P>
<P align=justify><B><I><FONT face=Arial size=2>Net loss attributed to
non-controlling interests</FONT></I></B><FONT face=Arial size=2> for the three
months and year ended December 31, 2011 was $0.3 million and $2.7 million,
respectively, compared to $0.3 million and $3.9 million, respectively, for the
corresponding periods of 2010. Amounts represent the non-controlling interest of
Dantherm A/S and Danfoss A/S in the losses of Dantherm Power as a result of
their 48% total equity interest. The improved performance in 2011 at Dantherm
Power is primarily a result of lower operating costs in 2011 as a result of our
continued cost reduction efforts which included a leadership restructuring in
the first quarter of 2011 and a 25% workforce reduction initiated in the third
quarter of 2010. These benefits were partially offset by a restructuring charge
recorded in the first quarter of 2011 related to the above noted Dantherm Power
leadership restructuring.</FONT></P>
<P align=right><FONT face=Arial size=1>Page 14 of 38 </FONT></P>
<HR align=center width="100%" noShade SIZE=2>

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=right><IMG src="exhibit99-21x1x1.jpg" border=0> </P>
<P align=justify><B><FONT face=Arial size=2>SUMMARY OF QUARTERLY RESULTS
</FONT></B></P>
<P align=justify><FONT face=Arial size=2>The following table provides summary
financial data for our last eight quarters: </FONT></P>
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=left width="79%"><I><FONT face=Arial size=1>(Expressed in thousands of U.S.
      dollars, except per share amounts</FONT></I></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=left width="1%">&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=center width="20%" colSpan=12><FONT face=Arial size=1>Quarter
  ended,</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="79%"><I><FONT face=Arial size=1>which are
      expressed in thousands)</FONT></I></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="79%"></TD>
    <TD noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD noWrap align=right width="4%" colSpan=2><FONT face=Arial size=1>Dec
      31,</FONT></TD>
    <TD noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD noWrap align=right width="4%" colSpan=2><FONT face=Arial size=1>Sep
      30,</FONT></TD>
    <TD noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD noWrap align=right width="4%" colSpan=2><FONT face=Arial size=1>Jun
      30,</FONT></TD>
    <TD noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD noWrap align=right width="4%" colSpan=2><FONT face=Arial size=1>Mar
      31,</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="79%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face=Arial size=1>2011</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face=Arial size=1>2011</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face=Arial size=1>2011</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face=Arial size=1>2011</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="79%" bgColor=#c0c0c0><FONT face=Arial size=1>Revenues</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=1>20,996</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=1>20,602</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=1>19,112</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=1>15,299</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="79%"><FONT face=Arial size=1>Net income
      (loss) attributable to Ballard</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><FONT face=Arial size=1>$</FONT></TD>
    <TD noWrap align=right width="3%"><FONT face=Arial size=1>(7,289</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face=Arial size=1>)</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face=Arial size=1>$</FONT></TD>
    <TD noWrap align=right width="3%"><FONT face=Arial size=1>(6,991</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face=Arial size=1>)</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face=Arial size=1>$</FONT></TD>
    <TD noWrap align=right width="3%"><FONT face=Arial size=1>(8,630</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face=Arial size=1>)</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face=Arial size=1>$</FONT></TD>
    <TD noWrap align=right width="3%"><FONT face=Arial size=1>(10,511</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face=Arial size=1>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="79%" bgColor=#c0c0c0><FONT face=Arial size=1>Net income (loss) per share attributable to</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=1>$</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=1>(0.09</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=1>)</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=1>$</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=1>(0.08</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=1>)</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=1>$</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=1>(0.10</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=1>)</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=1>$</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=1>(0.12</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=1>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="79%" bgColor=#c0c0c0><FONT face=Arial size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Ballard, basic and
      diluted</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="79%" bgColor=#ffffff><FONT face=Arial size=1>Weighted average common shares
      outstanding</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#ffffff><FONT face=Arial size=1>84,549</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#ffffff><FONT face=Arial size=1>84,548</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#ffffff><FONT face=Arial size=1>84,456</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#ffffff><FONT face=Arial size=1>84,205</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#ffffff></TD></TR>
  <TR>
    <TD align=left width="99%" bgColor=#ffffff colSpan=13>&nbsp; </TD>
    <TD align=left width="1%" bgColor=#ffffff></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="79%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=right width="4%" bgColor=#ffffff colSpan=2><FONT face=Arial size=1>Dec 31,</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=right width="4%" bgColor=#ffffff colSpan=2><FONT face=Arial size=1>Sep 30,</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=right width="4%" bgColor=#ffffff colSpan=2><FONT face=Arial size=1>June 30,</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=right width="4%" bgColor=#ffffff colSpan=2><FONT face=Arial size=1>Mar 31,</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="79%" bgColor=#ffffff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" bgColor=#ffffff colSpan=2><FONT face=Arial size=1>2010</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#ffffff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" bgColor=#ffffff colSpan=2><FONT face=Arial size=1>2010</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#ffffff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" bgColor=#ffffff colSpan=2><FONT face=Arial size=1>2010</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#ffffff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" bgColor=#ffffff colSpan=2><FONT face=Arial size=1>2010</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#ffffff></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="79%" bgColor=#c0c0c0><FONT face=Arial size=1>Revenues</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=1>$</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=1>21,083</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=1>$</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=1>16,528</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=1>$</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=1>15,526</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=1>$</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=1>11,882</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="79%" bgColor=#ffffff><FONT face=Arial size=1>Net income (loss) attributable to Ballard</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff><FONT face=Arial size=1>$</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#ffffff><FONT face=Arial size=1>(8,998</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff><FONT face=Arial size=1>)</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff><FONT face=Arial size=1>$</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#ffffff><FONT face=Arial size=1>(5,559</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff><FONT face=Arial size=1>)</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff><FONT face=Arial size=1>$</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#ffffff><FONT face=Arial size=1>(10,411</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff><FONT face=Arial size=1>)</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff><FONT face=Arial size=1>$</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#ffffff><FONT face=Arial size=1>(6,564</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff><FONT face=Arial size=1>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="79%" bgColor=#c0c0c0><FONT face=Arial size=1>Net income (loss) per share attributable to</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=1>$</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=1>(0.11</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=1>)</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=1>$</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=1>(0.07</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=1>)</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=1>$</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=1>(0.12</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=1>)</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=1>$</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=1>(0.08</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=1>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="79%" bgColor=#c0c0c0><FONT face=Arial size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Ballard, basic and
      diluted</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="79%" bgColor=#ffffff><FONT face=Arial size=1>Weighted average common shares
      outstanding</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#ffffff><FONT face=Arial size=1>84,140</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#ffffff><FONT face=Arial size=1>84,128</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#ffffff><FONT face=Arial size=1>84,127</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#ffffff><FONT face=Arial size=1>84,012</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#ffffff></TD></TR></TABLE>

<BR>
<P align=justify><B><FONT face=Arial size=2>Summary of Quarterly
Results</FONT></B><FONT face=Arial size=2>: There were no significant seasonal
variations in our quarterly results. Variations in our net income (loss) for the
above periods were affected primarily by the following factors: </FONT></P>
<UL style="FONT-SIZE: 10pt; MARGIN-LEFT: 15pt; TEXT-ALIGN: justify">
  <LI><B><FONT face=Arial size=2>Revenues</FONT></B><FONT face=Arial size=2>:
  Variations in fuel cell revenues reflect the timing of our customers&#146; fuel
  cell vehicle, bus and fuel cell product deployments. Variations in fuel cell
  revenues also reflect the timing of work performed and the achievements of
  milestones under long-term fixed price contracts.</FONT></LI><BR>&nbsp;
  <LI><FONT face=Arial size=2></FONT><B><FONT face=Arial size=2>Operating
  expenditures</FONT></B><FONT face=Arial size=2>: Operating expenses were
  negatively impacted by restructuring charges of $0.4 million in the third
  quarter of 2011 as a result of a corporate leadership restructuring,
  restructuring charges of $1.0 million in the first quarter of 2011 as a result
  of a leadership restructuring in Dantherm Power, and by restructuring charges
  of $0.3 million in the third quarter of 2010 as a result of a 25% workforce
  reduction at Dantherm Power. Restructuring charges are recognized in general
  and administrative expense.</FONT></LI></UL>
<P STYLE="padding-left: 15pt; text-align: justify"><FONT face=Arial size=2><FONT face=Arial size=2>Operating expenses were negatively impacted in the fourth quarter of 2010
due an acceleration of depreciation expense of $2.3 million for equipment that
was considered no longer in use or impaired. The $2.3 million depreciation
charge was recognized in product development expense ($1.5 million) and general
and administrative expense ($0.8 million).</FONT>&nbsp;</FONT></P>
<P STYLE="padding-left: 15pt; text-align: justify"><FONT face=Arial size=2>Operating expenses also
include the impact of changes in the value of the Canadian dollar, versus the
U.S. dollar, on our Canadian dollar denominated expenditures.</FONT></P>
<UL style="FONT-SIZE: 10pt; MARGIN-LEFT: 15pt; TEXT-ALIGN: justify">
  <LI><FONT face=Arial size=2><B>Gain on sale of assets:</B></FONT><FONT face=Arial size=2> The net loss for the first quarter of 2010 was positively
  impacted by a gain on the sale of the land component of the sale and leaseback
  of our head office building of $3.3 million. The net loss for the third
  quarter of 2010 was positively impacted by a gain on the stub period
  monetization of the Share Purchase Agreement with Ford of $4.8 million.
  </FONT></LI></UL>
<P align=right><FONT face=Arial size=1>Page 15 of 38 </FONT></P>
<HR align=center width="100%" noShade SIZE=2>

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=right><IMG src="exhibit99-21x1x1.jpg" border=0> </P>
<UL style="FONT-SIZE: 10pt; MARGIN-LEFT: 15pt; TEXT-ALIGN: justify">
  <LI><B><FONT face=Arial size=2>Impairment loss on property, plant and
  equipment</FONT></B><FONT face=Arial size=2>: The net loss for the fourth
  quarter of 2011 was negatively impacted by an impairment charge of $1.7
  million related to the write-down of manufacturing equipment never put into
  use. </FONT></LI></UL>
<P align=justify><B><FONT face=Arial size=2>CASH FLOWS </FONT></B></P>
<P align=justify><FONT face=Arial size=2>Cash, cash equivalents and short-term
investments were $46.2 million (or $41.6 million net of Operating Facility draws
of $4.6 million) at December 31, 2011, compared to $74.4 million at the end of
2010. The decrease of ($28.2) million in 2011 was driven by a net loss
(excluding non-cash items) of ($26.5) million, working capital requirements of
($6.7) million and capital expenditures (net of proceeds on sale and leaseback
of capital equipment) of ($2.2) million. These outflows were partially offset by
cash proceeds of $1.7 million from the sale of property, plant and equipment to
MBC in advance of the sub-lease of 21,000 square feet of surplus production
space in Burnaby, B.C., by convertible debt financing of $1.7 million to
Dantherm Power by the non-controlling partners, and by the above noted net cash
advances on our Operating Facility of $4.6 million.</FONT></P>
<P align=justify><FONT face=Arial size=2>For the three months ended December 31,
2011 and 2010, working capital requirements resulted in cash inflows of $8.7
million and $7.0 million, respectively. In the fourth quarter of 2011, net cash
inflows of $8.7 million were driven by lower accounts receivable of $3.3 million
due primarily to the timing of collections of our fuel cell product and service
revenues, lower inventory of $1.9 million as we consumed previously built-up
inventory in order to fulfill the higher product shipments in the fourth
quarter, and higher deferred revenue and cost recovery of $2.0 million as we
received the next tranches of SDTC government funding for our distributed
generation and bus projects in advance of incurring the related research and
product development expenditures. Working capital inflows in the fourth quarter
of 2010 of $7.0 million were driven by lower inventory of $4.0 million as we
consumed previously built-up inventory in order to fulfill the higher product
shipments in the fourth quarter, and higher deferred revenue and cost recovery
of $2.1 million as a result of the receipt of customer payments and government
funding awards in advance of work performed.</FONT></P>
<P align=justify><FONT face=Arial size=2>For the year ended December 31, 2011,
working capital requirements resulted in cash outflows of ($6.7) million,
compared to inflows of $3.5 million for 2010. In 2011, net cash outflows of
($6.7) million were driven by higher accounts receivable of ($4.3) million due
primarily to the timing of collections of our fuel cell product and service
revenues, higher inventory of ($1.3) million due primarily to the buildup of
inventory to support expected higher product shipments 2012, and by lower
accounts payable and accrued liabilities of ($1.7) million due primarily to the
timing of supplier payments. In 2010, net cash inflows of $3.5 million were
driven by increased accounts payable and accrued liabilities of $2.9 million due
primarily to higher 2010 accrued annual employee bonuses as compared to 2009,
combined with higher payables to suppliers as a result of our increased
inventory and production levels. In addition, net cash inflows in 2010 benefited
from lower prepaid expenses of $1.3 million as a result of lower insurance and
information technology license renewal costs and higher deferred revenue and
cost recovery of $1.0 million as a <FONT face=Arial size=2>result of the receipt
of customer payments and government funding awards in advance of work performed.
These 2010 inflows were partially offset by cash outflows as a result of
increased inventory of ($2.4) million due to the buildup of inventory to support
expected future fuel cell shipments in 2011.</FONT></FONT></P>
<P align=right><FONT face=Arial size=1>Page 16 of 38 </FONT></P>
<HR align=center width="100%" noShade SIZE=2>

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=right><IMG src="exhibit99-21x1x1.jpg" border=0> </P>
<P align=justify><FONT face=Arial size=2>Investing activities resulted in cash
outflows of ($15.5) million and ($3.8) million, respectively, for the three
months and year ended December 31, 2011, compared to cash inflows of $9.8
million and $38.3 million, respectively, for the corresponding periods in 2010.
Changes in short-term investments resulted in cash outflows of ($15.6) million
and ($3.4) million, respectively, for the three months and year ended December
31, 2011, compared to cash inflows of $10.7 million and $17.7 million,
respectively, for the corresponding periods of 2010. Balances changed between
cash equivalents and short-term investments as we make investment decisions with
regards to the term of investments and our future cash requirements.</FONT></P>
<P align=justify><FONT face=Arial size=2>Other Investing activities in 2011 also
include proceeds of $1.7 million received from MBC on the closing of the
facilities sub-lease agreement, proceeds on sale and leaseback of capital
equipment of $1.9 million, and capital expenditures of ($4.1) million primarily
for manufacturing equipment in order to build production capacity. Other
investing activities in 2010 include net proceeds received on the closing of the
head office building sale and leaseback transaction of $19.9 million, net
proceeds of $4.8 million on the extinguishment of the contingent payment related
to the 2009 monetization of the Share Purchase Agreement with Ford less the
payment of accrued costs of ($1.4) million related to the initial monetization
which closed in December 2009, and net cash received of $0.9 million on the
acquisition of Dantherm Power, partially offset by capital expenditures of
($3.5) million.</FONT></P>
<P align=justify><FONT face=Arial size=2>Financing activities resulted in cash
outflows of ($3.1) million and cash inflows of $5.1 million, respectively, for
the three months and year ended December 31, 2011, compared to cash outflows of
($0.6) million and ($0.4) million, respectively, for the corresponding periods
of 2010. Financing activities in the fourth quarter of 2011 primarily represent
net repayments against our Operating Facility of ($2.7) million, whereas
financing activities in 2011 primarily represent total advances, net of
repayments, of $4.6 million on our Operating Facility. The Operating Facility is
used to assist with the financing of working capital requirements. Financing
activities in 2011 also include proceeds on convertible debenture financing from
the Dantherm Power non-controlling interests to Dantherm Power of $1.7 million
for the year. These financing inflows in 2011 were partially offset by finance
lease payments of ($0.8) million and treasury stock purchases of ($0.3) million
under our market purchase restricted share unit plan. Financing activities in
2010 primarily represent the minority partner cash contribution to Dantherm
Power for the second tranche investment of 5.0 million Danish Kroner, or $0.9
million in August 2010, less capital lease payments of ($0.8) million and
treasury stock purchases of ($0.6) million. </FONT></P>
<P align=justify><B><FONT face=Arial size=2>LIQUIDITY AND CAPITAL RESOURCES
</FONT></B></P>
<P align=justify><FONT face=Arial size=2>At December 31, 2011, we had total
Liquidity of $41.6 million. We measure Liquidity as our net cash reserves,
consisting of the sum of our cash, cash equivalents and <FONT face=Arial size=2>short-term investments of $46.2 million, net of amounts drawn on our $10
million Canadian demand revolving facility (&#147;Operating Facility&#148;) of $4.6
million. The Operating Facility is used to assist in financing our short term
working capital requirements and is secured by a hypothecation of our cash, cash
equivalents and short-term investments. </FONT></FONT></P>
<P align=right><FONT face=Arial size=1>Page 17 of 38 </FONT></P>
<HR align=center width="100%" noShade SIZE=2>

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=right><IMG src="exhibit99-21x1x1.jpg" border=0> </P>
<P align=justify><FONT face=Arial size=2>We also have a $3.3 million Canadian
capital leasing facility (&#147;Leasing Facility&#148;) which is used to finance the
acquisition and / or lease of operating equipment and is secured by a
hypothecation of our cash, cash equivalents and short-term investments. At
December 31, 2011, $3.2 million was outstanding on the Leasing
Facility.</FONT></P>
<P align=justify><FONT face=Arial size=2>We will use our funds to meet net
funding requirements for the development and commercialization of products in
our target markets. This includes research and product development for fuel
cells and material products, the purchase of equipment for our manufacturing and
testing facilities, the further development of business systems and low-cost
manufacturing processes, the further development of our sales and marketing,
product distribution and service capabilities, and working capital requirements
to grow our business. </FONT></P>
<P align=justify><FONT face=Arial size=2>At this stage of our development, we
may record net cash losses for at least the next few years as we continue to
make significant investments in research and product and market development
activities necessary to commercialize our products, combined with increased
investments in working capital as we grow our business. Our actual funding
requirements will vary based on the factors noted above, our relationships with
our lead customers and strategic partners, our success in developing new
channels to market and relationships with customers, our success in generating
revenue growth from near-term product opportunities, our success in managing our
working capital requirements, foreign exchange fluctuations, and the progress
and results of our research, development and demonstration programs.</FONT></P>
<P align=justify><FONT face=Arial size=2>Our financial strategy is to manage our
cash resources with strong fiscal discipline, focus on markets with high product
and service revenue growth potential, license technology in cases where it is
advantageous to us, and access available government funding for research and
development projects. Our current financing principle is to maintain cash
balances sufficient to fund at least six quarters of forecasted cash used by
operating activities at all times.</FONT></P>
<P align=justify><B><FONT face=Arial size=2>2012 BUSINESS OUTLOOK</FONT></B></P>
<P align=justify><FONT face=Arial size=2>As a result of the increase in our
year-end 12-month order book to $45.3 million, the continued improvements in our
financial results over the past two years combined with signs of increasing
overall market momentum, we have a strong outlook for 2012, with expectations
for:</FONT></P>
<UL style="FONT-SIZE: 10pt; TEXT-ALIGN: justify">
  <LI><FONT face=Arial size=2>Revenue of approximately $100 million;
  and</FONT></LI><BR>&nbsp;
  <LI><FONT face=Arial size=2>Adjusted EBITDA of approximately
  breakeven.</FONT></LI></UL>
<P STYLE="text-align: justify"><FONT face=Arial size=2>Consistent with the past couple of years, we expect a
majority of our 2012 revenue to be realized in the second half of the year. Our
business revenue outlook for 2012 <FONT face=Arial size=2>is based on our
internal revenue forecast which reflects an assessment of overall business
conditions and takes into account actual sales in the first two months of 2012,
sales orders received for units and services to be delivered in 2012, and an
estimate with respect to the generation of new sales in each of our markets. Our
2012 business revenue outlook is also supported by our 12-month order book of
$45.3 million at December 31, 2011 ($35.0 million at December 31, 2010). The
primary risk factor that could cause us to miss our target revenue guidance for
2012 are delays from forecast in terms of closing and shipping expected sales
orders, primarily in our Brazilian and European bus markets and in our backup
power markets. </FONT></FONT></P>
<P align=right><FONT face=Arial size=1>Page 18 of 38 </FONT></P>
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<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=right><IMG src="exhibit99-21x1x1.jpg" border=0> </P>
<P align=justify><FONT face=Arial size=2>The key drivers for this expected
improvement in Adjusted EBITDA for 2012 are expected increases in gross margins
driven primarily by aggressive product cost reduction efforts combined with the
above noted overall increase in expected revenues and a shift in product mix to
higher margin fuel cell buses, supported by continued operating expense
optimization and a resulting reduction in Cash Operating Costs (see Supplemental
Non-GAAP Measures section) from 2011. Consistent with the expectation that a
majority of our 2012 revenue will fall in the last half of the year, Adjusted
EBITDA is expected to be materially improved in the last half of 2012, as
compared to the first half of 2012. Our Adjusted EBITDA outlook for 2012 is
based on our internal Adjusted EBITDA forecast and takes into account our
forecasted gross margin related to the above revenue forecast, the costs of our
current and forecasted Cash Operating Costs, and assumes an average U.S. dollar
exchange rate of 1.00 in relation to the Canadian dollar. The primary risk
factor that could cause us to miss our target Adjusted EBITDA outlook for 2012
are lower than expected gross margins due to (i) lower revenues from forecast
due to unexpected delays in terms of closing and shipping expected sales orders;
(ii) shifts in product sales mix negatively impacting projected gross margin as
a percentage of revenues; or (iii) delays in the timing of our projected product
cost reductions. In addition, Adjusted EBITDA could also be negatively impacted
by increases in Cash Operating Costs as a result of (i) increased product
development costs due to unexpected delays in new product introductions or by
lower than anticipated government cost recoveries; or (ii) negative foreign
exchange impacts as a result of a higher than expected Canadian dollar. A 1%
increase in the Canadian dollar, relative to the U.S. dollar, negatively impacts
Adjusted EBITDA and Cash Operating Costs by approximately $0.4 million to $0.5
million.</FONT></P>
<P align=justify><FONT face=Arial size=2>Similar to prior years and consistent
with our revenue and Adjusted EBITDA performance expectations for the year and
the resulting impacts on gross margin and working capital, we expect cash used
in operating activities in 2012 to be materially higher in the first and second
quarters of 2012, as compared to the third and fourth quarters of 2012. Cash
used in operating activities in the first two quarters of 2012 is expected to be
negatively impacted by the buildup of inventory to support higher product
shipments in the third and fourth quarters, the payment of accrued 2011 annual
employee bonuses, and by the timing of revenues and the related customer
collections which are also skewed towards the last half of the year.</FONT></P>
<P align=justify><FONT face=Arial size=2>Finally, we will continue our focus on
maintaining a strong liquidity position. We <FONT face=Arial size=2>ended 2011
with cash, cash equivalents and short-term investments of $46.2 million (or
$41.6 million net of Operating Facility draws of $4.6 million). We believe that
with continued focus on improving gross margin performance, managing our Cash
Operating Costs and our working capital requirements, we have sufficient
liquidity to reach profitability without the need for additional public market
financing. However, we may choose to access additional capital under
circumstances advantageous to the Company. </FONT></FONT></P>
<P align=right><FONT face=Arial size=1>Page 19 of 38 </FONT></P>
<HR align=center width="100%" noShade SIZE=2>

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=right><IMG src="exhibit99-21x1x1.jpg" border=0> </P>
<P align=justify><B><FONT face=Arial size=2>OFF-BALANCE SHEET ARRANGEMENTS &amp;
CONTRACTUAL OBLIGATIONS </FONT></B></P>
<P align=justify><FONT face=Arial size=2>Periodically, we use forward foreign
exchange and forward platinum purchase contracts to manage our exposure to
currency rate fluctuations and platinum price fluctuations. We record these
contracts at their fair value as either assets or liabilities on our balance
sheet. Any changes in fair value are either (i) recorded in our statement of
comprehensive income if formally designated and qualified under hedge accounting
criteria; or (ii) recorded in our statement of operations if either not
designated, or not qualified, under hedge accounting criteria.</FONT></P>
<P align=justify><FONT face=Arial size=2>At December 31, 2011, we had
outstanding foreign exchange currency contracts (qualified under hedge
accounting criteria) to purchase a total of Canadian $7.0 million at an average
rate of $1.02 Canadian per $1.00 United States, resulting in an unrealized gain
of $0.1 million recorded in other comprehensive income. In addition, we had
outstanding platinum forward purchase contracts (not qualified under hedge
accounting criteria) to purchase 1,750 troy ounces of platinum at an average
rate of $1,550 per troy ounce, resulting in an unrealized loss of $0.3 million
recorded in cost of product and service revenues.</FONT></P>
<P align=justify><FONT face=Arial size=2>At December 31, 2010, we did not have
any other material obligations under guarantee contracts, retained or contingent
interests in transferred assets, outstanding derivative instruments or
non-consolidated variable interests.</FONT></P>
<P align=justify><FONT face=Arial size=2>We have committed to make future
capital contributions of $0.1 million in Chrysalix, in which we have a limited
partnership interest.</FONT></P>
<P align=justify><FONT face=Arial size=2>At December 31, 2011 we had the
following contractual obligations and commercial commitments: </FONT></P>
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=left width="74%"><I><FONT face=Arial size=1>(Expressed in thousands of U.S.
      dollars)</FONT></I></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; TEXT-ALIGN: center" noWrap width="24%" colSpan=14><FONT face=Arial size=1>Payments due by
      period,</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="74%"><B><FONT face=Arial size=2>Contractual
      Obligations</FONT></B></TD>
    <TD noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD noWrap align=right width="4%" colSpan=2><B><FONT face=Arial size=1>Total</FONT></B></TD>
    <TD noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD noWrap align=right width="4%" colSpan=2><FONT face=Arial size=1>Less
      than</FONT></TD>
    <TD noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD noWrap align=right width="4%" colSpan=2><FONT face=Arial size=1>1-3
      years</FONT></TD>
    <TD noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD noWrap align=right width="4%" colSpan=2><FONT face=Arial size=1>3-5
      years</FONT></TD>
    <TD noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD noWrap align=right width="4%" colSpan=2><FONT face=Arial size=1>After
      5</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="74%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face=Arial size=1>one year</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face=Arial size=1>years</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="74%" bgColor=#c0c0c0><FONT face=Arial size=1>Operating leases</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=Arial size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></B></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=Arial size=1>23,570</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=1>$<STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </STRONG></FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=1>2,465</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=1>$<STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </STRONG></FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=1>4,987</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=1>$<STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </STRONG></FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=1>5,379</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=1>$<STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </STRONG></FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=1>10,739</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="74%"><FONT face=Arial size=1>Capital
      leases</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><B><FONT face=Arial size=1>21,875</FONT></B></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=Arial size=1>1,882</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=right width="3%"><FONT face=Arial size=1>4,161</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=Arial size=1>3,569</FONT></TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=right width="3%"><FONT face=Arial size=1>12,263</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="74%" bgColor=#c0c0c0><FONT face=Arial size=1>Asset retirement
    obligations</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=Arial size=1>6,144</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=1>-</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=1>-</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=1>-</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=1>6,144</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="74%"><FONT face=Arial size=1>Total contractual
obligations</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><B><FONT face=Arial size=1>$</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><B><FONT face=Arial size=1>51,589</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face=Arial size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT face=Arial size=1>4,347</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face=Arial size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT face=Arial size=1>9,148</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face=Arial size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT face=Arial size=1>8,948</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face=Arial size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT face=Arial size=1>29,146</FONT></TD></TR></TABLE><BR>
<P align=justify><FONT face=Arial size=2>In addition to the contractual purchase
obligations above, we have outstanding commitments $0.9 million related
primarily to purchases of capital assets as at December 31, 2011. Capital
expenditures pertain to our regular operations and are expected to be funded
through cash on hand. </FONT></P>

<P align=right><FONT face=Arial size=1>Page 20 of 38 </FONT></P>
<HR align=center width="100%" noShade SIZE=2>

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=right><IMG src="exhibit99-21x1x1.jpg" border=0> </P>
<P align=justify><FONT face=Arial size=2>The Arrangement with Superior Plus
includes an indemnification agreement dated December 31, 2008 (the "Indemnity
Agreement"), which sets out the parties&#146; continuing obligations to the other.
The Indemnity Agreement has two basic elements: it provides for the
indemnification by each of the parties to the other for breaches of
representations and warranties or covenants as well as, in our case, any
liability relating to our business which is suffered by Superior Plus. Our
indemnity to Superior Plus with respect to our representation relating to the
existence of our tax pools immediately prior to the completion of the
Arrangement is limited to an aggregate of $7.4 million (Canadian $7.4 million)
with a threshold amount of $0.5 million (Canadian $0.5 million) before there is
an obligation to make a payment. Second, the Indemnity Agreement provides for
adjustments to be paid by us, or to us, depending on the final determination of
the amount of our Canadian non-capital losses, scientific research and
development expenditures and investment tax credits generated to December 31,
2008, to the extent that such amounts are more or less than the amounts
estimated at the time the Arrangement was executed. At December 31, 2011, we
have not accrued any amount owing, or receivable, as a result of the Indemnity
Agreement. </FONT></P>
<P align=justify><B><FONT face=Arial size=2>RELATED PARTY TRANSACTIONS
</FONT></B></P>
<P align=justify><FONT face=Arial size=2>Related parties include shareholders
with a significant ownership interest in us, together with their subsidiaries
and affiliates, our key management personnel, and our minority interest partners
in Dantherm Power. Revenues and costs recognized from such transactions reflect
the prices and terms of sale and purchase transactions with related parties,
which are in accordance with normal trade practices at fair value. Related party
transactions and balances are as follows: </FONT></P>
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=left width="90%"><I><FONT face=Arial size=1>(Expressed in thousands of U.S.
      dollars)</FONT></I></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=right width="9%" colSpan=5><FONT face=Arial size=1>Years Ended December 31,</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="90%"><B><FONT face=Arial size=1>Transactions with related
      parties</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><B><FONT face=Arial size=1>2011</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face=Arial size=1>2010</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="90%" bgColor=#c0c0c0><FONT face=Arial size=1>Revenues</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=Arial size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></B></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=Arial size=1>-</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=1>$<STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </STRONG></FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=1>134</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="90%"><FONT face=Arial size=1>Purchases</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><B><FONT face=Arial size=1>744</FONT></B></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=Arial size=1>1,301</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="90%" bgColor=#c0c0c0><FONT face=Arial size=1>Key management personnel
      compensation</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=Arial size=1>5,384</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=1>6,103</FONT></TD></TR>
  <TR>
    <TD noWrap align=left width="90%">&nbsp;</TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="9%" colSpan=5></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=left width="90%">&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=right width="9%" colSpan=5><FONT face=Arial size=1>As at December 31,</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="90%"><I><FONT face=Arial size=1>(Expressed in
      thousands of U.S. dollars)</FONT></I></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="90%"><B><FONT face=Arial size=1>Balances with related
      parties</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><B><FONT face=Arial size=1>2011</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face=Arial size=1>2010</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="90%" bgColor=#c0c0c0><FONT face=Arial size=1>Accounts payable and accrued liabilities</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=Arial size=1>$</FONT></B></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=Arial size=1>260</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=1>$</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=1>517</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="90%"><FONT face=Arial size=1>Convertible debenture
payable</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><B><FONT face=Arial size=1>$</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><B><FONT face=Arial size=1>1,592</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face=Arial size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT face=Arial size=1>-</FONT></TD></TR>
  <TR>
    <TD width="100%" colSpan=7>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD NOWRAP STYLE="text-align: left; width: 90%; background-color: White"><B><FONT face=Arial size=2>OUTSTANDING SHARE
      DATA</FONT></B></TD>
    <TD NOWRAP STYLE="text-align: left; width: 1%; background-color: White"></TD>
    <TD NOWRAP STYLE="text-align: left; width: 1%; background-color: White"></TD>
    <TD NOWRAP STYLE="text-align: left; width: 3%; background-color: White"></TD>
    <TD NOWRAP STYLE="text-align: left; width: 1%; background-color: White"></TD>
    <TD NOWRAP STYLE="text-align: left; width: 1%; background-color: White"></TD>
    <TD NOWRAP STYLE="text-align: left; width: 3%; background-color: White"></TD></TR>
    <TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: #000000 1.5pt solid; text-align: left; background-color: White">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: #000000 1.5pt solid; text-align: left; background-color: White">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: #000000 1.5pt solid; text-align: left; background-color: White">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: #000000 1.5pt solid; text-align: left; background-color: White">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: #000000 1.5pt solid; text-align: left; background-color: White">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: #000000 1.5pt solid; text-align: left; background-color: White">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: #000000 1.5pt solid; text-align: left; background-color: White">&nbsp;</TD></TR>
<TR>
    <TD width="100%" colSpan=7>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="90%"><B><FONT face=Arial size=1>As at February 21,
    2012</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="90%" bgColor=#c0c0c0><FONT face=Arial size=1>Common share outstanding</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=Arial size=1></FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=1>84,550,524</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="90%"><FONT face=Arial size=1>Options outstanding</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="3%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><FONT face=Arial size=1></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT face=Arial size=1>7,594,801</FONT></TD></TR></TABLE><BR>
<P align=justify><B><FONT face=Arial size=2>INTERNATIONAL FINANCIAL REPORTING
STANDARDS (IFRS) </FONT></B></P>
<P align=justify><FONT face=Arial size=2>Effective January 1, 2011 Canadian
publicly listed entities are required to prepare their financial statements in
accordance with IFRS. Due to the requirement to present comparative financial
information in accordance with IFRS, the effective <FONT face=Arial size=2>transition date is January 1, 2010. The year ended December 31, 2011 is
our first reporting period under IFRS. </FONT></FONT></P>
<P align=right><FONT face=Arial size=1>Page 21 of 38 </FONT></P>
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<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=right><IMG src="exhibit99-21x1x1.jpg" border=0> </P>
<P align=justify><FONT face=Arial size=2>Our consolidated financial statements
for the year ended December 31, 2011 are our first annual financial statements
that comply with IFRS. As 2011 is our first year of reporting under IFRS,
</FONT><I><FONT face=Arial size=2>IFRS 1 First-time Adoption of
IFRS</FONT></I><FONT face=Arial size=2> is applicable. In accordance with IFRS
1, we have applied IFRS retrospectively as of January 1, 2010, for comparative
purposes as if IFRS had always been in effect, subject to certain mandatory
exceptions and optional exemptions applicable to us, discussed below.</FONT></P>
<P align=justify><FONT face=Arial size=2>Senior management and the Audit
Committee have approved the Company&#146;s IFRS accounting policies which were
initially presented in our unaudited interim consolidated condensed financial
statements for the three months ended March 31, 2011. Our final IFRS accounting
policies are detailed in note 3 to our annual consolidated financial statements.
Our final IFRS accounting policies include a change in accounting policy (see
below) from what was initially disclosed in our first quarter of 2011 MD&amp;A
relating to a change in how we will account for employee future benefit
expenses.</FONT></P>
<P align=justify><U><FONT face=Arial size=2>TRANSITIONAL ELECTIONS (under IFRS 1
First Time Adoption)</FONT></U><FONT face=Arial size=2> </FONT></P>
<P align=justify><FONT face=Arial size=2>The following summary provides details
of the opening statement of financial position transitional provisions which
were adopted effective January 1, 2010. </FONT></P>
<UL style="FONT-SIZE: 10pt; MARGIN-LEFT: 15pt; TEXT-ALIGN: justify">
  <LI STYLE="text-align: justify"><I><FONT face=Arial size=2>Share Based Payments</FONT></I><FONT face=Arial size=2>: </FONT><I><FONT face=Arial size=2>IFRS 2, Share Based
  Payment</FONT></I><FONT face=Arial size=2>: As allowed, we did not restate
  share-based payment balances in relation to fully vested awards of share-based
  payments prior to January 1, 2010.</FONT></LI><BR>&nbsp;
  <LI STYLE="text-align: justify"><I><FONT face=Arial size=2>Property, plant and equipment
  (&#147;PP&amp;E&#148;)</FONT></I><FONT face=Arial size=2>: No transitional elections
  were taken. The Company has elected to retain assets at historical cost upon
  transition rather than taking the allowed election to recognize assets at fair
  value.</FONT><BR></LI>&nbsp;
  <LI STYLE="text-align: justify"><I><FONT face=Arial size=2>Business Combinations</FONT></I><FONT face=Arial size=2>: The Company did not retrospectively restate any business
  combinations; IFRS 3 has been applied prospectively to acquisitions after
  January 1, 2010.</FONT></LI><BR>&nbsp;
  <LI STYLE="text-align: justify"><I><FONT face=Arial size=2>Cumulative Translation
  Adjustments</FONT></I><FONT face=Arial size=2>: All cumulative translation
  adjustments and associated gains and losses have been &#147;reset&#148; to zero as at
  the date of transition, with all historic amounts transferred from accumulated
  other comprehensive loss to retained earnings.</FONT></LI><BR>&nbsp;
  <LI STYLE="text-align: justify"><I><FONT face=Arial size=2>Employee Future Benefits</FONT></I><FONT face=Arial size=2> </FONT><I><FONT face=Arial size=2>(additional Transitional
  Election from those disclosed in our first quarter of 2011
  MD&amp;A</FONT></I><FONT face=Arial size=2>): We elected to apply the optional
  election in </FONT><FONT face=Arial size=2>IFRS 1 and recognized all
  cumulative unrecognized actuarial gains and losses through retained earnings
  as at the date of transition. </FONT></LI></UL>
<P align=justify><U><FONT face=Arial size=2>IFRS OPENING STATEMENT OF FINANCIAL
POSITION</FONT></U><FONT face=Arial size=2> </FONT></P>
<P align=justify><FONT face=Arial size=2>Note 27 to our consolidated financial
statements summarize the quantitative impact on the consolidated statement of
financial position of our transition to IFRS at January 1, 2010. </FONT></P>
<P align=right><FONT face=Arial size=1>Page 22 of 38 </FONT></P>
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<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=right><IMG src="exhibit99-21x1x1.jpg" border=0> </P>
<P align=justify><U><FONT face=Arial size=2>ADDITIONAL IMPACTS ON OUR IFRS 2010
FINANCIAL STATEMENTS</FONT></U><FONT face=Arial size=2> </FONT></P>
<P align=justify><FONT face=Arial size=2>In addition to the above noted impacts
on our consolidated statement of financial position at January 1, 2010, the
following matters have impacted our 2010 consolidated financial statements as a
result of our conversion to IFRS: </FONT></P>
<UL style="FONT-SIZE: 10pt; MARGIN-LEFT: 15pt; TEXT-ALIGN: justify">
  <LI><I><FONT face=Arial size=2>Accelerated recognition of sale and leaseback
  gains</FONT></I><FONT face=Arial size=2>: Under former Canadian GAAP, sale and
  leaseback gains were deferred and amortized over the term of the lease when
  the leaseback was classified as an operating lease. Under IFRS, such gains may
  be recognized upfront if the sale and leaseback transaction results in an
  operating lease, and is undertaken at fair value. As the land component of our
  March 2010 sale and leaseback of our head office building met this criteria,
  the unamortized portion of the deferred gain under former Canadian GAAP of
  $3.3 million attributed to the land leaseback has been fully recognized in our
  net income for the year ended December 31, 2010 under IFRS.</FONT></LI><BR>&nbsp;
  <LI><I><FONT face=Arial size=2>Foreign Currency Translation of Subsidiary
  (Dantherm Power)</FONT></I><FONT face=Arial size=2>: Under IFRS, the
  functional currency of the subsidiary determines the translation methodology.
  As Dantherm Power&#146;s functional currency has been assessed as the Danish Kroner
  under IFRS, Dantherm Power is consolidated under IFRS using the current rate
  method. Under former Canadian GAAP, Dantherm Power was translated using the
  temporal method.</FONT></LI><BR>&nbsp;
  <LI><I><FONT face=Arial size=2>Actuarial gains and losses on Employee Future
  Benefit Plans (additional impact from those disclosed in our first quarter of
  2011 MD&amp;A): </FONT></I><FONT face=Arial size=2>Under IFRS, actuarial gains
  and losses arising from defined benefit plans and post-retirement benefit
  plans may be recorded immediately in either net income or other comprehensive
  income. Under former Canadian GAAP, our accounting policy was to recognize
  actuarial gains and losses in net income. On adoption of IFRS, we have elected
  to recognize actuarial gains and losses in other comprehensive income. As a
  result, net actuarial gains expensed under former Canadian GAAP in Finance and
  Other Income of $0.1 million for the year ended December 31, 2010 has been
  reclassified to other comprehensive income under IFRS.</FONT></LI></UL>
<P align=justify><U><FONT face=Arial size=2>IFRS ACCOUNTING POLICY
IMPACTS</FONT></U><FONT face=Arial size=2> </FONT></P>
<P align=justify><FONT face=Arial size=2>In addition to the transitional and
other impacts described above, there are several accounting policy selections
that have impacted the Company on a go-forward basis. This is not an exhaustive
list, but it provides an indication of the main accounting policy choices which
applied to the Company under IFRS effective January 1, 2011, with comparatives
presented for 2010:</FONT></P>
<UL style="FONT-SIZE: 10pt; MARGIN-LEFT: 15pt; TEXT-ALIGN: justify">
  <LI><FONT face=Arial size=2>Share-based payments: All share-based payments are
  valued at fair value under IFRS using an option pricing model. The Company has
  selected the Black Scholes option pricing model. This is consistent with the
  Company&#146;s historic accounting policy under former Canadian GAAP. However,
  under IFRS, the valuation of stock options and restricted share unit (&#147;RSU&#148;)
  awards requires individual &#147;tranche based&#148; valuations for those option and RSU
  plans with graded vesting, while former Canadian GAAP allows a single
  valuation for all tranches. Therefore, under IFRS each installment of option
  and RSU award will be treated as a separate <FONT face=Arial size=2>option or
  RSU grant, and the fair value of each installment will be amortized over each
  installment&#146;s vesting period instead of recognizing the entire award on a
  straight-line basis over the term of the grant. The impact of this change on
  net income for the periods presented has not been
  significant.</FONT></FONT></LI></UL>
<P align=right><FONT face=Arial size=1>Page 23 of 38 </FONT></P>
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<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=right><IMG src="exhibit99-21x1x1.jpg" border=0> </P>
<UL style="FONT-SIZE: 10pt; MARGIN-LEFT: 15pt; TEXT-ALIGN: justify">
  <LI><I><FONT face=Arial size=2>Property, Plant and Equipment
  (&#147;PP&amp;E&#148;)</FONT></I><FONT face=Arial size=2>: Under IFRS, PP&amp;E may be
  accounted for using either a cost or revaluation model. We have elected to use
  the cost model under IFRS for all classes of property, plant and equipment. As
  this is consistent with our historic accounting policy under former Canadian
  GAAP, this election has not impacted our PP&amp;E balances.</FONT></LI><BR>&nbsp;
  <LI><I><FONT face=Arial size=2>Impairment of Assets</FONT></I><FONT face=Arial size=2>: If there is an indication that an asset may be impaired, an
  impairment test must be performed. Under former Canadian GAAP, this is a
  two-step impairment test in which (i) undiscounted future cash flows are
  compared to the carrying value; and (ii) if those undiscounted cash flows are
  less than the carrying value, the asset is written down to fair value. Under
  IFRS, an entity is required to assess, at the end of each reporting period,
  whether there is any indication that an asset may be impaired. If indicators
  of impairment exist, the entity shall estimate the recoverable amount of the
  asset by performing a onestep impairment test, which requires a comparison of
  the carrying value of the asset to the higher of (i) value in use; and (ii)
  fair value less costs to sell</FONT><B><FONT face=Arial size=2>.</FONT></B><FONT face=Arial size=2> Value in use is defined as the
  present value of future cash flows expected to be derived from the asset in
  its current state. Fair value less costs to sell, is defined as the estimated
  price that would be received on the sale of the asset in an orderly
  transaction between market participants, calculated at the measurement date.
  In addition, IFRS requires PP&amp;E, goodwill and intangibles to be assessed
  for impairment at the cash-generating unit (&#147;CGU&#148;) level, rather than the
  reporting unit level considered by former Canadian GAAP.</FONT></LI></UL>
<P STYLE="padding-left: 15pt; text-align: justify"><FONT face=Arial size=2>As a result of this
difference, in principle, impairment write downs may be more likely under IFRS
than are currently identified and recorded under former Canadian GAAP. The
extent of any new write downs, however, may be partially offset by the
requirement under</FONT><I><FONT face=Arial size=2> IAS 36 Impairment of Assets,
</FONT></I><FONT face=Arial size=2>to reverse any previous impairment losses
where circumstances have changed such that the impairments have been reduced.
Canadian GAAP prohibits reversal of impairment losses. We have concluded that
the adoption of these standards has not resulted in a change to the carrying
value of our PP&amp;E, Goodwill and Intangible Assets on transition to IFRS
being January 1, 2010. </FONT></P>
<UL style="FONT-SIZE: 10pt; MARGIN-LEFT: 15pt; TEXT-ALIGN: justify">
  <LI><I><FONT face=Arial size=2>Business Combinations:</FONT></I><FONT face=Arial size=2> Under IFRS, we account for all business combinations from
  January 1, 2010 onwards in accordance with </FONT><I><FONT face=Arial size=2>IFRS 3 Business Combinations</FONT></I><FONT face=Arial size=2>. Given
  that we adopted former Canadian CICA Handbook Section 1582 as of January 1,
  2010 which is substantially converged with IFRS 3, we do not have any GAAP
  difference relating to the acquisition of Dantherm Power.</FONT></LI><BR>&nbsp;
  <LI><I><FONT face=Arial size=2>Provisions: </FONT></I><FONT face=Arial size=2>Under former Canadian GAAP, a provision is required to be recorded in
  the financial statements when required payment is considered &#147;likely&#146; and can
  be reasonably estimated. The threshold for recognition of provisions under
  IFRS is lower than that under former Canadian GAAP as provisions must be
  recognized <FONT face=Arial size=2>if required payment is &#147;probable&#148;.
  Therefore, in principle, it is possible that there may be some provisions
  which would meet the recognition criteria under IFRS that were not recognized
  under former Canadian GAAP. Other differences between IFRS and former Canadian
  GAAP exist in relation to the measurement of provisions, such as the
  methodology for determining the best estimate where there is a range of
  equally possible outcomes (IFRS uses the mid-point of the range, whereas
  Canadian GAAP use the low end of the range), and the requirement under IFRS
  for provisions to be discounted where material. We have reviewed our positions
  and have concluded that there is no adjustment to our financial statements on
  transition to IFRS arising from the application of IFRS provisions recognition
  and measurement guidance. </FONT></FONT></LI></UL>
<P align=right><FONT face=Arial size=1>Page 24 of 38 </FONT></P>
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<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=right><IMG src="exhibit99-21x1x1.jpg" border=0> </P>
<UL style="FONT-SIZE: 10pt; TEXT-ALIGN: justify; margin-left: 15pt">
  <LI><I><FONT face=Arial size=2>Functional Presentation:</FONT></I><FONT face=Arial size=2> Under IFRS, operating expenses must be presented on either
  a functional or nature of expenditure basis. Under former Canadian GAAP,
  operating expenses could be presented using a mix of both function and nature
  of expenditure basis. We have elected to use the functional classification
  basis for the presentation of operating expenses. As a result, depreciation
  and amortization expense, restructuring expense, and acquisition costs, which
  were individually presented in the Statement of Operations under former
  Canadian GAAP, have been reallocated to research and product development,
  sales and marketing, and general and administrative expense under
  IFRS.</FONT></LI><BR>&nbsp;
  <LI><I><FONT face=Arial size=2>Employee Future Benefits (additional accounting
  policy impact from those disclosed in our first quarter of 2011 MD&amp;A):
  </FONT></I><FONT face=Arial size=2>Under IFRS, actuarial gains and losses
  arising from defined benefit plans and post-retirement benefit plans may be
  recorded in either net income or other comprehensive income. Under former
  Canadian GAAP, our accounting policy was to recognize actuarial gains and
  losses in net income. On adoption of IFRS, we have elected to recognize
  actuarial gains and losses in other comprehensive income. The effect of
  actuarial gains and losses arising from defined benefit plans and
  post-retirement benefit plans will no longer affect net income under our IFRS
  accounting policy choice. The effects of actuarial gains and losses will
  instead be recognized immediately in equity, rather than being recognized
  immediately in net income.</FONT><I><FONT face=Arial size=2> </FONT></I><FONT face=Arial size=2></FONT></LI></UL>
<P align=justify><U><FONT face=Arial size=2>IFRS OTHER IMPACTS</FONT></U><FONT face=Arial size=2> </FONT></P>
<P align=justify><FONT face=Arial size=2>In addition to the above noted impacts
to our financial statements and accounting policies, we have also reviewed the
impact of our conversion to IFRS on our information technology and data systems,
internal controls over financial reporting, business processes, contractual
arrangements and compensation arrangements and have made the appropriate
adjustments to transition from former Canadian GAAP to IFRS. </FONT></P>
<P align=justify><B><FONT face=Arial size=2>CRITICAL ACCOUNTING POLICIES,
ESTIMATES AND JUDGMENT APPLIED </FONT></B></P>
<P align=justify><FONT face=Arial size=2>Our consolidated financial statements
are prepared in accordance with International Financial Reporting Standards,
which require us to apply judgment when making estimates and assumptions that
affect the reported amounts of assets and liabilities at the date of the
financial statements, the reported amounts of revenues and <FONT face=Arial size=2>expenses of the reporting period, as well as disclosures made in the
accompanying notes to the financial statements. The estimates and associated
assumptions are based on past experience and other factors that are considered
relevant. Actual results could differ from these estimates. The following are
our most critical accounting estimates, which are those that require
management&#146;s most challenging, subjective and complex judgments, requiring the
need to make estimates about the effect of matters that are inherently uncertain
and may change in subsequent periods. The application of these and other
accounting policies are described more fully in note 3 to the annual
consolidated financial statements. </FONT></FONT></P>
<P align=right><FONT face=Arial size=1>Page 25 of 38 </FONT></P>
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<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=right><IMG src="exhibit99-21x1x1.jpg" border=0> </P>
<P align=justify><FONT face=Arial size=2>REVENUE RECOGNITION </FONT></P>
<P align=justify><FONT face=Arial size=2>Revenues are generated primarily from
product sales and services in our Fuel Cell Products, Contract Automotive and
Material Products segments. Product revenues are derived primarily from standard
equipment and material sales contracts and from long-term fixed price contracts.
Service revenues are derived primarily from cost-plus reimbursable contracts.
Engineering development revenues are derived primarily from long-term fixed
price contracts.</FONT></P>
<P align=justify><FONT face=Arial size=2>On standard equipment and material
sales contracts, revenues are recognized when (i) significant risks and rewards
of ownership of the goods has been transferred to the buyer; (ii) we retain
neither continuing managerial involvement to the degree usually associated with
ownership nor effective control over the goods sold; (iii) the amount of revenue
can be measured reliably; (iv) it is probable that the economic benefits
associated with the sale will accrue to us; and (v) the costs incurred, or to be
incurred, in respect of the transaction can be measured reliably. Provisions are
made at the time of sale for warranties. Revenue recognition for standard
equipment and material sales contracts does not usually involve significant
estimates.</FONT></P>
<P align=justify><FONT face=Arial size=2>On cost-plus reimbursable contracts,
revenues are recognized as costs are incurred, and include applicable fees
earned as services are provided. Revenue recognition for cost-plus reimbursable
contracts does not usually involve significant estimates.</FONT></P>
<P align=justify><FONT face=Arial size=2>On long-term fixed price contracts,
revenues are recorded on the percentage-of-completion basis over the duration of
the contract, which consists of recognizing revenue on a given contract
proportionately with its percentage of completion at any given time. The
percentage of completion is determined by dividing the cumulative costs incurred
as at the balance sheet date by the sum of incurred and anticipated costs for
completing a contract.</FONT></P>
<UL style="FONT-SIZE: 10pt; TEXT-ALIGN: justify">
  <LI><FONT face=Arial size=2>The determination of anticipated costs for
  completing a contract is based on estimates that can be affected by a variety
  of factors such as variances in the timeline to completion, the cost of
  materials, the availability and cost of labour, as well as
  productivity.</FONT></LI><BR>&nbsp;
  <LI><FONT face=Arial size=2>The determination of potential revenues includes
  the contractually agreed amount and may be adjusted based on the estimate of
  our attainment on achieving certain defined contractual milestones.
  Management&#146;s judgment is required in determining the probability that the
  revenue will be received and in determining the measurement of that
  amount.</FONT></LI></UL>
<P align=right><FONT face=Arial size=1>Page 26 of 38 </FONT></P>

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<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>


<DIV align=right>
<IMG src="exhibit99-21x1x1.jpg" border=0></DIV>
<P align=justify><FONT face="Arial" size=2>Estimates used to determine
revenues and costs of long-term fixed price contracts involve uncertainties that
ultimately depend on the outcome of future events and are periodically revised
as projects progress. There is a risk that a customer may ultimately disagree
with our assessment of the progress achieved against milestones or that our
estimates of the work required to complete a contract may change. The cumulative
effect of changes to anticipated revenues and anticipated costs for completing a
contract are recognized in the period in which the revisions are identified. In
the event that the anticipated costs exceed the anticipated revenues on a
contract, such loss is recognized in its entirety in the period it becomes
known.</FONT></P>

<P STYLE="text-align: justify"><FONT face="Arial" size=2>During the three months and year ended December 31, 2011 and 2010, there
were no material adjustments to revenues relating to revenue recognized in a
prior period.</FONT></P>

<P STYLE="text-align: justify"><FONT face="Arial" size=2>ASSET IMPAIRMENT </FONT></P>
<P align=justify><FONT face="Arial" size=2>The carrying amounts of our
non-financial assets other than inventories are reviewed at each reporting date
to determine whether there is any indication of impairment. If any such
indication exists, then the asset&#146;s recoverable amount is estimated. For
goodwill and intangible assets that have indefinite useful lives, the
recoverable amount is estimated annually.</FONT></P>
<P align=justify><FONT face="Arial" size=2>The recoverable amount of an asset
or cash-generating unit is the greater of its value in use and its fair value
less costs to sell. In assessing value in use, the estimated future cash flows
are discounted to their present value using a pre-tax discount rate that
reflects current market assessments of the time value of money and the risks
specific to the asset. In assessing fair value less costs to sell, the price
that would be received on the sale of an asset in an orderly transaction between
market participants at the measurement date is estimated. For the purposes of
impairment testing, assets that cannot be tested individually are grouped
together into the smallest group of assets that generates cash inflows from
continuing use that are largely independent of the cash inflows of other groups
of assets. Cash-generating units to which goodwill has been allocated reflects
the lowest level at which goodwill is monitored for internal reporting purposes.
Many of the factors used in assessing fair value are outside the control of
management and it is reasonably likely that assumptions and estimates will
change from period to period. These changes may result in future impairments.
For example, our revenue growth rate could be lower than projected due to
economic, industry or competitive factors, or the discount rate used in our
value in use model could increase due to a change in market interest rates. In
addition, future goodwill impairment charges may be necessary if our market
capitalization decreased due to a decline in the trading price of our common
stock, which could negatively impact the fair value of our operating segments.
</FONT></P>
<P align=justify><FONT face="Arial" size=2>An impairment loss is recognized
if the carrying amount of an asset or its cash-generating unit exceeds its
estimated recoverable amount. Impairment losses are recognized in net loss.
Impairment losses recognized in respect of the cash-generating units are
allocated first to reduce the carrying amount of any goodwill allocated to the
units, and then to reduce the carrying amounts of the other assets in the unit
on a pro-rata basis. </FONT></P>
<P align=right><FONT face="Arial" size=1>Page 27 of 38 </FONT></P>
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<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<DIV align=right><IMG src="exhibit99-21x1x1.jpg" border=0></DIV>
<P align=justify><FONT face="Arial" size=2>An impairment loss in respect of
goodwill is not reversed. In respect of other assets, impairment losses
recognized in prior periods are assessed at each reporting date for any
indications that the loss has decreased or no longer exists. An impairment loss
is reversed only to the extent that the asset&#146;s carrying amount does not exceed
the carrying amount that would have been determined, net of depreciation or
amortization, if no impairment loss had been recognized. </FONT></P>
<P align=justify><FONT face="Arial" size=2>We perform the annual review of
goodwill as at December 31 of each year, more often if events or changes in
circumstances indicate that it might be impaired. Under IFRS, the annual review
of goodwill requires a comparison of the carrying value of the asset to the
higher of (i) value in use; and (ii) fair value less costs to
sell</FONT><B><FONT face="Arial" size=2>.</FONT></B><FONT face="Arial" size=2> Value in use is defined as the present value of future cash flows
expected to be derived from the asset in its current state. As of December 31,
2011, of our consolidated goodwill balance of $48.1 million, we had allocated
$46.3 million to our core Fuel Cell Products segment, and $1.8 million to our
Material Products segment. Based on the impairment test performed as at December
31, 2011, we have concluded that no goodwill impairment charge was required on
any of our segments for the year ended December 31, 2011. Details of our
goodwill impairment tests are as follows: </FONT></p>
<UL style="MARGIN-LEFT: 16px">
  <LI STYLE="text-align: justify"><FONT face="Arial" size=2>One of the methods used to assess the
  recoverable amount of the goodwill in our core Fuel Cells Products segment is
  a fair value, less costs to sale, test. Our fair value test is in effect a
  modified market capitalization assessment, whereby we calculate the fair value
  of the Fuel Cell Products segment by first calculating the value of the
  Company at December 31, 2011 based on the average closing share price in the
  month of December, add a reasonable estimated control premium of 25% to 30% to
  determine the Company&#146;s enterprise value on a controlling basis, and then
  deduct the fair value of our Materials Product and Contract Automotive
  segments from this enterprise value, to arrive at the fair value of the Fuel
  Cell Products segment. As a result of this assessment, we have determined that
  the fair value of the Fuel Cell Products segment (with goodwill of $46.3
  million) exceeds its carrying value by approximately 15% to 20% as of December
  31, 2011.</FONT> <BR>&nbsp;</li>
  <LI STYLE="text-align: justify"><FONT face="Arial" size=2>In addition to this fair value test, we also
  performed a value in use test on our Fuel Cell Products segment that compared
  the carrying value of the segment to the present value of future cash flows
  expected to be derived from the segment. The principal factors used in this
  discounted cash flow analysis requiring judgment are the projected results of
  operations, the discount rate based on the weighted average cost of capital
  (&#147;WACC&#148;), and terminal value assumptions for each reporting unit. Our value in
  use test was based on a WACC of 17.5% to 20%; an average estimated compound
  annual growth rate of approximately 40% from 2011 to 2016; and a terminal year
  EBITDA multiplied by a terminal value multiplier of 4.0. Our value in use
  assessment resulted in a significantly higher value than as determined under
  the fair value, less costs to sell, assessment.<BR>&nbsp;</FONT></li>
  <LI STYLE="text-align: justify"><FONT face="Arial" size=2>The fair value of our Material Products
  segment (with goodwill of $1.8 million), determined using an estimated market
  value as a multiple of revenues, is substantially in excess of its carrying
  value as of December 31, 2011.</FONT></LI></UL>
<P align=right><FONT face="Arial" size=1>Page 28 of 38 </FONT></P>
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<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<DIV align=right><IMG src="exhibit99-21x1x1.jpg" border=0></DIV>
<P align=justify><FONT face="Arial" size=2>As a result of our quarterly
review of the carrying amounts of our non-financial assets (other than
inventories) to determine whether there is any indication of impairment, we
recorded an impairment charge of $1.7 million for the three months and year
ended December 31, 2011 related to a write-down of manufacturing
equipment.</FONT></P>
<P align=justify><FONT face="Arial" size=2>WARRANTY PROVISION </FONT></P>
<P align=justify><FONT face="Arial" size=2>A provision for warranty costs is
recorded on product sales at the time of shipment. In establishing the accrued
warranty liabilities, we estimate the likelihood that products sold will
experience warranty claims and the cost to resolve claims received. In making
such determinations, we use estimates based on the nature of the contract and
past and projected experience with the products. Should these estimates prove to
be incorrect, we may incur costs different from those provided for in our
warranty provisions. During the three months and year ended December 31, 2011,
we recorded provisions to accrued warranty liabilities of $1.0</FONT><B><FONT face="Arial" size=2> </FONT></B><FONT face="Arial" size=2>million and $1.9
million, respectively, for new product sales, compared to $0.8 million and $2.4
million, respectively, for the three months and year ended December 31,
2010.</FONT></P>
<P align=justify><FONT face="Arial" size=2>We review our warranty assumptions
and make adjustments to accrued warranty liabilities quarterly based on the
latest information available and to reflect the expiry of contractual
obligations. Adjustments to accrued warranty liabilities are recorded in cost of
product and service revenues. As a result of these reviews and the resulting
adjustments, our warranty provision and cost of revenues for the three months
and year ended December 31, 2011 were adjusted downwards by a net amount of $0.5
million and $1.7 million, respectively, compared to a net adjustment downwards
of $1.5 million and $1.6 million, respectively for the three months and year
ended December 31, 2010. The adjustments to reduce accrued warranty liabilities
were primarily due to contractual expirations, reductions in estimated costs to
repair, and improved lifetimes and reliability of our fuel cell
products.</FONT></P>
<P align=justify><FONT face="Arial" size=2>INVENTORY PROVISION </FONT></P>
<P align=justify><FONT face="Arial" size=2>In determining the lower of cost
and net realizable value of our inventory and establishing the appropriate
provision for inventory obsolescence, we estimate the likelihood that inventory
carrying values will be affected by changes in market pricing or demand for our
products and by changes in technology or design which could make inventory on
hand obsolete or recoverable at less than cost. We perform regular reviews to
assess the impact of changes in technology and design, sales trends and other
changes on the carrying value of inventory. Where we determine that such changes
have occurred and will have a negative impact on the value of inventory on hand,
appropriate provisions are made. If there is a subsequent increase in the value
of inventory on hand, reversals of previous write-downs to net realizable value
are made. Unforeseen changes in these factors could result in additional
inventory provisions, or reversals of previous provisions, being required.
During the three months and year ended December 31, 2011, inventory provisions
(recoveries) of $0.3</FONT><B><FONT face="Arial" size=2> </FONT></B><FONT face="Arial" size=2>million and $0.6</FONT><B><FONT face="Arial" size=2>
</FONT></B><FONT face="Arial" size=2>million, respectively, were recorded as
a charge to cost of product and service revenues, compared to ($0.2) million and
$0.5 million, respectively, for the three months and year ended December 31,
2010.</FONT></P>
<P align=right><FONT face="Arial" size=1>Page 29 of 38 </FONT></P>
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<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<DIV align=right><IMG src="exhibit99-21x1x1.jpg" border=0></DIV>
<P align=justify><FONT face="Arial" size=2>EMPLOYEE FUTURE BENEFITS
</FONT></P>
<P align=justify><FONT face="Arial" size=2>The present value of our defined
benefit obligation is determined by discounting the estimated future cash
outflows using interest rates of high-quality corporate bonds that have terms to
maturity approximating the terms of the related pension liability. Determination
of benefit expense requires assumptions such as the discount rate to measure
obligations, expected plan investment performance, expected healthcare cost
trend rate, and retirement ages of employees. Actual results will differ from
the recorded amounts based on these estimates and assumptions. During the years
ended December 31, 2011 and 2010, actuarial gains (losses) of ($2.9) million and
$0.1 million, respectively, were recognized in other comprehensive income (loss)
as a result of differences between expected and actual expense. </FONT></P>
<P align=justify><FONT face="Arial" size=2>INCOME TAXES </FONT></P>
<P align=justify><FONT face="Arial" size=2>We use the asset and liability
method of accounting for income taxes. Under this method, deferred income taxes
are recognized for the deferred income tax consequences attributable to
differences between the financial statement carrying values of assets and
liabilities and their respective income tax bases (temporary differences) and
for loss carry-forwards. The resulting changes in the net deferred tax asset or
liability are included in income. </FONT></P>
<P align=justify><FONT face="Arial" size=2>Deferred tax assets and
liabilities are measured using enacted, or substantially enacted, tax rates
expected to apply to taxable income in the years in which temporary differences
are expected to be recovered or settled. The effect on deferred income tax
assets and liabilities, of a change in tax rates, is included in income in the
period that includes the substantive enactment date. Deferred income tax assets
are reviewed at each reporting period and are reduced to the extent that it is
no longer probable that the related tax benefit will be realized. As of December
31, 2011 and 2010, we have not recorded any deferred income tax assets on our
consolidated statement of financial position.</FONT></P>
<P align=justify><B><FONT face="Arial" size=2>FUTURE IFRS ACCOUNTING
STANDARDS </FONT></B></P>
<P align=justify><FONT face="Arial" size=2>The following is an overview of
accounting standard changes that we will be required to adopt in future years.
Except as otherwise noted below for IFRS 9, IAS 32 and amendments to IFRS 7, the
standards are effective for our annual periods beginning on or after January 1,
2013, with earlier application permitted. We do not expect to adopt any of these
standards before their effective dates. We continue to evaluate the impact of
these standards on our consolidated statement of operations and financial
position. </FONT></P>
<P align=justify><FONT face="Arial" size=2>IFRS 9 &#150; FINANCIAL INSTRUMENTS
</FONT></P>
<P align=justify><FONT face="Arial" size=2>IFRS 9 introduces new requirements
for the classification and measurement of financial assets. IFRS 9 requires all
recognized financial assets that are within the scope of IAS 39 Financial
Instruments: Recognition and Measurement to be subsequently measured at
amortized cost or fair value. Specifically, financial assets that are held
within a business model whose objective is to collect the contractual cash
flows, and that have contractual cash flows that are solely payments of
principal and interest on the principal outstanding are generally measured at amortized cost at the end of subsequent accounting periods. All other financial assets including equity investments are measured at their fair values at the end of subsequent accounting periods.</FONT></P>


<P align=right><FONT face="Arial" size=1>Page 30 of 38 </FONT></P>
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<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<DIV align=right><IMG src="exhibit99-21x1x1.jpg" border=0></DIV>
<P STYLE="text-align: justify"><FONT face="Arial" size=2>Requirements for financial
liabilities were added in October 2010 and they largely carried forward existing
requirements in IAS 39, Financial Instruments &#150; Recognition and Measurement,
except that fair value changes due to credit risk for liabilities designated at
fair value through profit and loss would generally be recorded in other
comprehensive income. IFRS 9 is effective for annual periods beginning on or
after January 1, 2015.</FONT></P>
<P align=justify><FONT face="Arial" size=2>IFRS 10 &#150; CONSOLIDATION
</FONT></P>
<P align=justify><FONT face="Arial" size=2>IFRS 10 requires an entity to
consolidate an investee when it is exposed, or has rights, to variable returns
from its involvement with the investee and has the ability to affect those
returns through its power over the investee. Under existing IFRS, consolidation
is required when an entity has the power to govern the financial and operating
policies of an entity so as to obtain benefits from its activities. IFRS 10
replaces SIC-12 Consolidation &#150; Special Purpose Entities and parts of IAS 27
Consolidated and Separate Financial Statements. </FONT></P>
<P align=justify><FONT face="Arial" size=2>IFRS 11 &#150; JOINT ARRANGEMENTS
</FONT></P>
<P align=justify><FONT face="Arial" size=2>IFRS 11 requires a venturer to
classify its interest in a joint arrangement as a joint venture or joint
operation. Joint ventures will be accounted for using the equity method of
accounting whereas for a joint operation the venturer will recognize its share
of the assets, liabilities, revenue and expenses of the joint operation. Under
existing IFRS, entities have the choice to proportionately consolidate or equity
account for interests in joint ventures. IFRS 11 supersedes IAS 31, Interests in
Joint Ventures, and SIC-13, Jointly Controlled Entities &#150; Non-monetary
Contributions by Venturers. </FONT></P>
<P align=justify><FONT face="Arial" size=2>IFRS 12 &#150; DISCLOSURE OF INTERESTS
IN OTHER ENTITIES </FONT></P>
<P align=justify><FONT face="Arial" size=2>IFRS 12 establishes disclosure
requirements for interests in other entities, such as joint arrangements,
associates, special purpose vehicles and off balance sheet vehicles. The
standard carries forward existing disclosures and also introduces significant
additional disclosure requirements that address the nature of, and risks
associated with, an entity&#146;s interests in other entities. </FONT></P>
<P align=justify><FONT face="Arial" size=2>IFRS 13 &#150; FAIR VALUE MEASUREMENT
</FONT></P>
<P align=justify><FONT face="Arial" size=2>Under existing IFRS, guidance on
measuring and disclosing fair value is dispersed among the specific standards
requiring fair value measurements. IFRS 13 is a more comprehensive standard for
fair value measurement and disclosure requirements for use across all IFRS
standards. The new standard clarifies that fair value is the price that would be
received to sell an asset, or paid to transfer a liability in an orderly
transaction between market participants, at the measurement date. It also
establishes disclosures about fair value measurement. </FONT></P>
<P align=right><FONT face="Arial" size=1>Page 31 of 38 </FONT></P>
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<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<DIV align=right><IMG src="exhibit99-21x1x1.jpg" border=0></DIV>
<P align=justify><FONT face="Arial" size=2>AMENDMENTS TO IAS 19 &#150; EMPLOYEE
BENEFITS</FONT></P>
<P align=justify><FONT face="Arial" size=2>The amendments to IAS 19 make
significant changes to the recognition and measurement of defined benefit
pension expense and termination benefits, and to enhance the disclosures for all
employee benefits. Actuarial gains and losses are renamed &#145;remeasurements&#146; and
will be recognized immediately in other comprehensive income (&#147;OCI&#148;).
Remeasurements recognized in OCI will not be recycled through profit or loss in
subsequent periods. The amendments also accelerate the recognition of past
service costs whereby they are recognized in the period of a plan amendment. The
annual expense for a funded benefit plan will be computed based on the
application of the discount rate to the net defined benefit asset or liability.
The amendments to IAS 19 will also impact the presentation of pension expense as
benefit cost will be split between (i) the cost of benefits accrued in the
current period (service cost) and benefit changes (past-service cost,
settlements and curtailments); and (ii) finance expense or income. </FONT></P>
<P align=justify><FONT face="Arial" size=2>A number of other amendments have
been made to recognition, measurement and classification, including those
re-defining short-term and other long-term benefits guidance on the treatment of
taxes related to benefit plans, guidance on risk/cost sharing factors and
expanded disclosures. </FONT></P>
<P align=justify><FONT face="Arial" size=2>Our current accounting policy for
employee benefits for the presentation of pension expense and the immediate
recognition of actuarial gains and losses in OCI is consistent with the
requirements in the new standard, however, additional disclosures and the
computation of annual expense based on the application of the discount rate to
the net defined benefit asset or liability will be required in relation to the
revised standard. </FONT></P>
<P align=justify><FONT face="Arial" size=2>AMENDMENTS TO IAS 1 &#150; FINANCIAL
STATEMENT PRESENTATION </FONT></P>
<P align=justify><FONT face="Arial" size=2>The amendments to IAS 1 require
entities to separate items presented in OCI into two groups based on whether or
not they may be recycled to profit or loss in the future. Items that will not be
recycled, such as remeasurements resulting from the amendments to IAS 19, will
be presented separately from items that may be recycled in the future, such as
deferred gains and losses on cash flow hedges. Entities that choose to present
OCI items before tax will be required to show the amount of tax related to the
two groups separately. </FONT></P>
<P align=justify><FONT face="Arial" size=2>AMENDMENTS TO OTHER STANDARDS
</FONT></P>
<P align=justify><FONT face="Arial" size=2>In addition, there have been
amendments to existing standards, including IFRS 7 Financial Instruments:
Disclosure, IAS 27, Separate Financial Statements, IAS 28, Investments in
Associates and Joint Ventures, and IAS 32, Financial Instruments: Presentation.
IFRS 7 amendments require disclosure about the effects of offsetting financial
assets and financial liabilities and related arrangements on an entity&#146;s
financial position. IAS 27 addresses accounting for subsidiaries, jointly
controlled entities and associates in non-consolidated financial statements. IAS
28 has been amended to include joint ventures in its scope and to address the
changes in IFRS 10 &#150; 13. IAS 32 addresses inconsistencies when applying the
offsetting requirements, and is effective for annual periods beginning on or
after January 1, 2014. </FONT></P>
<P align=right><FONT face="Arial" size=1>Page 32 of 38 </FONT></P>
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<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<DIV align=right><IMG src="exhibit99-21x1x1.jpg" border=0></DIV>
<P align=justify><B><FONT face="Arial" size=2>SUPPLEMENTAL NON-GAAP MEASURES
</FONT></B></P>
<P align=justify><FONT face="Arial" size=2>In addition to providing measures
prepared in accordance with GAAP, we present certain supplemental non-GAAP
measures. These measures are Cash Operating Costs, EBITDA and Adjusted EBITDA,
and Normalized Net Loss. These non-GAAP measures do not have any standardized
meaning prescribed by GAAP and therefore are unlikely to be comparable to
similar measures presented by other companies. We believe these measures are
useful in evaluating the operating performance and liquidity of the Company&#146;s
ongoing business. These measures should be considered in addition to, and not as
a substitute for, net income, cash flows and other measures of financial
performance and liquidity reported in accordance with GAAP. </FONT></P>
<P align=justify><B><FONT face="Arial" size=2>Cash Operating
Costs</FONT></B></P>
<P align=justify><FONT face="Arial" size=2>This supplemental non-GAAP measure
is provided to assist readers in determining our operating costs on a cash
basis. We believe this measure is useful in assessing performance and
highlighting trends on an overall basis. We also believe Cash Operating Costs is
frequently used by securities analysts and investors when comparing our results
with those of other companies. Cash Operating Costs differs from the most
comparable GAAP measure, operating expenses, primarily because it does not
include stock-based compensation expense, depreciation and amortization,
restructuring charges and acquisition costs. </FONT></P>
<P align=justify><FONT face="Arial" size=2>The following table shows a
reconciliation of operating expenses to Cash Operating Costs for the three
months and years ended December 31, 2011 and 2010: </FONT></P>
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=left width="85%"><I><FONT face="Arial" size=1>(Expressed in thousands of U.S. dollars)</FONT></I></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; text-align: center" noWrap width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; text-align: center" noWrap width="14%" colSpan=11><FONT face="Arial" size=1>Three months ended December 31,</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="85%"><B><FONT face="Arial" size=1>Cash Operating Costs</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" colSpan=2><B><FONT face="Arial" size=1>2011</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" colSpan=2><FONT face="Arial" size=1>2010</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" colSpan=2><FONT face="Arial" size=1>$ </FONT><FONT face="Arial" size=1>Change</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="85%" bgColor=#c0c0c0><FONT face="Arial" size=1>Operating Expense</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></B></TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>9,481</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1><STRONG>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </STRONG></FONT></TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face="Arial" size=1>14,647</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1><STRONG>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </STRONG></FONT></TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face="Arial" size=1>(5,166</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD></TR>
  <TR STYLE="background-color: White">
    <TD NOWRAP ALIGN="LEFT" WIDTH="85%"><FONT face="Arial" size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      Stock-based compensation (expense) recovery</FONT></TD>
    <TD NOWRAP ALIGN="LEFT" WIDTH="1%"></TD>
    <TD NOWRAP ALIGN="LEFT" WIDTH="1%"></TD>
    <TD NOWRAP ALIGN="RIGHT" WIDTH="2%"><B><FONT face="Arial" size=1>257</FONT></B></TD>
    <TD NOWRAP ALIGN="LEFT" WIDTH="1%"></TD>
    <TD NOWRAP ALIGN="LEFT" WIDTH="1%"></TD>
    <TD NOWRAP ALIGN="LEFT" WIDTH="1%"></TD>
    <TD NOWRAP ALIGN="RIGHT" WIDTH="2%"><FONT face="Arial" size=1>(1,114</FONT></TD>
    <TD NOWRAP ALIGN="LEFT" WIDTH="1%"><FONT face="Arial" size=1>)</FONT></TD>
    <TD NOWRAP ALIGN="LEFT" WIDTH="1%"></TD>
    <TD NOWRAP ALIGN="LEFT" WIDTH="1%"></TD>
    <TD NOWRAP ALIGN="RIGHT" WIDTH="2%"><FONT face="Arial" size=1>1,371</FONT></TD>
    <TD NOWRAP ALIGN="LEFT" WIDTH="1%"></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: Silver">
    <TD noWrap align=left width="85%"><FONT face="Arial" size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      Acquisition costs</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="2%"><B><FONT face="Arial" size=1>-</FONT></B></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="2%"><FONT face="Arial" size=1>(175</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="2%"><FONT face="Arial" size=1>175</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: transparent">
    <TD NOWRAP STYLE="text-align: left; width: 85%"><FONT face="Arial" size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Restructuring
      charges</FONT></TD>
    <TD NOWRAP STYLE="text-align: left; width: 1%"></TD>
    <TD NOWRAP STYLE="text-align: left; width: 1%"></TD>
    <TD NOWRAP STYLE="text-align: right; width: 2%"><B><FONT face="Arial" size=1>(79</FONT></B></TD>
    <TD NOWRAP STYLE="text-align: left; width: 1%"><B><FONT face="Arial" size=1>)</FONT></B></TD>
    <TD NOWRAP STYLE="text-align: left; width: 1%"></TD>
    <TD NOWRAP STYLE="text-align: left; width: 1%"></TD>
    <TD NOWRAP STYLE="text-align: right; width: 2%"><FONT face="Arial" size=1>-</FONT></TD>
    <TD NOWRAP STYLE="text-align: left; width: 1%"></TD>
    <TD NOWRAP STYLE="text-align: left; width: 1%"></TD>
    <TD NOWRAP STYLE="text-align: left; width: 1%"></TD>
    <TD NOWRAP STYLE="text-align: right; width: 2%"><FONT face="Arial" size=1>(79</FONT></TD>
    <TD NOWRAP STYLE="text-align: left; width: 1%"><FONT face="Arial" size=1>)</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: Silver">
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="85%"><FONT face="Arial" size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation and
      amortization</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%"><B><FONT face="Arial" size=1>(1,033</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><B><FONT face="Arial" size=1>)</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%"><FONT face="Arial" size=1>(3,703</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%"><FONT face="Arial" size=1>2,670</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: transparent">
    <TD NOWRAP STYLE="border-bottom: #000000 1.5pt solid; text-align: left; width: 85%"><B><FONT face="Arial" size=1>Cash Operating Costs</FONT></B></TD>
    <TD NOWRAP STYLE="border-bottom: #000000 1.5pt solid; text-align: left; width: 1%"></TD>
    <TD NOWRAP STYLE="border-bottom: #000000 1.5pt solid; text-align: left; width: 1%"><B><FONT face="Arial" size=1>$</FONT></B></TD>
    <TD NOWRAP STYLE="border-bottom: #000000 1.5pt solid; text-align: right; width: 2%"><B><FONT face="Arial" size=1>8,626</FONT></B></TD>
    <TD NOWRAP STYLE="border-bottom: #000000 1.5pt solid; text-align: left; width: 1%"></TD>
    <TD NOWRAP STYLE="border-bottom: #000000 1.5pt solid; text-align: left; width: 1%"></TD>
    <TD NOWRAP STYLE="border-bottom: #000000 1.5pt solid; text-align: left; width: 1%"><FONT face="Arial" size=1>$</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: #000000 1.5pt solid; text-align: right; width: 2%"><FONT face="Arial" size=1>9,655</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: #000000 1.5pt solid; text-align: left; width: 1%"></TD>
    <TD NOWRAP STYLE="border-bottom: #000000 1.5pt solid; text-align: left; width: 1%"></TD>
    <TD NOWRAP STYLE="border-bottom: #000000 1.5pt solid; text-align: left; width: 1%"><FONT face="Arial" size=1>$</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: #000000 1.5pt solid; text-align: right; width: 2%"><FONT face="Arial" size=1>(1,029</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: #000000 1.5pt solid; text-align: left; width: 1%"><FONT face="Arial" size=1>)</FONT></TD></TR>
  <TR STYLE="background-color: White">
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" width="100%" colSpan=13>&nbsp;</TD></TR>
  <TR STYLE="background-color: White">
    <TD noWrap align=left width="85%"><I><FONT face="Arial" size=1>(Expressed in thousands
      of U.S. dollars)</FONT></I></TD>
    <TD style="text-align: center" width="1%"></TD>
    <TD style="text-align: center" width="14%" colSpan=11><FONT face="Arial" size=1>Years ended December 31,</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: transparent">
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="85%"><B><FONT face="Arial" size=1>Cash Operating Costs</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" colSpan=2><B><FONT face="Arial" size=1>2011</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" colSpan=2><FONT face="Arial" size=1>2010</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" colSpan=2><FONT face="Arial" size=1>$ </FONT><FONT face="Arial" size=1>Change</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: Silver">
    <TD NOWRAP STYLE="text-align: left; width: 85%"><FONT face="Arial" size=1>Operating Expense</FONT></TD>
    <TD NOWRAP STYLE="text-align: left; width: 1%"></TD>
    <TD NOWRAP STYLE="text-align: left; width: 1%"><B><FONT face="Arial" size=1>$</FONT></B></TD>
    <TD NOWRAP STYLE="text-align: right; width: 2%"><B><FONT face="Arial" size=1>47,468</FONT></B></TD>
    <TD NOWRAP STYLE="text-align: left; width: 1%"></TD>
    <TD NOWRAP STYLE="text-align: left; width: 1%"></TD>
    <TD NOWRAP STYLE="text-align: left; width: 1%"><FONT face="Arial" size=1>$</FONT></TD>
    <TD NOWRAP STYLE="text-align: right; width: 2%"><FONT face="Arial" size=1>52,639</FONT></TD>
    <TD NOWRAP STYLE="text-align: left; width: 1%"></TD>
    <TD NOWRAP STYLE="text-align: left; width: 1%"></TD>
    <TD NOWRAP STYLE="text-align: left; width: 1%"><FONT face="Arial" size=1>$</FONT></TD>
    <TD NOWRAP STYLE="text-align: right; width: 2%"><FONT face="Arial" size=1>(5,171</FONT></TD>
    <TD NOWRAP STYLE="text-align: left; width: 1%"><FONT face="Arial" size=1>)</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: transparent">
    <TD noWrap align=left width="85%"><FONT face="Arial" size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      Stock-based compensation expense</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=right width="2%"><B><FONT face="Arial" size=1>(2,646</FONT></B></TD>
    <TD noWrap align=left width="1%"><B><FONT face="Arial" size=1>)</FONT></B></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=right width="2%"><FONT face="Arial" size=1>(3,579</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="2%"><FONT face="Arial" size=1>933</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: Silver">
    <TD NOWRAP STYLE="text-align: left; width: 85%"><FONT face="Arial" size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Acquisition
    costs</FONT></TD>
    <TD NOWRAP STYLE="text-align: left; width: 1%"></TD>
    <TD NOWRAP STYLE="text-align: left; width: 1%"></TD>
    <TD NOWRAP STYLE="text-align: right; width: 2%"><B><FONT face="Arial" size=1>-</FONT></B></TD>
    <TD NOWRAP STYLE="text-align: left; width: 1%"></TD>
    <TD NOWRAP STYLE="text-align: left; width: 1%"></TD>
    <TD NOWRAP STYLE="text-align: left; width: 1%"></TD>
    <TD NOWRAP STYLE="text-align: right; width: 2%"><FONT face="Arial" size=1>(243</FONT></TD>
    <TD NOWRAP STYLE="text-align: left; width: 1%"><FONT face="Arial" size=1>)</FONT></TD>
    <TD NOWRAP STYLE="text-align: left; width: 1%"></TD>
    <TD NOWRAP STYLE="text-align: left; width: 1%">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; width: 2%"><FONT face="Arial" size=1>243</FONT></TD>
    <TD NOWRAP STYLE="text-align: left; width: 1%">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: transparent">
    <TD noWrap align=left width="85%"><FONT face="Arial" size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      Restructuring charges</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="2%"><B><FONT face="Arial" size=1>(1,356</FONT></B></TD>
    <TD noWrap align=left width="1%"><B><FONT face="Arial" size=1>)</FONT></B></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="2%"><FONT face="Arial" size=1>(285</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="2%"><FONT face="Arial" size=1>(1,071</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: Silver">
    <TD NOWRAP STYLE="border-bottom: #000000 1pt solid; text-align: left; width: 85%"><FONT face="Arial" size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation and
      amortization</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: #000000 1pt solid; text-align: left; width: 1%"></TD>
    <TD NOWRAP STYLE="border-bottom: #000000 1pt solid; text-align: left; width: 1%"></TD>
    <TD NOWRAP STYLE="border-bottom: #000000 1pt solid; text-align: right; width: 2%"><B><FONT face="Arial" size=1>(4,164</FONT></B></TD>
    <TD NOWRAP STYLE="border-bottom: #000000 1pt solid; text-align: left; width: 1%"><B><FONT face="Arial" size=1>)</FONT></B></TD>
    <TD NOWRAP STYLE="border-bottom: #000000 1pt solid; text-align: left; width: 1%"></TD>
    <TD NOWRAP STYLE="border-bottom: #000000 1pt solid; text-align: left; width: 1%"></TD>
    <TD NOWRAP STYLE="border-bottom: #000000 1pt solid; text-align: right; width: 2%"><FONT face="Arial" size=1>(6,454</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: #000000 1pt solid; text-align: left; width: 1%"><FONT face="Arial" size=1>)</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: #000000 1pt solid; text-align: left; width: 1%"></TD>
    <TD NOWRAP STYLE="border-bottom: #000000 1pt solid; text-align: left; width: 1%"></TD>
    <TD NOWRAP STYLE="border-bottom: #000000 1pt solid; text-align: right; width: 2%"><FONT face="Arial" size=1>2,290</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: #000000 1pt solid; text-align: left; width: 1%">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: transparent">
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="85%"><B><FONT face="Arial" size=1>Cash Operating Costs</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><B><FONT face="Arial" size=1>$</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="2%"><B><FONT face="Arial" size=1>39,302</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="2%"><FONT face="Arial" size=1>42,078</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="2%"><FONT face="Arial" size=1>(2,776</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD></TR></TABLE><BR>
<P align=justify><B><FONT face="Arial" size=2>Adjusted EBITDA</FONT></B></P>
<P align=justify><FONT face="Arial" size=2>These supplemental non-GAAP
measures are provided to assist readers in determining our operating performance
and ability to generate operating cash flow. We believe this measure is useful
in assessing performance and highlighting trends on an overall basis. We also
believe EBITDA and Adjusted EBITDA are frequently used by securities analysts and investors when comparing our results with those
of other companies. EBITDA differs from the most comparable GAAP measure, net
income attributable to Ballard, primarily because it does not include finance
(or interest) expense, income tax expense or recovery, depreciation of property,
plant and equipment, amortization of intangible assets, and goodwill impairment
charges. Adjusted EBITDA adjusts EBITDA for stock-based compensation expense,
transactional gains and losses, asset impairment charges, finance and other
income, and acquisition costs.&nbsp;</FONT></P>
<P align=right><FONT face="Arial" size=1>Page 33 of 38 </FONT></P>
<HR align=center width="100%" noShade SIZE=2>

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<DIV align=right><IMG src="exhibit99-21x1x1.jpg" border=0></DIV>
<P align=justify><FONT face="Arial" size=2>The following table shows a
reconciliation of net income attributable to Ballard to EBITDA and Adjusted
EBITDA for the three months and years ended December 31, 2011 and 2010:
</FONT></P>
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=left width="83%"><I><FONT face="Arial" size=1>(Expressed in thousands of U.S.
    dollars)</FONT></I></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; text-align: center" width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; text-align: center" width="16%" colSpan=11><FONT face="Arial" size=1>Three months ended December 31,</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="83%"><B><FONT face="Arial" size=1>EBITDA and Adjusted EBITDA</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><B><FONT face="Arial" size=1>2011</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face="Arial" size=1>2010</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" colSpan=2><FONT face="Arial" size=1>$ </FONT><FONT face="Arial" size=1>Change</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%" bgColor=#c0c0c0><FONT face="Arial" size=1>Net loss attributable to
      Ballard</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>$</FONT></B></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>(7,289</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>)</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1><STRONG>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </STRONG></FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>(8,998</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1><STRONG>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </STRONG></FONT></TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face="Arial" size=1>1,709</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%"><FONT face="Arial" size=1>Depreciation and amortization</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><B><FONT face="Arial" size=1>1,490</FONT></B></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>4,323</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="2%"><FONT face="Arial" size=1>(2,833</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%" bgColor=#c0c0c0><FONT face="Arial" size=1>Finance expense</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>455</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>309</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face="Arial" size=1>146</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="83%"><FONT face="Arial" size=1>Income
      taxes</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><B><FONT face="Arial" size=1>164</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face="Arial" size=1>-</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%"><FONT face="Arial" size=1>164</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%" bgColor=#c0c0c0><FONT face="Arial" size=1>EBITDA attributable to
      Ballard</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>$</FONT></B></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>(5,180</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>)</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>(4,366</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$</FONT></TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face="Arial" size=1>(814</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%"><FONT face="Arial" size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock-based
      compensation</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><B><FONT face="Arial" size=1>(257</FONT></B></TD>
    <TD noWrap align=left width="1%"><B><FONT face="Arial" size=1>)</FONT></B></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>1,114</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="2%"><FONT face="Arial" size=1>(1,371</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%" bgColor=#c0c0c0><FONT face="Arial" size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Acquisition
      costs</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>-</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>175</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face="Arial" size=1>(175</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%"><FONT face="Arial" size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Finance and
      other (income) loss</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><B><FONT face="Arial" size=1>(78</FONT></B></TD>
    <TD noWrap align=left width="1%"><B><FONT face="Arial" size=1>)</FONT></B></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>(561</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="2%"><FONT face="Arial" size=1>483</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: Silver">
    <TD noWrap align=left width="83%"><FONT face="Arial" size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Impairment loss
      on property, plant and equipment</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><B><FONT face="Arial" size=1>1,727</FONT></B></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="2%"><FONT face="Arial" size=1>1,727</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: transparent">
    <TD NOWRAP STYLE="text-align: left; width: 83%"><FONT face="Arial" size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss on sale of
      assets and property, plant and
      equipment</FONT></TD>
    <TD NOWRAP STYLE="text-align: left; width: 1%"></TD>
    <TD NOWRAP STYLE="text-align: left; width: 1%"></TD>
    <TD NOWRAP STYLE="text-align: right; width: 3%"><B><FONT face="Arial" size=1>23</FONT></B></TD>
    <TD NOWRAP STYLE="text-align: left; width: 1%"></TD>
    <TD NOWRAP STYLE="text-align: left; width: 1%"></TD>
    <TD NOWRAP STYLE="text-align: left; width: 1%"></TD>
    <TD NOWRAP STYLE="text-align: right; width: 3%"><FONT face="Arial" size=1>50</FONT></TD>
    <TD NOWRAP STYLE="text-align: left; width: 1%"></TD>
    <TD NOWRAP STYLE="text-align: left; width: 1%"></TD>
    <TD NOWRAP STYLE="text-align: left; width: 1%"></TD>
    <TD NOWRAP STYLE="text-align: right; width: 2%"><FONT face="Arial" size=1>(27</FONT></TD>
    <TD NOWRAP STYLE="text-align: left; width: 1%"><FONT face="Arial" size=1>)</FONT></TD></TR>
  <TR STYLE="background-color: Silver">
    <TD NOWRAP STYLE="border-bottom: #000000 1.5pt solid; text-align: left; width: 83%"><B><FONT face="Arial" size=1>Adjusted EBITDA</FONT></B></TD>
    <TD NOWRAP STYLE="border-bottom: #000000 1.5pt solid; text-align: left; width: 1%"></TD>
    <TD NOWRAP STYLE="border-bottom: #000000 1.5pt solid; text-align: left; width: 1%"><B><FONT face="Arial" size=1>$</FONT></B></TD>
    <TD NOWRAP STYLE="border-bottom: #000000 1.5pt solid; text-align: right; width: 3%"><B><FONT face="Arial" size=1>(3,765</FONT></B></TD>
    <TD NOWRAP STYLE="border-bottom: #000000 1.5pt solid; text-align: left; width: 1%"><B><FONT face="Arial" size=1>)</FONT></B></TD>
    <TD NOWRAP STYLE="border-bottom: #000000 1.5pt solid; text-align: left; width: 1%"></TD>
    <TD NOWRAP STYLE="border-bottom: #000000 1.5pt solid; text-align: left; width: 1%"><FONT face="Arial" size=1>$</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: #000000 1.5pt solid; text-align: right; width: 3%"><FONT face="Arial" size=1>(3,588</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: #000000 1.5pt solid; text-align: left; width: 1%"><FONT face="Arial" size=1>)</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: #000000 1.5pt solid; text-align: left; width: 1%"></TD>
    <TD NOWRAP STYLE="border-bottom: #000000 1.5pt solid; text-align: left; width: 1%"><FONT face="Arial" size=1>$</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: #000000 1.5pt solid; text-align: right; width: 2%"><FONT face="Arial" size=1>(177</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: #000000 1.5pt solid; text-align: left; width: 1%"><FONT face="Arial" size=1>)</FONT></TD></TR>
  <TR STYLE="background-color: transparent">
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" width="100%" colSpan=13>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: transparent">
    <TD noWrap align=left width="83%"><I><FONT face="Arial" size=1>(Expressed in thousands
      of U.S. dollars)</FONT></I></TD>
    <TD style="text-align: center" width="1%"></TD>
    <TD style="text-align: center" width="16%" colSpan=11><FONT face="Arial" size=1>Years ended December 31,</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: transparent">
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="83%"><B><FONT face="Arial" size=1>EBITDA and Adjusted EBITDA</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><B><FONT face="Arial" size=1>2011</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face="Arial" size=1>2010</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" colSpan=2><FONT face="Arial" size=1>$ </FONT><FONT face="Arial" size=1>Change</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: Silver">
    <TD NOWRAP STYLE="text-align: left; width: 83%"><FONT face="Arial" size=1>Net loss attributable to
      Ballard</FONT></TD>
    <TD NOWRAP STYLE="text-align: left; width: 1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD NOWRAP STYLE="text-align: left; width: 1%"><B><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></B></TD>
    <TD NOWRAP STYLE="text-align: right; width: 3%"><B><FONT face="Arial" size=1>(33,420</FONT></B></TD>
    <TD NOWRAP STYLE="text-align: left; width: 1%"><B><FONT face="Arial" size=1>)</FONT></B></TD>
    <TD NOWRAP STYLE="text-align: left; width: 1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD NOWRAP STYLE="text-align: left; width: 1%"><FONT face="Arial" size=1><STRONG>$&nbsp;&nbsp;&nbsp;&nbsp;
</STRONG></FONT></TD>
    <TD NOWRAP STYLE="text-align: right; width: 3%"><FONT face="Arial" size=1>(31,532</FONT></TD>
    <TD NOWRAP STYLE="text-align: left; width: 1%"><FONT face="Arial" size=1>)</FONT></TD>
    <TD NOWRAP STYLE="text-align: left; width: 1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD NOWRAP STYLE="text-align: left; width: 1%"><FONT face="Arial" size=1><STRONG>$&nbsp;&nbsp;&nbsp;&nbsp;
</STRONG></FONT></TD>
    <TD NOWRAP STYLE="text-align: right; width: 2%"><FONT face="Arial" size=1>(1,888</FONT></TD>
    <TD NOWRAP STYLE="text-align: left; width: 1%"><FONT face="Arial" size=1>)</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: transparent">
    <TD noWrap align=left width="83%"><FONT face="Arial" size=1>Depreciation and amortization</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><B><FONT face="Arial" size=1>5,906</FONT></B></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>8,615</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="2%"><FONT face="Arial" size=1>(2,709</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: Silver">
    <TD NOWRAP STYLE="text-align: left; width: 83%"><FONT face="Arial" size=1>Finance expense</FONT></TD>
    <TD NOWRAP STYLE="text-align: left; width: 1%"></TD>
    <TD NOWRAP STYLE="text-align: left; width: 1%"></TD>
    <TD NOWRAP STYLE="text-align: right; width: 3%"><B><FONT face="Arial" size=1>1,392</FONT></B></TD>
    <TD NOWRAP STYLE="text-align: left; width: 1%"></TD>
    <TD NOWRAP STYLE="text-align: left; width: 1%"></TD>
    <TD NOWRAP STYLE="text-align: left; width: 1%"></TD>
    <TD NOWRAP STYLE="text-align: right; width: 3%"><FONT face="Arial" size=1>861</FONT></TD>
    <TD NOWRAP STYLE="text-align: left; width: 1%"></TD>
    <TD NOWRAP STYLE="text-align: left; width: 1%"></TD>
    <TD NOWRAP STYLE="text-align: left; width: 1%"></TD>
    <TD NOWRAP STYLE="text-align: right; width: 2%"><FONT face="Arial" size=1>531</FONT></TD>
    <TD NOWRAP STYLE="text-align: left; width: 1%"></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: transparent">
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="83%"><FONT face="Arial" size=1>Income
      taxes</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><B><FONT face="Arial" size=1>383</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face="Arial" size=1>3</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%"><FONT face="Arial" size=1>380</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: Silver">
    <TD NOWRAP STYLE="text-align: left; width: 83%"><FONT face="Arial" size=1>EBITDA attributable to
      Ballard</FONT></TD>
    <TD NOWRAP STYLE="text-align: left; width: 1%"></TD>
    <TD NOWRAP STYLE="text-align: left; width: 1%"><B><FONT face="Arial" size=1>$</FONT></B></TD>
    <TD NOWRAP STYLE="text-align: right; width: 3%"><B><FONT face="Arial" size=1>(25,739</FONT></B></TD>
    <TD NOWRAP STYLE="text-align: left; width: 1%"><B><FONT face="Arial" size=1>)</FONT></B></TD>
    <TD NOWRAP STYLE="text-align: left; width: 1%"></TD>
    <TD NOWRAP STYLE="text-align: left; width: 1%"><FONT face="Arial" size=1>$</FONT></TD>
    <TD NOWRAP STYLE="text-align: right; width: 3%"><FONT face="Arial" size=1>(22,053</FONT></TD>
    <TD NOWRAP STYLE="text-align: left; width: 1%"><FONT face="Arial" size=1>)</FONT></TD>
    <TD NOWRAP STYLE="text-align: left; width: 1%"></TD>
    <TD NOWRAP STYLE="text-align: left; width: 1%"><FONT face="Arial" size=1>$</FONT></TD>
    <TD NOWRAP STYLE="text-align: right; width: 2%"><FONT face="Arial" size=1>(3,686</FONT></TD>
    <TD NOWRAP STYLE="text-align: left; width: 1%"><FONT face="Arial" size=1>)</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: transparent">
    <TD noWrap align=left width="83%"><FONT face="Arial" size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock-based
      compensation</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><B><FONT face="Arial" size=1>2,646</FONT></B></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>3,579</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="2%"><FONT face="Arial" size=1>(933</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: Silver">
    <TD NOWRAP STYLE="text-align: left; width: 83%"><FONT face="Arial" size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Acquisition
      costs</FONT></TD>
    <TD NOWRAP STYLE="text-align: left; width: 1%"></TD>
    <TD NOWRAP STYLE="text-align: left; width: 1%"></TD>
    <TD NOWRAP STYLE="text-align: right; width: 3%"><B><FONT face="Arial" size=1>-</FONT></B></TD>
    <TD NOWRAP STYLE="text-align: left; width: 1%"></TD>
    <TD NOWRAP STYLE="text-align: left; width: 1%"></TD>
    <TD NOWRAP STYLE="text-align: left; width: 1%"></TD>
    <TD NOWRAP STYLE="text-align: right; width: 3%"><FONT face="Arial" size=1>243</FONT></TD>
    <TD NOWRAP STYLE="text-align: left; width: 1%"></TD>
    <TD NOWRAP STYLE="text-align: left; width: 1%"></TD>
    <TD NOWRAP STYLE="text-align: left; width: 1%"></TD>
    <TD NOWRAP STYLE="text-align: right; width: 2%"><FONT face="Arial" size=1>(243</FONT></TD>
    <TD NOWRAP STYLE="text-align: left; width: 1%"><FONT face="Arial" size=1>)</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: transparent">
    <TD noWrap align=left width="83%"><FONT face="Arial" size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investment and
      other (income) loss</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><B><FONT face="Arial" size=1>(195</FONT></B></TD>
    <TD noWrap align=left width="1%"><B><FONT face="Arial" size=1>)</FONT></B></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>104</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="2%"><FONT face="Arial" size=1>(299</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: Silver">
    <TD NOWRAP STYLE="text-align: left; width: 83%"><FONT face="Arial" size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Impairment loss
      on property, plant and equipment</FONT></TD>
    <TD NOWRAP STYLE="text-align: left; width: 1%"></TD>
    <TD NOWRAP STYLE="text-align: left; width: 1%"></TD>
    <TD NOWRAP STYLE="text-align: right; width: 3%"><B><FONT face="Arial" size=1>1,727</FONT></B></TD>
    <TD NOWRAP STYLE="text-align: left; width: 1%"></TD>
    <TD NOWRAP STYLE="text-align: left; width: 1%"></TD>
    <TD NOWRAP STYLE="text-align: left; width: 1%"></TD>
    <TD NOWRAP STYLE="text-align: right; width: 3%"><FONT face="Arial" size=1>-</FONT></TD>
    <TD NOWRAP STYLE="text-align: left; width: 1%">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left; width: 1%"></TD>
    <TD NOWRAP STYLE="text-align: left; width: 1%">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; width: 2%"><FONT face="Arial" size=1>1,727</FONT></TD>
    <TD NOWRAP STYLE="text-align: left; width: 1%"></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: transparent">
    <TD noWrap align=left width="83%"><FONT face="Arial" size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gain on sale of
      property, plant and equipment</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><B><FONT face="Arial" size=1>(734</FONT></B></TD>
    <TD noWrap align=left width="1%"><B><FONT face="Arial" size=1>)</FONT></B></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>(4</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="2%"><FONT face="Arial" size=1>(730</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: Silver">
    <TD NOWRAP STYLE="border-bottom: #000000 1pt solid; text-align: left; width: 83%"><FONT face="Arial" size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gain on sale of
      assets</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: #000000 1pt solid; text-align: left; width: 1%"></TD>
    <TD NOWRAP STYLE="border-bottom: #000000 1pt solid; text-align: left; width: 1%"></TD>
    <TD NOWRAP STYLE="border-bottom: #000000 1pt solid; text-align: right; width: 3%"><B><FONT face="Arial" size=1>-</FONT></B></TD>
    <TD NOWRAP STYLE="border-bottom: #000000 1pt solid; text-align: left; width: 1%"></TD>
    <TD NOWRAP STYLE="border-bottom: #000000 1pt solid; text-align: left; width: 1%"></TD>
    <TD NOWRAP STYLE="border-bottom: #000000 1pt solid; text-align: left; width: 1%"></TD>
    <TD NOWRAP STYLE="border-bottom: #000000 1pt solid; text-align: right; width: 3%"><FONT face="Arial" size=1>(8,032</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: #000000 1pt solid; text-align: left; width: 1%"><FONT face="Arial" size=1>)</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: #000000 1pt solid; text-align: left; width: 1%"></TD>
    <TD NOWRAP STYLE="border-bottom: #000000 1pt solid; text-align: left; width: 1%"></TD>
    <TD NOWRAP STYLE="border-bottom: #000000 1pt solid; text-align: right; width: 2%"><FONT face="Arial" size=1>8,032</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: #000000 1pt solid; text-align: left; width: 1%"></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: transparent">
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="83%"><B><FONT face="Arial" size=1>Adjusted EBITDA</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><B><FONT face="Arial" size=1>$</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><B><FONT face="Arial" size=1>(22,295</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><B><FONT face="Arial" size=1>)</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT face="Arial" size=1>(26,163</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="2%"><FONT face="Arial" size=1>3,868</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD></TR></TABLE><BR>
<P align=justify><B><FONT face="Arial" size=2>Normalized Net Loss
</FONT></B></P>
<P align=justify><FONT face="Arial" size=2>This supplemental non-GAAP measure
is provided to assist readers in determining our financial performance. We
believe this measure is useful in assessing our actual performance by adjusting our actual results for one-time
transactional gains and losses and impairment losses. Normalized Net Loss
differs from the most comparable GAAP measure, net income (loss) attributable to
Ballard, primarily because it does not include transactional gains and losses
and asset impairment charges.</FONT></P>
<P align=right><FONT face="Arial" size=1>Page 34 of 38 </FONT></P>
<HR align=center width="100%" noShade SIZE=2>

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<DIV align=right><IMG src="exhibit99-21x1x1.jpg" border=0></DIV>
<P align=justify><FONT face="Arial" size=2>The following table shows a
reconciliation of net income (loss) attributable to Ballard to Normalized Net
Loss for the three months and years ended December 31, 2011 and 2010.
</FONT></P>
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=left width="83%"><I><FONT face="Arial" size=1>(Expressed in thousands of U.S.
      dollars)</FONT></I></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; text-align: center" width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; text-align: center" width="16%" colSpan=11><FONT face="Arial" size=1>Three months ended December
    31,</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="83%"><B><FONT face="Arial" size=1>Normalized Net Loss</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><B><FONT face="Arial" size=1>2011</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face="Arial" size=1>2010</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" colSpan=2><FONT face="Arial" size=1>$ </FONT><FONT face="Arial" size=1>Change</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%" bgColor=#c0c0c0><FONT face="Arial" size=1>Net loss
      attributable to Ballard</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></B></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>(7,289</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>)</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>(8,998</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>)</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face="Arial" size=1>1,709</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: transparent">
    <TD NOWRAP STYLE="border-bottom: #000000 1pt solid; text-align: left; width: 83%"><FONT face="Arial" size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Impairment loss on
      property, plant and equipment</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: #000000 1pt solid; text-align: left; width: 1%"></TD>
    <TD NOWRAP STYLE="border-bottom: #000000 1pt solid; text-align: left; width: 1%"></TD>
    <TD NOWRAP STYLE="border-bottom: #000000 1pt solid; text-align: right; width: 3%"><B><FONT face="Arial" size=1>1,727</FONT></B></TD>
    <TD NOWRAP STYLE="border-bottom: #000000 1pt solid; text-align: left; width: 1%"></TD>
    <TD NOWRAP STYLE="border-bottom: #000000 1pt solid; text-align: left; width: 1%"></TD>
    <TD NOWRAP STYLE="border-bottom: #000000 1pt solid; text-align: left; width: 1%"></TD>
    <TD NOWRAP STYLE="border-bottom: #000000 1pt solid; text-align: right; width: 3%"><FONT face="Arial" size=1>-</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: #000000 1pt solid; text-align: left; width: 1%"></TD>
    <TD NOWRAP STYLE="border-bottom: #000000 1pt solid; text-align: left; width: 1%"></TD>
    <TD NOWRAP STYLE="border-bottom: #000000 1pt solid; text-align: left; width: 1%"></TD>
    <TD NOWRAP STYLE="border-bottom: #000000 1pt solid; text-align: right; width: 2%"><FONT face="Arial" size=1>1,727</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: #000000 1pt solid; text-align: left; width: 1%"></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: Silver">
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="83%"><B><FONT face="Arial" size=1>Normalized Net Loss</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><B><FONT face="Arial" size=1>$</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><B><FONT face="Arial" size=1>(5,562</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><B><FONT face="Arial" size=1>)</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face="Arial" size=1>(8,998</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%"><FONT face="Arial" size=1>3,436</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: transparent">
    <TD NOWRAP STYLE="border-bottom: #000000 1.5pt solid; text-align: left; width: 83%"><B><FONT face="Arial" size=1>Normalized Net Loss per
      share</FONT></B></TD>
    <TD NOWRAP STYLE="border-bottom: #000000 1.5pt solid; text-align: left; width: 1%"></TD>
    <TD NOWRAP STYLE="border-bottom: #000000 1.5pt solid; text-align: left; width: 1%"><B><FONT face="Arial" size=1>$</FONT></B></TD>
    <TD NOWRAP STYLE="border-bottom: #000000 1.5pt solid; text-align: right; width: 3%"><B><FONT face="Arial" size=1>(0.07</FONT></B></TD>
    <TD NOWRAP STYLE="border-bottom: #000000 1.5pt solid; text-align: left; width: 1%"><B><FONT face="Arial" size=1>)</FONT></B></TD>
    <TD NOWRAP STYLE="border-bottom: #000000 1.5pt solid; text-align: left; width: 1%"></TD>
    <TD NOWRAP STYLE="border-bottom: #000000 1.5pt solid; text-align: left; width: 1%"><FONT face="Arial" size=1>$</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: #000000 1.5pt solid; text-align: right; width: 3%"><FONT face="Arial" size=1>(0.11</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: #000000 1.5pt solid; text-align: left; width: 1%"><FONT face="Arial" size=1>)</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: #000000 1.5pt solid; text-align: left; width: 1%"></TD>
    <TD NOWRAP STYLE="border-bottom: #000000 1.5pt solid; text-align: left; width: 1%"><FONT face="Arial" size=1>$</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: #000000 1.5pt solid; text-align: right; width: 2%"><FONT face="Arial" size=1>0.04</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: #000000 1.5pt solid; text-align: left; width: 1%"></TD></TR>
  <TR STYLE="background-color: transparent">
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" width="100%" colSpan=13>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: transparent">
    <TD noWrap align=left width="83%"><I><FONT face="Arial" size=1>(Expressed in thousands of U.S. dollars)</FONT></I></TD>
    <TD style="text-align: center" width="1%"></TD>
    <TD style="text-align: center" width="16%" colSpan=11><FONT face="Arial" size=1>Years ended
      December 31,</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: transparent">
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="83%"><B><FONT face="Arial" size=1>Normalized Net Loss</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><B><FONT face="Arial" size=1>2011</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face="Arial" size=1>2010</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" colSpan=2><FONT face="Arial" size=1>$ </FONT><FONT face="Arial" size=1>Change</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: Silver">
    <TD NOWRAP STYLE="text-align: left; width: 83%"><FONT face="Arial" size=1>Net loss
      attributable to Ballard</FONT></TD>
    <TD NOWRAP STYLE="text-align: left; width: 1%"></TD>
    <TD NOWRAP STYLE="text-align: left; width: 1%"><B><FONT face="Arial" size=1>$</FONT></B></TD>
    <TD NOWRAP STYLE="text-align: right; width: 3%"><B><FONT face="Arial" size=1>(33,420</FONT></B></TD>
    <TD NOWRAP STYLE="text-align: left; width: 1%"><B><FONT face="Arial" size=1>)</FONT></B></TD>
    <TD NOWRAP STYLE="text-align: left; width: 1%"></TD>
    <TD NOWRAP STYLE="text-align: left; width: 1%"><FONT face="Arial" size=1>$</FONT></TD>
    <TD NOWRAP STYLE="text-align: right; width: 3%"><FONT face="Arial" size=1>(31,532</FONT></TD>
    <TD NOWRAP STYLE="text-align: left; width: 1%"><FONT face="Arial" size=1>)</FONT></TD>
    <TD NOWRAP STYLE="text-align: left; width: 1%"></TD>
    <TD NOWRAP STYLE="text-align: left; width: 1%"><FONT face="Arial" size=1>$</FONT></TD>
    <TD NOWRAP STYLE="text-align: right; width: 2%"><FONT face="Arial" size=1>(1,888</FONT></TD>
    <TD NOWRAP STYLE="text-align: left; width: 1%"><FONT face="Arial" size=1>)</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: transparent">
    <TD noWrap align=left width="83%"><FONT face="Arial" size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Impairment loss on
      property, plant and equipment</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><B><FONT face="Arial" size=1>1,727</FONT></B></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=1>-</FONT></TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="2%"><FONT face="Arial" size=1>1,727</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: Silver">
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="83%"><FONT face="Arial" size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gain on sale of
      assets</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><B><FONT face="Arial" size=1>-</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face="Arial" size=1>(8,032</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%"><FONT face="Arial" size=1>8,032</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: transparent">
    <TD NOWRAP STYLE="border-bottom: #000000 1pt solid; text-align: left; width: 83%"><B><FONT face="Arial" size=1>Normalized Net
      Loss</FONT></B></TD>
    <TD NOWRAP STYLE="border-bottom: #000000 1pt solid; text-align: left; width: 1%"></TD>
    <TD NOWRAP STYLE="border-bottom: #000000 1pt solid; text-align: left; width: 1%"><B><FONT face="Arial" size=1>$</FONT></B></TD>
    <TD NOWRAP STYLE="border-bottom: #000000 1pt solid; text-align: right; width: 3%"><B><FONT face="Arial" size=1>(31,693</FONT></B></TD>
    <TD NOWRAP STYLE="border-bottom: #000000 1pt solid; text-align: left; width: 1%"><B><FONT face="Arial" size=1>)</FONT></B></TD>
    <TD NOWRAP STYLE="border-bottom: #000000 1pt solid; text-align: left; width: 1%"></TD>
    <TD NOWRAP STYLE="border-bottom: #000000 1pt solid; text-align: left; width: 1%"><FONT face="Arial" size=1>$</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: #000000 1pt solid; text-align: right; width: 3%"><FONT face="Arial" size=1>(39,564</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: #000000 1pt solid; text-align: left; width: 1%"><FONT face="Arial" size=1>)</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: #000000 1pt solid; text-align: left; width: 1%"></TD>
    <TD NOWRAP STYLE="border-bottom: #000000 1pt solid; text-align: left; width: 1%"><FONT face="Arial" size=1>$</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: #000000 1pt solid; text-align: right; width: 2%"><FONT face="Arial" size=1>7,871</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: #000000 1pt solid; text-align: left; width: 1%"></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: Silver">
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="83%"><B><FONT face="Arial" size=1>Normalized Net Loss per share</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><B><FONT face="Arial" size=1>$</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><B><FONT face="Arial" size=1>(0.37</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><B><FONT face="Arial" size=1>)</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT face="Arial" size=1>(0.47</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face="Arial" size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="2%"><FONT face="Arial" size=1>0.10</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD></TR></TABLE><BR>
<P align=justify><B><FONT face="Arial" size=2>MANAGEMENT&#146;S REPORT ON
DISCLOSURE CONTROLS AND PROCEDURES AND INTERNAL CONTROLS OVER FINANCIAL
REPORTING </FONT></B></P>
<P align=justify><I><FONT face="Arial" size=2>Disclosure controls and
procedures </FONT></I></P>
<P align=justify><FONT face="Arial" size=2>Our disclosure controls and
procedures are designed to provide reasonable assurance that relevant
information is gathered and reported to senior management, including the Chief
Executive Officer (&#147;CEO&#148;) and the Chief Financial Officer (&#147;CFO&#148;), on a timely
basis so that appropriate decisions can be made regarding public disclosures.</FONT></P>

<P STYLE="text-align: justify"><FONT face="Arial" size=2>As
of the end of the period covered by this report, we evaluated, under the
supervision and with the participation of management, including the CEO and the
CFO, the effectiveness of the design and operation of our disclosure controls
and procedures, as defined in Rules 13a&#150;15(e) and 15d-15(e) of the Securities
Exchange Act of 1934 (&#147;Exchange Act&#148;). The CEO and CFO have concluded that as of
December 31, 2011, our disclosure controls and procedures were effective to
ensure that information required to be disclosed in reports we file or submit
under the Exchange Act is recorded, processed, summarized and reported within
the time periods specified therein, and accumulated and reported to management
to allow timely discussions regarding required disclosure. </FONT></P>
<P align=justify><I><FONT face="Arial" size=2>Internal control over financial
reporting </FONT></I></P>
<P align=justify><FONT face="Arial" size=2>The CEO and CFO, together with
other members of management, are responsible for establishing and maintaining
adequate internal control over the Company&#146;s financial reporting. Internal
control over financial reporting is designed under our supervision, and effected
by the Company&#146;s board of directors, management, and other personnel, to provide
reasonable assurance regarding the reliability of financial reporting and the
preparation of financial statements for external purposes in accordance with
IFRS.&nbsp;</FONT></P>
<P align=right><FONT face="Arial" size=1>Page 35 of 38 </FONT></P>
<HR align=center width="100%" noShade SIZE=2>

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<DIV align=right><IMG src="exhibit99-21x1x1.jpg" border=0></DIV>
<P align=justify><FONT face="Arial" size=2>There are inherent limitations in
the effectiveness of internal control over financial reporting, including the
possibility that misstatements may not be prevented or detected. Accordingly,
even effective internal controls over financial reporting can provide only
reasonable assurance with respect to financial statement preparation.
Furthermore, the effectiveness of internal controls can change with
circumstances.</FONT></P>

<P STYLE="text-align: justify"><FONT face="Arial" size=2>Management, including the CEO and CFO, have evaluated the
effectiveness of internal control over financial reporting, as defined in Rules
13a&#150;15(f) of the Exchange Act, in relation to criteria described in</FONT>
<I><FONT face="Arial" size=2>Internal Control&#150;Integrated Framework</FONT></I>
<FONT face="Arial" size=2>issued by the Committee of Sponsoring Organizations
of the Treadway Commission (&#147;COSO&#148;). Based on this evaluation, Management has
determined that internal control over financial reporting was effective as of
December 31, 2011.</FONT></P>

<P STYLE="text-align: justify"><FONT face="Arial" size=2>KPMG LLP, our independent registered public accounting firm,
has audited our consolidated financial statements and expressed an unqualified
opinion thereon. KPMG has also expressed an unqualified opinion on the effective
operation of our internal control over financial reporting as of December 31,
2011.</FONT></P>
<P align=justify><I><FONT face="Arial" size=2>Changes in internal control
over financial reporting</FONT></I></P>
<P align=justify><FONT face="Arial" size=2>During the year ended December 31,
2011, there were no material changes in internal control over financial
reporting that have materially affected, or are reasonably likely to materially
affect, the Company&#146;s internal control over financial reporting. Our design of
disclosure controls and procedures and internal controls over financial
reporting includes controls, policies and procedures covering Dantherm
Power.</FONT></P>
<P align=justify><B><FONT face="Arial" size=2>RISKS &amp;
UNCERTAINTIES</FONT></B></P>
<P align=justify><FONT face="Arial" size=2>An investment in our common shares
involves risk. Investors should carefully consider the risks and uncertainties
described below and in our Annual Information Form. The risks and uncertainties
described below and in our Annual Information Form are not the only ones we
face. Additional risks and uncertainties, including those that we do not know
about now or that we currently deem immaterial, may also adversely affect our
business. For a more complete discussion of the risks and uncertainties which
apply to our business and our operating results (which are summarized below),
please see our Annual Information Form and other filings with Canadian
(</FONT><FONT face="Arial" size=2>www.sedar.com</FONT><FONT face="Arial" size=2>) and U.S. securities regulatory authorities (www.sec.gov<FONT face="Arial" size=2></FONT></FONT><U><FONT face="Arial" size=2></FONT></U><FONT face="Arial" size=2>).</FONT></P>
<P align=justify><FONT face="Arial" size=2>Our business entails risks and
uncertainties that affect our outlook and eventual results of our business and
commercialization plans. The primary risks relate to meeting our product
development and commercialization milestones, which require that our products
exhibit the functionality, cost, durability and performance required in a
commercial product and that we have sufficient access to capital to fund these
activities. To be commercially useful, most of our products must be integrated
into products manufactured by system integrators or OEMs. There is no guarantee
that system integrators or OEMs will provide products that use our products as
components. There is also a risk that mass markets for certain of our products
may never develop, or that market acceptance might take longer to develop than
anticipated.</FONT></P>
<P align=right><FONT face="Arial" size=1>Page 36 of 38</FONT></P>
<HR align=center width="100%" noShade SIZE=2>

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<DIV align=right><IMG src="exhibit99-21x1x1.jpg" border=0></DIV>
<P align=justify><FONT face="Arial" size=2>A summary of our identified risks
and uncertainties are as follows: </FONT></P>
<UL style="MARGIN-LEFT: 16px; TEXT-ALIGN: justify">
  <LI><FONT face="Arial" size=2>We may not be able to achieve
  commercialization of our products on the timetable we anticipate, or at
  all;<BR>&nbsp;</FONT> </li>
  <LI><FONT face="Arial" size=2>We expect our cash reserves will be reduced
  due to future operating losses and working capital requirements, and we cannot
  provide certainty as to how long our cash reserves will last or that we will
  be able to access additional capital when necessary; </FONT></li><br>&nbsp;
  <LI><FONT face="Arial" size=2>A mass market for our products may never
  develop or may take longer to develop than we anticipate;<BR>&nbsp;</FONT> </li>
  <LI><FONT face="Arial" size=2>We may not be able to successfully execute
  our business plan;<BR>&nbsp;</FONT> </li>
  <LI><FONT face="Arial" size=2>We have limited experience manufacturing fuel
  cell products on a commercial basis;<BR>&nbsp;</FONT> </li>
  <LI><FONT face="Arial" size=2>Global economic conditions are beyond our
  control and may have an adverse impact on our business or on our key suppliers
  and / or customers;<BR>&nbsp;</FONT> </li>
  <LI><FONT face="Arial" size=2>Potential fluctuations in our financial and
  business results make forecasting difficult and may restrict our access to
  funding for our commercialization plan;<BR>&nbsp;</FONT> </li>
  <LI><FONT face="Arial" size=2>We could be adversely affected by risks
  associated with acquisitions;<BR>&nbsp;</FONT> </li>
  <LI><FONT face="Arial" size=2>We are subject to risks inherent in
  international operations;<BR>&nbsp;</FONT> </li>
  <LI><FONT face="Arial" size=2>Exchange rate fluctuations are beyond our
  control and may have a material adverse effect on our business, operating
  results, financial condition and profitability;<BR>&nbsp;</FONT> </li>
  <LI><FONT face="Arial" size=2>Commodity price fluctuations are beyond our
  control and may have a material adverse effect on our business, operating
  results, financial condition and profitability;<BR>&nbsp;</FONT> </li>
  <LI><FONT face="Arial" size=2>We are dependent upon Original Equipment
  Manufacturers and Systems Integrators to purchase certain of our
  products;<BR>&nbsp;</FONT> </li>
  <LI><FONT face="Arial" size=2>We are dependent on third party suppliers for
  the supply of key materials and components for our products;<BR>&nbsp;</FONT></li>
  <LI><FONT face="Arial" size=2>We currently face and will continue to face
  significant competition;<BR>&nbsp;</FONT> </li>
  <LI><FONT face="Arial" size=2>We could lose or fail to attract the
  personnel necessary to run our business;<BR>&nbsp;</FONT> </li>
  <LI><FONT face="Arial" size=2>Public Policy and regulatory changes could
  hurt the market for our products; <BR>&nbsp;</FONT></li>
  <LI><FONT face="Arial" size=2>We depend on our intellectual property, and
  our failure to protect that intellectual property could adversely affect our
  future growth and success;<BR>&nbsp;</FONT> </li>
  <LI><FONT face="Arial" size=2>We could be liable for environmental damages
  resulting from our research, development or manufacturing operations;
  and<BR>&nbsp;</FONT> </li>
  <LI><FONT face="Arial" size=2>Our products use flammable fuels, which could
  subject our business to product liability claims.</FONT> </LI></UL>
<P align=right><FONT face="Arial" size=1>Page 37 of 38</FONT></P>
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<IMG src="exhibit99-21x1x1.jpg" border=0></DIV>

<P align=justify><B><FONT face="Arial" size=2>FORWARD-LOOKING STATEMENTS
DISCLAIMER</FONT></B><FONT face="Arial" size=2> </FONT></P>
<P align=justify><FONT face="Arial" size=2>This document contains
forward-looking statements that are based on the beliefs of management and
reflect our current expectations as contemplated under the safe harbor
provisions of Section 21E of the United States Securities Exchange Act of 1934,
as amended. Such statements include, but are not limited to, statements with
respect to our objectives, goals and outlook including our estimated revenue and
gross margins, cash flow from operations, Cash Operating Costs, EBITDA and
Adjusted EBITDA (see Non-GAAP Measures) contained in our &#147;Business Outlook&#148;, as
well as statements with respect to our beliefs, plans, objectives, expectations,
anticipations, estimates and intentions. Words such as "estimate", "project",
"believe", "anticipate", "intend", "expect", "plan", "predict", "may", "should",
"will", the negatives of these words or other variations thereof and comparable
terminology are intended to identify forward-looking statements. These
statements are not guarantees of future performance and involve assumptions,
risks and uncertainties that are difficult to predict.</FONT></P>
<P align=justify><FONT face="Arial" size=2>In particular, these
forward-looking statements are based on certain factors and assumptions
disclosed in our &#147;Outlook&#148; as well as specific assumptions relating to our
expectations with respect to the generation of new sales, producing, delivering
and selling the expected product volumes at the expected prices, and controlling
our costs. They are also based on a variety of general factors and assumptions
including, but not limited to, our expectations regarding product development
efforts, manufacturing capacity, product pricing, market demand, and the
availability and prices of raw materials, labour and supplies. These assumptions
have been derived from information available to the Company including
information obtained by the Company from third parties. These assumptions may
prove to be incorrect in whole or in part. In addition, actual results may
differ materially from those expressed, implied, or forecasted in such
forward-looking statements. Factors that could cause our actual results or
outcomes to differ materially from the results expressed, implied or forecasted
in such forward-looking statements include, but are not limited to: the
condition of the global economy; the rate of mass adoption of our products;
changes in product pricing; changes in our customers' requirements, the
competitive environment and related market conditions; product development
delays; changes in the availability or price of raw materials, labour and
supplies; our ability to attract and retain business partners, suppliers,
employees and customers; changing environmental regulations; our access to
funding and our ability to provide the capital required for product development,
operations and marketing efforts, and working capital requirements; our ability
to protect our intellectual property; the magnitude of the rate of change of
the Canadian dollar versus the U.S. dollar; and the general assumption that none
of the risks identified in the Risks and Uncertainties section of this report or
in our most recent Annual Information Form will materialize. Readers should not
place undue reliance on Ballard's forward-looking statements.</FONT></P>
<P align=justify><FONT face="Arial" size=2>The forward-looking statements
contained in this document speak only as of the date of this Management
Discussion and Analysis. Except as required by applicable legislation, Ballard
does not undertake any obligation to release publicly any revisions to these
forward-looking statements to reflect events or circumstances after the date of
this Management Discussion and Analysis, including the occurrence of
unanticipated events.</FONT></P>

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<DESCRIPTION>ANNUAL INFORMATION FORM FOR BALLARD POWER SYSTEMS INC.
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<P align=center><B><FONT face="Times New Roman" size=5></FONT></B>&nbsp;</P>
<P align=center><B><FONT face="Times New Roman" size=5>BALLARD POWER SYSTEMS
INC.</FONT></B></P>
<P align=center><B><FONT face="Times New Roman" size=5>ANNUAL INFORMATION FORM
</FONT></B></P>
<P align=center><B><FONT face="Times New Roman" size=5>FEBRUARY 23, 2012
</FONT></B></P>
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<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=center><B><FONT face="Times New Roman" size=2>TABLE OF
CONTENTS</FONT></B><FONT face="Times New Roman" size=2> </FONT></P>
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="98%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>CORPORATE STRUCTURE</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>2</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="98%"><FONT face="Times New Roman" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Name, Address and
      Incorporation</FONT></TD>
    <TD noWrap align=right width="1%"><FONT face="Times New Roman" size=2>2</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="98%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      Intercorporate Relationships</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>2</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="98%"><FONT face="Times New Roman" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Recent History</FONT></TD>
    <TD noWrap align=right width="1%"><FONT face="Times New Roman" size=2>3</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="98%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      Ebara Ballard Corporation Transaction</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>3</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="98%"><FONT face="Times New Roman" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      Sale and Lease-back of Head Office</FONT></TD>
    <TD noWrap align=right width="1%"><FONT face="Times New Roman" size=2>4</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="98%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      Dantherm Power Transaction</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>4</FONT></TD></TR>
  <TR>
    <TD noWrap align=left width="98%" >&nbsp;&nbsp; </TD>
    <TD noWrap align=right width="1%" ></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="98%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>OUR BUSINESS</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>4</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="98%" bgColor=#ffffff><FONT face="Times New Roman" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      Strategy</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff><FONT face="Times New Roman" size=2>4</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="98%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      Revenues from Market Segments</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>5</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="98%" bgColor=#ffffff><FONT face="Times New Roman" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Our
      Markets and Products</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff><FONT face="Times New Roman" size=2>6</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="98%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      Product &amp; Service Overview</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>6</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="98%" bgColor=#ffffff><FONT face="Times New Roman" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fuel
      Cell Products</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff><FONT face="Times New Roman" size=2>8</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="98%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      Motive Power</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>8</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="98%" bgColor=#ffffff><FONT face="Times New Roman" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      Material Handling</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff><FONT face="Times New Roman" size=2>8</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="98%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      Buses</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>9</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="98%" bgColor=#ffffff><FONT face="Times New Roman" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      Stationary Power</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff><FONT face="Times New Roman" size=2>10</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="98%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      Back-up Power</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>10</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="98%" bgColor=#ffffff><FONT face="Times New Roman" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      Distributed Generation</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff><FONT face="Times New Roman" size=2>12</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="98%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      Engineering Services</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>13</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="98%" bgColor=#ffffff><FONT face="Times New Roman" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      Contract Automotive</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff><FONT face="Times New Roman" size=2>14</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="98%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      Material Products</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>14</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="98%" bgColor=#ffffff><FONT face="Times New Roman" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Impact
      of Regulations and Public Policy</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff><FONT face="Times New Roman" size=2>15</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="98%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      United States</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>15</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="98%" bgColor=#ffffff><FONT face="Times New Roman" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      Other Jurisdictions</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff><FONT face="Times New Roman" size=2>16</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="98%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      Research and Product Development</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>17</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="98%" bgColor=#ffffff><FONT face="Times New Roman" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      Intellectual Property</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff><FONT face="Times New Roman" size=2>17</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="98%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      Manufacturing</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>17</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="98%" bgColor=#ffffff><FONT face="Times New Roman" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      Facilities</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff><FONT face="Times New Roman" size=2>18</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="98%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Human
      Resources</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>19</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="98%" bgColor=#ffffff><FONT face="Times New Roman" size=2>SHARE CAPITAL AND MARKET FOR
      SECURITIES</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff><FONT face="Times New Roman" size=2>19</FONT></TD></TR>
  <TR>
    <TD noWrap align=left width="98%"  bgColor=#ffffff>&nbsp; </TD>
    <TD noWrap align=right width="1%"  bgColor=#ffffff></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="98%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>DIVIDEND RECORD AND POLICY</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>20</FONT></TD></TR>
  <TR>
    <TD noWrap align=left width="98%"  bgColor=#ffffff>&nbsp; </TD>
    <TD noWrap align=right width="1%"  bgColor=#ffffff></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="98%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>DIRECTORS AND OFFICERS</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>20</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="98%" bgColor=#ffffff><FONT face="Times New Roman" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Board
      of Directors</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff><FONT face="Times New Roman" size=2>20</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="98%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      Corporate Governance</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>23</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="98%" bgColor=#ffffff><FONT face="Times New Roman" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      Compliance in Canada and the United States</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff><FONT face="Times New Roman" size=2>24</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="98%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      Board Composition</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>24</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="98%" bgColor=#ffffff><FONT face="Times New Roman" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      Share Ownership Guidelines</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff><FONT face="Times New Roman" size=2>25</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="98%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      Roles and Responsibilities</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>25</FONT></TD></TR></TABLE><BR>
<P align=center><FONT face="Times New Roman" size=2>- i -</FONT></P>
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<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="98%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      Board Orientation and Education</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>26</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="98%"><FONT face="Times New Roman" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      Shareholder Feedback and Communication</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face="Times New Roman" size=2>27</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="98%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      Board and Director Performance Evaluations</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>27</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="98%"><FONT face="Times New Roman" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Board Committees</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face="Times New Roman" size=2>27</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="98%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      Audit Committee</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>27</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="98%"><FONT face="Times New Roman" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      Management Development, Nominating &amp; Compensation Committee</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face="Times New Roman" size=2>29</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="98%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      Corporate Governance Committee</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>30</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="98%"><FONT face="Times New Roman" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Executive Officers</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face="Times New Roman" size=2>31</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="98%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      Shareholdings of Directors and Senior Officers</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>31</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="98%"><FONT face="Times New Roman" size=2>TRANSFER AGENT AND REGISTRAR</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face="Times New Roman" size=2>32</FONT></TD></TR>
  <TR>
    <TD noWrap align=left width="98%" >&nbsp; </TD>
    <TD noWrap align=left width="1%" ></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="98%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>MATERIAL CONTRACTS</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>32</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="98%" bgColor=#ffffff><FONT face="Times New Roman" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      Dantherm Power Acquisition</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff><FONT face="Times New Roman" size=2>32</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="98%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      Superior Plus Transaction and Associated Material Contracts</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>33</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="98%" bgColor=#ffffff><FONT face="Times New Roman" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      Indemnification Arrangements</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff><FONT face="Times New Roman" size=2>33</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="98%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>RISK FACTORS</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>35</FONT></TD></TR>
  <TR>
    <TD noWrap align=left width="98%"  bgColor=#ffffff>&nbsp;&nbsp; </TD>
    <TD noWrap align=left width="1%"  bgColor=#ffffff></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="98%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>ADDITIONAL INFORMATION</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>43</FONT></TD></TR>
  <TR>
    <TD noWrap align=left width="98%"  bgColor=#ffffff>&nbsp; </TD>
    <TD noWrap align=left width="1%"  bgColor=#ffffff></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="98%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>APPENDIX "A" Board of Directors
      Mandate</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>44</FONT></TD></TR>
  <TR>
    <TD noWrap align=left width="98%"  bgColor=#ffffff>&nbsp; </TD>
    <TD noWrap align=left width="1%"  bgColor=#ffffff></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="98%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>APPENDIX "B" Audit Committee
    Mandate</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>47</FONT></TD></TR>
  <TR>
    <TD noWrap align=left width="98%"  bgColor=#ffffff>&nbsp; </TD>
    <TD noWrap align=left width="1%"  bgColor=#ffffff></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="98%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>Committee Timetable</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>59</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="98%" bgColor=#ffffff><FONT face="Times New Roman" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      Committee Timetable</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff><FONT face="Times New Roman" size=2>59</FONT></TD></TR></TABLE><BR>
<P align=center><FONT face="Times New Roman" size=2>- ii -</FONT></P>
<HR align=center width="100%" noShade SIZE=2>

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face="Times New Roman" size=2><I><B>This Annual Information Form and the documents incorporated by
reference herein contain forward-looking statements that are based on the
beliefs of management and reflect our current expectations as contemplated under
the safe harbor provisions of Section 21E of the United States Securities
Exchange Act of 1934, as amended. When used in this Annual Information Form, the
words "estimate", "project", "believe", "anticipate", "intend", "expect",
"plan", "predict", "may", "should", "will", the negatives of these words or
other variations thereof and comparable terminology are intended to identify
forward-looking statements. Such statements reflect our current views with
respect to future events based on currently available information and are
subject to risks and uncertainties that could cause actual results to differ
materially from those contemplated in those forward-looking statements,
including, without limitation the following risks and uncertainties which are
discussed in the section of this Annual Information Form entitled "Risk
Factors": we may not be able to achieve commercialization of our products on the
timetable we anticipate, or at all; we expect our cash reserves will be reduced
due to future operating losses and working capital requirements, and we cannot
provide certainty as to how long our cash reserves will last or that we will be
able to access additional capital when necessary; a mass market for our products
may never develop or may take longer to develop than we anticipate; we may not
be able to successfully execute our business plan; we have limited experience
manufacturing fuel cell products on a commercial basis; global economic
conditions are beyond our control and may have an adverse impact on our business
or our key suppliers and/or customers; potential fluctuations in our financial
and business results make forecasting difficult and may restrict our access to
funding for our commercialization plan; we could be adversely affected by risks
associated with acquisitions; we are subject to risks inherent in international
operations; exchange rate fluctuations are beyond our control and may have a
material adverse effect on our business, operating results, financial condition
and profitability; commodity price fluctuations are beyond our control and may
have a material adverse effect on our business, operating results, financial
condition and profitability; we are dependent upon Original Equipment
Manufacturers and Systems Integrators to purchase certain of our products; we
are dependent on third party suppliers for the supply of key materials and
components for our products; we currently face and will continue to face
significant competition; we could lose or fail to attract the personnel
necessary to run our business; public policy and regulatory changes could hurt
the market for our products; we depend on our intellectual property, and our
failure to protect that intellectual property could adversely affect our future
growth and success; we could be liable for environmental damages resulting from
our research, development or manufacturing operations; our products use
flammable fuels, which could subject our business to product liability claims;
and the other risks and uncertainties discussed elsewhere in this Annual
Information Form. </B></I></FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT face="Times New Roman" size=3>&nbsp;&nbsp;&nbsp;&nbsp; </FONT><STRONG><EM>The
forward-looking statements contained in this Annual Information Form speak only
as of the date of this Annual Information Form. Except as required by applicable
legislation, Ballard does not undertake any obligation to release publicly any
revisions to these forward-looking statements to reflect events or circumstances
after the date of this Annual Information Form, including the occurrence of
unanticipated events. </EM></STRONG></FONT></P>
<P align=center><FONT face="Times New Roman" size=2>- </FONT><FONT face="Times New Roman" size=2>1</FONT><FONT face="Times New Roman" size=2> -
</FONT></P>
<HR align=center width="100%" noShade SIZE=2>

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=center><B><FONT face="Times New Roman" size=2><FONT face="Times New Roman" size=3>CORPORATE STRUCTURE</FONT></FONT></B></P>
<P align=justify><B><FONT face="Times New Roman" size=2>Name, Address and
Incorporation</FONT></B></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face="Times New Roman" size=2>Ballard was incorporated on November 12, 2008 under the</FONT> <I><FONT face="Times New Roman" size=2>Canada Business Corporations Act</FONT></I><FONT face="Times New Roman" size=2>, under the name "7076991 Canada Inc.". Ballard
changed its name to "Ballard Power Systems Inc." on December 31, 2008. Ballard's
head office is located at 9000 Glenlyon Parkway, Burnaby, British Columbia,
Canada V5J 5J8, and its registered office is located at Suite 1700, 666 Burrard
Street, Vancouver, British Columbia, Canada V6C 2X8.</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT face="Times New Roman" size=3>&nbsp;&nbsp;&nbsp;&nbsp;</FONT> Previously,
Ballard Power Systems Inc. was a British Columbia company incorporated on May
30, 1989. The original predecessor to Ballard was founded in 1979 under the name
Ballard Research Inc. to conduct research and development on high-energy lithium
batteries. In the course of investigating environmentally clean energy systems
with commercial potential, we began to develop fuel cells and have been
developing fuel cell products since 1983.</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT face="Times New Roman" size=3>&nbsp;&nbsp;&nbsp;&nbsp;</FONT> In this Annual
Information Form, references to "Corporation", "Ballard", "BPS", "we", "us" and
"our" refers to Ballard Power Systems Inc. and, as applicable, its subsidiaries.
All dollar amounts are in United States dollars unless otherwise
indicated.</FONT></P>
<P align=justify><B><FONT face="Times New Roman" size=2>Intercorporate
Relationships</FONT></B></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT face="Times New Roman" size=3>&nbsp;&nbsp;&nbsp;&nbsp;</FONT> We have four
principal subsidiaries and affiliates: Ballard Material Products Inc., a
Delaware corporation that develops and manufactures carbon fiber products for
use in the automotive and fuel cell markets; Dantherm Power A/S
("</FONT><B><FONT face="Times New Roman" size=2>Dantherm Power</FONT></B><FONT face="Times New Roman" size=2>"), a Denmark-based corporation jointly owned with
Danfoss Ventures A/S and Dantherm A/S that develops clean energy backup power
systems across Europe; AFCC Automotive Fuel Cell Cooperation Corp.
("</FONT><B><FONT face="Times New Roman" size=2>AFCC</FONT></B><FONT face="Times New Roman" size=2>"), a British Columbia corporation that develops
fuel cell products for the automotive fuel cell market; and BDF IP Holdings Ltd.
("</FONT><B><FONT face="Times New Roman" size=2>IP Holdings</FONT></B><FONT face="Times New Roman" size=2>"), a Canadian corporation that holds intellectual
property assets.</FONT></P>
<P align=center><FONT face="Times New Roman" size=2>- 2 -</FONT></P>
<HR align=center width="100%" noShade SIZE=2>

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face="Times New Roman" size=2><FONT face="Times New Roman" size=2></FONT>The following chart shows
these principal subsidiaries and affiliates, their respective jurisdictions of
incorporation and our percentage of share ownership in each of them, all as of
February 23, 2012: </FONT></P>
<P align=center><IMG src="exhibit99-31x6x1.jpg" border=0>
</P>____________________<BR>&nbsp;<BR>
<TABLE style="LINE-HEIGHT: normal; BORDER-COLLAPSE: collapse; TEXT-ALIGN: justify" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=right width="1%"><FONT face="Times New Roman" size=2>Notes</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD align=left width="97%"></TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top noWrap align=left width="1%"><FONT face="Times New Roman" size=2><SUP>(1)</SUP></FONT></TD>
    <TD vAlign=top noWrap align=left width="1%"><FONT face="Times New Roman" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD style="BORDER-TOP: #ffffff 2pt solid" vAlign=top align=left width="97%"><P align=justify><FONT face="Times New Roman" size=2>The
      Corporation holds a 52% interest in Dantherm Power, with the remaining 48%
      held by Dantherm A/S and Danfoss Ventures A/S.</FONT></P></TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top noWrap align=left width="1%"></TD>
    <TD vAlign=top noWrap align=left width="1%"></TD>
    <TD vAlign=top align=left width="97%"><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top noWrap align=left width="1%"><FONT face="Times New Roman" size=2><SUP>(2)</SUP></FONT></TD>
    <TD vAlign=top noWrap align=left width="1%">&nbsp;</TD>
    <TD style="BORDER-TOP: #ffffff 2pt solid" vAlign=top align=left width="97%"><P align=justify><FONT face="Times New Roman" size=2>The
      Corporation holds a 19.9% minority interest in AFCC with 50.1% held by
      Daimler AG and 30% held by Ford Motor Company. Ballard&#146;s minority interest
      in AFCC is the subject of a forward-sale arrangement with Ford Motor
      Company.</FONT></P></TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top noWrap align=left width="1%"></TD>
    <TD vAlign=top noWrap align=left width="1%"></TD>
    <TD vAlign=top align=left width="97%"><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top noWrap align=left width="1%"><FONT face="Times New Roman" size=2><SUP>(3)</SUP></FONT></TD>
    <TD vAlign=top noWrap align=left width="1%"><FONT face="Times New Roman" size=2></FONT></TD>
    <TD style="BORDER-TOP: #ffffff 2pt solid" vAlign=top align=left width="97%"><P align=justify><FONT face="Times New Roman" size=2>The
      Corporation holds all of the non-voting, participating shares of IP
      Holdings and 34% of the voting, non-participating shares of IP Holdings,
      with each of Daimler AG and Ford Motor Company holding 33% of the voting,
      non-participating shares.</FONT></P></TD></TR></TABLE><BR>
<P align=justify><B><FONT face="Times New Roman" size=2>Recent History
</FONT></B></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face="Times New Roman" size=2>Over the past three years, we have continued to focus on our core fuel
cell business and on markets with near-term commercial prospects. In support of
this strategy, we have focused on bolstering our cash reserves to strengthen our
capability to execute on our growth priorities. On December 21, 2009, we closed
an agreement with a financial institution to monetize our rights under the
purchase agreement with Ford relating to our 19.9% equity interest in AFCC for
initial net proceeds of approximately $34 million and a further contingent
payment of $7.5 million due on or before January 31, 2013 (the contingent
payment was subsequently monetized and extinguished for $5 million in July
2010). On January 18, 2010, we acquired a controlling interest in Dantherm
Power, a Denmark-based corporation, which develops clean energy backup power
through utilization of our hydrogen fuel cell technology. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT face="Times New Roman" size=3>&nbsp;&nbsp;&nbsp;&nbsp; </FONT><STRONG><EM>Ebara
Ballard Corporation Transaction </EM></STRONG></FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT face="Times New Roman" size=3>&nbsp;&nbsp;&nbsp;&nbsp; </FONT>In May 2009, we
decided to discontinue operations of Ebara Ballard Corporation, our joint
venture company with Ebara Corporation, as it became evident that the timeframe
to commercialization for the residential cogeneration market in Japan was <FONT face="Times New Roman" size=2>longer than anticipated, and due to an increasing
investment requirement for continued system development work. Ebara Ballard
Corporation was dissolved in October 2009.</FONT></FONT></P>
<P align=center><FONT face="Times New Roman" size=2>- 3 -</FONT></P>
<HR align=center width="100%" noShade SIZE=2>

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face="Times New Roman" size=2><I><B>Sale and Lease-back of Head Office</B></I></FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT face="Times New Roman" size=3>&nbsp;&nbsp;&nbsp;&nbsp;</FONT> In December 2009,
we entered into a sale-and-leaseback agreement pursuant to which Ballard sold
its head office building located in Burnaby, British Columbia in return for net
cash proceeds of approximately $20 million. We also entered into an initial
fifteen-year lease agreement for the same property. The transaction closed on
March 9, 2010.</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT face="Times New Roman" size=3>&nbsp;&nbsp;&nbsp;&nbsp;</FONT>
<STRONG><EM>Dantherm Power Transaction</EM></STRONG></FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT face="Times New Roman" size=3>&nbsp;&nbsp;&nbsp;&nbsp;</FONT> On January 18,
2010, we acquired a controlling interest in Denmark-based Dantherm Power,
partnering with co-investors Danfoss Ventures A/S and Dantherm A/S. In exchange
for an initial investment of DKK 30m (approximately $6m) funded in two tranches
in January and August 2010, Ballard obtained a 52% interest in Dantherm Power.
Dantherm Power develops clean energy backup power systems utilizing Ballard's
hydrogen fuel cell technology, for telecom equipment suppliers.</FONT></P>
<P align=center><B><FONT face="Times New Roman" size=2><FONT face="Times New Roman" size=3>OUR BUSINESS</FONT></FONT></B></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT face="Times New Roman" size=3>&nbsp;&nbsp;&nbsp;&nbsp;</FONT> At Ballard, we are
building a clean energy growth company. We are recognized as a world leader in
proton exchange membrane ("</FONT><B><FONT face="Times New Roman" size=2>PEM</FONT></B><FONT face="Times New Roman" size=2>") fuel cell
development and commercialization. Our principal business is the design,
development, manufacture, sale and service of fuel cell products for a variety
of applications, focusing on motive power (material handling and buses) and
stationary power (back-up power and distributed generation) markets. We also
provide engineering services for a variety of fuel cell applications. A fuel
cell is an environmentally clean electrochemical device that combines hydrogen
fuel with oxygen (from the air) to produce electricity. The hydrogen fuel can be
obtained from natural gas, kerosene, methanol or other hydrocarbon fuels, or
from water through electrolysis. As long as fuel is supplied, the fuel cell
produces electricity efficiently and continuously without combustion, with water
and heat as the main by-products when hydrogen is used as the fuel source.
Ballard<SUP>&#174;</SUP> fuel cell products feature high fuel efficiency, low
operating temperature, low noise and vibration, compact size, quick response to
changes in electrical demand, modular design and environmental
cleanliness.</FONT></P>
<P align=justify><B><FONT face="Times New Roman" size=2>Strategy</FONT></B></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT face="Times New Roman" size=3>&nbsp;&nbsp;&nbsp;&nbsp;</FONT> We provide our
customers the positive economic and environmental benefits unique to fuel cell
power. We plan to build value for our shareholders by developing, manufacturing,
selling and servicing industry-leading fuel cell products to meet the needs of
our customers in select target markets.</FONT></P>
<P align=center><FONT face="Times New Roman" size=2>- 4 -</FONT></P>
<HR align=center width="100%" noShade SIZE=2>

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face="Times New Roman" size=2>Our focus is on leveraging the inherent reliability and durability
derived in our legacy automotive technology into non-automotive markets where
demand is near term. Our target markets include: motive power (material handling
and buses) and stationary power (back-up power and distributed generation). We
also supply engineering services to a number of customers. We believe these
markets represent a large global opportunity for fuel cell products. We are also
actively considering other key markets for which our products are well suited
and we are confident that there are opportunities for our products in additional
geographic markets as well as product extension opportunities in different
applications. </FONT></P>
<P align=justify><B><FONT face="Times New Roman" size=2>Revenues from Market
Segments </FONT></B></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT face="Times New Roman" size=3>&nbsp;&nbsp;&nbsp;&nbsp; </FONT>In 2011, we
operated in three market segments: </FONT></P>
<TABLE cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD vAlign=top noWrap>&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>(a)</FONT></TD>
    <TD noWrap>&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD width="100%"><FONT face="Times New Roman" size=2>Fuel Cell Products:
      fuel cell products and services for motive power (material handling and
      bus markets) and stationary power (back-up power and distributed
      generation markets) and engineering services for a variety of fuel cell
      applications;</FONT></TD></TR>
  <TR>
    <TD noWrap></TD>
    <TD width="100%" colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap></TD>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>(b)</FONT></TD>
    <TD noWrap></TD>
    <TD width="100%"><FONT face="Times New Roman" size=2>Contract Automotive:
      contract manufacturing services provided primarily for Daimler. With the
      completion of the Daimler manufacturing contract, this segment will cease
      to be an operating segment as of the end of 2011; and</FONT></TD></TR>
  <TR>
    <TD noWrap></TD>
    <TD width="100%" colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap></TD>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>(c)</FONT></TD>
    <TD noWrap></TD>
    <TD width="100%"><FONT face="Times New Roman" size=2>Material Products:
      carbon fiber products primarily for automotive transmissions and gas
      diffusion layers ("</FONT><B><FONT face="Times New Roman" size=2>GDLs</FONT></B><FONT face="Times New Roman" size=2>") for fuel
      cells.</FONT></TD></TR></TABLE>
<P align=center><FONT face="Times New Roman" size=2>- 5 -</FONT></P>
<HR align=center width="100%" noShade SIZE=2>

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=justify><FONT face="Times New Roman" size=2>The following chart shows
the percentage of total revenues derived from each segment, and the portion of
revenues from each segment which arises from sales to investees and sales of
products and services to other customers, for the years 201</FONT><FONT face="Times New Roman" size=2>1</FONT><FONT face="Times New Roman" size=2> and
2010:</FONT><B><FONT face="Times New Roman" size=2> </FONT></B></P>
<TABLE style="PADDING-RIGHT: 6pt; PADDING-LEFT: 6pt; LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-TOP: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="93%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center" noWrap width="3%" bgColor=#c0c0c0><B><FONT face="Times New Roman" size=2>2011</FONT></B></TD>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center" noWrap width="3%" bgColor=#c0c0c0><FONT STYLE="font: x-small Times New Roman"><B>2010</B><SUP>(1)</SUP></FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="93%"><B><FONT face="Times New Roman" size=2>Revenues from Fuel Cell Products</FONT></B></TD>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%"></TD>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="93%"><FONT face="Times New Roman" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Percentage of total
revenues</FONT></TD>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face="Times New Roman" size=2>61.1%</FONT></TD>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face="Times New Roman" size=2>5</FONT><FONT face="Times New Roman" size=2>2</FONT><FONT face="Times New Roman" size=2>.7%</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="93%"><FONT face="Times New Roman" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Portion
      representing sales to investees<SUP>(2)</SUP></FONT></TD>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face="Times New Roman" size=2>3.2%</FONT></TD>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face="Times New Roman" size=2>2.0%</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="93%"><FONT face="Times New Roman" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Portion
      representing sales to customers other than investees</FONT></TD>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face="Times New Roman" size=2>57.9%</FONT></TD>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face="Times New Roman" size=2>50.7%</FONT></TD></TR>
  <TR>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="93%">&nbsp;</TD>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"></TD>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="93%"><B><FONT face="Times New Roman" size=2>Revenues from Contract Automotive</FONT></B></TD>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%"></TD>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="93%"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Times New Roman">Percentage of total revenues</FONT></FONT></TD>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face="Times New Roman" size=2>12.2%</FONT></TD>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face="Times New Roman" size=2>15.1%</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="93%"><FONT face="Times New Roman" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Portion
      representing sales to investees<SUP>(2)</SUP></FONT></TD>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face="Times New Roman" size=2>0.4%</FONT></TD>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face="Times New Roman" size=2>1.9%</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="93%"><FONT face="Times New Roman" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Portion
      representing sales to customers other than investees</FONT></TD>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face="Times New Roman" size=2>11.8%</FONT></TD>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face="Times New Roman" size=2>13.2%</FONT></TD></TR>
  <TR>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="93%">&nbsp;</TD>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"></TD>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="93%"><B><FONT face="Times New Roman" size=2>Revenues from Material Products</FONT></B></TD>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%"></TD>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="93%"><FONT face="Times New Roman" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Percentage of total
revenues</FONT></TD>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face="Times New Roman" size=2>26.6%</FONT></TD>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face="Times New Roman" size=2>32.2%</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="93%"><FONT face="Times New Roman" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Portion
      representing sales to investees</FONT></TD>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center" noWrap width="3%"><FONT face="Times New Roman" size=2>Nil</FONT></TD>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face="Times New Roman" size=2>Nil&nbsp;&nbsp;&nbsp; </FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="93%"><FONT face="Times New Roman" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Portion
      representing sales to customers other than investees</FONT></TD>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face="Times New Roman" size=2>26.6%</FONT></TD>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face="Times New Roman" size=2>32.2%</FONT></TD></TR></TABLE><BR>
<P align=justify><B><FONT face="Times New Roman" size=2>Our Markets and Products
</FONT></B></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face="Times New Roman" size=2><I><B>Product &amp; Service Overview </B></I></FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT face="Times New Roman" size=3>&nbsp;&nbsp;&nbsp;&nbsp; </FONT>Ballard's product
offering provides for a cost effective and flexible set of fuel cell power
solutions. Ballard provided product in three distinct product classes:
</FONT></P>
<TABLE cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>(1)</FONT></TD>
    <TD noWrap>&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD WIDTH="100%" STYLE="text-align: justify"><FONT face="Times New Roman" size=2>Fuel cell stacks:
      Ballard provides fuel cell stacks to original equipment manufacturer
      (&#147;<B><FONT face="Times New Roman" size=2>OEM</FONT></B><FONT face="Times New Roman" size=2>&#148;) customers and system integrators that use
      the stacks to produce fuel cell systems for power solutions. As the stack
      provider, Ballard is the power inside the system.</FONT></FONT></TD></TR>
  <TR>
    <TD width="100%" colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>(2)</FONT></TD>
    <TD noWrap></TD>
    <TD WIDTH="100%" STYLE="text-align: justify"><FONT face="Times New Roman" size=2>Fuel cell modules:
      Ballard builds the stacks into self-contained modules that are
      plug-and-play into a larger system. As a fuel cell module provider, we
      make it easier for OEMs and system integrators to create fuel cell
      system.</FONT></TD></TR></TABLE>____________________<BR>&nbsp;<BR>
<TABLE cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2><SUP>(1)</SUP></FONT></TD>
    <TD vAlign=top noWrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-TOP: #ffffff 2pt solid" vAlign=top width="100%"><FONT face="Times New Roman" size=2>2010 revenues restated to conform with the
      2011 market segment reporting structure.</FONT></TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2><SUP>(2)</SUP></FONT></TD>
    <TD vAlign=top noWrap></TD>
    <TD style="BORDER-TOP: #ffffff 2pt solid" vAlign=top width="100%"><FONT face="Times New Roman" size=2>In the table, "investees" means
    AFCC.</FONT></TD></TR></TABLE>
<P align=center><FONT face="Times New Roman" size=2>- 6 -</FONT></P>
<HR align=center width="100%" noShade SIZE=2>

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<TABLE cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>(3)</FONT></TD>
    <TD vAlign=top noWrap>&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD vAlign=top width="100%"><FONT face="Times New Roman" size=2>Fuel cell
      systems: Ballard also builds complete fuel cell systems that are designed
      to solve certain energy needs of our customers.</FONT></TD></TR>
  <TR>
    <TD vAlign=top width="100%" colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>(4)</FONT></TD>
    <TD vAlign=top noWrap></TD>
    <TD vAlign=top width="100%"><FONT face="Times New Roman" size=2>Material
      Products: We design, develop, manufacture, sell and service carbon fiber
      materials that can be used in a variety of fuel cell and non-fuel cell
      applications.</FONT></TD></TR>
  <TR>
    <TD vAlign=top width="100%" colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>(5)</FONT></TD>
    <TD vAlign=top noWrap></TD>
    <TD vAlign=top width="100%"><FONT face="Times New Roman" size=2>Engineering Services: We provide engineering services for a variety
      of fuel cell applications.</FONT></TD></TR></TABLE>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face="Times New Roman" size=2>The following table lists the key fuel cell and non-fuel cell products we
currently produce, have under development or are testing.</FONT></P>
<TABLE style="PADDING-RIGHT: 6pt; PADDING-LEFT: 6pt; PADDING-BOTTOM: 6pt; LINE-HEIGHT: 14pt; PADDING-TOP: 6pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-TOP: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="99%" colSpan=3><B><FONT style="BORDER-BOTTOM: 1pt solid" face="Times New Roman" size=2>Motive
      Power Product Family: FCvelocity<SUP>&#174; </SUP></FONT></B><B><FONT style="BORDER-BOTTOM: 1pt solid" face="Times New Roman" size=2>Fuel Cell
      Products</FONT></B></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center" noWrap width="33%" bgColor=#c0c0c0><B><U><FONT face="Times New Roman" size=2>Product Name</FONT></U></B></TD>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center" noWrap width="33%" bgColor=#c0c0c0><B><U><FONT face="Times New Roman" size=2>Application</FONT></U></B></TD>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center" noWrap width="33%" bgColor=#c0c0c0><B><U><FONT face="Times New Roman" size=2>Status</FONT></U></B></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=left width="33%"><FONT face="Times New Roman" size=2>FCvelocity</FONT><B><FONT face="Times New Roman" size=2><SUP>&#174;</SUP></FONT></B><FONT face="Times New Roman" size=2>-9SSL</FONT></TD>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=left width="33%"><FONT face="Times New Roman" size=2>Material handling</FONT></TD>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=left width="33%"><FONT face="Times New Roman" size=2>Sales to OEMs and system<BR>integrators</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=left width="33%"><FONT face="Times New Roman" size=2>FCvelocity</FONT><B><FONT face="Times New Roman" size=2><SUP>&#174;</SUP></FONT></B><FONT face="Times New Roman" size=2>-1020ACS</FONT></TD>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=left width="33%"><FONT face="Times New Roman" size=2>Material handling</FONT></TD>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=left width="33%"><FONT face="Times New Roman" size=2>Sales to OEMs and system<BR>integrators</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=left width="33%"><FONT face="Times New Roman" size=2>FCvelocity</FONT><B><FONT face="Times New Roman" size=2><SUP>&#174;</SUP></FONT></B><FONT face="Times New Roman" size=2>-HD6</FONT></TD>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=left width="33%"><FONT face="Times New Roman" size=2>Buses</FONT></TD>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=left width="33%"><FONT face="Times New Roman" size=2>Sales to OEMs and system<BR>integrators</FONT></TD></TR>
  <TR>
    <TD vAlign=top noWrap align=left width="33%">&nbsp;</TD>
    <TD vAlign=top noWrap align=left width="33%"></TD>
    <TD vAlign=top noWrap align=left width="33%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-TOP: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="99%" colSpan=3><B><FONT style="BORDER-BOTTOM: 1pt solid" face="Times New Roman" size=2>Stationary
      Power Product Family: FCgen<SUP>&#174; </SUP>Fuel Cell Products and System
      Products</FONT></B></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center" noWrap width="33%" bgColor=#c0c0c0><B><U><FONT face="Times New Roman" size=2>Product Name</FONT></U></B></TD>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center" noWrap width="33%" bgColor=#c0c0c0><B><U><FONT face="Times New Roman" size=2>Application</FONT></U></B></TD>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center" noWrap width="33%" bgColor=#c0c0c0><B><U><FONT face="Times New Roman" size=2>Status</FONT></U></B></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="33%"><FONT face="Times New Roman" size=2>FCgen</FONT><B><FONT face="Times New Roman" size=2><SUP>&#174;</SUP></FONT></B><FONT face="Times New Roman" size=2>-9SSL</FONT></TD>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="33%"><FONT face="Times New Roman" size=2>Back-up
      power</FONT></TD>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="33%"><FONT face="Times New Roman" size=2>In
      development and testing</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=left width="33%"><FONT face="Times New Roman" size=2>FCgen</FONT><B><FONT face="Times New Roman" size=2><SUP>&#174;</SUP></FONT></B><FONT face="Times New Roman" size=2>-1020ACS</FONT></TD>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=left width="33%"><FONT face="Times New Roman" size=2>Back-up power</FONT></TD>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=left width="33%"><FONT face="Times New Roman" size=2>Sales to OEMs and system<BR>integrators</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=left width="33%"><FONT face="Times New Roman" size=2>FCgen</FONT><B><FONT face="Times New Roman" size=2><SUP>&#174;</SUP></FONT></B><FONT face="Times New Roman" size=2>-1300</FONT></TD>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=left width="33%"><FONT face="Times New Roman" size=2>Back-up power<BR>Distributed generation</FONT></TD>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=left width="33%"><FONT face="Times New Roman" size=2>Sales to OEMs and system<BR>integrators</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=left width="33%"><FONT face="Times New Roman" size=2>CLEARgen&#153;</FONT></TD>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=left width="33%"><FONT face="Times New Roman" size=2>Distributed generation<BR>power systems</FONT></TD>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=left width="33%"><FONT face="Times New Roman" size=2>Sales to customers</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=left width="33%"><FONT face="Times New Roman" size=2>DBX 2000 / 5000</FONT></TD>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=left width="33%"><FONT face="Times New Roman" size=2>Back-up power systems<BR>(Dantherm Power)</FONT></TD>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=left width="33%"><FONT face="Times New Roman" size=2>Sales to customers</FONT></TD></TR></TABLE><BR>
<P align=center><FONT face="Times New Roman" size=2>- 7 -</FONT></P>
<HR align=center width="100%" noShade SIZE=2>

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<TABLE style="PADDING-RIGHT: 6pt; PADDING-LEFT: 6pt; PADDING-BOTTOM: 6pt; LINE-HEIGHT: 14pt; PADDING-TOP: 6pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-TOP: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="99%" colSpan=3><B><FONT style="BORDER-BOTTOM: 1pt solid" face="Times New Roman" size=2>Product
      Family:&nbsp;Material</FONT></B><B><FONT style="BORDER-BOTTOM: 1pt solid" face="Times New Roman" size=2> Products</FONT></B></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center" noWrap width="33%" bgColor=#c0c0c0><B><U><FONT face="Times New Roman" size=2>Product Name</FONT></U></B></TD>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center" noWrap width="33%" bgColor=#c0c0c0><B><U><FONT face="Times New Roman" size=2>Application</FONT></U></B></TD>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center" noWrap width="33%" bgColor=#c0c0c0><B><U><FONT face="Times New Roman" size=2>Status</FONT></U></B></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=left width="33%"><FONT face="Times New Roman" size=2>AvCarb&#153; gas diffusion layer<BR>fuel cell products</FONT></TD>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=left width="33%"><FONT face="Times New Roman" size=2>Fuel cells</FONT></TD>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=left width="33%"><FONT face="Times New Roman" size=2>Sales to fuel cell developers</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=left width="33%"><FONT face="Times New Roman" size=2>Carbon friction materials</FONT></TD>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=left width="33%"><FONT face="Times New Roman" size=2>Mainly automobile<BR>automatic transmissions</FONT></TD>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=left width="33%"><FONT face="Times New Roman" size=2>Sales to OEMs or
their<BR>suppliers.</FONT></TD></TR></TABLE><BR>
<P align=justify><B><FONT face="Times New Roman" size=2>Fuel Cell Products
</FONT></B></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face="Times New Roman" size=2><I><B>Motive Power </B></I></FONT></P>
<P align=center><B><FONT face="Times New Roman" size=2>Material Handling
</FONT></B></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT face="Times New Roman" size=3>&nbsp;&nbsp;&nbsp;&nbsp; </FONT>The material
handling market includes target industrial vehicles such as forklifts, automated
guided vehicles ("</FONT><B><FONT face="Times New Roman" size=2>AGVs</FONT></B><FONT face="Times New Roman" size=2>") and ground support
equipment. Our initial focus is on battery-powered Class 1 counter balance lift
trucks, Class 2 reach trucks and Class 3 pallet forklifts and AGVs. Our primary
product for the material handling market is the FCvelocity</FONT><B><FONT face="Times New Roman" size=2><SUP>&#174;</SUP></FONT></B><FONT face="Times New Roman" size=2>-9SSL, which is applicable to Class 1, Class 2 and
Class 3 forklift truck solutions. We supply the FCvelocity</FONT><B><FONT face="Times New Roman" size=2><SUP>&#174;</SUP></FONT></B><FONT face="Times New Roman" size=2>-1020ACS, our second-generation air-cooled fuel
cell product, for light-duty material handling applications. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT face="Times New Roman" size=3>&nbsp;&nbsp;&nbsp;&nbsp; </FONT>Our principle
customer in North America is Plug Power, a specialized system integrator
achieving early market penetration deploying its GenDrive</FONT><FONT face="Times New Roman" size=2>&#153; </FONT><FONT face="Times New Roman" size=2>battery pack replacement fuel cell systems. In 2010, Plug Power began
offering commercial GenDrive&#153; systems designed for Class 1, Class 2 and Class 3
trucks, all using Ballard fuel cells. The addition of the previously unavailable
system for Class 2 lift trucks filled out Plug Power's product portfolio and
enables full facility conversions, which will help advance market
penetration.</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT face="Times New Roman" size=3>&nbsp;&nbsp;&nbsp;&nbsp; </FONT>In 2010, we
extended our existing supply agreement with Plug Power through 2014. We are the
exclusive supplier of fuel cell stacks for Plug Power's full suite of GenDrive&#153;
power units and Plug Power is the exclusive systems integrator for Ballard's
fuel cell stacks in the material handling market in North America. In July 2011,
Ballard received a purchase order from Plug Power for a minimum purchase of
3,250 Ballard fuel cell stacks by the end of 2012, and which also included
requirements for the air-cooled FCvelocity&#153;-1020ACS product.</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT face="Times New Roman" size=3>&nbsp;&nbsp;&nbsp;&nbsp; </FONT>Material handling
shipments to Plug Power in 2011 totalled 1,422 fuel cells which represents a 29%
increase over 2010 shipment levels.</FONT></P>
<P align=center><FONT face="Times New Roman" size=2>- 8 -</FONT></P>
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<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face="Times New Roman" size=2>In
order to support market growth, we continue to pursue cost reduction of our
FCvelocity</FONT><B><FONT face="Times New Roman" size=2><SUP>&#174;</SUP></FONT></B><FONT face="Times New Roman" size=2>-9SSL fuel
cell product. To date we have reduced the cost of this fuel cell product by
roughly 55% since its introduction in 2008. With the recent purchase order
commitment from Plug Power, we anticipate that both the scale and cadence of
associated product shipments will contribute to increased manufacturing
efficiency and further reductions in fuel cell stack costs.</FONT><B><FONT face="Times New Roman" size=2> </FONT></B></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT face="Times New Roman" size=3>&nbsp;&nbsp;&nbsp;&nbsp; </FONT><EM>Competition
</EM></FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT face="Times New Roman" size=3>&nbsp;&nbsp;&nbsp;&nbsp; </FONT>Class 2 and Class
3 forklift trucks are currently dominated by lead-acid battery-powered
solutions, as are Class 1 forklift trucks intended for indoor applications.
Internal combustion engine ("</FONT><B><FONT face="Times New Roman" size=2>ICE</FONT></B><FONT face="Times New Roman" size=2>") power is typically
seen as the solution for forklift trucks in Class 1 for outdoor applications.
Compared to batteries, fuel cell systems in Class 1, Class 2 and Class 3
forklift trucks can provide extended run time without frequent and lengthy
battery replacement and recharging cycles. For high-throughput, multi-shift
warehouse or manufacturing operations, fuel cell forklift trucks can provide a
lower life cycle cost and total cost of ownership when compared with traditional
lead-acid battery solutions. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT face="Times New Roman" size=3>&nbsp;&nbsp;&nbsp;&nbsp; </FONT>Companies
developing fuel cell systems for material handling applications include
Hydrogenics and Nuvera. We seek to gain a competitive advantage through fuel
cell designs that provide superior performance, efficiency, durability and
cost.</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT face="Times New Roman" size=3>&nbsp;&nbsp;&nbsp;&nbsp; </FONT>Advanced battery
technology continues to make progress in the material handling market. However,
advanced battery technology still requires significant time for recharging and,
in many cases, cannot meet desired run times without requiring spare batteries
and substantial space for battery charging and storage.</FONT></P>
<P align=center><B><FONT face="Times New Roman" size=2>Buses </FONT></B></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT face="Times New Roman" size=3>&nbsp;&nbsp;&nbsp;&nbsp; </FONT>We provide fuel
cell modules for public transit buses. These fuel cell buses rely on centralized
fuelling depots that simplify the hydrogen infrastructure requirements and are
government-subsidized, thus enabling the purchase of pre-commercial fleets.
</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT face="Times New Roman" size=3>&nbsp;&nbsp;&nbsp;&nbsp; </FONT>Ballard designs
and manufactures the FCvelocity<SUP>&#174;</SUP>-HD6 fuel cell module delivering 75 -
150 kW of power for use in the bus market. Ballard supplies the fuel cell
modules to hybrid drive and coach manufacturer customers that deliver
zero-emission fuel cell-powered buses to transit operators around the world.
</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT face="Times New Roman" size=3>&nbsp;&nbsp;&nbsp;&nbsp; </FONT>At the end of
2011, there were 41 Ballard-powered fuel cell buses operating in nine cities
worldwide: Whistler, BC (20) &#150; the largest fuel cell bus fleet in the world;
Palm Desert, California (2); London (5); Oslo (5); Amsterdam (2); Cologne (2);
Shanghai (3); Mumbai (1); and S&#227;o Paulo (1). To date, Ballard-powered fuel cell
buses have accumulated more than 200,000 hours of operation, accumulated more
than three million kilometres in service and transported more than seven million
passengers. </FONT></P>
<P align=center><FONT face="Times New Roman" size=2>- 9 -</FONT></P>
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<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face="Times New Roman" size=2>In
2011, we signed a Letter of Intent with the City of S&#227;o Paulo in support of a 10
to 30 fuel cell bus RFP for that city. This opportunity is subject to final
agreements which are is now being negotiated. Also in 2011 we signed an
equipment supply agreement with Van Hool NV for up to 21 fuel cell modules for
several bus fleet opportunities in Europe: binding commitments are subject to
Van Hool securing agreements relating to these opportunities.</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT face="Times New Roman" size=3>&nbsp;&nbsp;&nbsp;&nbsp; </FONT>Product cost
reduction efforts for the FCvelocity<SUP>&#174;</SUP>-HD6 fuel cell module in 2011
have focused on unit cell design enhancements, including extension of durability
and lifetime. This ongoing effort has been partially funded by a $4.8 million
award received in January 2010 from Sustainable Development Technology Canada
(&#147;</FONT><B><FONT face="Times New Roman" size=2>SDTC</FONT></B><FONT face="Times New Roman" size=2>&#148;) to further develop fuel cell power module
technology for the transit bus market.</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT face="Times New Roman" size=3>&nbsp;&nbsp;&nbsp;&nbsp; </FONT><EM>Competition
</EM></FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT face="Times New Roman" size=3>&nbsp;&nbsp;&nbsp;&nbsp; </FONT>Diesel-powered
buses currently dominate the market today. Compressed natural gas
("</FONT><B><FONT face="Times New Roman" size=2>CNG</FONT></B><FONT face="Times New Roman" size=2>") and diesel electric hybrid buses are
lower-emission alternatives to diesel buses in limited service today. Other
variants available today include gasoline hybrid buses and CNG hybrid buses.
Electric trolley buses provide a zero-emission alternative, however, their
purchase price is high and the overhead catenary power infrastructure is
expensive to maintain and is considered aesthetically undesirable in many urban
centres. Recently, hydrogen internal combustion engines have been demonstrated
in transit buses with both conventional and hybrid drive systems. These have not
been widely adopted primarily because of very low fuel efficiency, low power and
low operational reliability. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT face="Times New Roman" size=3>&nbsp;&nbsp;&nbsp;&nbsp; </FONT>We believe that
fuel cells are the best zero-emission alternative for transit applications. They
offer much greater fuel efficiency than conventional diesel buses, eliminate
greenhouse gas emissions and eliminate the need for unsightly overhead catenary
wires. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT face="Times New Roman" size=3>&nbsp;&nbsp;&nbsp;&nbsp; </FONT>Companies
developing fuel cell systems for transit bus applications include United
Technologies, Hydrogenics and Nedstack. We have accumulated far more operating
hours in real transit operations than any other fuel cell manufacturer. We
believe this experience has enabled us to produce more reliable, more durable
and easier to integrate products than our competitors. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT face="Times New Roman" size=3>&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><STRONG><EM>Stationary Power </EM></STRONG></FONT></P>
<P align=center><B><FONT face="Times New Roman" size=2>Back-up Power
</FONT></B></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT face="Times New Roman" size=3>&nbsp;&nbsp;&nbsp;&nbsp; </FONT>Our focus in the
back-up power market is on the telecommunications industry, which is currently
dominated by batteries and diesel generators. The back-up power market is
characterized by infrequent power demand, where outages typically occur
 monthly or less frequently and last
less than eight hours; whereas the supplemental power market is characterized by
often daily outages lasting 4-8 hours or more.</FONT></P>
<P align=center><FONT face="Times New Roman" size=2>- 10 -</FONT></P>
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<!-- Start Part B -->


<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>The FCgen</FONT><B><FONT face="Times New Roman" size=2><SUP>&#174;</SUP></FONT></B><FONT face="Times New Roman" size=2>-1020ACS
fuel cell product is our primary stack platform in the back-up power market.
Shipment of fuel cell stacks to backup power market customer in 2011 totalled
1,447 units, down 16% from last year.</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Dantherm Power develops clean energy
fuel cell backup power systems for telecom equipment suppliers, for installation
in either indoor or outdoor applications. Dantherm Power&#146;s system deployments
include the largest European fuel cell installation for TETRA emergency
networks. In 2010, Dantherm Power launched two new hydrogen-fuelled systems
utilizing Ballard's FCgen</FONT><B><FONT face="Times New Roman" size=2><SUP>&#174;</SUP></FONT></B><FONT face="Times New Roman" size=2>-1020ACS fuel cell
product: the DBX 2000 (2kW) and DBX 5000 (5kW).</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>In 2011, Ballard supplied a 50 kW
unit to GS Platech for demonstration of waste-to-energy power generation for the
local South Korean electrical grid. Dantherm Power also provided a 150 kW system
to Anglo American Platinum Limited.</FONT><FONT face="Times New Roman" size=2> </FONT><FONT face="Times New Roman" size=2>The demonstration fuel cell system supplied power to the local
electricity grid during the 17th Conference of the Parties (COP17) to the United
Nations Framework Convention on Climate Change, a high-level summit on climate
change held in Durban, South Africa. Following COP17 Anglo American Platinum
plans to redeploy the system to provide power at one of its mining operations in
South Africa. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Our primary indirect channel partner
is IdaTech, with whom we have a supply agreement through 2012. IdaTech supplies
hydrogen and methanol systems to multiple markets. Recent installations have
been in SE Asia, with more than 500 systems deployed by Hutchison in Indonesia,
for example; with continued growth seen in other regions, including Central and
Latin America. In October 2011, the Idatech board recommended delisting from AIM
and privatizing the company to its shareholders, with the objective of greater
flexibility in future financing and strategic partner relationships.</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Although Ballard dissolved the Ebara
joint venture company, it will continue to sell its FCgen</FONT><B><FONT face="Times New Roman" size=2><SUP>&#174;</SUP></FONT></B><FONT face="Times New Roman" size=2>-1030v3
fuel cell product for applications such as residential cogeneration, including
supply of this product to Baxi Innotech GmbH ("</FONT><B><FONT face="Times New Roman" size=2>Baxi Innotech</FONT></B><FONT face="Times New Roman" size=2>") for the German Callux
Project. On March 11, 2009, Ballard entered into a three-year supply agreement
with Baxi Innotech, the leading European developer and manufacturer of fuel cell
micro combined heat and power units. Under the agreement, Baxi Innotech will
exclusively purchase Ballard fuel cells through to the end of Phase 2 of the
German Callux Project, scheduled to conclude in 2012. </FONT></P>
<P align=center><FONT face="Times New Roman" size=2>- 11 -</FONT></P>
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<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><EM>Competition </EM></FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>The back-up power market is
currently dominated by ICEs (primarily diesel gensets) and batteries. Advanced
battery technology continues to make modest progress in the back-up power
generation market. However, advanced battery technologies still require lengthy
recharging and, in many cases, cannot meet desired run times without requiring
substantial space. We believe that PEM fuel cell products are superior to
batteries in some applications, because of their ability to provide extended run
time without frequent or lengthy recharging, as well as their ability to offer
lower life cycle costs, given that batteries require periodic replacement.
</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Companies developing PEM fuel cell
systems for back-up power applications include Hydrogenics, Distributed Energy
Systems and ReliOn. We seek to gain competitive advantage through fuel cell
designs that provide superior performance, efficiency, durability and
cost.</FONT></P>
<P align=center><B><FONT face="Times New Roman" size=2>Distributed Generation</FONT></B></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Large scale distributed generation
("</FONT><B><FONT face="Times New Roman" size=2>DG</FONT></B><FONT face="Times New Roman" size=2>") is
an exploratory new market for Ballard. We first entered into this space in 2009,
with the announcement of the supply agreement to deliver a 1 MW solution
utilizing our motive power fuel cells to FirstEnergy, an Ohio based energy
company, for use in a utility load management demonstration project. The unit
was shipped in the third quarter of 2010, and began operation on November 1,
2010. The unit will be operated for demonstration purposes for the next five
years and will serve as an important reference site in this market.</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>The second generation DG product
currently under development is the Ballard CLEARgen&#153; fuel cell system. The
CLEARgen&#153; system is a complete turnkey for zero-emission power. The system can
operate continuously for baseload power generation, or intermittently, providing
peak power during times of high demand. The 1 MW modular units are scalable in
500 kW increments, enabling tailored solutions to meet each customer&#146;s
needs.</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>In October 2011, we received a Frost
&amp; Sullivan award for new product innovation for the CLEARgen&#153; fuel cell
system (North American Stationary PEM category). The system was praised for
surpassing the competition in terms of fuel cell durability, product cost and
load-following capability, all keys to commercially viable grid-scale solutions.
</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>In 2010, Ballard entered into an
agreement with K2 Pure Solutions ("</FONT><B><FONT face="Times New Roman" size=2>K2</FONT></B><FONT face="Times New Roman" size=2>") to deploy a 163 kW CLEARgen&#153; fuel
cell system at a K2 bleach plant in Pittsburg, California. The agreement was
subject to the receipt of a routine air permit exemption for the fuel cell
system from the Bay Area Air Quality Management District and a final reservation
notice letter for a grant from California's Self Generation Incentive Program,
both of which were received by February 2011. Installation and commissioning of
the generator is planned for completion in early&#150;to-mid 2012.</FONT></P>
<P align=center><FONT face="Times New Roman" size=2>- 12 -</FONT></P>
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<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Also in 2010, Ballard entered into a
contract for the sale of 1.25 MW of our FCgen</FONT><B><FONT face="Times New Roman" size=2><SUP>&#174;</SUP></FONT></B><FONT face="Times New Roman" size=2>-1300 product,
together with engineering support services, to Real Time Engineering PTE Ltd.
("</FONT><B><FONT face="Times New Roman" size=2>RTE</FONT></B><FONT face="Times New Roman" size=2>"), a
Singapore-based system integrator. In 2011, 150 FCgen<SUP>&#174;</SUP>-1300 stacks
were delivered to RTE, with commissioning of the 1 MW fuel cell generator
targeted for 2012.</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>In April 2011, Ballard entered into
an agreement with Toyota Motor Sales USA Inc. (&#147;</FONT><B><FONT face="Times New Roman" size=2>Toyota</FONT></B><FONT face="Times New Roman" size=2>&#148;) to deploy a 1 MW CLEARgen&#153;
fuel cell system to provide peak electrical power and heat at the Toyota
facility in Torrance, California. The unit is scheduled to be operational in the
first half of 2012. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>In February 2011, Ballard was
awarded up to C$7 million in funding by SDTC to extend the operating life and
lower the product cost of FCgen<SUP>&#174;</SUP>-1300, the fuel cell stack for the
CLEARgen&#153; fuel cell system.</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><EM>Competition </EM></FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>The distributed generation market is
large and varied. As such, depending on the application, diesel gensets or
natural gas gensets would be considered current technologies. Hydrogen fuelled
IC engines, advanced battery technologies and other fuel cell systems are
emerging as competitive technologies. Fuel cell systems offer significant
efficiency and emissions improvements over gensets and hydrogen fuelled IC
engines. Advanced battery technologies cannot meet desired run times without
requiring substantial capital cost and installation space. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Companies developing PEM fuel cell
systems for distributed generation market applications include Nedstack and
Hydrogenics. Companies developing other fuel cell systems for this market are
United Technologies Corporation (phosphoric acid fuel cells), Fuel Cell Energy
(molten carbonate fuel cells) and Bloom Energy (solid oxide fuel cells).
</FONT></P>
<P align=justify><B><FONT face="Times New Roman" size=2>Engineering Services </FONT></B></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>During the last half of 2011, we
refined our business strategy and established a new engineering services
operating unit in order to leverage our expertise in fuel cell design,
prototyping, manufacturing and servicing. This new operating unit offers a full
suite of fuel cell engineering solutions for a variety of fuel cell applications
and is recorded in our core Fuel Cell Products segment.</FONT></P>
<P align=center><FONT face="Times New Roman" size=2>- 13 -</FONT></P>
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<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=justify><B><FONT face="Times New Roman" size=2>Contract Automotive </FONT></B></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>In September 2011, the Daimler
manufacturing contract came to completion with the successful delivery of the
final FCvelocity<SUP>&#174;</SUP>-1100 units. As a result, Contract Automotive will
cease to be a market segment as of December 2011. </FONT></P>
<P align=justify><B><FONT face="Times New Roman" size=2>Material Products </FONT></B></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>We develop, manufacture and sell
carbon-based engineered material products into a variety of markets. These
products are in the form of roll goods as either woven carbon fiber textile
fabrics or as carbon fiber papers.</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>A major application for carbon fiber
fabrics is the friction surface in torque converters for light vehicle automatic
transmissions. We are a Tier 1 supplier with QS-9000 and TS-16949 quality
certification. In 2010, we negotiated a six-year extension to our exclusive
supply contract for this product by one of our automotive manufacturing
customers, valued at more than $60 million. The use of our product is also
expanding at a second automotive OEM and expanding globally with multiple new
applications in Europe and Asia.</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>The fuel cell GDL supply business
continues to steadily grow. Our AvCarb&#153; GDL materials are available in
continuous rolls, and are designed to enable membrane electrode assemblies
(&#147;</FONT><B><FONT face="Times New Roman" size=2>MEAs</FONT></B><FONT face="Times New Roman" size=2>&#148;) to
be manufactured using high-speed automated assembly techniques. The first two
members of this family of products are the AvCarb&#153; P-50 and the AvCarb&#153; P-50T.
We supply several key fuel cell industry participants (UTC Power, BASF, 3M and
Johnson Matthey) with GDLs for both PEM and non-PEM platforms, and we use our
GDLs in our own fuel cell products.</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Ballard Material Products was
awarded the US Department of Energy&#146;s 2011 Annual Merit Review Award,
recognizing our success in reducing the manufacturing cost of the GDL material.
</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>We also provide material supply
chain management services to our customers, where we manage several
subcontractor suppliers. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><EM>Competition </EM></FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Ballard competes in a market where
the friction characteristics and durability of carbon materials make them
desirable for high performance applications in the automotive industry.
Competitors for friction products include the SGL Group, Toray and Toho Tenax.
Competitors for GDL products include the SGL Group, Mitsubishi and Toray.
</FONT></P>
<P align=center><FONT face="Times New Roman" size=2>- 14 -</FONT></P>
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<P align=justify><B><FONT face="Times New Roman" size=2>Impact of Regulations and Public
Policy </FONT></B></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><STRONG><EM>United States
</EM></STRONG></FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>At the federal level, the Emergency
Economic Stabilization Act of 2008 includes tax incentives to help minimize the
cost of hydrogen and fuel cell projects. It offers an investment tax credit of
30% for qualified fuel cell property or $3,000/kW of the fuel cell nameplate
capacity (i.e., expected system output), whichever is less. The equipment must
be installed by Dec. 31, 2016. In addition, it features a credit of 10% for
combined-heat-and-power-system property. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>The American Recovery and
Reinvestment Act of 2009 expands incentives to encourage the installation of
fuel cells and hydrogen fueling infrastructure. Incentives include: </FONT></P>
<UL style="FONT-SIZE: 10pt; TEXT-ALIGN: justify">
  <LI><FONT face="Times New Roman" size=2>A fueling facility tax credit, which increases the
  dollar cap of the 30% hydrogen fueling infrastructure tax credit from $30,000
  to $200,000.<BR>&nbsp;</FONT></li>
  <LI><FONT face="Times New Roman" size=2>Grants for fuel cell power systems (in lieu of tax
  credits), which allow facilities with insufficient tax liabilities to apply
  for grants instead of claiming investment or production tax credits. Only
  entities that pay taxes are eligible.</FONT><FONT face="Times New Roman" size=2>
  </FONT><FONT face="Times New Roman" size=2>To be eligible, the fuel cell system must have
  been placed in service in 2009 &#150; 2011, or placed in service after 2011 but
  only if construction began during 2009 &#150; 2011.<BR>&nbsp;</FONT></li>
  <LI><FONT face="Times New Roman" size=2>A manufacturing credit, which creates a 30% credit
  for investment in property used for manufacturing fuel cells and other
  technologies.<BR>&nbsp;</FONT></li>
  <LI><FONT face="Times New Roman" size=2>A residential energy-efficiency credit, which
  raises the investment-tax-credit dollar cap for residential fuel cells in
  joint occupancy dwellings to $3,334/kW. </FONT></LI></UL>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>At the state level, the California
Self-Generation Incentive Program, which is funded by ratepayers and
administered by utilities, provides incentives for fuel cell generation. In 2011
the incentive was $2250/kW for power plants that operate on hydrogen from
non-renewable resources and $4250/kW for those that operate on hydrogen from
renewable resources. The program is funded annually and guidelines are published
in a yearly handbook. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>The availability of these incentives
is expected to help drive demand for fuel cell products. </FONT></P>
<P align=center><FONT face="Times New Roman" size=2>- 15 -</FONT></P>
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<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><STRONG><EM>Other
Jurisdictions</EM></STRONG></FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>In Canada, SDTC operates the $590
million SD Tech Fund which supports projects that address climate change, air
quality, clean water, and clean soil. The SD Tech Fund provides financial
contributions to projects aimed at supporting the late-stage development and
pre-commercial demonstration of clean technology solutions. SDTC does not
require any repayments of the financial contributions it provides to funded
projects through the SD Tech Fund. As noted elsewhere, SDTC agreed to provide
Ballard with up to $11.8 million for funded projects that will extend through
2013.</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>As of 2011, feed-in tariff policies
have been enacted in 87 jurisdictions around the world to encourage the adoption
of renewable energy sources. Under a feed-in tariff, utilities are obligated to
buy electricity from all eligible participants at rates based on the cost of
renewable energy generation, which enables a diversity of projects to be
developed at a reasonable return on investment. The rates are typically designed
to ratchet downward over time to track technology improvements and overall cost
reductions. Feed-in tariff programs also typically offer long-term (15&#150;25 year)
guaranteed purchase contracts for the electricity generated from such projects.
Programs that support energy generation from hydrogen sources are expected to
help drive demand for fuel cell products. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Another policy that is emerging in
importance is the &#147;quota&#148; or &#147;renewable portfolio standard&#148; (&#147;</FONT><B><FONT face="Times New Roman" size=2>RPS</FONT></B><FONT face="Times New Roman" size=2>&#148;). A quota/RPS is a
government-mandated obligation on a utility company, group of companies, or
consumers to provide or use a predetermined amount of renewable electricity. By
early 2011, quota/RPS policies existed in 10 countries at the national level and
in at least 50 other jurisdictions at the state, provincial, or regional level.
</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Beginning in 2012, the Ministry of
Commerce, Industry and Energy (MOCIE) in Korea will introduce an RPS as an
alternative plan to the FIT. The program will mandate that 14 utilities generate
4% of electricity from renewables in 2015, increasing to 10% by 2020. Fuel cell
projects receive the highest level of support under the Korea RPS system and
this is expected to help drive demand for our products.</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>In Europe, the Fuel Cells and
Hydrogen Joint Undertaking (&#147;</FONT><B><FONT face="Times New Roman" size=2>FCH
JU</FONT></B><FONT face="Times New Roman" size=2>&#148;) &#150; part of the Joint Technology
Initiative - is a public private partnership supporting research, technological
development and demonstration activities in fuel cell and hydrogen energy
technologies that provides subsidies for eligible projects through a cost share
mechanism. FCH JU has a total budget amounting to nearly 1bn EUR to be invested
by 2013 for projects through 2017. The fifth annual call for proposals has been
published with a due date of January 2012.</FONT></P>
<P align=center><FONT face="Times New Roman" size=2>- 16 -</FONT></P>
<HR align=center width="100%" noShade size="2">

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=justify><B><FONT face="Times New Roman" size=2>Research and Product Development
</FONT></B></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Ballard&#146;s research activities are
primarily focused on the MEA and its sub-components, aimed at improving the
overall cost, durability, and reliability of our products. Material development
of other unit cell components, such as bipolar plates, frames, seals and
adhesives, is another area of research focus. Product development activities
have been primarily directed at cost reduction. Progress is driven by leveraging
stack component designs, materials, and manufacturing processes across multiple
product platforms. In addition, further cost reduction will be enabled through
improved durability and reliability growth. </FONT></P>
<P align=justify><B><FONT face="Times New Roman" size=2>Intellectual Property</FONT></B></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Ballard&#146;s technical strengths lay in
our proprietary MEA design, combined with our extensive stack and system
integration capabilities, which enables development of complete end-user systems
that meet or exceed customer specifications, across a wide range of market
applications. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Our intellectual property covers
multiple aspects of our technology, including: materials and components; cell,
stack and systems architecture; stack/system operation and control; and
manufacturing processes. Our intellectual property portfolio is not limited to
our patents and patent applications; it also includes know-how and trade secrets
developed over more than 25 years of research and product development.
</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>As of January 31, 2012, Ballard owns
or controls through IP Holdings, patents approximately as follows: 79 United
States granted patents, 69 non-United States granted patents, 8 United States
published patent applications and 51 published non-United States patent
applications. Our patents will expire between 2012 and 2031. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>We hold licence rights to additional
intellectual property from a number of third parties. These licences include
non-exclusive, royalty-free access to all of the intellectual property rights
held by NuCellSys GmbH ("</FONT><B><FONT face="Times New Roman" size=2>NuCellSys</FONT></B><FONT face="Times New Roman" size=2>"), a Daimler subsidiary, and
to all of the intellectual property rights relating to fuel cells developed by
Daimler, Ford and their subsidiaries (either directly or through AFCC),
including any intellectual property rights developed by them while we continue
to be a shareholder of AFCC. As of January 31, 2012, of the approximately 2,000
patents and patent applications that were included in these licenses,
approximately 700 of them are currently granted or pending. </FONT></P>
<P align=justify><B><FONT face="Times New Roman" size=2>Manufacturing </FONT></B></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Our fuel cell manufacturing facility
is located in Burnaby, British Columbia and is designed to provide the
manufacturing capacity necessary to meet expected product demand through the
initial market introduction and early adoption phase. As product demand grows,
we will increase capacity either by further investment in automation to improve
throughput, while decreasing both costs and footprint, or, in outsourcing
selective manufacturing processes.</FONT></P>
<P align=center><FONT face="Times New Roman" size=2>- 17 -</FONT></P>
<HR align=center width="100%" noShade size="2">

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Many of the components and materials
we use to manufacture our fuel cell products are unique and have been developed
in conjunction with suppliers and our R&amp;D and Engineering Teams. Strategic
relationships have been developed with these key suppliers to ensure security of
supply, protection of our intellectual property, and adherence to our strict
quality and reliability standards.</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>In Burnaby, we have an Integrated
Management System registered to ISO 9001 and TS16949 standards, as well as
robust internal practices in the areas of environment, health and safety. We
also strive for continuous manufacturing improvement through practices such as
Lean Manufacturing, 5-S and advocacy of Six Sigma. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Our facility in Lowell,
Massachusetts, produces friction products for the automotive industry as well as
GDL product for both ourselves and others in the fuel cell market. As a Tier 1
automotive supplier, this facility is both ISO 9001 and QS 9000 registered and
specializes in continuous roll-to-roll manufacturing processes. </FONT></P>
<P align=justify><B><FONT face="Times New Roman" size=2>Facilities </FONT></B></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>We currently have the following
principal facilities: (a) a leased 116,797 square foot (10,850 square meter)
facility in Burnaby, British Columbia that houses our corporate headquarters and
our fuel cell development, manufacturing and testing activities; (b) a leased
112,000 square foot (10,398 square meter) facility in Burnaby, British Columbia
that houses some of our manufacturing facilities and manufacturing facilities
that we subleased to Mercedes-Benz Canada and AFCC; (c) a 137,000 square foot
(12,728 square meter) facility in Lowell, Massachusetts, owned by us, that is
used for the development and manufacture of carbon fiber products; and (d) a
leased 4100 square foot (381.5 square meter) facility in Hobro, Denmark.
</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>We are committed to developing and
manufacturing products, and operating all of our facilities, in full compliance
with all applicable local, regional, national and international environmental,
health and safety regulatory standards. Our commitment is reflected in our
corporate "Quality, Safety and Environmental Policy and Guiding Principles", and
our underlying programs and initiatives. We have completed a detailed
environmental assessment of our operations in Burnaby. In turn, we developed
policies, procedures, and work instructions to manage environmental matters
including air, water, and waste management and reduction, transportation of
dangerous goods, environmental impact and hazard assessment, and internal and
external recycling programs. </FONT></P>
<P align=center><FONT face="Times New Roman" size=2>- 18 -</FONT></P>
<HR align=center width="100%" noShade size="2">

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=justify><B><FONT face="Times New Roman" size=2>Human Resources </FONT></B></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>As of December 31, 2011, we had
approximately 440 employees, 360 in Canada, 45 in the United States and 35 in
Denmark, representing such diverse disciplines as electrochemistry, polymer
chemistry, chemical, mechanical, electronic and electrical engineering,
manufacturing, marketing, sales, business development, legal, finance, human
resources, information technology and business management. Our employees in
Canada and the United States are not represented by any labour union. In
Denmark, there are two groups of technical employees subject to collective
agreements, totalling less than 15 employees. Each employee must agree to
confidentiality provisions as part of the terms of his or her employment, and
certain employees have also executed non-competition agreements with us.
</FONT></P>
<P align=center><B><FONT face="Times New Roman" size=3>SHARE CAPITAL AND MARKET FOR
SECURITIES </FONT></B></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Our authorized share capital
consists of an unlimited number of common shares and an unlimited number of
preferred shares. As of February 23, 2012, our issued share capital consisted of
84,550,524 common shares. Our common shares are listed and trade on the Toronto
Stock Exchange ("</FONT><B><FONT face="Times New Roman" size=2>TSX</FONT></B><FONT face="Times New Roman" size=2>") under the symbol "BLD" and on the National Association of
Securities Dealers Automated Quotation Global Market ("</FONT><B><FONT face="Times New Roman" size=2>NASDAQ</FONT></B><FONT face="Times New Roman" size=2>") under the symbol
"BLDP". </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>The following table shows the
monthly trading activity for our common shares on the TSX and NASDAQ during
2011:</FONT></P>
<TABLE style="PADDING-RIGHT: 6pt; PADDING-LEFT: 6pt; LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD NOWRAP STYLE="border: #000000 1pt solid; text-align: left; width: 20%; background-color: #e9e9e9"></TD>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-TOP: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="40%" bgColor=#e9e9e9 colSpan=2><B><FONT face="Times New Roman" size=2>TSX</FONT></B></TD>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-TOP: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="40%" bgColor=#e9e9e9 colSpan=2><B><FONT face="Times New Roman" size=2>NASDAQ</FONT></B></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-TOP: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="20%"></TD>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-TOP: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="20%"><B><FONT face="Times New Roman" size=2>Price
      Range<BR>(CDN$)</FONT></B></TD>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-TOP: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="20%"><B><FONT face="Times New Roman" size=2>Average
      Daily<BR>Volume<BR>(#)</FONT></B></TD>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-TOP: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="20%"><B><FONT face="Times New Roman" size=2>Price
      Range<BR>(U.S.$)</FONT></B></TD>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-TOP: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="20%"><B><FONT face="Times New Roman" size=2>Average
      Daily<BR>Volume<BR>(#)</FONT></B></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-TOP: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="20%"><FONT face="Times New Roman" size=2>January</FONT></TD>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-TOP: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="20%"><FONT face="Times New Roman" size=2>$1.58-1.66</FONT></TD>
    <TD style="BORDER-RIGHT: #000000 1pt solid; PADDING-RIGHT: 38pt; BORDER-TOP: #000000 1pt solid; PADDING-LEFT: 38pt; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="20%"><FONT face="Times New Roman" size=2>86,447</FONT></TD>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-TOP: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="20%"><FONT face="Times New Roman" size=2>$1.54-1.68</FONT></TD>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-TOP: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="20%"><FONT face="Times New Roman" size=2>308,016</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-TOP: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="20%"><FONT face="Times New Roman" size=2>February</FONT></TD>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-TOP: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="20%"><FONT face="Times New Roman" size=2>$1.67-2.13</FONT></TD>
    <TD style="BORDER-RIGHT: #000000 1pt solid; PADDING-RIGHT: 38pt; BORDER-TOP: #000000 1pt solid; PADDING-LEFT: 38pt; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="20%"><FONT face="Times New Roman" size=2>339,356</FONT></TD>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-TOP: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="20%"><FONT face="Times New Roman" size=2>$1.68-2.16</FONT></TD>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-TOP: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="20%"><FONT face="Times New Roman" size=2>893,055</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-TOP: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="20%"><FONT face="Times New Roman" size=2>March</FONT></TD>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-TOP: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="20%"><FONT face="Times New Roman" size=2>$1.95-2.36</FONT></TD>
    <TD style="BORDER-RIGHT: #000000 1pt solid; PADDING-RIGHT: 38pt; BORDER-TOP: #000000 1pt solid; PADDING-LEFT: 38pt; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="20%"><FONT face="Times New Roman" size=2>192,035</FONT></TD>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-TOP: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="20%"><FONT face="Times New Roman" size=2>$1.97-2.42</FONT></TD>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-TOP: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="20%"><FONT face="Times New Roman" size=2>746,903</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-TOP: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="20%"><FONT face="Times New Roman" size=2>April</FONT></TD>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-TOP: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="20%"><FONT face="Times New Roman" size=2>$1.96-2.35</FONT></TD>
    <TD style="BORDER-RIGHT: #000000 1pt solid; PADDING-RIGHT: 38pt; BORDER-TOP: #000000 1pt solid; PADDING-LEFT: 38pt; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="20%"><FONT face="Times New Roman" size=2>100,006</FONT></TD>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-TOP: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="20%"><FONT face="Times New Roman" size=2>$2.05-2.42</FONT></TD>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-TOP: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="20%"><FONT face="Times New Roman" size=2>381,384</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-TOP: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="20%"><FONT face="Times New Roman" size=2>May</FONT></TD>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-TOP: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="20%"><FONT face="Times New Roman" size=2>$1.56-2.00</FONT></TD>
    <TD style="BORDER-RIGHT: #000000 1pt solid; PADDING-RIGHT: 38pt; BORDER-TOP: #000000 1pt solid; PADDING-LEFT: 38pt; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="20%"><FONT face="Times New Roman" size=2>71,789</FONT></TD>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-TOP: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="20%"><FONT face="Times New Roman" size=2>$1.60-2.09</FONT></TD>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-TOP: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="20%"><FONT face="Times New Roman" size=2>323,527</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-TOP: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="20%"><FONT face="Times New Roman" size=2>June</FONT></TD>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-TOP: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="20%"><FONT face="Times New Roman" size=2>$1.50-1.72</FONT></TD>
    <TD style="BORDER-RIGHT: #000000 1pt solid; PADDING-RIGHT: 38pt; BORDER-TOP: #000000 1pt solid; PADDING-LEFT: 38pt; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="20%"><FONT face="Times New Roman" size=2>45,308</FONT></TD>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-TOP: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="20%"><FONT face="Times New Roman" size=2>$1.52-1.77</FONT></TD>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-TOP: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="20%"><FONT face="Times New Roman" size=2>258,552</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-TOP: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="20%"><FONT face="Times New Roman" size=2>July</FONT></TD>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-TOP: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="20%"><FONT face="Times New Roman" size=2>$1.42-1.56</FONT></TD>
    <TD style="BORDER-RIGHT: #000000 1pt solid; PADDING-RIGHT: 38pt; BORDER-TOP: #000000 1pt solid; PADDING-LEFT: 38pt; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="20%"><FONT face="Times New Roman" size=2>33,911</FONT></TD>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-TOP: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="20%"><FONT face="Times New Roman" size=2>$1.47-1.62</FONT></TD>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-TOP: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="20%"><FONT face="Times New Roman" size=2>157,411</FONT></TD></TR></TABLE><BR>
<P align=center><FONT face="Times New Roman" size=2>- 19 -</FONT></P>
<HR align=center width="100%" noShade size="2">

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<TABLE style="PADDING-RIGHT: 6pt; PADDING-LEFT: 6pt; LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD NOWRAP STYLE="border: #000000 1pt solid; text-align: left; width: 20%; background-color: #e9e9e9"></TD>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-TOP: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="40%" bgColor=#e9e9e9 colSpan=2><B><FONT face="Times New Roman" size=2>TSX</FONT></B></TD>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-TOP: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="40%" bgColor=#e9e9e9 colSpan=2><B><FONT face="Times New Roman" size=2>NASDAQ</FONT></B></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-TOP: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="20%"></TD>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-TOP: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="20%"><B><FONT face="Times New Roman" size=2>Price
      Range<BR>(CDN$)</FONT></B></TD>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-TOP: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="20%"><B><FONT face="Times New Roman" size=2>Average
      Daily<BR>Volume<BR>(#)</FONT></B></TD>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-TOP: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="20%"><B><FONT face="Times New Roman" size=2>Price
      Range<BR>(U.S.$)</FONT></B></TD>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-TOP: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="20%"><B><FONT face="Times New Roman" size=2>Average
      Daily<BR>Volume<BR>(#)</FONT></B></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-TOP: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="20%"><FONT face="Times New Roman" size=2>August</FONT></TD>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-TOP: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="20%"><FONT face="Times New Roman" size=2>$1.24-1.47</FONT></TD>
    <TD style="BORDER-RIGHT: #000000 1pt solid; PADDING-RIGHT: 38pt; BORDER-TOP: #000000 1pt solid; PADDING-LEFT: 38pt; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="20%"><FONT face="Times New Roman" size=2>48,064</FONT></TD>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-TOP: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="20%"><FONT face="Times New Roman" size=2>$1.24-1.55</FONT></TD>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-TOP: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="20%"><FONT face="Times New Roman" size=2>147,419</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-TOP: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="20%"><FONT face="Times New Roman" size=2>September</FONT></TD>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-TOP: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="20%"><FONT face="Times New Roman" size=2>$1.25-1.50</FONT></TD>
    <TD style="BORDER-RIGHT: #000000 1pt solid; PADDING-RIGHT: 38pt; BORDER-TOP: #000000 1pt solid; PADDING-LEFT: 38pt; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="20%"><FONT face="Times New Roman" size=2>37,170</FONT></TD>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-TOP: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="20%"><FONT face="Times New Roman" size=2>$1.20-1.53</FONT></TD>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-TOP: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="20%"><FONT face="Times New Roman" size=2>127,250</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-TOP: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="20%"><FONT face="Times New Roman" size=2>October</FONT></TD>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-TOP: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="20%"><FONT face="Times New Roman" size=2>$1.18-1.48</FONT></TD>
    <TD style="BORDER-RIGHT: #000000 1pt solid; PADDING-RIGHT: 38pt; BORDER-TOP: #000000 1pt solid; PADDING-LEFT: 38pt; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="20%"><FONT face="Times New Roman" size=2>31,862</FONT></TD>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-TOP: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="20%"><FONT face="Times New Roman" size=2>$1.15-1.50</FONT></TD>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-TOP: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="20%"><FONT face="Times New Roman" size=2>114,759</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-TOP: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="20%"><FONT face="Times New Roman" size=2>November</FONT></TD>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-TOP: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="20%"><FONT face="Times New Roman" size=2>$1.25-1.49</FONT></TD>
    <TD style="BORDER-RIGHT: #000000 1pt solid; PADDING-RIGHT: 38pt; BORDER-TOP: #000000 1pt solid; PADDING-LEFT: 38pt; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="20%"><FONT face="Times New Roman" size=2>25,735</FONT></TD>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-TOP: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="20%"><FONT face="Times New Roman" size=2>$1.21-1.46</FONT></TD>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-TOP: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="20%"><FONT face="Times New Roman" size=2>89,211</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-TOP: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="20%"><FONT face="Times New Roman" size=2>December</FONT></TD>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-TOP: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="20%"><FONT face="Times New Roman" size=2>$1.10-1.31</FONT></TD>
    <TD style="BORDER-RIGHT: #000000 1pt solid; PADDING-RIGHT: 38pt; BORDER-TOP: #000000 1pt solid; PADDING-LEFT: 38pt; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="20%"><FONT face="Times New Roman" size=2>38,809</FONT></TD>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-TOP: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="20%"><FONT face="Times New Roman" size=2>$1.07-1.28</FONT></TD>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-TOP: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="20%"><FONT face="Times New Roman" size=2>210,652</FONT></TD></TR></TABLE><BR>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>The holders of our common shares are
entitled to one vote for each share held on all matters to be voted on by such
shareholders and, subject to the rights and priorities of the holders of
preferred shares, are entitled to receive such dividends as may be declared by
our Board out of funds legally available therefor and, in the event of
liquidation, wind-up or dissolution, to receive our remaining property, after
the satisfaction of all outstanding liabilities. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Our preferred shares are issuable in
series and our Board is entitled to determine the designation, preferences,
rights, conditions, restrictions, limitations and prohibitions to be attached to
each series of such shares. Currently there are no preferred shares outstanding.
</FONT></P>
<P align=center><B><FONT face="Times New Roman" size=3>DIVIDEND RECORD AND POLICY
</FONT></B></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>To date, we have not paid any
dividends on our shares and, because it is anticipated that all available cash
will be needed to implement our business plans, we have no plans to pay
dividends in the immediate future. </FONT></P>
<P align=center><B><FONT face="Times New Roman" size=3>DIRECTORS AND OFFICERS</FONT></B></P>
<P align=justify><B><FONT face="Times New Roman" size=2>Board of Directors</FONT></B></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>The following chart provides the
following information as of February 23, 2012: the name and province or state of
residence of each of our directors; each director&#146;s respective positions and
offices held with Ballard, their principal occupation during the past five
years; the period of time each has served as a director; and the number of
shares and deferred share units (the "</FONT><B><FONT face="Times New Roman" size=2>DSUs</FONT></B><FONT face="Times New Roman" size=2>") beneficially owned or
controlled by each of them.</FONT></P>
<P align=center><FONT face="Times New Roman" size=2>- 20 -</FONT></P>
<HR align=center width="100%" noShade size="2">

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=bottom noWrap align=left width="5%" bgColor=#e9e9e9><B><FONT face="Times New Roman" size=2>Name,<BR>Province/State<BR>and
      Country of<BR>Residence<SUP>(1)</SUP></FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=bottom noWrap align=left width="1%" bgColor=#e9e9e9>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=bottom noWrap align=left width="76%" bgColor=#e9e9e9><B><FONT face="Times New Roman" size=2>Principal
      Occupation<SUP>(1)</SUP></FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=bottom noWrap align=left width="1%" bgColor=#e9e9e9>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=bottom noWrap align=left width="3%" bgColor=#e9e9e9><B><FONT face="Times New Roman" size=2>Director<BR>Since</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=bottom noWrap align=left width="1%" bgColor=#e9e9e9>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=bottom noWrap align=left width="6%" bgColor=#e9e9e9><B><FONT face="Times New Roman" size=2>Shares<BR>Beneficially<BR>Owned
      or<BR>Controlled or<BR>Directed<SUP>(1)</SUP><BR>(#/% of
    Class)</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=bottom noWrap align=left width="1%" bgColor=#e9e9e9>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=bottom noWrap align=left width="6%" bgColor=#e9e9e9><B><FONT face="Times New Roman" size=2>Deferred<BR>Share
      Units<BR>Owned or<BR>Controlled<SUP>(2)</SUP><BR>(#/% of
    Class)</FONT></B></TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top noWrap align=left width="5%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>Ian
      A. Bourne</FONT></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="76%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>Corporate Director and</FONT></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="3%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>2003</FONT></TD>
    <TD vAlign=top noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=right width="6%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>26,824/0.032%</FONT></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=right width="6%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>77,707/26.72%</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top noWrap align=left width="5%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>Alberta, Canada</FONT></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="76%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>Chair of the Board of</FONT></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="6%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="6%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top noWrap align=left width="5%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="76%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>Ballard since May 2006.</FONT></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="6%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="6%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top noWrap align=left width="5%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="76%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>Formerly Executive Vice</FONT></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="6%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="6%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top noWrap align=left width="5%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="76%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>President and Chief</FONT></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="6%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="6%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top noWrap align=left width="5%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="76%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>Financial Officer of</FONT></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="6%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="6%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top noWrap align=left width="5%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="76%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>TransAlta Corporation</FONT></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="6%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="6%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top noWrap align=left width="5%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="76%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>(</FONT><I><FONT face="Times New Roman" size=2>electricity generation and</FONT></I></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="6%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="6%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top noWrap align=left width="5%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="76%" bgColor=#c0c0c0><I><FONT face="Times New Roman" size=2>marketing</FONT></I><FONT face="Times New Roman" size=2>) from January</FONT></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="6%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="6%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top noWrap align=left width="5%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="76%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>1998 to December 2006, and</FONT></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="6%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="6%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top noWrap align=left width="5%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="76%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>from January 1998 to</FONT></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="6%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="6%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top noWrap align=left width="5%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="76%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>December 2005,</FONT></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="6%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="6%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top noWrap align=left width="5%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="76%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>respectively.</FONT></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="6%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="6%" bgColor=#c0c0c0></TD></TR>
  <TR>
    <TD vAlign=top width="100%" colSpan=9>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top noWrap align=left width="5%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>Edwin J. Kilroy</FONT></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="76%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>Corporate Director of</FONT></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="3%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>2002</FONT></TD>
    <TD vAlign=top noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=right width="6%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>2,752/0.003%</FONT></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=right width="6%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>42,844/14.73%</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top noWrap align=left width="5%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>Ontario, Canada</FONT></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="76%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>Ballard. Formerly Chief</FONT></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="6%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="6%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top noWrap align=left width="5%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="76%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>Executive Officer of Symcor</FONT></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="6%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="6%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top noWrap align=left width="5%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="76%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>Inc. (</FONT><I><FONT face="Times New Roman" size=2>business process</FONT></I></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="6%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="6%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top noWrap align=left width="5%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="76%" bgColor=#c0c0c0><I><FONT face="Times New Roman" size=2>outsourcing services</FONT></I><FONT face="Times New Roman" size=2>) from</FONT></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="6%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="6%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top noWrap align=left width="5%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="76%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>January 2005 to November</FONT></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="6%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="6%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top noWrap align=left width="5%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="76%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>2010.</FONT></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="6%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="6%" bgColor=#c0c0c0></TD></TR>
  <TR>
    <TD vAlign=top width="100%" colSpan=9>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top noWrap align=left width="5%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>Dr.
      Chong Sup</FONT></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="76%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>Corporate Director of</FONT></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="3%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>2007</FONT></TD>
    <TD vAlign=top noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=right width="6%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>17,091/0.020%</FONT></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=right width="6%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>0/0%</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top noWrap align=left width="5%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>(C.S.) Park</FONT></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="76%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>Ballard. Formerly</FONT></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="6%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="6%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top noWrap align=left width="5%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>California,</FONT></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="76%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>Chairman of the Board and</FONT></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="6%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="6%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top noWrap align=left width="5%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>U.S.A.</FONT></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="76%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>Chief Executive Officer of</FONT></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="6%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="6%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top noWrap align=left width="5%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="76%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>Maxtor Corporation (</FONT><I><FONT face="Times New Roman" size=2>storage</FONT></I></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="6%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="6%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top noWrap align=left width="5%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="76%" bgColor=#c0c0c0><I><FONT face="Times New Roman" size=2>solutions and hard disk drives</FONT></I><FONT face="Times New Roman" size=2>)</FONT></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="6%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="6%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top noWrap align=left width="5%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="76%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>from November 2004 to</FONT></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="6%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="6%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top noWrap align=left width="5%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="76%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>May
      2006.</FONT></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="6%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="6%" bgColor=#c0c0c0></TD></TR></TABLE><BR>
<P align=center><FONT face="Times New Roman" size=2>- 21 -</FONT></P>
<HR align=center width="100%" noShade size="2">

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=bottom noWrap align=left width="5%" bgColor=#e9e9e9><B><FONT face="Times New Roman" size=2>Name,<BR>Province/State<BR>and Country
      of<BR>Residence<SUP>(1)</SUP></FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=bottom noWrap align=left width="1%" bgColor=#e9e9e9>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=bottom noWrap align=left width="76%" bgColor=#e9e9e9><B><FONT face="Times New Roman" size=2>Principal Occupation<SUP>(1)</SUP></FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=bottom noWrap align=left width="1%" bgColor=#e9e9e9>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=bottom noWrap align=left width="3%" bgColor=#e9e9e9><B><FONT face="Times New Roman" size=2>Director<BR>Since</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=bottom noWrap align=left width="1%" bgColor=#e9e9e9>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=bottom noWrap align=left width="6%" bgColor=#e9e9e9><B><FONT face="Times New Roman" size=2>Shares<BR>Beneficially<BR>Owned or<BR>Controlled
      or<BR>Directed<SUP>(1)</SUP><BR>(#/% of Class)</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=bottom noWrap align=left width="1%" bgColor=#e9e9e9>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=bottom noWrap align=left width="6%" bgColor=#e9e9e9><B><FONT face="Times New Roman" size=2>Deferred<BR>Share Units<BR>Owned
      or<BR>Controlled<SUP>(2)</SUP><BR>(#/% of Class)</FONT></B></TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top noWrap align=left width="5%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>John
      W.<BR>Sheridan<BR>British<BR>Columbia,<BR>Canada</FONT></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="76%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>President and
      Chief<BR>Executive Officer of Ballard<BR>since October 2005.</FONT></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="3%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>2001</FONT></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="6%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>472,430/0.56%</FONT></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="6%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>57,943/19.93%</FONT></TD></TR>
  <TR>
    <TD vAlign=top align=left width="100%" colSpan=9>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top noWrap align=left width="5%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>David J.
      Smith<BR>British<BR>Columbia,<BR>Canada</FONT></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="76%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>Corporate Director
      of<BR>Ballard. Member, British<BR>Columbia Securities<BR>Commission since
      July<BR>2006. Counsel with Lawson<BR>Lundell LLP (<EM>law firm</EM>)
      from<BR>May 2005 to April 2006.</FONT></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="3%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>2006</FONT></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="6%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>8,411/0.010%</FONT></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="6%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>14,841/5.10%</FONT></TD></TR>
  <TR>
    <TD vAlign=top align=left width="100%" colSpan=9>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top noWrap align=left width="5%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>David
      B.<BR>Sutcliffe<BR>British<BR>Columbia,<BR>Canada</FONT></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="76%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>Corporate Director
      of<BR>Ballard. Corporate Director<BR>of Sierra Wireless, Inc.</FONT></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="3%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>2005</FONT></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="6%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>3,600/0.004%</FONT></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="6%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>25,528/8.78%</FONT></TD></TR>
  <TR>
    <TD vAlign=top align=left width="100%" colSpan=9>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top noWrap align=left width="5%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>Mark A. Suwyn<BR>Florida, U.S.A.</FONT></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="76%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>Corporate Director
      of<BR>Ballard. Formerly Executive<BR>Chairman of the Board of<BR>NewPage
      Corporation<BR>(<EM>coated paper</EM>), from March<BR>2009 to June 2010;
      Acting<BR>Chief Executive Officer<BR>from March 2009 to January<BR>2010;
      and Chief Executive<BR>Officer and Chairman of<BR>the Board from April
      2006<BR>and May 2005, respectively.</FONT></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="3%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>2003</FONT></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="6%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>7,237/0.009%</FONT></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="6%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>35,019/12.04%</FONT></TD></TR></TABLE><BR>
<P align=center><FONT face="Times New Roman" size=2>- 22 -</FONT></P>
<HR align=center width="100%" noShade size="2">

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=bottom noWrap align=left width="5%" bgColor=#e9e9e9><B><FONT face="Times New Roman" size=2>Name,<BR>Province/State<BR>and
      Country of<BR>Residence<SUP>(1)</SUP></FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=bottom noWrap align=left width="1%" bgColor=#e9e9e9>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=bottom noWrap align=left width="76%" bgColor=#e9e9e9><B><FONT face="Times New Roman" size=2>Principal
      Occupation<SUP>(1)</SUP></FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=bottom noWrap align=left width="1%" bgColor=#e9e9e9>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=bottom noWrap align=left width="3%" bgColor=#e9e9e9><B><FONT face="Times New Roman" size=2>Director<BR>Since</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=bottom noWrap align=left width="1%" bgColor=#e9e9e9>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=bottom noWrap align=left width="6%" bgColor=#e9e9e9><B><FONT face="Times New Roman" size=2>Shares<BR>Beneficially<BR>Owned
      or<BR>Controlled or<BR>Directed<SUP>(1)</SUP><BR>(#/% of
    Class)</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=bottom noWrap align=left width="1%" bgColor=#e9e9e9>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=bottom noWrap align=left width="6%" bgColor=#e9e9e9><B><FONT face="Times New Roman" size=2>Deferred<BR>Share
      Units<BR>Owned or<BR>Controlled<SUP>(2)</SUP><BR>(#/% of
    Class)</FONT></B></TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top noWrap align=left width="5%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>Douglas
      W.G.<BR>Whitehead<BR>British<BR>Columbia,<BR>Canada</FONT></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="76%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>Corporate Director of<BR>Ballard. Chairman of<BR>Finning
      International Inc.<BR>(<EM>heavy equipment reseller</EM>).<BR>Formerly
      President and<BR>Chief Executive Officer of<BR>Finning International
      from<BR>1999 to May 2008.</FONT></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="3%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>1998</FONT></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD vAlign=top noWrap align=left width="6%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>5,383/0.006%</FONT></TD>
    <TD vAlign=top noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2></FONT></TD>
    <TD vAlign=top noWrap align=left width="6%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>36,916/12.69%</FONT></TD></TR></TABLE>
<P align=justify><FONT face="Times New Roman" size=2>_________________________</FONT></P>

<TABLE style="TEXT-ALIGN: justify" cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD vAlign=top noWrap colSpan=3><FONT size=2 face="Times New Roman">Notes
  </FONT></TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>(1)</FONT></TD>
    <TD vAlign=top noWrap></TD>
    <TD vAlign=top><FONT size=2 face="Times New Roman">The information as to place of
      residence, principal occupation, business or employment of, and shares
      beneficially owned, or controlled or directed, directly or indirectly, by
      a director is not within the knowledge of our management and has been
      furnished by the director. Information on shares beneficially owned, or
      controlled or directed is accurate as at February 23, 2012.</FONT></TD></TR>
  <TR>
    <TD vAlign=top noWrap></TD>
    <TD vAlign=top noWrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD vAlign=top noWrap></TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>(2)</FONT></TD>
    <TD vAlign=top noWrap><FONT size=2 face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=top noWrap><FONT size=2 face="Times New Roman">Rounded to the nearest
      whole number. Information is accurate as at February 23,
  2012.</FONT></TD></TR></TABLE>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Directors are elected yearly at our
annual shareholders&#146; meeting and serve on the Board until the following annual
shareholders&#146; meeting, at which time, they either stand for re-election or leave
the Board. If no meeting is held, each director serves until his or her
successor is elected or appointed, unless the director resigns earlier.
</FONT></P>
<P align=justify><B><FONT face="Times New Roman" size=2>Corporate Governance </FONT></B></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Our Board and senior management
consider good corporate governance to be central to our effective and efficient
operation. We monitor corporate governance initiatives as they develop and
benchmark industry practices to ensure that we are in compliance with corporate
governance rules. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Our corporate governance practices
are reflected in our "Corporate Governance Guidelines", which provide for
director qualification standards, director responsibilities, the form and amount
of director compensation, director orientation and continuing education,
management succession planning and performance evaluation of the Board. A copy
of the Corporate Governance Guidelines can be found on our website.</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>We also reviewed our internal
control and disclosure procedures, and are satisfied that they are sufficient to
enable our Chief Executive Officer and Chief Financial Officer to certify our
interim and annual reports filed with Canadian securities authorities, and to certify our annual
reports filed with or submitted to the United States Securities and Exchange
Commission ("</FONT><B><FONT face="Times New Roman" size=2>SEC</FONT></B><FONT face="Times New Roman" size=2>"). </FONT></P>
<P STYLE="text-align: center"><FONT face="Times New Roman" size=2>- 23 -</FONT></P>

<!-- End Part B -->





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<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>

<!-- Start Part C -->


<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face="Times New Roman" size=2><I><B>Compliance in Canada and the United States </B></I></FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>We believe that we comply with all applicable Canadian securities
administrators (&#147;</FONT><B><FONT face="Times New Roman" size=2>CSA</FONT></B><FONT face="Times New Roman" size=2>&#148;) and NASDAQ corporate governance rules and guidelines. The
CSA requires that listed corporations subject to </FONT><I><FONT face="Times New Roman" size=2>National Instrument 58-101 - Disclosure of Corporate Governance
Practices</FONT></I><FONT face="Times New Roman" size=2> ("</FONT><B><FONT face="Times New Roman" size=2>NI 58-101</FONT></B><FONT face="Times New Roman" size=2>") disclose their policies
respecting corporate governance. We comply with NI 58-101, which addresses
matters such as the constitution and independence of corporate boards, the
functions to be performed by boards and their committees, and the effectiveness
and education of board members. We are exempt from the NASDAQ corporate
governance rule requiring that each NASDAQ quoted company has in place a minimum
quorum requirement for shareholder meetings of 33 1/3% of the outstanding shares
of the company&#146;s voting common stock. Our by-laws currently provide that a
quorum is met if holders of at least five percent of the votes eligible to be
cast at a shareholders&#146; meeting are present or represented by proxy at the
meeting. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><STRONG><EM>Board Composition </EM></STRONG></FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>All of our directors are independent except for John Sheridan, our
President and Chief Executive Officer. "Independence" is judged in accordance
with the provisions of the United States </FONT><I><FONT face="Times New Roman" size=2>Sarbanes-Oxley Act of 2002</FONT></I><FONT face="Times New Roman" size=2>
("</FONT><B><FONT face="Times New Roman" size=2>Sarbanes-Oxley</FONT></B><FONT face="Times New Roman" size=2>"), and as determined by the CSA and the NASDAQ. We conduct an annual
review of the other corporate boards on which our directors sit, and have
determined that currently there are no board interlocks with respect to our
directors. The Board has also established a guideline for the maximum number of
corporate boards on which a director should sit. This guideline has been set at
five corporate boards (not including non-profit boards). </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>The Board established director resignation guidelines, which set out the
circumstances under which a director would be compelled to offer a resignation
or be asked to resign, including a majority voting policy. This policy requires
that any nominee for director who receives a greater number of votes "withheld"
than "for" his or her election shall tender his or her resignation to the Board
following our annual shareholders&#146; meeting, to take effect immediately upon
acceptance by the Board. Upon receipt of such conditional resignation, the
Corporate Governance Committee will consider the matter and, as soon as
possible, make a recommendation to the full Board regarding whether or not such
resignation should be accepted. After considering the recommendation of the
Corporate Governance Committee, the Board will decide whether or not to accept
the tendered resignation and will, not later than 90 days after the annual
shareholders&#146; meeting, issue a press release which either confirms that they
have accepted the resignation or provides an explanation for why they have
refused to accept the resignation. The director tendering his or her resignation
will not participate in any meeting of the Board or the Corporate Governance Committee. Subject to any restrictions or requirements contained in applicable corporate law or Ballard&#146;s constating documents, the Board may: (a) leave a resulting vacancy unfilled until the next annual shareholders&#146; meeting; (b) appoint a replacement director whom the Board considers merits the confidence of the shareholders; or (c) call a special meeting of shareholders to elect a replacement director nominated by management. The policy does not apply in respect of any contested shareholders&#146; meeting, which is any meeting of shareholders where the number of nominees for director is greater than the number of directors to be elected.</FONT></P>
<P align=center><FONT face="Times New Roman" size=2>- 24 -</FONT></P>
<HR align=center width="100%" noShade size="2">

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face="Times New Roman" size=2><I><B>Share
Ownership Guidelines </B></I></FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>We have minimum share ownership guidelines that apply to our independent
directors. The guidelines were revised by the board of directors effective
September 21, 2011. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>All independent directors must hold the number of Ballard common shares
having a value equivalent to three times the director&#146;s annual retainer.
Directors may apply DSUs they have received as payment for all or part of their
annual retainer towards the minimum share ownership requirements. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>The value of shares held by directors will be measured on or about
September 1<SUP>st</SUP> of each year based on the purchase price actually paid
by the director for such shares, or the value of DSUs or shares received by the
director when issued to him or her by the Corporation, as applicable.
</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>Directors that were members of the Board at the time the guidelines were
adopted in September 2011 have until September 2013 to comply with this
requirement. Directors elected subsequently have five years from the date that
they are first elected to the Board to comply. The Chair of the Board has five
years from his original appointment as Chair in February 2006 to satisfy the
minimum share ownership requirements for the Chair. Any director who fails to
comply with the share ownership requirement may not stand for re-election.
Currently, all directors have met or are on track to achieve these guidelines.
</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><STRONG><EM>Roles and Responsibilities </EM></STRONG></FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>The Board operates under a formal mandate (a copy of which is attached as
Appendix "A" and is posted on our website), which sets out its duties and
responsibilities, including matters such as corporate strategy, fiscal
management and reporting, selection of management, legal and regulatory
compliance, risk management, external communications and performance evaluation.
The Board has also established terms of reference and corporate governance
guidelines for individual directors (copies of which are also posted on our
website), which set out the directors&#146; individual responsibilities and duties. Terms of reference are also established for the Board chair and the CEO. These terms of reference and guidelines serve as a code of conduct with which each director is expected to comply, and address matters such as conflicts of interest, the duties and standard of care of directors, the level of availability expected of directors, requirements for maximizing the effectiveness of Board and committee meetings, and considerations that directors are to keep in mind in order to make effective and informed decisions.</FONT></P>
<P align=center><FONT face="Times New Roman" size=2>- 25 -</FONT></P>
<HR align=center width="100%" noShade size="2">

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face="Times New Roman" size=2>In addition,
we have a Board-approved "Code of Ethics", which applies to all members of the
Board, as well as our officers and employees. A copy of the Code of Ethics can
be found on our website. This document is reviewed annually and updated or
revised as necessary. Annually, all employees in Sales &amp; Marketing, Finance
&amp; Administration, Supply Chain, Customer Service and Quality, and all
management employees and officers, are required to formally acknowledge they
have read, reviewed and comply with the Code of Ethics. A compliance report is
then presented to the Audit Committee and Board.</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>The Chair of the Board is responsible for ensuring the appropriate
organization, content and flow of information to the Board and that all concerns
of the directors are addressed. The Chair of the Board reviews and sets the
agenda for each Board meeting. The Chair of the Board is also responsible for
organizing and setting the frequency of Board meetings and ensuring that Board
meetings are conducted efficiently. The Chair of the Board is an independent
director. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>Each year, the Board identifies a list of focus priorities for the Board
during the year. The Corporate Governance Committee regularly monitors the
Board&#146;s progress against these priorities throughout the year. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><STRONG><EM>Board Orientation and Education </EM></STRONG></FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>We have established a formal director orientation and ongoing education
program. Upon joining our Board, each director receives an orientation regarding
our business. Such orientation consists of site visits to all of our
manufacturing facilities, presentations regarding our business, technology and
products, and a manual that contains various reference documents and
information. Continuing education is offered by way of ongoing circulation of
informative materials aimed at topical subject matters and management
presentations at Board meetings, as well as guest speakers who are invited to
speak to our Board on various topics. In the past, we have invited guest
speakers to speak to our Board about the fuel cell industry, government
regulation, corporate governance and risk management, and internal management
representatives to speak about various issues relating to our technology and
business. The educational presentations that are made by internal management
provide an opportunity for Board members to meet and interact with members of
our management team. </FONT></P>
<P align=center><FONT face="Times New Roman" size=2>- 26 -</FONT></P>
<HR align=center width="100%" noShade size="2">

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face="Times New Roman" size=2><I><B>Shareholder Feedback and Communication </B></I></FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>We have set up an e-mail process for shareholders to communicate with the
Board, through the Chair of the Board. Shareholders who wish to send a message
to the Chair of the Board can find the details of this process on our website.
In addition, a summary of shareholder feedback that is received by us is
provided to the Board through a semi-annual report. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><STRONG><EM>Board and Director Performance Evaluations
</EM></STRONG></FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>Each year, the Board conducts an evaluation and review of its performance
during the past year. The evaluation is conducted through a process determined
from time to time by the Corporate Governance Committee which elicits responses
from individual directors on a confidential basis regarding the Board and
individual directors. The process may include the completion of a questionnaire
by all of the directors as well as individual director self-evaluations and peer
evaluations. The Corporate Governance Committee presents the summary results to
the full Board, which then, based on the results of the evaluation, determines
appropriate changes to improve board effectiveness. </FONT></P>
<P align=justify><B><FONT face="Times New Roman" size=2>Board Committees </FONT></B></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>Our Board has established three standing committees: the Audit Committee;
the Management Development, Nominating &amp; Compensation Committee; and the
Corporate Governance Committee. Each of these committees has been delegated
certain responsibilities, performs certain advisory functions, and either makes
certain decisions or makes recommendations to the full Board. Each of the
committee chairs reports on the activities of the committee to the Board
following each committee meeting. None of the members of these committees are
current or former officers or employees of ours, or any of our subsidiaries.
</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><STRONG><EM>Audit Committee </EM></STRONG></FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>The Audit Committee is constituted in accordance with SEC rules,
applicable securities laws and applicable NASDAQ rules, and assists the Board in
fulfilling its responsibilities by reviewing financial information, the systems
of corporate controls and the audit process.</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>The Audit Committee is responsible for overseeing the audit process and
the preparation of our financial statements, ensuring that our financial
statements are fairly presented in accordance with International Financial
Reporting Standards (&#147;IFRS&#148;), approving our quarterly financial statements, and
reviewing and recommending to the Board our year-end financial statements and
all financial disclosure contained in our public documents. The Audit Committee
meets with our financial officers and our internal and external auditors to
review matters affecting financial reporting, the system of internal accounting and financial disclosure controls and procedures, and the audit procedures and audit plans. The Audit Committee reviews our significant financial risks and the appointment of senior financial executives, and annually reviews our insurance coverage, tax loss carry forwards, pension and health care liabilities, and off-balance sheet transactions. The Audit Committee has at least one member, Ian A. Bourne, who qualifies as an audit committee financial expert under applicable securities regulations. All of the members of the Audit Committee are independent directors and are financially literate.</FONT></P>
<P align=center><FONT face="Times New Roman" size=2>- 27 -</FONT></P>
<HR align=center width="100%" noShade size="2">

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face="Times New Roman" size=2>The Audit
Committee is responsible for recommending the appointment of our external
auditors (for shareholder approval at our annual general meeting), monitoring
the external auditors&#146; qualifications and independence, and determining the
appropriate level of remuneration for the external auditors. The external
auditors report directly to the Audit Committee. The Audit Committee also
approves in advance, on a case-by-case basis, any services to be provided by the
external auditors that are not related to the audit. The following table shows
the costs incurred with KPMG in 2011 and 2010 for audit and non-audit related
work, all of which were approved by the Audit Committee: </FONT></P>
<DIV align=center>
<TABLE style="PADDING-RIGHT: 6pt; PADDING-LEFT: 6pt; PADDING-BOTTOM: 6pt; LINE-HEIGHT: 14pt; PADDING-TOP: 6pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="90%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-TOP: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: #000000 1pt solid; border-bottom: Black 1pt solid; text-align: left; width: 32%; background-color: #c0c0c0"><B><FONT face="Times New Roman" size=2>Type of Audit
      Fees</FONT></B></TD>
    <TD style="BORDER-TOP: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="13%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="20%" bgColor=#c0c0c0><B><FONT face="Times New Roman" size=2>2011</FONT></B></TD>
    <TD style="BORDER-TOP: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="13%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="20%" bgColor=#c0c0c0><B><FONT face="Times New Roman" size=2>2010</FONT></B></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; text-align: left; width: 32%"><FONT face="Times New Roman" size=2>Audit Fees</FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="13%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="20%"><FONT face="Times New Roman" size=2>$351,078</FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="13%">&nbsp;</TD>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="20%"><FONT face="Times New Roman" size=2>$353,302</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; text-align: left; width: 32%"><FONT face="Times New Roman" size=2>Audit-Related Fees</FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="13%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="20%"><FONT face="Times New Roman" size=2>Nil</FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="13%">&nbsp;</TD>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="20%"><FONT face="Times New Roman" size=2>Nil</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; text-align: left; width: 32%"><FONT face="Times New Roman" size=2>Tax Fees <SUP>(1)</SUP></FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="13%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="20%"><FONT face="Times New Roman" size=2>Nil</FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="13%">&nbsp;</TD>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="20%"><FONT face="Times New Roman" size=2>$19,265</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; text-align: left; width: 32%"><FONT face="Times New Roman" size=2>All Other Fees</FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="13%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="20%"><FONT face="Times New Roman" size=2>Nil</FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="13%"></TD>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="20%"><FONT face="Times New Roman" size=2>Nil</FONT></TD></TR></TABLE></DIV><BR>
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="99%" colSpan=3><FONT face="Times New Roman" size=2>Notes</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%"><FONT face="Times New Roman" size=2>(1)</FONT></TD>
    <TD noWrap align=left width="1%"><FONT size=2 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD noWrap align=left width="97%"><FONT face="Times New Roman" size=2>The Tax Fees for 2010 related to tax
      advisory and transfer pricing services.</FONT></TD></TR></TABLE><BR>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>In addition, the Audit Committee is mandated to review all financial
disclosure contained in prospectuses, annual reports, annual information forms,
management proxy circulars and other similar documents. The Audit Committee is
also responsible for ensuring that the internal audit function is being
effectively carried out. The Audit Committee reviews and approves, in advance,
related party transactions on a case-by-case basis. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>As of February 23, 2012, the committee was composed of Ian A. Bourne,
Edwin J. Kilroy (Chair), Mark A. Suwyn and Douglas W.G. Whitehead, all of whom
are independent of management. In addition to each committee member&#146;s general
business experience, the education and experience of each member that is
relevant to the performance of his or her responsibilities as a member of the Audit Committee is set forth below.</FONT></P>
<P align=center><FONT face="Times New Roman" size=2>- 28 -</FONT></P>
<HR align=center width="100%" noShade size="2">

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face="Times New Roman" size=2>Mr. Bourne was
TransAlta Corporation&#146;s Executive Vice President from January 1998 to December
2006. From January 1998 to December 2005, Mr. Bourne was the Chief Financial
Officer of TransAlta and was responsible for all financial policy, planning and
reporting, as well as tax, treasury and risk management planning and
implementation. Mr. Bourne has completed the Directors Education Program of the
Institute of Corporate Directors and has received his ICD.D designation.
</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>Mr. Kilroy was the Chief Executive Officer of Symcor Inc. from January
2005 to November 2010. Prior to that, Mr. Kilroy was the Chief Executive Officer
of IBM Canada Ltd. from April 2001 to January 2005.</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>Mr. Suwyn held various board and executive positions at NewPage
Corporation from May 2005 to June 2010. From January 1996 to October 2004, Mr.
Suwyn was also the Chairman of the Board and the Chief Executive Officer of
Louisiana-Pacific Corporation.</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>Mr. Whitehead is the Chairman of Finning International Inc., and was
elected to Finning International&#146;s board of directors on April 23, 1999. Mr.
Whitehead was President and Chief Executive Officer of Finning International
from 1999 to May 2008.</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>The Audit Committee operates under a mandate that is approved by the
Board and which outlines the responsibilities of the Audit Committee. A copy of
the Audit Committee&#146;s mandate is attached as Appendix "B" and posted on our
website. This mandate is reviewed annually and the Audit Committee&#146;s performance
is assessed annually through a process overseen by the Corporate Governance
Committee. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><STRONG><EM>Management Development, Nominating &amp; Compensation
Committee </EM></STRONG></FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>The Management Development, Nominating &amp; Compensation Committee is
responsible for considering and authorizing the terms of employment and
compensation of executive officers and providing advice on compensation
structures in the various jurisdictions in which we operate. In addition to
approving the compensation of our executive officers, the committee also
regularly reviews and sets the minimum share ownership requirement for executive
officers. The committee also provides advice on our organizational structure,
reviews all distributions under our equity-based compensation plans, and reviews
and approves the design and structure of, and any amendments to, those plans.
The committee seeks out and recommends nominees for election to the Board,
annually reviews the Board succession plan and annually reviews the composition
of director talents and skills against Board requirements to identify any gaps.
</FONT></P>
<P align=center><FONT face="Times New Roman" size=2>- 29 -</FONT></P>
<HR align=center width="100%" noShade size="2">

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face="Times New Roman" size=2>The committee
ensures appropriate senior management succession planning, recruitment,
development, training and evaluation. In particular, the committee annually
reviews the performance objectives of our Chief Executive Officer and is
responsible for conducting his annual performance evaluation. Any compensation
consultants engaged by us, at the direction of the committee, report directly to
the committee, and the committee has the authority to appoint such consultants,
determine their level of remuneration, and oversee and terminate their services.
In 2011, the committee directly retained Towers Watson to provide independent
compensation analysis and advice specifically related to Ballard executive
compensation items. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>As of February 23, 2012, the committee was composed of Ian A. Bourne, Dr.
C.S. Park, David B. Sutcliffe (Chair) and Mark Suwyn, all of whom are
independent of management.</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>A copy of the Management Development, Nominating &amp; Compensation
Committee&#146;s mandate is posted on our website. The mandate is reviewed annually
and the committee&#146;s performance is assessed annually through a process overseen
by the Corporate Governance Committee.</FONT><B><FONT face="Times New Roman" size=2>
</FONT></B></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><STRONG><EM>Corporate Governance Committee </EM></STRONG></FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>The Corporate Governance Committee is responsible for recommending to the
Board the size of the Board, monitoring corporate governance, including the
formation and membership of committees of the Board, conducting succession
planning for the Chair of the Board and determining director compensation. The
committee regularly reviews the level of director compensation and approves the
design and structure of, and any amendments to, our director compensation plans.
Any compensation consultants engaged by us, at the direction of the committee,
report directly to the committee, and the committee has the authority to appoint
such consultants, determine their level of remuneration, and oversee and
terminate their services. In 2011, the committee directly retained Towers Watson
to provide independent compensation analysis and advice specifically related to
Ballard director compensation items. The committee is responsible for ensuring a
formal process exists to evaluate the performance of the Board, Board
committees, individual directors, and the Chair of the Board, and ensuring that
appropriate actions are taken, based on the results of the evaluation, to
improve the effectiveness of the Board.</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>The Corporate Governance Committee makes recommendations to the Board to
enable the Board to comply with best corporate governance practices in Canada
and the United States. The committee is also responsible for maintaining an
ongoing education program for Board members. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>As of February 23, 2012, the committee was composed of Ian A. Bourne, Dr.
C.S. Park and David J. Smith (Chair), all of whom are independent of
management.</FONT></P>
<P align=center><FONT face="Times New Roman" size=2>- 30 -</FONT></P>
<HR align=center width="100%" noShade size="2">

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>A copy of the Corporate Governance Committee&#146;s mandate is posted on our
website. The mandate is reviewed annually and the committee&#146;s performance is
assessed annually through a process overseen by the Board.</FONT><B><FONT face="Times New Roman" size=2> </FONT></B></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face="Times New Roman" size=2><B>Executive
Officers </B></FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>As of February 23, 2012, we had five executive officers. The name and
province or state of residence of each executive officer, the offices held by
each officer and each officer&#146;s principal occupation during the last five years
are as follows: </FONT></P>
<TABLE style="PADDING-RIGHT: 4pt; PADDING-LEFT: 4pt; PADDING-BOTTOM: 4pt; PADDING-TOP: 4pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="33%" bgColor=#c0c0c0><B><FONT face="Times New Roman" size=2>Name and Province/State
      of<BR>Residence</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="33%" bgColor=#c0c0c0><B><FONT face="Times New Roman" size=2>Position</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="32%" bgColor=#c0c0c0><B><FONT face="Times New Roman" size=2>Principal Occupation</FONT></B></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=left width="33%"><FONT face="Times New Roman" size=2>John W. Sheridan<BR>British Columbia, Canada</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=left width="33%"><FONT face="Times New Roman" size=2>President and Chief<BR>Executive Officer</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=left width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=left width="32%"><FONT face="Times New Roman" size=2>Executive of Ballard.</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top noWrap align=left width="33%"><FONT face="Times New Roman" size=2>Tony Guglielmin<BR>British
      Columbia, Canada</FONT></TD>
    <TD vAlign=top noWrap align=left width="1%">&nbsp;</TD>
    <TD vAlign=top noWrap align=left width="33%"><FONT face="Times New Roman" size=2>Vice President and
      Chief<BR>Financial Officer</FONT></TD>
    <TD vAlign=top noWrap align=left width="1%"></TD>
    <TD vAlign=top noWrap align=left width="32%"><FONT face="Times New Roman" size=2>Executive of
      Ballard.<BR>Formerly SVP Finance and<BR>Chief Financial Officer
      of<BR>Canada Line Rapid Transit<BR>Inc. (2005 to 2009)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top noWrap align=left width="33%"></TD>
    <TD vAlign=top noWrap align=left width="1%"></TD>
    <TD vAlign=top noWrap align=left width="33%">&nbsp;</TD>
    <TD vAlign=top noWrap align=left width="1%"></TD>
    <TD vAlign=top noWrap align=left width="32%"></TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top noWrap align=left width="33%"><FONT face="Times New Roman" size=2>Paul Cass<BR>British
      Columbia, Canada</FONT></TD>
    <TD vAlign=top noWrap align=left width="1%"></TD>
    <TD vAlign=top noWrap align=left width="33%"><FONT face="Times New Roman" size=2>Vice President,
      Operations</FONT></TD>
    <TD vAlign=top noWrap align=left width="1%"></TD>
    <TD vAlign=top noWrap align=left width="32%"><FONT face="Times New Roman" size=2>Executive of
      Ballard.<BR>Formerly Director,<BR>Operations of Ballard.</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top noWrap align=left width="33%"></TD>
    <TD vAlign=top noWrap align=left width="1%"></TD>
    <TD vAlign=top noWrap align=left width="33%">&nbsp;</TD>
    <TD vAlign=top noWrap align=left width="1%"></TD>
    <TD vAlign=top noWrap align=left width="32%"><FONT face="Times New Roman" size=2></FONT></TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top noWrap align=left width="33%"><FONT face="Times New Roman" size=2>Michael
      Goldstein<BR>British Columbia, Canada</FONT></TD>
    <TD vAlign=top noWrap align=left width="1%"></TD>
    <TD vAlign=top noWrap align=left width="33%"><FONT face="Times New Roman" size=2>Vice President and
      Chief<BR>Commercial Officer</FONT></TD>
    <TD vAlign=top noWrap align=left width="1%"></TD>
    <TD vAlign=top noWrap align=left width="32%"><FONT face="Times New Roman" size=2>Executive of
      Ballard.<BR>Formerly President and<BR>Chief Executive Officer
      of<BR>Actuality Systems (2006 to<BR>2009).</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top noWrap align=left width="33%"><FONT face="Times New Roman" size=2></FONT></TD>
    <TD vAlign=top noWrap align=left width="1%"></TD>
    <TD vAlign=top noWrap align=left width="33%"><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD vAlign=top noWrap align=left width="1%"></TD>
    <TD vAlign=top noWrap align=left width="32%"><FONT face="Times New Roman" size=2></FONT></TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top noWrap align=left width="33%"><FONT face="Times New Roman" size=2>Christopher J.
      Guzy<BR>British Columbia, Canada</FONT></TD>
    <TD vAlign=top noWrap align=left width="1%"></TD>
    <TD vAlign=top noWrap align=left width="33%"><FONT face="Times New Roman" size=2>Vice President and
      Chief<BR>Technical Officer</FONT></TD>
    <TD vAlign=top noWrap align=left width="1%"></TD>
    <TD vAlign=top noWrap align=left width="32%"><FONT face="Times New Roman" size=2>Executive of
      Ballard.</FONT></TD></TR></TABLE><BR>
<P align=justify><B><FONT face="Times New Roman" size=2>Shareholdings of Directors and
Senior Officers </FONT></B></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>As of February 23, 2012, our directors and executive officers, as a
group, beneficially owned, or controlled or directed, directly or indirectly,
788,079 of our common shares, being 0.93% of our issued and outstanding common
shares, and 290,798 DSUs. </FONT></P>
<P align=center><FONT face="Times New Roman" size=2>- 31 -</FONT></P>
<HR align=center width="100%" noShade size="2">

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=center><B><FONT face="Times New Roman">TRANSFER AGENT AND REGISTRAR </FONT></B></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>Our transfer agent and registrar is Computershare Trust Company of
Canada, 100 University Avenue, 9<SUP>th</SUP> Floor, Toronto, Ontario, M5J 2Y1.
</FONT></P>
<P align=center><B><FONT face="Times New Roman">MATERIAL CONTRACTS </FONT></B></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>Particulars of every contract that is material to Ballard, other than a
contract entered into in the ordinary course of business that is not required to
be disclosed under the CSA&#146;s</FONT><I><FONT face="Times New Roman" size=2> National
Instrument 51-102 &#150; Continuous Disclosure Obligations</FONT></I><FONT face="Times New Roman" size=2>, and that was entered into within the most recently completed financial
year, or before the most recently completed financial year but is still in
effect, are listed below.</FONT></P>
<P align=justify><B><FONT face="Times New Roman" size=2>Dantherm Power Acquisition
</FONT></B></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>On January 18, 2010, Ballard acquired a controlling interest in
Denmark-based Dantherm Power A/S ("</FONT><B><FONT face="Times New Roman" size=2>Dantherm
Power</FONT></B><FONT face="Times New Roman" size=2>"), partnering with co-investors Danfoss
Ventures A/S ("</FONT><B><FONT face="Times New Roman" size=2>Danfoss</FONT></B><FONT face="Times New Roman" size=2>") and Dantherm A/S ("</FONT><B><FONT face="Times New Roman" size=2>Dantherm</FONT></B><FONT face="Times New Roman" size=2>"). Pursuant to a share
subscription agreement among Ballard, Dantherm, Danfoss and Dantherm Power (the
"</FONT><B><FONT face="Times New Roman" size=2>Subscription Agreement</FONT></B><FONT face="Times New Roman" size=2>"), Ballard obtained an initial 45% interest in Dantherm Power
including the right to nominate a majority of the members of the Board of
Directors. In return, Ballard invested DKK 15m (approximately $3m) and
contributed knowledge and intellectual property related to core fuel cell
technology. On September 1, 2010, Ballard invested a further DKK 15m
(approximately $3m) pursuant to the Subscription Agreement, increasing its
interest in Dantherm Power to 52%. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>As part of the acquisition, Ballard and Dantherm Power entered into a
technology transfer agreement (the "</FONT><B><FONT face="Times New Roman" size=2>Technology
Transfer and License Agreement</FONT></B><FONT face="Times New Roman" size=2>", dated
January 18, 2010). Under the agreement, Dantherm Power transferred all
Intellectual Property Rights relating to fuel cells or fuel cell systems.
Ballard agreed to transfer certain Know-How to Dantherm Power and granted a
non-exclusive, royalty-free license to Ballard Intellectual Property Rights for
use in Stationary Power Systems. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>Dantherm Power develops clean energy backup power systems, utilizing
Ballard&#146;s fuel cell technology, for telecom equipment suppliers including
Motorola and Ericsson. Dantherm Power will continue its current commercial
initiatives, including sales of hydrogen-based products incorporating Ballard&#146;s
fuel cell stack. In addition to its cash investment, Dantherm agreed to continue
to provide operational support and collaborative sales and marketing activities
through its worldwide sales organization. Danfoss invested cash, proprietary
technology, expertise, as well as operational and commercial assistance through
its network of 93 sites in 25 countries. Executives from the three companies
formed a new board of directors for Dantherm Power. </FONT></P>
<P align=center><FONT face="Times New Roman" size=2>- 32 -</FONT></P>
<HR align=center width="100%" noShade size="2">

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face="Times New Roman" size=2>Ballard filed
a Business Acquisition Report in respect of the Dantherm Power transaction on
SEDAR on April 16, 2010.</FONT></P>
<P align=justify><B><FONT face="Times New Roman" size=2>Superior Plus Transaction and
Associated Material Contracts </FONT></B></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>We entered into an arrangement agreement dated October 30, 2008 with
Superior Plus (the "</FONT><B><FONT face="Times New Roman" size=2>Arrangement
Agreement</FONT></B><FONT face="Times New Roman" size=2>"), which specified the parties&#146;
respective obligations with respect to the Superior Plus Transaction. That
transaction was implemented by way of a statutory plan of arrangement under
section 192 of the </FONT><I><FONT face="Times New Roman" size=2>Canada Business
Corporations Act</FONT></I><FONT face="Times New Roman" size=2>, whereby Ballard caused its
entire business and operations, including all assets and liabilities, to be
transferred to a new corporate entity, such that the new corporate entity now
has all of the same assets, liabilities, directors, management and employees as
Ballard formerly had under its old corporate entity, except for its tax
attributes. Under the arrangement, Ballard shareholders exchanged their common
shares in the capital of the old corporate entity for common shares in the
capital of the new corporate entity on a one-for-one basis, and Superior Plus
obtained 100% of the common shares in the capital of Ballard&#146;s old corporate
entity. Ballard received a cash payment of approximately C$46.3 million (C$41
million net of expenses) in consideration for allowing Superior Plus to use its
old corporate entity as the vehicle to complete its conversion from an income
trust to a corporation. Following completion of the Superior Plus Transaction,
Ballard continued to carry on its business operations as a public entity, and
retained all the rights it previously held to related intellectual property.
</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>The purpose of the Superior Plus Transaction was to obtain non-dilutive
financing for Ballard. In addition to the increase in both Ballard&#146;s cash
reserves and shareholders&#146; equity of approximately C$41 million, the Superior
Plus Transaction allowed Ballard to step up the Canadian tax basis in its
assets, which may be applied towards sheltering future taxable income.
</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><STRONG><EM>Indemnification Arrangements </EM></STRONG></FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>We entered into an indemnification agreement with Superior Plus dated
December 31, 2008 (the "</FONT><B><FONT face="Times New Roman" size=2>Indemnity
Agreement</FONT></B><FONT face="Times New Roman" size=2>"), which specifies the parties&#146;
respective continuing indemnification obligations to the other. The Indemnity
Agreement provides that we are liable to Superior Plus for all Losses (as
defined in the Indemnity Agreement) which it may suffer, sustain, pay or incur,
and we will indemnify and hold Superior Plus harmless from and against all
Losses which may be brought against or suffered by Superior Plus or which
Superior Plus may suffer, sustain, pay or incur arising out of, resulting from,
attributable to or connected with: </FONT></P>
<TABLE cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD vAlign=top noWrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>(a)</FONT></TD>
    <TD vAlign=top noWrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD width="100%"><FONT face="Times New Roman" size=2>any debts, liabilities,
      commitments or obligations of any nature (whether matured or unmatured,
      accrued, fixed, contingent or otherwise) of any kind whatsoever resulting
      from any matters, actions, events, facts or circumstances related to the
      activities, affairs or business of Ballard which occurred prior to the
      Effective Time (as defined in the Indemnity Agreement);</FONT></TD></TR>
  <TR>
    <TD></TD>
    <TD colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap></TD>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>(b)</FONT></TD>
    <TD vAlign=top noWrap></TD>
    <TD width="100%"><FONT face="Times New Roman" size=2>any debts, liabilities,
      commitments or obligations of any nature (whether matured or unmatured,
      accrued, fixed, contingent or otherwise) of any kind whatsoever resulting
      from any matters, actions, events, facts or circumstances related to the
      activities, affairs or business of Ballard which occur on or after the
      date of the Indemnity Agreement; and</FONT></TD></TR>
  <TR>
    <TD></TD>
    <TD colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap></TD>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>(c)</FONT></TD>
    <TD vAlign=top noWrap></TD>
    <TD width="100%"><FONT face="Times New Roman" size=2>any breach (including any failure
      or inaccuracy) of any of the representations and warranties of Ballard
      under the Arrangement Agreement, or any failure of Ballard to perform or
      observe any covenant or agreement to be performed by it under the
      Arrangement Agreement, excluding any Losses which Superior Plus may
      suffer, sustain, pay or incur, relating to or based upon the existence or
      availability of Superior Plus&#146; Tax Pools (as defined in the Indemnity
      Agreement), other than as a result of fraud or wilful
      misrepresentation.</FONT></TD></TR></TABLE>
<P align=center><FONT face="Times New Roman" size=2>- 33 -</FONT></P>
<HR align=center width="100%" noShade size="2">

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>

<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face="Times New Roman" size=2>The Indemnity
Agreement also provides that Superior Plus will be liable to the Corporation for
all Losses which the Corporation may suffer, sustain, pay or incur and will
indemnify and hold the Corporation harmless from and against all Losses which
may be brought against or suffered by the Corporation or which the Corporation
may suffer, sustain, pay or incur arising out of, resulting from, attributable
to or connected with any breach (including any failure or inaccuracy) of any of
the representations and warranties of Superior Plus under the Arrangement
Agreement, or any failure of Superior Plus to perform or observe any covenant or
agreement to be performed by it under the Arrangement Agreement. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>The Indemnity Agreement does not contain any limit on the amount of the
claims that can be indemnified nor is there any threshold before indemnification
is provided. In addition, the Indemnity Agreement specifically extends the
limitation period within which a party is entitled to make a claim under the
Indemnity Agreement to two years after the notice of claim with respect to such
obligation was given. However, with the exception of certain limited adjustments
to address differences in the amount of specific Tax Pools of Ballard, which is
described below, the indemnification provisions of the Indemnity Agreement do
not provide indemnification to Superior Plus in respect of the amount or the
availability of the Tax Pools.</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>The Indemnity Agreement also provides for certain compensation payments
to be made by Ballard and Superior Plus depending on the final determination of
the amount of certain Tax Losses (as defined in the Indemnity Agreement) of
Ballard to the extent that such amounts are more or less than the amounts
estimated at the time the Arrangement Agreement was executed or
to the extent that such Tax Pools are used to reduce Ballard&#146;s income, taxable
income, or income taxes for any period ending at any time at or before the
completion of the Arrangement. Ballard&#146;s obligations under the Indemnity
Agreement relating to NCL Obligations (as defined in the Indemnity Agreement)
are limited to an aggregate of C$7,350,000 with a threshold amount of C$500,000
before there is an obligation to make a compensation payment.</FONT></P>
<P align=center><FONT face="Times New Roman" size=2>- 34 -</FONT></P>
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<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face="Times New Roman" size=2>The Indemnity
Agreement provides detailed procedures for claims under the Indemnity Agreement,
which, provided Ballard acknowledges liability under the Indemnity Agreement
with respect to such matter, gives Ballard the right to elect to take carriage
and control of the dispute process relating to such claims. </FONT></P>
<P align=center><B><FONT face="Times New Roman" size=3>RISK FACTORS </FONT></B></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>An investment in our common shares involves risk. Investors should
carefully consider the risks described below and the other information contained
in, and incorporated into, this Annual Information Form, including "Management&#146;s
Discussion and Analysis" and our financial statements for the year ended
December 31, 2011. The risks and uncertainties described below are not the only
ones we face. Additional risks and uncertainties, including those that we do not
know about now or that we currently deem immaterial, may also adversely affect
our business. </FONT></P>
<P align=justify><B><FONT face="Times New Roman" size=2>We may not be able to achieve
commercialization of our products on the timetable we anticipate, or at all.
</FONT></B></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>We cannot guarantee that we will be able to develop commercially viable
fuel cell products on the timetable we anticipate, or at all. The
commercialization of our fuel cell products requires substantial technological
advances to improve the durability, reliability and performance of these
products, and to develop commercial volume manufacturing processes for these
products. It also depends upon our ability to significantly reduce the costs of
these products, since they are currently more expensive than products based on
existing technologies, such as ICEs and batteries. We may not be able to
sufficiently reduce the cost of these products without reducing their
performance, reliability and durability, which would adversely affect the
willingness of consumers to buy our products. We cannot guarantee that we will
be able to internally develop the technology necessary for commercialization of
our fuel cell products or that we will be able to acquire or license the
required technology from third parties.</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>In addition, before we release any product to market, we subject it to
numerous field tests. These field tests may encounter problems and delays for a
number of reasons, many of which are beyond our control. If these field tests
reveal technical defects or reveal that our products do not meet performance
goals, our commercialization schedule could be delayed, and potential purchasers
may decline to purchase our products. </FONT></P>
<P align=center><FONT face="Times New Roman" size=2>- 35 -</FONT></P>
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<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=justify><B><FONT face="Times New Roman" size=2>We expect our cash reserves will be
reduced due to future operating losses</FONT></B><FONT face="Times New Roman" size=2>
</FONT><B><FONT face="Times New Roman" size=2>and working capital requirements, and we
cannot provide certainty as to how long our cash reserves will last or that we
will be able to access additional capital when necessary. </FONT></B></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face="Times New Roman" size=2>We expect to
incur continued losses and generate negative cash flow until we can produce
sufficient revenues to cover our costs. We may never become profitable. Even if
we do achieve profitability, we may be unable to sustain or increase our
profitability in the future. For the reasons discussed in more detail below,
there are substantial uncertainties associated with our achieving and sustaining
profitability. We expect our cash reserves will be reduced due to future
operating losses and working capital requirements, and we cannot provide
certainty as to how long our cash reserves will last or that we will be able to
access additional capital if and when necessary. </FONT></P>
<P align=justify><B><FONT face="Times New Roman" size=2>A mass market for our products may
never develop or may take longer to develop than we anticipate. </FONT></B></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>Our fuel cell products represent emerging markets, and we do not know
whether end-users will want to use them in commercial volumes. In such emerging
markets, demand and market acceptance for recently introduced products and
services are subject to a high level of uncertainty and risk. The development of
a mass market for our fuel cell products may be affected by many factors, some
of which are beyond our control, including the emergence of newer, more
competitive technologies and products, the cost of fuels used by our products,
regulatory requirements, consumer perceptions of the safety of our products and
related fuels, and end-user reluctance to buy a new product. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>If a mass market fails to develop, or develops more slowly than we
anticipate, we may never achieve profitability. In addition, we cannot guarantee
that we will continue to develop, manufacture or market our products if sales
levels do not support the continuation of the product. </FONT></P>
<P align=justify><B><FONT face="Times New Roman" size=2>We may not be able to successfully
execute our business plan. </FONT></B></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>The execution of our business plan poses many challenges and is based on
a number of assumptions. We may not be able to successfully execute our business
plan. If we experience significant cost overruns on our programs, or if our
business plan is more costly than we anticipate, certain research and
development activities may be delayed or eliminated, resulting in changes or
delays to our commercialization plans, or we may be compelled to secure
additional funding (which may or may not be available) to execute our business
plan. We cannot predict with certainty our future revenues or results from our
operations. If the assumptions on which our revenue or expenditure forecasts are
based change, the benefits of our business plan may change as well. In addition,
we may consider expanding our business beyond what is currently contemplated in our business plan.
Depending on the financing requirements of a potential acquisition or new
product opportunity, we may be required to raise additional capital through the
issuance of equity or debt. If we are unable to raise additional capital on
acceptable terms, we may be unable to pursue a potential acquisition or new
product opportunity.</FONT></P>
<P align=center><FONT face="Times New Roman" size=2>- 36 -</FONT></P>

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<P align=left><B><FONT face="Times New Roman" size=2>We have limited experience
manufacturing fuel cell products on a commercial basis.</FONT></B></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Times New Roman" size=2>To date,
we have limited experience manufacturing fuel cell products on a commercial
basis. We cannot be sure that we will be able to develop efficient, low-cost,
high-volume automated processes that will enable us to meet our cost goals and
profitability projections. While we currently have sufficient production
capacity to fulfill customer orders in the near-term, we expect that we will
increase our production capacity based on market demand. We cannot be sure that
we will be able to achieve any planned increases in production capacity or that
unforeseen problems relating to our manufacturing processes will not occur. Even
if we are successful in developing high-volume automated processes and achieving
planned increases in production capacity, we cannot be sure that we will do so
in time to meet our product commercialization schedule or to satisfy customer
demand. If our business does not grow as quickly as anticipated, our existing
and planned manufacturing facilities would, in part, represent excess capacity
for which we may not recover the cost, in which case our revenues may be
inadequate to support our committed costs and planned growth, and our gross
margins and business strategy would be adversely affected. Any of these factors
could have a material adverse effect on our business, results of operations and
financial performance.</FONT></P>
<P align=justify><B><FONT face="Times New Roman" size=2>Global economic conditions are
beyond our control and may have an adverse impact on our business or our key
suppliers and/or customers.</FONT></B></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Current global economic conditions
may adversely affect the development of sales of our products, and thereby delay
the commercialization of our products. Customers and/or suppliers may not be
able to successfully execute their business plans; product development
activities may be delayed or eliminated; new product introduction may be delayed
or eliminated; end-user demand may decrease; and some companies may not continue
to be commercially viable. </FONT></P>
<P align=justify><B><FONT face="Times New Roman" size=2>Potential fluctuations in our
financial and business results make forecasting difficult and may restrict our
access to funding for our commercialization plan.</FONT></B></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>We expect our revenues and operating
results to vary significantly from quarter to quarter. As a result,
quarter-to-quarter comparisons of our revenues and operating results may not be
meaningful. Due to the stage of development of our business, it is difficult to
predict our future revenues or results of operations accurately. We are also
subject to normal operating risks such as credit risks, foreign currency risks
and fluctuations in commodity prices. As a result, it is possible that in one or
more future quarters, our operating results may fall below the expectations of
investors and securities analysts. Not meeting investor and security analyst
expectations may materially and adversely impact the trading price of our common
shares, and restrict our ability to secure required funding to pursue our
commercialization plans.</FONT></P>
<P align=center><FONT face="Times New Roman" size=2>- 37 -</FONT></P>
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<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=justify><B><FONT face="Times New Roman" size=2>We could be adversely affected by
risks associated with acquisitions.</FONT></B></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Times New Roman" size=2>We may in
future, seek to expand our business through acquisitions. Any such acquisitions
will be in part dependent on management&#146;s ability to identify, acquire and
develop suitable acquisition targets in both new and existing markets. In
certain circumstances, acceptable acquisition targets might not be available.
Acquisitions involve a number of risks, including: (i) the possibility that we,
as successor owner, may be legally and financially responsible for liabilities
of prior owners; (ii) the possibility that we may pay more than the acquired
company or assets are worth; (iii) the additional expenses associated with
completing an acquisition and amortizing any acquired intangible assets; (iv)
the difficulty of integrating the operations and personnel of an acquired
business; (v) the challenge of implementing uniform standards, controls,
procedures and policies throughout an acquired business; (vi) the inability to
integrate, train, retrain and motivate key personnel of an acquired business;
and (vii) the potential disruption of our ongoing business and the distraction
of management from our day-to-day operations. These risks and difficulties, if
they materialize, could disrupt our ongoing business, distract management,
result in the loss of key personnel, increase expenses and otherwise have a
material adverse effect on our business, results of operations and financial
performance. These risks are applicable to our acquisition of Dantherm Power in
the first quarter of 2010.</FONT></P>
<P align=justify><B><FONT face="Times New Roman" size=2>We are subject to risks inherent in
international operations.</FONT></B></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Our success depends in part on our
ability to secure international customers. We have limited experience developing
and manufacturing products that meet foreign regulatory and commercial
requirements in our target markets. We face numerous challenges in our
international business activities, including war, insurrection, civil unrest,
strikes and other political risks, negotiation of contracts with government
entities, unexpected changes in regulatory and other legal requirements,
fluctuations in currency restrictions and exchange rates, longer accounts
receivable requirements and collections, difficulties in managing international
operations, potentially adverse tax consequences, restrictions on repatriation
of earnings and the burdens of complying with a wide variety of international
laws. Any of these factors could have a material adverse effect on our business,
results of operations and financial performance.</FONT></P>
<P align=center><FONT face="Times New Roman" size=2>- 38 -</FONT></P>
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<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=justify><FONT face="Times New Roman" size=2><STRONG>Exchange rate fluctuations are
beyond our control and may have a material adverse effect on our business,
operating results, financial condition and profitability.</STRONG></FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Times New Roman" size=2>Our
revenues are particularly affected by fluctuations in the exchange rate between
the Canadian dollar and the United States dollar. We generate approximately 90%
of our revenues in United States dollars while approximately 60% of our
operating expenses, cost of revenues and capital expenditures are in Canadian
dollars. As a result, any decrease in the value of the United States dollar
relative to the Canadian dollar reduces the amount of Canadian dollar revenues
we realize on sales, without a corresponding decrease in expenses. Exchange rate
fluctuations are beyond our control, and the United States dollar may depreciate
against the Canadian dollar in the future, which would result in lower revenues
and margins. In order to reduce the potential negative effect of a weakening
United States dollar, we have entered into various hedging programs. However, if
the Canadian dollar increases in value, it will negatively affect our financial
results and our competitive position compared to other fuel cell product
manufacturers in jurisdictions where operating costs are lower.</FONT></P>
<P align=justify><B><FONT face="Times New Roman" size=2>Commodity price fluctuations are
beyond our control and may have a material adverse effect on our business,
operating results, financial condition and profitability.</FONT></B></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Commodity prices, in particular the
price of platinum, affect our costs. Platinum is a key component of our fuel
cell products. Platinum is a scarce natural resource and we are dependent upon a
sufficient supply of this commodity. While we do not anticipate significant near
or long-term shortages in the supply of platinum, such shortages could adversely
affect our ability to produce commercially viable fuel cell products or
significantly raise our cost of producing such products. In order to reduce the
impact of platinum price fluctuations, we have entered into various hedging
programs.</FONT></P>
<P align=justify><B><FONT face="Times New Roman" size=2>We are dependent upon Original
Equipment Manufacturers and Systems Integrators to purchase certain of our
products.</FONT></B></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>To be commercially useful, our fuel
cell products must be integrated into products manufactured by Systems
Integrators and OEMs. We can offer no guarantee that Systems Integrators or OEMs
will manufacture appropriate products or, if they do manufacture such products,
that they will choose to use our fuel cell products. Any integration, design,
manufacturing or marketing problems encountered by Systems Integrators or OEMs
could adversely affect the market for our fuel cell products and our financial
results.</FONT></P>
<P align=justify><B><FONT face="Times New Roman" size=2>We are dependent on third party
suppliers for the supply of key materials and components for our
products.</FONT></B></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>We have established relationships
with third party suppliers, on whom we rely to provide materials and components
for our products. A supplier&#146;s failure to supply materials or components in a
timely manner, or to supply materials and components that meet our quality,
quantity or cost requirements, or our inability to obtain substitute sources for
these materials and components in a timely manner or on terms acceptable to us,
could harm our ability to manufacture our products. In addition, to the extent
that our product development plans rely on development of supplied materials or
components, we cannot guarantee that we will be able to leverage our
relationships with suppliers to support these plans. To the extent that the
processes that our suppliers use to manufacture the materials and components are
proprietary, we may be unable to obtain comparable materials or components from
alternative suppliers, which could adversely affect our ability to produce
viable fuel cell products or significantly raise our cost of producing such
products.</FONT></P>
<P align=center><FONT face="Times New Roman" size=2>- 39 -</FONT></P>
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<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=justify><B><FONT face="Times New Roman" size=2>We currently face and will continue
to face significant competition.</FONT></B></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Times New Roman" size=2>As fuel
cell products have the potential to replace existing power products, competition
for our products will come from current power technologies, from improvements to
current power technologies, and from new alternative energy technologies,
including other types of fuel cells. Each of our target markets is currently
serviced by existing manufacturers with existing customers and suppliers. These
manufacturers use proven and widely accepted technologies such as ICEs and
batteries as well as coal, oil and nuclear powered generators.</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Additionally, there are competitors
working on developing technologies other than PEM fuel cells (such as other
types of fuel cells and advanced batteries) in each of our targeted markets.
Some of these technologies are as capable of fulfilling existing and proposed
regulatory requirements as the PEM fuel cell.</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Within the PEM fuel cell market, we
also have a large number of competitors. Across the world, corporations,
national laboratories and universities are actively engaged in the development
and manufacture of PEM fuel cell products and components. Each of these
competitors has the potential to capture market share in each of our target
markets. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Many of our competitors have
substantial financial resources, customer bases, manufacturing, marketing and
sales capabilities, and businesses or other resources, which give them
significant competitive advantages over us.</FONT></P>
<P align=justify><B><FONT face="Times New Roman" size=2>We could lose or fail to attract the
personnel necessary to run our business.</FONT></B></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Our success depends in large part on
our ability to attract and retain key management, engineering, scientific,
marketing, manufacturing and operating personnel. As we develop additional
manufacturing capabilities and expand the scope of our operations, we will
require more skilled personnel. Recruiting personnel for the fuel cell industry
is highly competitive. We may not be able to continue to attract and retain
qualified executive, managerial and technical personnel needed for our business.
Our failure to attract or retain qualified personnel could have a material
adverse effect on our business.</FONT></P>
<P align=center><FONT face="Times New Roman" size=2>- 40 -</FONT></P>
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<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=justify><B><FONT face="Times New Roman" size=2>Public policy and regulatory changes
could hurt the market for our products. </FONT></B></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Times New Roman" size=2>Changes
in existing government regulations and the emergence of new regulations with
respect to fuel cell products may hurt the market for our products.
Environmental laws and regulations in the United States and other countries have
driven interest in fuel cells. We cannot guarantee that these laws and policies
will not change. Changes in these laws and other laws and policies, or the
failure of these laws and policies to become more widespread, could result in
manufacturers abandoning their interest in fuel cell products or favouring
alternative technologies. In addition, as fuel cell products are introduced into
our target markets, the United States government and other governments may
impose burdensome requirements and restrictions on the use of fuel cell products
that could reduce or eliminate demand for some or all of our
products.</FONT></P>
<P align=justify><B><FONT face="Times New Roman" size=2>We depend on our intellectual
property, and our failure to protect that intellectual property could adversely
affect our future growth and success.</FONT></B></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Failure to protect our existing
intellectual property rights may result in the loss of our exclusivity or the
right to use our technologies. If we do not adequately ensure our freedom to use
certain technology, we may have to pay others for rights to use their
intellectual property, pay damages for infringement or misappropriation, or be
enjoined from using such intellectual property. We rely on patent, trade secret,
trademark and copyright laws to protect our intellectual property. However, some
of our intellectual property is not covered by any patent or patent application,
and the patents to which we currently have rights expire between 2011 and 2027.
Our present or future-issued patents may not protect our technological
leadership, and our patent portfolio may not continue to grow at the same rate
as it has in the past. Moreover, our patent position is subject to complex
factual and legal issues that may give rise to uncertainty as to the validity,
scope and enforceability of a particular patent. Accordingly, there is no
assurance that: (a) any of the patents owned by us or other patents that third
parties license to us will not be invalidated, circumvented, challenged,
rendered unenforceable or licensed to others; or (b) any of our pending or
future patent applications will be issued with the breadth of claim coverage
sought by us, if issued at all. In addition, effective patent, trade secret,
trademark and copyright protection may be unavailable, limited or not applied
for in certain countries.</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>We also seek to protect our
proprietary intellectual property, including intellectual property that may not
be patented or patentable, in part by confidentiality agreements and, if
applicable, inventors&#146; rights agreements with our strategic partners and
employees. We can provide no assurance that these agreements will not be
breached, that we will have adequate remedies for any breach, or that such
persons or institutions will not assert rights to intellectual property arising
out of these relationships.</FONT></P>
<P align=center><FONT face="Times New Roman" size=2>- 41 -</FONT></P>
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<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Times New Roman" size=2>Certain
of our intellectual property have been licensed to us on a non-exclusive basis
from third parties who may also license such intellectual property to others,
including our competitors. If necessary or desirable, we may seek further
licences under the patents or other intellectual property rights of others.
However, we may not be able to obtain such licences or the terms of any offered
licences may not be acceptable to us. The failure to obtain a licence from a
third party for intellectual property we use could cause us to incur substantial
liabilities and to suspend the manufacture or shipment of products or our use of
processes requiring the use of such intellectual property.</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>We may become subject to lawsuits in
which it is alleged that we have infringed the intellectual property rights of
others or commence lawsuits against others who we believe are infringing upon
our rights. Our involvement in intellectual property litigation could result in
significant expense to us, adversely affecting the development of sales of the
challenged product or intellectual property and diverting the efforts of our
technical and management personnel, whether or not such litigation is resolved
in our favour.</FONT></P>
<P align=justify><B><FONT face="Times New Roman" size=2>We could be liable for environmental
damages resulting from our research, development or manufacturing
operations.</FONT></B></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Our business exposes us to the risk
of harmful substances escaping into the environment, resulting in personal
injury or loss of life, damage to or destruction of property, and natural
resource damage. Depending on the nature of the claim, our current insurance
policies may not adequately reimburse us for costs incurred in settling
environmental damage claims, and in some instances, we may not be reimbursed at
all. Our business is subject to numerous laws and regulations that govern
environmental protection and human health and safety. These laws and regulations
have changed frequently in the past and it is reasonable to expect additional
and more stringent changes in the future. Our operations may not comply with
future laws and regulations, and we may be required to make significant
unanticipated capital and operating expenditures. If we fail to comply with
applicable environmental laws and regulations, governmental authorities may seek
to impose fines and penalties on us, or to revoke or deny the issuance or
renewal of operating permits, and private parties may seek damages from us.
Under those circumstances, we might be required to curtail or cease operations,
conduct site remediation or other corrective action, or pay substantial damage
claims.</FONT></P>
<P align=center><FONT face="Times New Roman" size=2>- 42 -</FONT></P>
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<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=justify><FONT face="Times New Roman" size=2><STRONG>Our products use flammable
fuels, which could subject our business to product liability
claims.</STRONG></FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Times New Roman" size=2>Our
business exposes us to potential product liability claims that are inherent in
hydrogen and products that use hydrogen. Hydrogen is a flammable gas and
therefore a potentially dangerous product. Any accidents involving our products
or other hydrogen-based products could materially impede widespread market
acceptance and demand for our fuel cell products. Involvement in litigation
could result in significant expense to us, adversely affecting the development
and sales of our products, and diverting the efforts of our technical and
management personnel, whether or not the litigation is resolved in our favour.
In addition, we may be held responsible for damages beyond the scope of our
insurance coverage. We also cannot predict whether we will be able to maintain
our insurance coverage on acceptable terms.</FONT></P>
<P align=center><B><FONT face="Times New Roman" size=2><FONT face="Times New Roman" size=3>ADDITIONAL
INFORMATION</FONT></FONT></B></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Times New Roman" size=2>Additional information regarding Ballard may be found on SEDAR at</FONT>
<FONT face="Times New Roman" size=2>www.sedar.com</FONT><FONT face="Times New Roman" size=2>. In
particular, additional information regarding directors&#146; and officers&#146;
remuneration and indebtedness, principal holders of our securities and
securities authorized for issuance under security compensation plans is
contained in our information circular for our most recent annual meeting of
securityholders that involved the election of directors. Additional financial
information is provided in our financial statements and Management&#146;s Discussion
and Analysis for the most recently completed financial year.</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Copies of this Annual Information
Form and the documents incorporated by reference herein, our comparative
financial statements (including the auditors&#146; report) for the year ended
December 31, 2011, each interim financial statement issued after December 31,
2011, our management proxy circular and our Annual Report may be obtained upon
request from our Corporate Secretary, 9000 Glenlyon Parkway, Burnaby, British
Columbia, V5J 5J8, or on our website at www.ballard.com.</FONT></P>
<P align=center><FONT face="Times New Roman" size=2>- 43 -</FONT></P>
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<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=center><B><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">APPENDIX "A" BOARD OF
DIRECTORS MANDATE</FONT></FONT></B></P>
<P align=left><B><FONT face="Times New Roman" size=2>Purpose</FONT></B></P>
<P align=justify><FONT face="Times New Roman" size=2>The board of directors (the "Board") is
responsible for the overall corporate governance of the Corporation. It oversees
and directs the management of the Corporation&#146;s business and affairs. In doing
so, it must act honestly, in good faith, and in the best interests of the
Corporation. The Board guides the Corporation&#146;s strategic direction, evaluates
the performance of the Corporation&#146;s executive officers, monitors the
Corporation&#146;s financial results, and is ultimately accountable to the
Corporation&#146;s shareholders, employees, customers, suppliers, and regulators.
Board members are kept informed of the Corporation&#146;s operations at meetings of
the Board and its committees, and through reports and analyses by, and
discussions with, management. The Board manages the delegation of
decision-making authority to management through Board resolutions under which
management is given authority to transact business, but only within specific
limits and restrictions. In this Mandate, the "Corporation" means Ballard Power
Systems Inc. and a "director" means a Board member.</FONT></P>
<P align=justify><B><FONT face="Times New Roman" size=2>COMPOSITION</FONT></B></P>
<TABLE style="TEXT-ALIGN: justify" cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>A)</FONT></TD>
    <TD vAlign=top noWrap></TD>
    <TD width="100%"><FONT face="Times New Roman" size=2>As stated in the Articles of the
      Corporation, the Board will be composed of no fewer than five and no more
      than fifteen directors.</FONT></TD></TR>
  <TR>
    <TD colSpan=3>&nbsp; </TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>B)</FONT></TD>
    <TD vAlign=top noWrap></TD>
    <TD width="100%"><FONT face="Times New Roman" size=2>The Board will have a majority of
      independent directors.</FONT></TD></TR>
  <TR>
    <TD colSpan=3>&nbsp; </TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>C)</FONT></TD>
    <TD vAlign=top noWrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD width="100%"><FONT face="Times New Roman" size=2>The Board will appoint its own
      Chair.</FONT></TD></TR></TABLE>
<P align=justify><B><FONT face="Times New Roman" size=2>MEETINGS</FONT></B></P>
<TABLE style="TEXT-ALIGN: justify" cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>D)</FONT></TD>
    <TD vAlign=top noWrap></TD>
    <TD width="100%"><FONT face="Times New Roman" size=2>Meetings of the Board will be
      held as required, but at least four times a year.</FONT></TD></TR>
  <TR>
    <TD colSpan=3>&nbsp; </TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>E)</FONT></TD>
    <TD vAlign=top noWrap></TD>
    <TD width="100%"><FONT face="Times New Roman" size=2>The Board will appoint its own
      Secretary, who need not be a director. The Secretary, in conjunction with
      the Chair of the Board, will draw up an agenda, which will be circulated
      in advance to the members of the Board along with the materials for the
      meeting. The Secretary will be responsible for taking and keeping the
      Board&#146;s meeting minutes.</FONT></TD></TR>
  <TR>
    <TD colSpan=3>&nbsp; </TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>F)</FONT></TD>
    <TD vAlign=top noWrap></TD>
    <TD width="100%"><FONT face="Times New Roman" size=2>As set out in the By-laws of the
      Corporation, meetings will be chaired by the Chair of the Board, or if the
      Chair is absent, by a member chosen by the Board from among
      themselves.</FONT></TD></TR>
  <TR>
    <TD colSpan=3>&nbsp; </TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>G)</FONT></TD>
    <TD vAlign=top noWrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD width="100%"><FONT face="Times New Roman" size=2>If all directors consent, and
      proper notice has been given or waived, a director or directors may
      participate in a meeting of the Board by means of such telephonic,
      electronic or other communication facilities as permit all persons
      participating in the meeting to communicate adequately with each other,
      and a director participating in such a meeting by any such means is deemed
      to be present at that meeting.</FONT></TD></TR></TABLE>
<P align=center><FONT face="Times New Roman" size=2>-</FONT> <FONT face="Times New Roman" size=2>44</FONT> <FONT face="Times New Roman" size=2>-</FONT></P>
<HR align=center width="100%" noShade size="2">

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<TABLE style="TEXT-ALIGN: justify" cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>H)</FONT></TD>
    <TD vAlign=top noWrap></TD>
    <TD width="100%"><FONT face="Times New Roman" size=2>The Board will conduct an
      in-camera session excluding management at the end of each Board
      meeting.</FONT></TD></TR>
  <TR>
    <TD colSpan=3>&nbsp; </TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>I)</FONT></TD>
    <TD vAlign=top noWrap></TD>
    <TD width="100%"><FONT face="Times New Roman" size=2>A majority of directors
      constitute a quorum.</FONT></TD></TR>
  <TR>
    <TD colSpan=3>&nbsp; </TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>J)</FONT></TD>
    <TD vAlign=top noWrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD width="100%"><FONT face="Times New Roman" size=2>All decisions made by the Board
      may be made at a Board meeting or evidenced in writing and signed by all
      Board members, which will be fully effective as if it had been made or
      passed at a Board meeting.</FONT></TD></TR></TABLE>
<P align=justify><B><FONT face="Times New Roman" size=2>DUTIES AND RESPONSIBILITIES
</FONT></B></P>
<TABLE style="TEXT-ALIGN: justify" cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>K)</FONT></TD>
    <TD vAlign=top noWrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD width="100%"><B><FONT face="Times New Roman" size=2>Selection of
      Management</FONT></B></TD></TR></TABLE>
<P align=justify><FONT face="Times New Roman" size=2>The Board is responsible for appointing
the Chief Executive Officer ("CEO"), for monitoring and evaluating the CEO&#146;s
performance, and approving the CEO&#146;s compensation. Upon recommendation of the
CEO and the Management Development, Nominating &amp; Compensation Committee, the
Board is also responsible for appointing all officers. The Board also ensures
that adequate plans are in place for management development and succession and
conducts an annual review of such plans. </FONT></P>
<TABLE style="TEXT-ALIGN: justify" cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>L)</FONT></TD>
    <TD vAlign=top noWrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD width="100%"><B><FONT face="Times New Roman" size=2>Corporate
    Strategy</FONT></B></TD></TR></TABLE>
<P align=justify><FONT face="Times New Roman" size=2>The Board is responsible for reviewing
and approving the Corporation&#146;s corporate mission statement and corporate
strategy on a yearly basis, as well as determining the goals and objectives to
achieve and implement the corporate strategy, while taking into account, among
other things, the opportunities and risks of the business. Each year, the Board
meets for a strategic planning session to set the plans for the upcoming year.
In addition to the general management of the business, the Board expects
management to achieve the corporate goals set by the Board, and the Board
monitors throughout the year the progress made against these goals. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2>In addition, the Board approves key
transactions, which have strategic impact to the Corporation, such as
acquisitions, key collaborations, key supply arrangements, and strategic
alliances. Through the delegation of signing authorities, the Board is
responsible for setting out the types of transactions that require approval of
the Board before completion. </FONT></P>
<TABLE style="TEXT-ALIGN: justify" cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>M)</FONT></TD>
    <TD vAlign=top noWrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD width="100%"><B><FONT face="Times New Roman" size=2>Fiscal Management and
      Reporting</FONT></B></TD></TR></TABLE>
<P align=justify><FONT face="Times New Roman" size=2>The Board monitors the financial
performance of the Corporation and must ensure that the financial results are
reported: (a) to shareholders and regulators on a timely and regular basis; and
(b) fairly and in accordance with generally accepted accounting principles. The
Board must also ensure that all material developments of the Corporation are
disclosed to the public on a timely basis in accordance with applicable
securities regulations. In the spring of each year, the Board reviews and
approves the Annual Report, which is sent to shareholders of the Corporation and
describes the achievements and performance of the Corporation for the preceding
year.</FONT></P>
<P align=center><FONT face="Times New Roman" size=2>- 45 -</FONT></P>
<HR align=center width="100%" noShade size="2">

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<TABLE style="TEXT-ALIGN: justify" cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>N)</FONT></TD>
    <TD vAlign=top noWrap><FONT size=2 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD width="100%"><B><FONT face="Times New Roman" size=2>Legal
  Compliance</FONT></B></TD></TR></TABLE>
<P align=justify><FONT face="Times New Roman" size=2>The Board is responsible for overseeing
compliance with all relevant policies and procedures by which the Corporation
operates and ensuring that the Corporation operates at all times in compliance
with all applicable laws and regulations, and to the highest ethical and moral
standards. </FONT></P>
<TABLE style="TEXT-ALIGN: justify" cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>O)</FONT></TD>
    <TD vAlign=top noWrap><FONT size=2 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD width="100%"><B><FONT face="Times New Roman" size=2>Statutory
      Requirements</FONT></B></TD></TR></TABLE>
<P align=justify><FONT face="Times New Roman" size=2>The Board is responsible for approving
all matters, which require Board approval as prescribed by applicable statutes
and regulations, such as payment of dividends and issuances of shares.
Management ensures that such matters are brought to the attention of the Board
as they arise. </FONT></P>
<TABLE style="TEXT-ALIGN: justify" cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>P)</FONT></TD>
    <TD vAlign=top noWrap><FONT size=2 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD width="100%"><B><FONT face="Times New Roman" size=2>Formal Board
      Evaluation</FONT></B></TD></TR></TABLE>
<P align=justify><FONT face="Times New Roman" size=2>The Board, through a process led by the
Corporate Governance Committee, conducts an annual evaluation and review of the
performance of the Board, Board committees, and the Chair of the Board. The
Corporate Governance Committee reviews the results of such evaluation and
together with the Chair of the Board, discusses potential ways to improve Board
effectiveness. The Corporate Governance Committee discusses the results of the
evaluation and the recommended improvements with the full Board. The Board also
sets annual effectiveness goals and tracks performance against those goals. In
addition, each individual director&#146;s performance is evaluated and reviewed
regularly. </FONT></P>
<TABLE style="TEXT-ALIGN: justify" cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>Q)</FONT></TD>
    <TD vAlign=top noWrap><FONT size=2 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD width="100%"><B><FONT face="Times New Roman" size=2>Risk
  Management</FONT></B></TD></TR></TABLE>
<P align=justify><FONT face="Times New Roman" size=2>The Board is responsible for
identifying the Corporation&#146;s principal risks and ensuring the implementation of
appropriate systems to manage these risks. The Board is also responsible for the
integrity of the Corporation&#146;s internal controls and management information
systems. </FONT></P>
<TABLE style="TEXT-ALIGN: justify" cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>R)</FONT></TD>
    <TD vAlign=top noWrap><FONT size=2 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD width="100%"><B><FONT face="Times New Roman" size=2>External
      Communications</FONT></B></TD></TR></TABLE>
<P align=justify><FONT face="Times New Roman" size=2>The Board is responsible for overseeing
the establishment, maintenance and annual review of the Corporation&#146;s external
communications policies which address how the Corporation interacts with
analysts and the public and which also contain measures for the Corporation to
avoid selective disclosure. The Board is responsible for establishing a process
for receiving shareholder feedback. This is achieved through a semi-annual
presentation of an investor relations report, which contains a summary of the
feedback and common enquiries received from shareholders, as well as a Board
e-mail address, which has been set up for the public to submit messages to the
Board.</FONT></P>
<P align=center><FONT face="Times New Roman" size=2>- 46 -</FONT></P>
<HR align=center width="100%" noShade size="2">

<P>&nbsp;</P>
<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=center><B><FONT face="Times New Roman" size=2><FONT face="Times New Roman" size=3>APPENDIX "B"
AUDIT COMMITTEE MANDATE</FONT></FONT></B></P>
<P align=left><B><FONT face="Times New Roman" size=2>Purpose</FONT></B><FONT face="Times New Roman" size=2></FONT></P>
<P align=justify><FONT face="Times New Roman" size=2>The purpose of the Audit Committee (the
"Committee") is to assist the board of directors in fulfilling its oversight
responsibilities by reviewing the financial information which will be provided
to the shareholders and the public, the systems of corporate controls which
management and the board of directors have established, and overseeing the audit
process. The Committee also is mandated to review and approve all related party
transactions, as further described below under "Duties and Responsibilities",
other than those related party transactions in respect of which the board has
delegated review to a special committee of independent directors.</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2>In this Mandate, the &#147;Corporation&#148;
means Ballard Power Systems Inc. and a &#147;director&#148; means a board
member.</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2>More specifically the purpose of the
Committee is to satisfy itself that:</FONT></P>
<TABLE style="TEXT-ALIGN: justify" cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>A)</FONT></TD>
    <TD vAlign=top noWrap><FONT size=2 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD width="100%"><FONT face="Times New Roman" size=2>the Corporation&#146;s annual
      financial statements are fairly presented in accordance with generally
      accepted accounting principles and to recommend approval of the annual
      financial statements to the board;</FONT></TD></TR>
  <TR>
    <TD colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>B)</FONT></TD>
    <TD vAlign=top noWrap><FONT size=2 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD width="100%"><FONT face="Times New Roman" size=2>the financial information
      contained in the Corporation&#146;s quarterly financial statements, Annual
      Report to Shareholders and other financial publications such as
      Management&#146;s Discussion and Analysis, the Annual Information Form,
      Management Proxy Circular and information contained in any prospectus is
      complete and accurate in all material respects and to recommend to the
      board approval of these materials other than the quarterly financial
      statements for which approval authority has been delegated to the
      Committee hereunder;</FONT></TD></TR>
  <TR>
    <TD colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>C)</FONT></TD>
    <TD vAlign=top noWrap><FONT size=2 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD width="100%"><FONT face="Times New Roman" size=2>the Corporation has appropriate
      systems of internal control over the safeguarding of assets and financial
      reporting to ensure compliance with legal and regulatory requirements and
      to manage financial and asset related risks;</FONT></TD></TR>
  <TR>
    <TD colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>D)</FONT></TD>
    <TD vAlign=top noWrap><FONT size=2 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD width="100%"><FONT face="Times New Roman" size=2>the external audit function has
      been effectively carried out and that any matter which the external
      auditors wish to bring to the attention of the Committee or board of
      directors has been addressed. The Committee is also responsible for
      recommending the appointment (for approval by the shareholders at the
      Corporation&#146;s annual meeting of shareholders) of, and overseeing the
      external auditors, monitoring the external auditors&#146; qualifications and
      independence, pre-approving all substantive audit services and non-audit
      services performed by the external auditors, and determining the
      appropriate level of remuneration for the external auditors. The external
      auditors will report directly to the Audit
Committee;</FONT></TD></TR></TABLE>
<P align=center><FONT face="Times New Roman" size=2>-</FONT> <FONT face="Times New Roman" size=2>47</FONT> <FONT face="Times New Roman" size=2>-</FONT></P>
<HR align=center width="100%" noShade size="2">

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<TABLE style="TEXT-ALIGN: justify" cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>E)</FONT></TD>
    <TD vAlign=top noWrap><FONT size=2 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD width="100%"><FONT face="Times New Roman" size=2>management has established and is
      maintaining processes to assure compliance by the Corporation with all
      applicable laws, regulations and corporate policies;</FONT></TD></TR>
  <TR>
    <TD colSpan=3>&nbsp; </TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>F)</FONT></TD>
    <TD vAlign=top noWrap><FONT size=2 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD width="100%"><FONT face="Times New Roman" size=2>the internal audit function is
      being effectively carried out, that the Committee is meeting with the
      internal auditor (or persons responsible for the function) as necessary,
      and that any matter which the internal auditor wishes to bring to the
      attention of the Committee or board of directors has been
    addressed;</FONT></TD></TR>
  <TR>
    <TD colSpan=3>&nbsp; </TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>G)</FONT></TD>
    <TD vAlign=top noWrap><FONT size=2 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD width="100%"><FONT face="Times New Roman" size=2>the related party transactions
      being reviewed by the Committee are in the best interests of the
      Corporation; and</FONT></TD></TR>
  <TR>
    <TD colSpan=3>&nbsp;&nbsp; </TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>H)</FONT></TD>
    <TD vAlign=top noWrap><FONT size=2 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD width="100%"><FONT face="Times New Roman" size=2>it has engaged any necessary
      independent counsel or other advisors in fulfilling its duties and
      responsibilities, as set forth in this Mandate.</FONT></TD></TR></TABLE>
<P align=justify><B><FONT face="Times New Roman" size=2>Composition and Eligibility
</FONT></B></P>
<TABLE style="TEXT-ALIGN: justify" cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>A)</FONT></TD>
    <TD vAlign=top noWrap><FONT size=2 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD width="100%"><FONT face="Times New Roman" size=2>Following each annual meeting of
      shareholders of the Corporation, the board will appoint from its members
      not less than three directors to serve on the Committee. Each member of
      the Committee must meet the independence and expertise requirements for
      audit committees imposed by any listing standards of NASDAQ or
      requirements of the Canadian securities regulatory authorities under
      National Instrument 52-110, any applicable statutes, or applicable rules
      or regulations of the U.S. Securities Exchange Commission.</FONT></TD></TR>
  <TR>
    <TD colSpan=3>&nbsp; </TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>B)</FONT></TD>
    <TD vAlign=top noWrap><FONT size=2 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD width="100%"><FONT face="Times New Roman" size=2>Any member may be removed or
      replaced at any time by the board and will cease to be a member upon
      ceasing to be a director of the Corporation. Each member will hold office
      until the close of the next annual meeting of shareholders of the
      Corporation or until the member resigns or is replaced whichever occurs
      first.</FONT></TD></TR>
  <TR>
    <TD colSpan=3>&nbsp; </TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>C)</FONT></TD>
    <TD vAlign=top noWrap><FONT size=2 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD width="100%"><FONT face="Times New Roman" size=2>All members of the Committee must
      have working familiarity with basic finance and accounting practices, and
      be able to read and understand fundamental financial statements, including
      a balance sheet, income statement and cash flow statement at the time of
      their appointment.</FONT></TD></TR>
  <TR>
    <TD colSpan=3>&nbsp; </TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>D)</FONT></TD>
    <TD vAlign=top noWrap><FONT size=2 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD width="100%"><FONT face="Times New Roman" size=2>At least one member of the
      Committee must be an audit committee "financial expert" as defined by the
      applicable rules set out by the U.S. Securities and Exchange Commission
      (the "SEC") or any other regulatory authority. The financial expert must
      have all of the following five attributes:</FONT></TD></TR></TABLE>
<P align=center><FONT face="Times New Roman" size=2>- 48 -</FONT></P>
<HR align=center width="100%" noShade size="2">

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<TABLE style="TEXT-ALIGN: justify" cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD vAlign=top noWrap></TD>
    <TD VALIGN="TOP" NOWRAP STYLE="text-align: left"><FONT face="Times New Roman" size=2>(i)</FONT></TD>
    <TD vAlign=top noWrap><FONT size=2 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD width="100%"><FONT face="Times New Roman" size=2>an understanding of Generally
      Accepted Accounting Principles ("GAAP") or the generally accepted
      accounting principles used by the issuer in preparing its primary
      financial statements filed with the SEC;</FONT></TD></TR>
  <TR>
    <TD></TD>
    <TD colSpan=3>&nbsp; </TD></TR>
  <TR>
    <TD vAlign=top noWrap></TD>
    <TD VALIGN="TOP" NOWRAP STYLE="text-align: left"><FONT face="Times New Roman" size=2>(ii)</FONT></TD>
    <TD vAlign=top noWrap><FONT size=2 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD width="100%"><FONT face="Times New Roman" size=2>the ability to assess the general
      application of such principles in connection with the accounting for
      estimates, accruals and reserves;</FONT></TD></TR>
  <TR>
    <TD></TD>
    <TD colSpan=3>&nbsp; </TD></TR>
  <TR>
    <TD vAlign=top noWrap></TD>
    <TD VALIGN="TOP" NOWRAP STYLE="text-align: left"><FONT face="Times New Roman" size=2>(iii)</FONT></TD>
    <TD vAlign=top noWrap><FONT size=2 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD width="100%"><FONT face="Times New Roman" size=2>experience preparing, auditing,
      analyzing or evaluating financial statements that present a breadth and
      level of complexity of accounting issues that are generally comparable to
      the breadth and complexity of issues that can reasonably be expected to be
      raised by the Corporation&#146;s financial statements, or experience actively
      supervising one or more person engaged in such activities;</FONT></TD></TR>
  <TR>
    <TD></TD>
    <TD colSpan=3>&nbsp; </TD></TR>
  <TR>
    <TD vAlign=top noWrap></TD>
    <TD VALIGN="TOP" NOWRAP STYLE="text-align: left"><FONT face="Times New Roman" size=2>(iv)</FONT></TD>
    <TD vAlign=top noWrap><FONT size=2 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD width="100%"><FONT face="Times New Roman" size=2>an understanding of internal
      controls and procedures for financial reporting; and</FONT></TD></TR>
  <TR>
    <TD></TD>
    <TD colSpan=3>&nbsp; </TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT size=2 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </FONT></TD>
    <TD VALIGN="TOP" NOWRAP STYLE="text-align: left"><FONT face="Times New Roman" size=2>(v)</FONT></TD>
    <TD vAlign=top noWrap><FONT size=2 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD width="100%"><FONT face="Times New Roman" size=2>an understanding of audit
      committee functions.</FONT></TD></TR></TABLE>
<P align=justify><FONT face="Times New Roman" size=2>The financial expert must have acquired
the requisite attributes through any one or more of the following methods:
</FONT></P>
<TABLE style="TEXT-ALIGN: justify" cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD vAlign=top noWrap></TD>
    <TD VALIGN="TOP" NOWRAP STYLE="text-align: left"><FONT face="Times New Roman" size=2>(i)</FONT></TD>
    <TD vAlign=top noWrap><FONT size=2 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD width="100%"><FONT face="Times New Roman" size=2>education and experience as a
      principal financial officer, principal accounting officer, controller,
      public accountant or auditor or experience in one or more positions that
      involve the performance of similar functions;</FONT></TD></TR>
  <TR>
    <TD></TD>
    <TD colSpan=3>&nbsp; </TD></TR>
  <TR>
    <TD vAlign=top noWrap></TD>
    <TD VALIGN="TOP" NOWRAP STYLE="text-align: left"><FONT face="Times New Roman" size=2>(ii)</FONT></TD>
    <TD vAlign=top noWrap><FONT size=2 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD width="100%"><FONT face="Times New Roman" size=2>experience actively supervising a
      principal financial officer, principal accounting officer, controller,
      public accountant, auditor or person performing similar
    functions;</FONT></TD></TR>
  <TR>
    <TD></TD>
    <TD colSpan=3>&nbsp; </TD></TR>
  <TR>
    <TD vAlign=top noWrap></TD>
    <TD VALIGN="TOP" NOWRAP STYLE="text-align: left"><FONT face="Times New Roman" size=2>(iii)</FONT></TD>
    <TD vAlign=top noWrap><FONT size=2 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD width="100%"><FONT face="Times New Roman" size=2>experience overseeing or
      assessing the performance of companies or public accountants with respect
      to the preparation, auditing or evaluation of financial statements;
      or</FONT></TD></TR>
  <TR>
    <TD></TD>
    <TD colSpan=3>&nbsp; </TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT size=2 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </FONT></TD>
    <TD VALIGN="TOP" NOWRAP STYLE="text-align: left"><FONT face="Times New Roman" size=2>(iv)</FONT></TD>
    <TD vAlign=top noWrap><FONT size=2 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD width="100%"><FONT face="Times New Roman" size=2>other relevant experience, based
      on the determination by the board of directors as to the specific
      experience, which satisfies this
requirement.</FONT></TD></TR></TABLE>&nbsp; <BR>
<TABLE style="TEXT-ALIGN: justify" cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>E)</FONT></TD>
    <TD vAlign=top noWrap><FONT size=2 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD width="100%"><FONT face="Times New Roman" size=2>Any member of the Committee who
      serves on more than three public company audit committees must inform the
      Chair of the Board, so that the board may consider and discuss with such
      member any issues related to his or her effectiveness and time
      commitment.</FONT></TD></TR></TABLE>
<P align=justify><B><FONT face="Times New Roman" size=2>Meetings</FONT></B></P>
<TABLE style="TEXT-ALIGN: justify" cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>A)</FONT></TD>
    <TD vAlign=top noWrap><FONT size=2 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD width="100%"><FONT face="Times New Roman" size=2>The Committee will meet at least
      quarterly. The meetings will be scheduled to permit timely review of the
      interim and annual financial statements, as well as the Corporation&#146;s
      other financial disclosures and related party transactions.
  The Chair, CEO, CFO, Controller,
      internal and external auditors or any member of the Committee may request
      additional meetings.</FONT></TD></TR></TABLE>
<P align=center><FONT face="Times New Roman" size=2>- 49 -</FONT></P>

<!-- End Part D -->


<HR align=center width="100%" noShade SIZE=2>
<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>

<!-- Start Part E -->
<TABLE style="TEXT-ALIGN: justify" cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>B)</FONT></TD>
    <TD vAlign=top noWrap></TD>
    <TD width="100%"><FONT face="Times New Roman" size=2>The Committee will
      appoint its own Secretary, who need not be a director. The Secretary in
      conjunction with the Chair of the Committee will draw up an agenda, which
      will be circulated, in advance to the members of the Committee with the
      materials for the meeting. The Secretary will be responsible for taking
      and keeping the Committee&#146;s meeting minutes.</FONT></TD></TR>
  <TR>
    <TD colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>C)</FONT></TD>
    <TD vAlign=top noWrap></TD>
    <TD width="100%"><FONT face="Times New Roman" size=2>Meetings will be
      chaired by the Chair of the Committee, or if the Chair is absent, by a
      member chosen by the Committee from among themselves.</FONT></TD></TR>
  <TR>
    <TD colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>D)</FONT></TD>
    <TD vAlign=top noWrap></TD>
    <TD width="100%"><FONT face="Times New Roman" size=2>If all members
      consent, and proper notice has been given or waived, a member or members
      of the Committee may participate in a meeting of the Committee by means of
      such telephonic, electronic or other communication facilities as permit
      all persons participating in the meeting to communicate adequately with
      each other, and a member participating in such a meeting by any such means
      is deemed to be present at that meeting.</FONT></TD></TR>
  <TR>
    <TD colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>E)</FONT></TD>
    <TD vAlign=top noWrap></TD>
    <TD width="100%"><FONT face="Times New Roman" size=2>All directors who are
      not Committee members will be given notice of every meeting of the
      Committee and will be allowed to attend as observers, unless deemed
      inappropriate by the Committee in cases where a potential conflict of
      interest may exist, such as discussions concerning related party
      transactions.</FONT></TD></TR>
  <TR>
    <TD colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>F)</FONT></TD>
    <TD vAlign=top noWrap></TD>
    <TD width="100%"><FONT face="Times New Roman" size=2>The CEO, CFO,
      Controller and internal auditor shall have direct access to the Committee
      and shall receive notice of and attend all meetings of the Committee,
      except the in-camera sessions.</FONT></TD></TR>
  <TR>
    <TD colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>G)</FONT></TD>
    <TD vAlign=top noWrap></TD>
    <TD width="100%"><FONT face="Times New Roman" size=2>The external auditors
      will be given notice of, and have the right to appear before and to be
      heard at, every meeting of the Committee and will appear before the
      Committee when requested to do so by the Committee.</FONT></TD></TR>
  <TR>
    <TD colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>H)</FONT></TD>
    <TD vAlign=top noWrap></TD>
    <TD width="100%"><FONT face="Times New Roman" size=2>The Committee is
      authorized to request the presence, at any meeting, of senior management,
      legal counsel or anyone else who could contribute substantively to the
      subject of the meeting.</FONT></TD></TR>
  <TR>
    <TD colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>I)</FONT></TD>
    <TD vAlign=top noWrap></TD>
    <TD width="100%"><FONT face="Times New Roman" size=2>The Committee members
      will receive minutes of all meetings of the Corporation&#146;s internal
      Disclosure Committee.</FONT></TD></TR>
  <TR>
    <TD colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>J)</FONT></TD>
    <TD vAlign=top noWrap>&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD width="100%"><FONT face="Times New Roman" size=2>A majority of
      Committee members constitute a
quorum.</FONT></TD></TR></TABLE>
<P align=center><FONT face="Times New Roman" size=2>- 50 -</FONT></P>
<HR align=center width="100%" noShade size="2">

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<TABLE style="TEXT-ALIGN: justify" cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>K)</FONT></TD>
    <TD vAlign=top noWrap>&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD width="100%"><FONT face="Times New Roman" size=2>All decisions made by the
      Committee may be made at a Committee meeting or evidenced in writing and
      signed by all Committee members, which will be fully effective as if it
      had been made or passed at a Committee meeting.</FONT></TD></TR>
  <TR>
    <TD colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>L)</FONT></TD>
    <TD vAlign=top noWrap></TD>
    <TD width="100%"><FONT face="Times New Roman" size=2>The minutes of all meetings of
      the Committee will be provided to the board of directors. The Chair of the
      Committee will provide an oral report on the Committee&#146;s activities to the
      board of directors at the next regularly scheduled meeting of the board
      following each Committee meeting.</FONT></TD></TR>
  <TR>
    <TD colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>M)</FONT></TD>
    <TD vAlign=top noWrap></TD>
    <TD width="100%"><FONT face="Times New Roman" size=2>Supporting schedules and
      information reviewed by the Committee will be available for examination by
      any director upon request to the Secretary of the Committee.</FONT></TD></TR>
  <TR>
    <TD colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>N)</FONT></TD>
    <TD vAlign=top noWrap></TD>
    <TD width="100%"><FONT face="Times New Roman" size=2>The Committee may form and
      delegate authority to subcommittees. In particular, the Committee may
      delegate to one or more of its members the authority to pre-approve audit
      or permissible non-audit services, provided that the decisions of any
      member(s) to whom pre-approval authority is delegated will be presented to
      the Committee at the next Committee meeting.</FONT></TD></TR></TABLE>
<P align=justify><B><FONT face="Times New Roman" size=2>Duties and Responsibilities
</FONT></B></P>
<TABLE style="TEXT-ALIGN: justify" cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>A)</FONT></TD>
    <TD vAlign=top noWrap>&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD width="100%" colSpan=3><FONT face="Times New Roman" size=2>Investigations</FONT></TD></TR>
  <TR>
    <TD colSpan=5>&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD width="100%" colSpan=3><FONT face="Times New Roman" size=2>The Committee is
      empowered to investigate any activity of the Corporation and all employees
      are to co-operate as requested by the Committee. The Committee may retain
      outside advisors having special expertise to assist it in fulfilling its
      responsibilities, and determine the appropriate level of remuneration for
      such outside advisors.</FONT></TD></TR>
  <TR>
    <TD colSpan=5>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>B)</FONT></TD>
    <TD vAlign=top noWrap></TD>
    <TD width="100%" colSpan=3><FONT face="Times New Roman" size=2>Financial Reporting
      Control Systems</FONT></TD></TR>
  <TR>
    <TD colSpan=5>&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD width="100%" colSpan=3><FONT face="Times New Roman" size=2>The Committee
      will:</FONT></TD></TR>
  <TR>
    <TD colSpan=5>&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>(i)</FONT></TD>
    <TD vAlign=top noWrap>&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD width="100%"><FONT face="Times New Roman" size=2>review with management any
      significant changes in financial risks facing the
Corporation;</FONT></TD></TR>
  <TR>
    <TD colSpan=5>&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>(ii)</FONT></TD>
    <TD vAlign=top noWrap></TD>
    <TD width="100%"><FONT face="Times New Roman" size=2>review with management procedures
      followed with respect to disclosure controls and procedures;</FONT></TD></TR>
  <TR>
    <TD colSpan=5>&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>(iii)</FONT></TD>
    <TD vAlign=top noWrap></TD>
    <TD width="100%"><FONT face="Times New Roman" size=2>review the management letter from
      the external auditors and the Corporation&#146;s responses to suggestions
      made;</FONT></TD></TR>
  <TR>
    <TD colSpan=5>&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>(iv)</FONT></TD>
    <TD vAlign=top noWrap></TD>
    <TD width="100%"><FONT face="Times New Roman" size=2>annually review specific matters
      affecting financial reporting, including but not limited to, the
      Corporation&#146;s insurance coverage, the status of
the</FONT> <FONT face="Times New Roman" size=2>Corporation&#146;s tax loss
      carry-forwards, pension and health care liabilities, and off balance sheet
      transactions;</FONT></TD></TR></TABLE>
<P align=center><FONT face="Times New Roman" size=2>- 51 -</FONT></P>
<HR align=center width="100%" noShade size="2">

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<TABLE style="TEXT-ALIGN: justify" cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD></TD>
    <TD></TD>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>(v)</FONT></TD>
    <TD vAlign=top noWrap></TD>
    <TD width="100%"><FONT face="Times New Roman" size=2>review the appointment of the financial senior
      executives of the Corporation, prior to recommendation by the Management
      Development, Nominating &amp; Compensation Committee ("MDNCC") to the
      board;</FONT></TD></TR>
  <TR>
    <TD colSpan=5>&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>(vi)</FONT></TD>
    <TD vAlign=top noWrap></TD>
    <TD width="100%"><FONT face="Times New Roman" size=2>establish and maintain a set of procedures for the
      receipt, retention and treatment of complaints received by the Corporation
      concerning accounting, internal accounting controls or auditing matters
      and the confidential anonymous submission by employees of concerns
      regarding questionable accounting or auditing matters;</FONT></TD></TR>
  <TR>
    <TD colSpan=5>&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>(vii)</FONT></TD>
    <TD vAlign=top noWrap></TD>
    <TD width="100%"><FONT face="Times New Roman" size=2>discuss and consider policies with respect to risk
      assessment and risk management, including:</FONT></TD></TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD vAlign=top noWrap></TD>
    <TD vAlign=top noWrap></TD>
    <TD width="100%">&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD vAlign=top noWrap></TD>
    <TD vAlign=top noWrap></TD>
    <TD width="100%"><FONT size=2 face="Times New Roman">a) review and periodic approval of
      management&#146;s risk philosophy and risk management policies;</FONT></TD></TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD vAlign=top noWrap></TD>
    <TD vAlign=top noWrap></TD>
    <TD width="100%">&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD vAlign=top noWrap></TD>
    <TD vAlign=top noWrap></TD>
    <TD width="100%"><FONT size=2 face="Times New Roman">b) review with management, at least
      annually, of reports demonstrating compliance with risk management
      policies; and</FONT></TD></TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD vAlign=top noWrap></TD>
    <TD vAlign=top noWrap></TD>
    <TD width="100%">&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD vAlign=top noWrap></TD>
    <TD vAlign=top noWrap></TD>
    <TD width="100%"><FONT size=2 face="Times New Roman">c) discussing with management, at least
      annually, the Corporation&#146;s major financial risk exposures and the steps
      management has taken to monitor and control such expenses including the
      Corporation&#146;s risk assessment and risk management policies.</FONT></TD></TR>
  <TR>
    <TD colSpan=5>&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>(viii)</FONT></TD>
    <TD vAlign=top noWrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD width="100%"><FONT face="Times New Roman" size=2>meet separately and periodically, no less than annually,
      with management, with internal auditors (or the persons responsible for
      the internal audit function) and with external auditors.</FONT></TD></TR>
  <TR>
    <TD colSpan=5>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>C)</FONT></TD>
    <TD vAlign=top noWrap>&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD width="100%" colSpan=3><FONT face="Times New Roman" size=2>Interim Financial
      Statements</FONT></TD></TR>
  <TR>
    <TD colSpan=5>&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD width="100%" colSpan=3><FONT face="Times New Roman" size=2>The Committee will, prior to
      their release, review and approve the interim (quarterly) financial
      statements and Management&#146;s Discussion and Analysis with the Corporation&#146;s
      officers and external auditors. This will include significant
      transactions, which have occurred in the quarter.</FONT></TD></TR>
  <TR>
    <TD colSpan=5>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>D)</FONT></TD>
    <TD vAlign=top noWrap></TD>
    <TD width="100%" colSpan=3><FONT face="Times New Roman" size=2>Annual Financial Statements and
      Other Financial Information</FONT></TD></TR>
  <TR>
    <TD colSpan=5>&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD width="100%" colSpan=3><FONT face="Times New Roman" size=2>The Committee will:</FONT></TD></TR>
  <TR>
    <TD colSpan=5>&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>(i)</FONT></TD>
    <TD vAlign=top noWrap></TD>
    <TD width="100%"><FONT face="Times New Roman" size=2>review any changes in accounting policies or financial
      reporting requirements that may affect the current year&#146;s financial
      statements;</FONT></TD></TR>
  <TR>
    <TD colSpan=5></TD></TR></TABLE>
<P align=center><FONT face="Times New Roman" size=2>- 52 -</FONT></P>
<HR align=center width="100%" noShade size="2">

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<TABLE style="TEXT-ALIGN: justify" cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD></TD>
    <TD></TD>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>(ii)</FONT></TD>
    <TD vAlign=top noWrap></TD>
    <TD width="100%"><FONT face="Times New Roman" size=2>obtain summaries of significant
      transactions, and other complex matters whose treatment in the annual
      financial statements merits advance consideration;</FONT></TD></TR>
  <TR>
    <TD colSpan=5>&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>(iii)</FONT></TD>
    <TD vAlign=top noWrap></TD>
    <TD width="100%"><FONT face="Times New Roman" size=2>obtain draft annual financial
      statements in advance of the Committee meeting and assess, on a
      preliminary basis, the reasonableness of the financial statements in light
      of the analyses provided by the Corporation&#146;s officers;</FONT></TD></TR>
  <TR>
    <TD colSpan=5>&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>(iv)</FONT></TD>
    <TD vAlign=top noWrap></TD>
    <TD width="100%"><FONT face="Times New Roman" size=2>review a summary provided by the
      Corporation&#146;s legal counsel of the status of any material pending or
      threatened litigation, claims and assessments;</FONT></TD></TR>
  <TR>
    <TD colSpan=5>&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>(v)</FONT></TD>
    <TD vAlign=top noWrap></TD>
    <TD width="100%"><FONT face="Times New Roman" size=2>review and approve the annual
      financial statements, Management&#146;s Discussion and Analysis and the
      auditors&#146; report thereon, and discuss them in detail with the
      Corporation&#146;s officers and the external auditors;</FONT></TD></TR>
  <TR>
    <TD colSpan=5>&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>(vi)</FONT></TD>
    <TD vAlign=top noWrap></TD>
    <TD width="100%"><FONT face="Times New Roman" size=2>review and recommend to the board
      of directors approval of all financial disclosure contained in
      prospectuses, annual information forms, management proxy circulars and
      other similar documents;</FONT></TD></TR>
  <TR>
    <TD colSpan=5>&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>(vii)</FONT></TD>
    <TD vAlign=top noWrap></TD>
    <TD width="100%"><FONT face="Times New Roman" size=2>before the release of each
      quarterly report and the annual financial statements, discuss with the
      external auditors all matters required by SAS</FONT> <FONT face="Times New Roman" size=2>61 (including the auditors&#146;
      responsibility under GAAP, the selection of and changes in significant
      accounting policies or their application, management judgments and
      accounting estimates, significant audit adjustments, the external
      auditors&#146; responsibility for information other than financial statements,
      disagreements with management, consultation with other accountants, and
      difficulties encountered in performing the audit) and CICA Handbook
      section 5751 (which governs the communications between the external
      auditors and the Committee); and</FONT></TD></TR>
  <TR>
    <TD colSpan=5>&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>(viii)</FONT></TD>
    <TD vAlign=top noWrap>&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD width="100%"><FONT face="Times New Roman" size=2>provide the board of directors
      with a recommendation for approval of the annual financial statements;
      and</FONT></TD></TR>
  <TR>
    <TD colSpan=5>&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>(ix)</FONT></TD>
    <TD vAlign=top noWrap></TD>
    <TD width="100%"><FONT face="Times New Roman" size=2>discuss earnings press releases
      and earnings guidance, as well as the release of significant new financial
      information.</FONT></TD></TR>
  <TR>
    <TD colSpan=5>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>E)</FONT></TD>
    <TD vAlign=top noWrap>&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD width="100%" colSpan=3><FONT face="Times New Roman" size=2>Relationship with
      External Auditors</FONT></TD></TR>
  <TR>
    <TD colSpan=5>&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD width="100%" colSpan=3><FONT face="Times New Roman" size=2>The Committee
      will:</FONT></TD></TR>
  <TR>
    <TD colSpan=5>&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>(i)</FONT></TD>
    <TD vAlign=top noWrap></TD>
    <TD width="100%"><FONT face="Times New Roman" size=2>recommend the appointment of the
      external auditors (for approval by the shareholders at the Corporation&#146;s
      annual meeting of shareholders); if there is a plan to change auditors,
      review all issues related to the change and the steps planned for an
      orderly transition. The external auditors will</FONT> <FONT face="Times New Roman" size=2>report directly to the
      Committee. The Committee will not recommend the appointment of an external
      auditor who has previously employed the Corporation&#146;s CEO, CFO, Controller
      or chief accounting officer and where such person participated in any
      capacity in the audit of the Corporation within the past
year;</FONT></TD></TR></TABLE>
<P align=center><FONT face="Times New Roman" size=2>- 53 -</FONT></P>
<HR align=center width="100%" noShade size="2">

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<TABLE style="TEXT-ALIGN: justify" cellSpacing=0 cellPadding=0 border=0>

  <TR>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>(ii)</FONT></TD>
    <TD vAlign=top noWrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD width="100%" colSpan=3><FONT face="Times New Roman" size=2>annually review and
      approve the terms of engagement and determine the remuneration of the
      external auditors;</FONT></TD></TR>
  <TR>
    <TD></TD>
    <TD colSpan=5>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap></TD>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>(iii)</FONT></TD>
    <TD vAlign=top noWrap></TD>
    <TD width="100%" colSpan=3><FONT face="Times New Roman" size=2>review the quarterly
      and annual representation letters given by management to the external
      auditors;</FONT></TD></TR>
  <TR>
    <TD></TD>
    <TD colSpan=5>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap></TD>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>(iv)</FONT></TD>
    <TD vAlign=top noWrap></TD>
    <TD width="100%" colSpan=3><FONT face="Times New Roman" size=2>monitor the external
      auditors&#146; qualifications and independence through the activities listed in
      section (G) below, "Independence of External Auditors";</FONT></TD></TR>
  <TR>
    <TD></TD>
    <TD colSpan=5>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap></TD>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>(v)</FONT></TD>
    <TD vAlign=top noWrap></TD>
    <TD width="100%" colSpan=3><FONT face="Times New Roman" size=2>review the audit plan
      with the external auditors and approve all substantive audit services in
      advance;</FONT></TD></TR>
  <TR>
    <TD></TD>
    <TD colSpan=5>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap></TD>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>(vi)</FONT></TD>
    <TD vAlign=top noWrap></TD>
    <TD width="100%" colSpan=3><FONT face="Times New Roman" size=2>approve in advance any
      services to be provided by the external auditors which are not related to
      the audit, including the fees and terms of engagement relating to such
      non-audit services for the Corporation and its subsidiaries. Specifically,
      the Committee must not allow the external auditors to provide the
      following services:</FONT></TD></TR>
  <TR>
    <TD></TD>
    <TD colSpan=5>&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>a)</FONT></TD>
    <TD vAlign=top noWrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD width="100%"><FONT face="Times New Roman" size=2>bookkeeping
services;</FONT></TD></TR>
  <TR>
    <TD></TD>
    <TD colSpan=5>&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>b)</FONT></TD>
    <TD vAlign=top noWrap></TD>
    <TD width="100%"><FONT face="Times New Roman" size=2>financial information systems
      design and implementation;</FONT></TD></TR>
  <TR>
    <TD></TD>
    <TD colSpan=5>&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>c)</FONT></TD>
    <TD vAlign=top noWrap></TD>
    <TD width="100%"><FONT face="Times New Roman" size=2>appraisal or valuation services,
      fairness opinions or contribution-in-kind reports;</FONT></TD></TR>
  <TR>
    <TD></TD>
    <TD colSpan=5>&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>d)</FONT></TD>
    <TD vAlign=top noWrap></TD>
    <TD width="100%"><FONT face="Times New Roman" size=2>actuarial services;</FONT></TD></TR>
  <TR>
    <TD></TD>
    <TD colSpan=5>&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>e)</FONT></TD>
    <TD vAlign=top noWrap></TD>
    <TD width="100%"><FONT face="Times New Roman" size=2>internal audit services which
      relate to the Corporation&#146;s internal accounting controls, financial
      systems or financial statements;</FONT></TD></TR>
  <TR>
    <TD></TD>
    <TD colSpan=5>&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>f)</FONT></TD>
    <TD vAlign=top noWrap></TD>
    <TD width="100%"><FONT face="Times New Roman" size=2>investment banking, broker,
      dealer or investment advisor services;</FONT></TD></TR>
  <TR>
    <TD></TD>
    <TD colSpan=5>&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>g)</FONT></TD>
    <TD vAlign=top noWrap></TD>
    <TD width="100%"><FONT face="Times New Roman" size=2>management and human resources
      services;</FONT></TD></TR>
  <TR>
    <TD></TD>
    <TD colSpan=5>&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>h)</FONT></TD>
    <TD vAlign=top noWrap></TD>
    <TD width="100%"><FONT face="Times New Roman" size=2>legal services and expert
      services unrelated to the audit (however the external auditors may provide
      tax services); and</FONT></TD></TR>
  <TR>
    <TD></TD>
    <TD colSpan=5>&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>i)</FONT></TD>
    <TD vAlign=top noWrap></TD>
    <TD width="100%"><FONT face="Times New Roman" size=2>any other services that the
      Public Company Accounting Oversight Board or the Canadian Public
      Accountability Board determines by</FONT> <FONT face="Times New Roman" size=2>regulation, or the Corporation&#146;s board of directors determines, to
      be impermissible.</FONT></TD></TR></TABLE>
<P align=center><FONT face="Times New Roman" size=2>- 54 -</FONT></P>
<HR align=center width="100%" noShade size="2">

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<TABLE style="TEXT-ALIGN: justify" cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top></TD>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>(vii)</FONT></TD>
    <TD vAlign=top noWrap>&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD vAlign=top width="100%" colSpan=3><FONT face="Times New Roman" size=2>review quarterly all fees paid to external auditors;</FONT></TD></TR>
  <TR>
    <TD vAlign=top colSpan=7>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top></TD>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>(viii)</FONT></TD>
    <TD vAlign=top noWrap></TD>
    <TD vAlign=top width="100%" colSpan=3><FONT face="Times New Roman" size=2>review performance against audit proposal plan;</FONT></TD></TR>
  <TR>
    <TD vAlign=top colSpan=7>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top></TD>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>(ix)</FONT></TD>
    <TD vAlign=top noWrap></TD>
    <TD vAlign=top width="100%" colSpan=3><FONT face="Times New Roman" size=2>discuss in private with the external auditors matters affecting the
      conduct of their audit and other corporate matters;</FONT></TD></TR>
  <TR>
    <TD vAlign=top colSpan=7>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top></TD>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>(x)</FONT></TD>
    <TD vAlign=top noWrap></TD>
    <TD vAlign=top width="100%" colSpan=3><FONT face="Times New Roman" size=2>receive from the external auditors a report with respect to:</FONT></TD></TR>
  <TR>
    <TD vAlign=top colSpan=7>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top></TD>
    <TD vAlign=top></TD>
    <TD vAlign=top></TD>
    <TD vAlign=top><FONT size=2 face="Times New Roman">a)</FONT></TD>
    <TD vAlign=top>&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD vAlign=top width="100%"><FONT face="Times New Roman" size=2>all
      critical accounting policies and practices;</FONT></TD></TR>
  <TR>
    <TD vAlign=top colSpan=7>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top></TD>
    <TD vAlign=top></TD>
    <TD vAlign=top></TD>
    <TD vAlign=top><FONT size=2 face="Times New Roman">b)</FONT></TD>
    <TD vAlign=top>&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD vAlign=top width="100%"><FONT face="Times New Roman" size=2>all alternative
      treatments of financial information within GAAP that have been discussed
      with management, implications of their use and the external auditors&#146;
      "preferred treatment";</FONT></TD></TR>
  <TR>
    <TD vAlign=top colSpan=7>&nbsp;</TD></TR>

 <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top></TD>
    <TD vAlign=top></TD>
    <TD vAlign=top></TD>
    <TD vAlign=top><FONT size=2 face="Times New Roman">c)</FONT></TD>
    <TD vAlign=top></TD>
    <TD vAlign=top width="100%"><FONT face="Times New Roman" size=2>any other material
      written communications between the external auditors and
    management;</FONT></TD></TR>
  <TR>
    <TD vAlign=top colSpan=7>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top></TD>
    <TD vAlign=top></TD>
    <TD vAlign=top></TD>
    <TD vAlign=top><FONT size=2 face="Times New Roman">d)</FONT></TD>
    <TD vAlign=top></TD>
    <TD vAlign=top width="100%"><FONT face="Times New Roman" size=2>the internal
      quality-control procedures of the external auditors;</FONT></TD></TR>
  <TR>
    <TD vAlign=top colSpan=7>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top></TD>
    <TD vAlign=top></TD>
    <TD vAlign=top></TD>
    <TD vAlign=top><FONT size=2 face="Times New Roman">e)</FONT></TD>
    <TD vAlign=top></TD>
    <TD vAlign=top width="100%"><FONT face="Times New Roman" size=2>any material issues
      raised by the most recent internal quality- control review of the external
      auditors&#146; firm, or by an inquiry or investigation by governmental or
      professional authorities, within the preceding five years, respecting one
      or more independent audits carried out by the external auditors&#146; firm, and
      any steps taken to deal with any such issues; and</FONT></TD></TR>
  <TR>
    <TD vAlign=top colSpan=7>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top></TD>
    <TD vAlign=top></TD>
    <TD vAlign=top></TD>
    <TD vAlign=top><FONT size=2 face="Times New Roman">f)</FONT></TD>
    <TD vAlign=top></TD>
    <TD vAlign=top width="100%"><FONT face="Times New Roman" size=2>all relationships
      between the external auditors and the Corporation as detailed in &#167;(i)
      under Section (G) below &#147;Independence of External Auditors&#148;;</FONT></TD></TR>
  <TR>
    <TD vAlign=top colSpan=7>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top></TD>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>(xi)</FONT></TD>
    <TD vAlign=top noWrap></TD>
    <TD vAlign=top width="100%" colSpan=3><FONT face="Times New Roman" size=2>resolve all disagreements between management and the external
      auditors regarding financial reporting; and</FONT></TD></TR>
  <TR>
    <TD vAlign=top colSpan=7>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top></TD>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>(xii)</FONT></TD>
    <TD vAlign=top noWrap></TD>
    <TD vAlign=top width="100%" colSpan=3><FONT face="Times New Roman" size=2>ensure that the audit partners representing the external auditors
      meet the rotation requirements set out by the U.S. Securities and Exchange
      Commission and by any other applicable Canadian or U.S. securities
      regulatory authority or stock exchange.</FONT></TD></TR>
  <TR>
    <TD vAlign=top colSpan=7>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>F)</FONT></TD>
    <TD vAlign=top noWrap>&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD vAlign=top width="100%" colSpan=5><FONT face="Times New Roman" size=2>Treasury</FONT></TD></TR>
  <TR>
    <TD vAlign=top colSpan=7>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top></TD>
    <TD vAlign=top width="100%" colSpan=5><FONT face="Times New Roman" size=2>The
      Committee will:</FONT></TD></TR>
  <TR>
    <TD vAlign=top colSpan=7>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top></TD>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>(i)</FONT></TD>
    <TD vAlign=top noWrap></TD>
    <TD vAlign=top width="100%" colSpan=3><FONT face="Times New Roman" size=2>review and approve the Treasury Policy;</FONT></TD></TR></TABLE>
<P align=center><FONT face="Times New Roman" size=2>- 55 -</FONT></P>
<HR align=center width="100%" noShade size="2">

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<TABLE style="TEXT-ALIGN: justify" cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD></TD>
    <TD></TD>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>(ii)</FONT></TD>
    <TD vAlign=top noWrap>&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD width="100%"><FONT face="Times New Roman" size=2>review the quarterly Treasury
      Report;</FONT></TD></TR>
  <TR>
    <TD colSpan=5>&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>(iii)</FONT></TD>
    <TD vAlign=top noWrap></TD>
    <TD width="100%"><FONT face="Times New Roman" size=2>review and approve the Foreign
      Exchange Policy; and</FONT></TD></TR>
  <TR>
    <TD colSpan=5>&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>(iv)</FONT></TD>
    <TD vAlign=top noWrap></TD>
    <TD width="100%"><FONT face="Times New Roman" size=2>review and approve any
      commodities hedging policy.</FONT></TD></TR>
  <TR>
    <TD colSpan=5>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>G)</FONT></TD>
    <TD vAlign=top noWrap>&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD width="100%" colSpan=3><FONT face="Times New Roman" size=2>Independence of
      External Auditors</FONT></TD></TR>
  <TR>
    <TD colSpan=5>&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD width="100%" colSpan=3><FONT face="Times New Roman" size=2>The Committee will
      oversee the independence of the Corporation&#146;s external auditors
    by:</FONT></TD></TR>
  <TR>
    <TD colSpan=5>&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>(i)</FONT></TD>
    <TD vAlign=top noWrap></TD>
    <TD width="100%"><FONT face="Times New Roman" size=2>receiving from the external
      auditors, on a periodic basis, a formal written statement delineating all
      relationships between the external auditors and the Corporation consistent
      with ISBS No. 1 and CICA Handbook Section 5751;</FONT></TD></TR>
  <TR>
    <TD colSpan=5>&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>(ii)</FONT></TD>
    <TD vAlign=top noWrap></TD>
    <TD width="100%"><FONT face="Times New Roman" size=2>reviewing and actively discussing
      with the board of directors, if necessary, and the external auditors, on a
      periodic basis, any relationships or services between the external
      auditors and the Corporation or any other relationships or services that
      may impact the objectivity and independence of the external
      auditors;</FONT></TD></TR>
  <TR>
    <TD colSpan=5>&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>(iii)</FONT></TD>
    <TD vAlign=top noWrap></TD>
    <TD width="100%"><FONT face="Times New Roman" size=2>recommending, if necessary, that
      the board of directors take action to satisfy itself, of the external
      auditors&#146; independence; and</FONT></TD></TR>
  <TR>
    <TD colSpan=5>&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>(iv)</FONT></TD>
    <TD vAlign=top noWrap></TD>
    <TD width="100%"><FONT face="Times New Roman" size=2>ensuring that the Corporation
      does not hire as the Corporation&#146;s CEO, CFO, Controller or chief
      accounting officer any person who was employed by the Corporation&#146;s
      external auditors and who participated in any capacity in the audit of the
      Corporation during the one-year period preceding the initiation of the
      current audit.</FONT></TD></TR>
  <TR>
    <TD colSpan=5>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>H)</FONT></TD>
    <TD vAlign=top noWrap></TD>
    <TD width="100%" colSpan=3><FONT face="Times New Roman" size=2>Internal Audit and
      Controls</FONT></TD></TR>
  <TR>
    <TD colSpan=5>&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>(i)</FONT></TD>
    <TD vAlign=top noWrap></TD>
    <TD width="100%"><FONT face="Times New Roman" size=2>The Committee will ensure that
      the Corporation has appropriate systems of internal control over the
      safeguarding of assets and financial reporting to ensure compliance with
      legal and regulatory requirements and to manage financial and asset
      related risks.</FONT></TD></TR>
  <TR>
    <TD colSpan=5>&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>(ii)</FONT></TD>
    <TD vAlign=top noWrap></TD>
    <TD width="100%"><FONT face="Times New Roman" size=2>The Committee will review
      quarterly the internal auditors&#146; report on the adequacy of the
      Corporation&#146;s internal controls, policies and procedures.</FONT></TD></TR>
  <TR>
    <TD colSpan=5>&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>(iii)</FONT></TD>
    <TD vAlign=top noWrap></TD>
    <TD width="100%"><FONT face="Times New Roman" size=2>The Committee will annually
      review and approve the internal audit plan.</FONT></TD></TR>
  <TR>
    <TD colSpan=5>&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>(iv)</FONT></TD>
    <TD vAlign=top noWrap></TD>
    <TD width="100%"><FONT face="Times New Roman" size=2>The Committee will regularly
      review progress against the approved internal audit plan, and adjust the
      plan to deal with emerging issues as required.</FONT></TD></TR></TABLE>
<P align=center><FONT face="Times New Roman" size=2>- 56 -</FONT></P>
<HR align=center width="100%" noShade size="2">

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<TABLE style="TEXT-ALIGN: justify" cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>I)</FONT></TD>
    <TD vAlign=top noWrap>&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD width="100%" colSpan=3><FONT face="Times New Roman" size=2>Related Party
      Transactions</FONT></TD></TR>
  <TR>
    <TD colSpan=5>&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD width="100%" colSpan=3><FONT face="Times New Roman" size=2>The Committee will
      review and approve all related party transactions, other than those
      related party transactions in respect of which the board has delegated
      review to a special committee or independent directors or those related
      party transactions which are previously approved under the mandate of the
      MDNCC, including, but not limited to, executive employment agreements and
      compensation matters. A related party transaction is defined as a
      transaction in which the Corporation or any of its subsidiaries is to be a
      party, which involves an amount exceeding U.S. $60,000 and in which any of
      the following persons have a direct or indirect material
    interest:</FONT></TD></TR>
  <TR>
    <TD colSpan=5>&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>(i)</FONT></TD>
    <TD vAlign=top noWrap>&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD width="100%"><FONT face="Times New Roman" size=2>a director or executive officer
      of the Corporation;</FONT></TD></TR>
  <TR>
    <TD colSpan=5>&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>(ii)</FONT></TD>
    <TD vAlign=top noWrap></TD>
    <TD width="100%"><FONT face="Times New Roman" size=2>any nominee for election as a
      director of the Corporation;</FONT></TD></TR>
  <TR>
    <TD colSpan=5>&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>(iii)</FONT></TD>
    <TD vAlign=top noWrap></TD>
    <TD width="100%"><FONT face="Times New Roman" size=2>any security holder of the
      Corporation known by the Corporation to own (of record or beneficially)
      more than 5% of any class of the Corporation&#146;s voting securities;
      and</FONT></TD></TR>
  <TR>
    <TD colSpan=5>&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>(iv)</FONT></TD>
    <TD vAlign=top noWrap></TD>
    <TD width="100%"><FONT face="Times New Roman" size=2>any member of the immediate
      family of any of the foregoing persons.</FONT></TD></TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD vAlign=top noWrap></TD>
    <TD vAlign=top noWrap></TD>
    <TD width="100%">&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD vAlign=top width="100%" colSpan=3><FONT size=2 face="Times New Roman">In
      carrying out its responsibilities in reviewing and approving related party
      transactions, the Committee will:</FONT></TD></TR>
  <TR>
    <TD colSpan=5>&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>(v)</FONT></TD>
    <TD vAlign=top noWrap></TD>
    <TD width="100%"><FONT face="Times New Roman" size=2>receive details of all related
      party transactions proposed by the Corporation, other than those related
      party transactions which the board has delegated review of to a special
      committee of independent directors;</FONT></TD></TR>
  <TR>
    <TD colSpan=5>&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>(vi)</FONT></TD>
    <TD vAlign=top noWrap></TD>
    <TD width="100%"><FONT face="Times New Roman" size=2>discuss such related party
      transactions with the representatives of the relevant parties (the
      "Representatives") and with the Corporation&#146;s executive
  officers;</FONT></TD></TR>
  <TR>
    <TD colSpan=5>&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>(vii)</FONT></TD>
    <TD vAlign=top noWrap></TD>
    <TD width="100%"><FONT face="Times New Roman" size=2>review the terms and conditions
      of each related party transaction;</FONT></TD></TR>
  <TR>
    <TD colSpan=5>&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>(viii)</FONT></TD>
    <TD vAlign=top noWrap></TD>
    <TD width="100%"><FONT face="Times New Roman" size=2>with respect to the holders of
      common shares, consider the effect of the related party transaction on,
      and the fairness of the related party transaction to, such
      shareholders;</FONT></TD></TR>
  <TR>
    <TD colSpan=5>&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>(ix)</FONT></TD>
    <TD vAlign=top noWrap></TD>
    <TD width="100%"><FONT face="Times New Roman" size=2>recommend any revisions to the
      structure of the related party transaction that the Committee considers to
      be necessary or advisable;</FONT></TD></TR>
  <TR>
    <TD colSpan=5>&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>(x)</FONT></TD>
    <TD vAlign=top noWrap></TD>
    <TD width="100%"><FONT face="Times New Roman" size=2>if a valuation or fairness
      opinion is required by any applicable statutes or regulations, supervise
      the preparation of such valuation or fairness
opinion;</FONT></TD></TR></TABLE>
<P align=center><FONT face="Times New Roman" size=2>- 57 -</FONT></P>
<HR align=center width="100%" noShade size="2">

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<TABLE style="TEXT-ALIGN: justify" cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD></TD>
    <TD></TD>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>(xi)</FONT></TD>
    <TD vAlign=top noWrap></TD>
    <TD width="100%"><FONT face="Times New Roman" size=2>if approval of the board of
      directors is necessary, provide a recommendation to the board of directors
      with respect to the related party transaction; and</FONT></TD></TR>
  <TR>
    <TD colSpan=5>&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>(xii)</FONT></TD>
    <TD vAlign=top noWrap>&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD width="100%"><FONT face="Times New Roman" size=2>review a summary of completed
      related party transactions to ensure that such transactions are consistent
      with the terms and conditions previously approved by the
    committee.</FONT></TD></TR>
  <TR>
    <TD colSpan=5>&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD width="100%" colSpan=3><FONT face="Times New Roman" size=2>As part of its review
      of all related party transactions, the Committee will review all
      modifications to existing loans and advances to the Corporation&#146;s
      executive officers or directors.</FONT></TD></TR>
  <TR>
    <TD colSpan=5>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>J)</FONT></TD>
    <TD vAlign=top noWrap>&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD width="100%" colSpan=3><FONT face="Times New Roman" size=2>Other</FONT></TD></TR>
  <TR>
    <TD colSpan=5>&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD width="100%" colSpan=3><FONT face="Times New Roman" size=2>The Committee
      will:</FONT></TD></TR>
  <TR>
    <TD colSpan=5>&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>(i)</FONT></TD>
    <TD vAlign=top noWrap></TD>
    <TD width="100%"><FONT face="Times New Roman" size=2>perform an annual review of
      management&#146;s compliance with the Corporation&#146;s Code of Ethics &amp;
      Workplace Guidelines and Corporate Watch Policy;</FONT></TD></TR>
  <TR>
    <TD colSpan=5>&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>(ii)</FONT></TD>
    <TD vAlign=top noWrap></TD>
    <TD width="100%"><FONT face="Times New Roman" size=2>perform an annual review of the
      Corporation&#146;s Code of Ethics &amp; Workplace Guidelines and Corporate
      Watch Policy, with any recommended changes being forwarded to the board
      for approval;</FONT></TD></TR>
  <TR>
    <TD colSpan=5>&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>(iii)</FONT></TD>
    <TD vAlign=top noWrap></TD>
    <TD width="100%"><FONT face="Times New Roman" size=2>perform an annual review of the
      succession plans for the Corporation&#146;s CFO and Controller;</FONT></TD></TR>
  <TR>
    <TD colSpan=5>&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>(iv)</FONT></TD>
    <TD vAlign=top noWrap></TD>
    <TD width="100%"><FONT face="Times New Roman" size=2>perform an annual review of this
      Committee mandate, with any recommended changes being forwarded to the
      Corporate Governance Committee and ultimately the board for approval;
      and</FONT></TD></TR>
  <TR>
    <TD colSpan=5>&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>(v)</FONT></TD>
    <TD vAlign=top noWrap></TD>
    <TD width="100%"><FONT face="Times New Roman" size=2>annually review the audit of the
      expense reports of the Chair of the Board of Directors and the
    CEO.</FONT></TD></TR>
  <TR>
    <TD colSpan=5>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>K)</FONT></TD>
    <TD vAlign=top noWrap></TD>
    <TD width="100%" colSpan=3><FONT face="Times New Roman" size=2>Performance
      Evaluation</FONT></TD></TR>
  <TR>
    <TD colSpan=5>&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD width="100%" colSpan=3><FONT face="Times New Roman" size=2>The Committee will
      perform an annual evaluation of its performance, having regard to the
      issues reviewed during the year.</FONT></TD></TR></TABLE>
<P align=center><FONT face="Times New Roman" size=2>- 58 -</FONT></P>
<HR align=center width="100%" noShade size="2">

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=center><B><FONT face="Times New Roman" size=4>COMMITTEE TIMETABLE </FONT></B></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face="Times New Roman" size=2>The timetable
below generally outlines the Committee&#146;s anticipated schedule of activities
during the year. </FONT></P>
<TABLE style="PADDING-RIGHT: 2pt; PADDING-LEFT: 2pt; PADDING-BOTTOM: 2pt; PADDING-TOP: 2pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-RIGHT: #000000 2pt double; BORDER-TOP: #000000 2pt double; BORDER-LEFT: #000000 2pt double; BORDER-BOTTOM: #000000 1pt solid; text-align: center" width="99%" bgColor=#c0c0c0 colSpan=14><B><FONT face="Times New Roman" size=2>Committee Timetable</FONT></B></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-LEFT: #000000 2pt double; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="51%" bgColor=#c0c0c0 colSpan=2><B><FONT face="Times New Roman" size=2>Agenda Items</FONT></B></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="4%" bgColor=#c0c0c0><STRONG><FONT size=2 face="Times New Roman">J</FONT></STRONG></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="4%" bgColor=#c0c0c0><B><FONT face="Times New Roman" size=2>F</FONT></B></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="4%" bgColor=#c0c0c0><STRONG><FONT size=2 face="Times New Roman">M</FONT></STRONG></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="4%" bgColor=#c0c0c0><STRONG><FONT size=2 face="Times New Roman">A</FONT></STRONG></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="4%" bgColor=#c0c0c0><STRONG><FONT size=2 face="Times New Roman">M</FONT></STRONG></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="4%" bgColor=#c0c0c0><B><FONT face="Times New Roman" size=2>J</FONT></B></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="4%" bgColor=#c0c0c0><B><FONT face="Times New Roman" size=2>J</FONT></B></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="4%" bgColor=#c0c0c0><B><FONT face="Times New Roman" size=2>A</FONT></B></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="4%" bgColor=#c0c0c0><B><FONT face="Times New Roman" size=2>S</FONT></B></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="4%" bgColor=#c0c0c0><B><FONT face="Times New Roman" size=2>O</FONT></B></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="4%" bgColor=#c0c0c0><B><FONT face="Times New Roman" size=2>N</FONT></B></TD>
    <TD style="BORDER-RIGHT: #000000 2pt double; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="4%" bgColor=#c0c0c0><B><FONT face="Times New Roman" size=2>D</FONT></B></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-LEFT: #000000 2pt double; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><B><I><FONT face="Times New Roman" size=2>A)</FONT></I></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="50%"><B><I><FONT face="Times New Roman" size=2>Financial Reporting Control
      Systems</FONT></I></B></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="4%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="4%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="4%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="4%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="4%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="4%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="4%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="4%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="4%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="4%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="4%"></TD>
    <TD style="BORDER-RIGHT: #000000 2pt double; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="4%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-LEFT: #000000 2pt double; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=left width="1%"><FONT face="Times New Roman" size=2>(i)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top align=left width="50%"><FONT face="Times New Roman" size=2>Review with management any significant
      changes in financial risks facing the Corporation.</FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%">&nbsp;</TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"><FONT face="Times New Roman" size=2><FONT face=wingdings size=2>&#252;</FONT></FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%">&nbsp;</TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%">&nbsp;</TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"><FONT face="Times New Roman" size=2><FONT face=wingdings size=2>&#252;</FONT></FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%">&nbsp;</TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"><FONT face="Times New Roman" size=2><FONT face=wingdings size=2>&#252;</FONT></FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%">&nbsp;</TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%">&nbsp;</TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"><FONT face="Times New Roman" size=2><FONT face=wingdings size=2>&#252;</FONT></FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%">&nbsp;</TD>
    <TD style="BORDER-RIGHT: #000000 2pt double; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-LEFT: #000000 2pt double; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=left width="1%"><FONT face="Times New Roman" size=2>(ii)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top align=left width="50%"><FONT face="Times New Roman" size=2>Review with management procedures
      followed with respect to disclosure controls and procedures.</FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"><FONT face="Times New Roman" size=2><FONT face=wingdings size=2>&#252;</FONT></FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"><FONT face="Times New Roman" size=2><FONT face=wingdings size=2>&#252;</FONT></FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"><FONT face="Times New Roman" size=2><FONT face=wingdings size=2>&#252;</FONT></FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"><FONT face="Times New Roman" size=2><FONT face=wingdings size=2>&#252;</FONT></FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-RIGHT: #000000 2pt double; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-LEFT: #000000 2pt double; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=left width="1%"><FONT face="Times New Roman" size=2>(iii)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top align=left width="50%"><FONT face="Times New Roman" size=2>Review the management letter from the
      external auditor and corporation&#146;s responses to suggestions
made.</FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"><FONT face="Times New Roman" size=2><FONT face=wingdings size=2>&#252;</FONT></FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-RIGHT: #000000 2pt double; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-LEFT: #000000 2pt double; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=left width="1%"><FONT face="Times New Roman" size=2>(iv)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top align=left width="50%"><FONT face="Times New Roman" size=2>Annually review the Committee
      mandate.</FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"><FONT face="Times New Roman" size=2><FONT face=wingdings size=2>&#252;</FONT></FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-RIGHT: #000000 2pt double; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-LEFT: #000000 2pt double; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=left width="1%"><FONT face="Times New Roman" size=2>(v)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top align=left width="50%"><FONT face="Times New Roman" size=2>Review specific matters as required
      affecting financial reporting such as insurance coverage, the status of
      the Corporation&#146;s tax loss carry-forwards, pension and health care
      liabilities, and off balance sheet transactions.</FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"><FONT face="Times New Roman" size=2><FONT face=wingdings size=2>&#252;</FONT></FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-RIGHT: #000000 2pt double; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-LEFT: #000000 2pt double; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=left width="1%"><FONT face="Times New Roman" size=2>(vi)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top align=left width="50%"><FONT face="Times New Roman" size=2>Review the appointment of the
      financial senior executives of the Corporation.</FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"><FONT face="Times New Roman" size=2><FONT face=wingdings size=2>&#252;</FONT></FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"><FONT face="Times New Roman" size=2><FONT face=wingdings size=2>&#252;</FONT></FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"><FONT face="Times New Roman" size=2><FONT face=wingdings size=2>&#252;</FONT></FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"><FONT face="Times New Roman" size=2><FONT face=wingdings size=2>&#252;</FONT></FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-RIGHT: #000000 2pt double; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-LEFT: #000000 2pt double; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=left width="1%"><FONT face="Times New Roman" size=2>(vii)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top align=left width="50%"><FONT face="Times New Roman" size=2>Establish and maintain a set of
      procedures for the receipt, retention and treatment of complaints received
      by the Corporation concerning accounting, internal accounting controls or
      auditing matters and the confidential anonymous submission by employees of
      concerns regarding questionable accounting or auditing matters, and review
      submissions as received.</FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%">&nbsp;</TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"><FONT face="Times New Roman" size=2><FONT face=wingdings size=2>&#252;</FONT></FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%">&nbsp;</TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%">&nbsp;</TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"><FONT face="Times New Roman" size=2><FONT face=wingdings size=2>&#252;</FONT></FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%">&nbsp;</TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"><FONT face="Times New Roman" size=2><FONT face=wingdings size=2>&#252;</FONT></FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%">&nbsp;</TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%">&nbsp;</TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"><FONT face="Times New Roman" size=2><FONT face=wingdings size=2>&#252;</FONT></FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-RIGHT: #000000 2pt double; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-LEFT: #000000 2pt double; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=left width="1%"><FONT face="Times New Roman" size=2>(viii)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top align=left width="50%"><FONT size=2 face="Times New Roman">Discuss and consider policies with
      respect to risk assessment and risk management.</FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%">&nbsp;</TD>
    <TD style="BORDER-RIGHT: #000000 2pt double; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"><FONT face="Times New Roman" size=2><FONT face=wingdings size=2>&#252;</FONT></FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-LEFT: #000000 2pt double; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=left width="1%"><FONT face="Times New Roman" size=2>(ix)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top align=left width="50%"><FONT face="Times New Roman" size=2>Meet separately and periodically, no
      less than annually, with management, with internal auditors (or persons
      responsible for the internal audit function) and with independent
      auditors.</FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"><FONT face="Times New Roman" size=2><FONT face=wingdings size=2>&#252;</FONT></FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"><FONT face="Times New Roman" size=2><FONT face=wingdings size=2>&#252;</FONT></FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"><FONT face="Times New Roman" size=2><FONT face=wingdings size=2>&#252;</FONT></FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"><FONT face="Times New Roman" size=2><FONT face=wingdings size=2>&#252;</FONT></FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-RIGHT: #000000 2pt double; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD></TR></TABLE><BR>
<P align=center><FONT face="Times New Roman" size=2>59</FONT></P>
<HR align=center width="100%" noShade size="2">

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<TABLE style="PADDING-RIGHT: 2pt; PADDING-LEFT: 2pt; PADDING-BOTTOM: 2pt; PADDING-TOP: 2pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-RIGHT: #000000 2pt double; BORDER-TOP: #000000 2pt double; BORDER-LEFT: #000000 2pt double; BORDER-BOTTOM: #000000 1pt solid; text-align: center" width="99%" bgColor=#c0c0c0 colSpan=14><B><FONT face="Times New Roman" size=2>Committee Timetable</FONT></B></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-LEFT: #000000 2pt double; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="51%" bgColor=#c0c0c0 colSpan=2><B><FONT face="Times New Roman" size=2>Agenda Items</FONT></B></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="4%" bgColor=#c0c0c0><STRONG><FONT size=2 face="Times New Roman">J</FONT></STRONG></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="4%" bgColor=#c0c0c0><B><FONT face="Times New Roman" size=2>F</FONT></B></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="4%" bgColor=#c0c0c0><STRONG><FONT size=2 face="Times New Roman">M</FONT></STRONG></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="4%" bgColor=#c0c0c0><STRONG><FONT size=2 face="Times New Roman">A</FONT></STRONG></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="4%" bgColor=#c0c0c0><STRONG><FONT size=2 face="Times New Roman">M</FONT></STRONG></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="4%" bgColor=#c0c0c0><B><FONT face="Times New Roman" size=2>J</FONT></B></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="4%" bgColor=#c0c0c0><B><FONT face="Times New Roman" size=2>J</FONT></B></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="4%" bgColor=#c0c0c0><B><FONT face="Times New Roman" size=2>A</FONT></B></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="4%" bgColor=#c0c0c0><B><FONT face="Times New Roman" size=2>S</FONT></B></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="4%" bgColor=#c0c0c0><B><FONT face="Times New Roman" size=2>O</FONT></B></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="4%" bgColor=#c0c0c0><B><FONT face="Times New Roman" size=2>N</FONT></B></TD>
    <TD style="BORDER-RIGHT: #000000 2pt double; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="4%" bgColor=#c0c0c0><B><FONT face="Times New Roman" size=2>D</FONT></B></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-LEFT: #000000 2pt double; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><B><I><FONT face="Times New Roman" size=2>B)</FONT></I></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="50%"><B><I><FONT face="Times New Roman" size=2>Interim Financial
      Statements</FONT></I></B></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="4%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="4%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="4%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="4%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="4%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="4%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="4%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="4%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="4%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="4%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="4%"></TD>
    <TD style="BORDER-RIGHT: #000000 2pt double; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="4%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-LEFT: #000000 2pt double; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=left width="1%"><FONT face="Times New Roman" size=2>(i)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top align=left width="50%"><FONT face="Times New Roman" size=2>Review and approval of interim
      financial statements and MD&amp;A.</FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%">&nbsp;</TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"><FONT face="Times New Roman" size=2><FONT face=wingdings size=2></FONT></FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%">&nbsp;</TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%">&nbsp;</TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"><FONT face="Times New Roman" size=2><FONT face=wingdings size=2>&#252;</FONT></FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%">&nbsp;</TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"><FONT face="Times New Roman" size=2><FONT face=wingdings size=2>&#252;</FONT></FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%">&nbsp;</TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%">&nbsp;</TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"><FONT face="Times New Roman" size=2><FONT face=wingdings size=2>&#252;</FONT></FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%">&nbsp;</TD>
    <TD style="BORDER-RIGHT: #000000 2pt double; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-LEFT: #000000 2pt double; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><B><I><FONT face="Times New Roman" size=2>C)</FONT></I></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="50%"><B><I><FONT face="Times New Roman" size=2>Annual Financial Statements and
      Other Financial Information</FONT></I></B></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="4%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="4%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="4%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="4%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="4%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="4%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="4%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="4%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="4%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="4%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="4%"></TD>
    <TD style="BORDER-RIGHT: #000000 2pt double; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="4%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-LEFT: #000000 2pt double; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=left width="1%"><FONT face="Times New Roman" size=2>(i)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top align=left width="50%"><FONT face="Times New Roman" size=2>Review any changes in accounting
      policies or financial reporting requirements that may affect the current
      year&#146;s financial statements.</FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"><FONT face="Times New Roman" size=2><FONT face=wingdings size=2>&#252;</FONT></FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"><FONT face="Times New Roman" size=2><FONT face=wingdings size=2>&#252;</FONT></FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"><FONT face="Times New Roman" size=2><FONT face=wingdings size=2>&#252;</FONT></FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"><FONT face="Times New Roman" size=2><FONT face=wingdings size=2>&#252;</FONT></FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-RIGHT: #000000 2pt double; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-LEFT: #000000 2pt double; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=left width="1%"><FONT face="Times New Roman" size=2>(ii)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top align=left width="50%"><FONT face="Times New Roman" size=2>Obtain summaries of significant
      transactions, and other complex matters whose treatment in the annual
      financial statements merits advance consideration.</FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"><FONT face=Wingdings size=2>&#252;</FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"><FONT face="Times New Roman" size=2><FONT face=wingdings size=2>&#252;</FONT></FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"><FONT face="Times New Roman" size=2><FONT face=wingdings size=2>&#252;</FONT></FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"><FONT face="Times New Roman" size=2><FONT face=wingdings size=2>&#252;</FONT></FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-RIGHT: #000000 2pt double; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-LEFT: #000000 2pt double; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=left width="1%"><FONT face="Times New Roman" size=2>(iii)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top align=left width="50%"><FONT face="Times New Roman" size=2>Obtain draft annual financial
      statements in advance of the Committee meeting and assess, on a
      preliminary basis, the reasonableness of the financial statements in light
      of the analyses provided by the Corporation&#146;s officers.</FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"><FONT face="Times New Roman" size=2><FONT face=wingdings size=2>&#252;</FONT></FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-RIGHT: #000000 2pt double; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-LEFT: #000000 2pt double; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=left width="1%"><FONT face="Times New Roman" size=2>(iv)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top align=left width="50%"><FONT face="Times New Roman" size=2>Review summary provided by the
      Corporation&#146;s legal counsel of the status of any material pending or
      threatened litigation, claims and assessments.</FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"><FONT face=Wingdings size=2>&#252;</FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"><FONT face=Wingdings size=2>&#252;</FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"><FONT face=Wingdings size=2>&#252;</FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"><FONT face="Times New Roman" size=2><FONT face=wingdings size=2>&#252;</FONT></FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-RIGHT: #000000 2pt double; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-LEFT: #000000 2pt double; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=left width="1%"><FONT face="Times New Roman" size=2>(v)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top align=left width="50%"><FONT face="Times New Roman" size=2>Discuss the annual financial
      statements, MD&amp;A and the auditors&#146; report thereon in detail with the
      Corporation&#146;s officers and the external auditors.</FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"><FONT face="Times New Roman" size=2><FONT face=wingdings size=2>&#252;</FONT></FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"><FONT face="Times New Roman" size=2><FONT face=wingdings size=2></FONT></FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"><FONT face="Times New Roman" size=2><FONT face=wingdings size=2></FONT></FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"><FONT face="Times New Roman" size=2><FONT face=wingdings size=2></FONT></FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-RIGHT: #000000 2pt double; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-LEFT: #000000 2pt double; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=left width="1%"><FONT face="Times New Roman" size=2>(vi)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top align=left width="50%"><FONT face="Times New Roman" size=2>Review and recommend to the board of
      directors approval of all financial disclosure contained in prospectuses,
      annual information forms, management proxy circulars and other similar
      documents.</FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%">&nbsp;</TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"><FONT face="Times New Roman" size=2><FONT face=wingdings size=2>&#252;</FONT></FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%">&nbsp;</TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%">&nbsp;</TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"><FONT face="Times New Roman" size=2><FONT face=wingdings size=2></FONT></FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%">&nbsp;</TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"><FONT face="Times New Roman" size=2><FONT face=wingdings size=2></FONT></FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%">&nbsp;</TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%">&nbsp;</TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"><FONT face="Times New Roman" size=2><FONT face=wingdings size=2></FONT></FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-RIGHT: #000000 2pt double; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-LEFT: #000000 2pt double; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=left width="1%"><FONT face="Times New Roman" size=2>(vii)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top align=left width="50%"><FONT size=2 face="Times New Roman">Before the release of each
      quarterly report and annual financial statements, discuss with the
      external auditors all matters required by SAS 61 and Handbook section
      5751.</FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"><FONT face=Wingdings size=2>&#252;</FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"><FONT face=Wingdings size=2>&#252;</FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"><FONT face=Wingdings size=2>&#252;</FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"><FONT face=Wingdings size=2>&#252;</FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%">&nbsp;</TD>
    <TD style="BORDER-RIGHT: #000000 2pt double; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"><FONT face="Times New Roman" size=2><FONT face=wingdings size=2></FONT></FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-LEFT: #000000 2pt double; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=left width="1%"><FONT face="Times New Roman" size=2>(viii)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top align=left width="50%"><FONT size=2 face="Times New Roman">Provide the board with a
      recommendation for approval of the annual financial statements.</FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"><FONT face=Wingdings size=2>&#252;</FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%">&nbsp;</TD>
    <TD style="BORDER-RIGHT: #000000 2pt double; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-LEFT: #000000 2pt double; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=left width="1%"><FONT face="Times New Roman" size=2>(ix)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top align=left width="50%"><FONT face="Times New Roman" size=2>Discuss earnings press releases and
      earnings guidance as well as the release of significant new financial
      information.</FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"><FONT face="Times New Roman" size=2><FONT face=wingdings size=2>&#252;</FONT></FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"><FONT face="Times New Roman" size=2><FONT face=wingdings size=2>&#252;</FONT></FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"><FONT face="Times New Roman" size=2><FONT face=wingdings size=2>&#252;</FONT></FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"><FONT face="Times New Roman" size=2><FONT face=wingdings size=2>&#252;</FONT></FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-RIGHT: #000000 2pt double; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-LEFT: #000000 2pt double; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=left width="1%"><FONT face="Times New Roman" size=2><STRONG><EM>D)</EM></STRONG></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top align=left width="50%"><FONT face="Times New Roman" size=2><STRONG><EM>Relationship with External
      Auditors</EM></STRONG></FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="4%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="4%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="4%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="4%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="4%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="4%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="4%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="4%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="4%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="4%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="4%"></TD>
    <TD style="BORDER-RIGHT: #000000 2pt double; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="4%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-LEFT: #000000 2pt double; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=left width="1%"><FONT face="Times New Roman" size=2>(i)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top align=left width="50%"><FONT face="Times New Roman" size=2>Annually appoint (subject to
      shareholder approval) external auditor.</FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"><FONT face="Times New Roman" size=2><FONT face=wingdings size=2>&#252;</FONT></FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"><FONT face="Times New Roman" size=2><FONT face=wingdings size=2></FONT></FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"><FONT face="Times New Roman" size=2><FONT face=wingdings size=2></FONT></FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"><FONT face="Times New Roman" size=2><FONT face=wingdings size=2></FONT></FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-RIGHT: #000000 2pt double; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD></TR></TABLE><BR>
<P align=center><FONT face="Times New Roman" size=2>60</FONT></P>
<HR align=center width="100%" noShade SIZE=2>

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<TABLE style="PADDING-RIGHT: 2pt; PADDING-LEFT: 2pt; PADDING-BOTTOM: 2pt; PADDING-TOP: 2pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-RIGHT: #000000 2pt double; BORDER-TOP: #000000 2pt double; BORDER-LEFT: #000000 2pt double; BORDER-BOTTOM: #000000 1pt solid; text-align: center" width="99%" bgColor=#c0c0c0 colSpan=15><B><FONT face="Times New Roman" size=2>Committee Timetable</FONT></B></TD></TR>
  <TR>
    <TD style="BORDER-LEFT: #000000 2pt double; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="51%" bgColor=#c0c0c0 colSpan=3><STRONG><FONT size=2 face="Times New Roman">Agenda Items</FONT></STRONG></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="4%" bgColor=#c0c0c0><STRONG><FONT size=2 face="Times New Roman">J</FONT></STRONG></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="4%" bgColor=#c0c0c0><STRONG><FONT size=2 face="Times New Roman">F</FONT></STRONG></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="4%" bgColor=#c0c0c0><STRONG><FONT size=2 face="Times New Roman">M</FONT></STRONG></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="4%" bgColor=#c0c0c0><STRONG><FONT size=2 face="Times New Roman">A</FONT></STRONG></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="4%" bgColor=#c0c0c0><STRONG><FONT size=2 face="Times New Roman">M</FONT></STRONG></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="4%" bgColor=#c0c0c0><STRONG><FONT size=2 face="Times New Roman">J</FONT></STRONG></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="4%" bgColor=#c0c0c0><STRONG><FONT size=2 face="Times New Roman">J</FONT></STRONG></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="4%" bgColor=#c0c0c0><STRONG><FONT size=2 face="Times New Roman">A</FONT></STRONG></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="4%" bgColor=#c0c0c0><STRONG><FONT size=2 face="Times New Roman">S</FONT></STRONG></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="4%" bgColor=#c0c0c0><STRONG><FONT size=2 face="Times New Roman">O</FONT></STRONG></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="4%" bgColor=#c0c0c0><STRONG><FONT size=2 face="Times New Roman">N</FONT></STRONG></TD>
    <TD style="BORDER-RIGHT: #000000 2pt double; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="4%" bgColor=#c0c0c0><STRONG><FONT size=2 face="Times New Roman">D</FONT></STRONG></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-LEFT: #000000 2pt double; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=left width="1%"><FONT face="Times New Roman" size=2>(ii)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top align=left width="50%" colSpan=2><FONT face="Times New Roman" size=2>Annually review and approve terms of
      engagement and determine remuneration of external auditor.</FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"><FONT face="Times New Roman" size=2><FONT face=wingdings>&#252;</FONT></FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-RIGHT: #000000 2pt double; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-LEFT: #000000 2pt double; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=left width="1%"><FONT face="Times New Roman" size=2>(iii)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top align=left width="50%" colSpan=2><FONT face="Times New Roman" size=2>Review representation letters given by
      management to external auditor.</FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%">&nbsp;</TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"><FONT face="Times New Roman" size=2><FONT face=wingdings>&#252;</FONT></FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"><FONT face="Times New Roman" size=2><FONT face=wingdings>&#252;</FONT></FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"><FONT face="Times New Roman" size=2><FONT face=wingdings>&#252;</FONT></FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"><FONT face="Times New Roman" size=2><FONT face=wingdings>&#252;</FONT></FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-RIGHT: #000000 2pt double; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-LEFT: #000000 2pt double; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=left width="1%"><FONT face="Times New Roman" size=2>(iv)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top align=left width="50%" colSpan=2><FONT face="Times New Roman" size=2>Monitor the external auditor&#146;s
      qualifications and independence through the activities listed in Section
      F.</FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"><FONT face="Times New Roman" size=2><FONT face=wingdings>&#252;</FONT></FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-RIGHT: #000000 2pt double; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-LEFT: #000000 2pt double; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=left width="1%"><FONT face="Times New Roman" size=2>(v)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top align=left width="50%" colSpan=2><FONT face="Times New Roman" size=2>Review the audit plan with the external
      auditors and approve all substantive audit services in advance.</FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"><FONT face="Times New Roman" size=2><FONT face=wingdings>&#252;</FONT></FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-RIGHT: #000000 2pt double; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-LEFT: #000000 2pt double; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=left width="1%"><FONT face="Times New Roman" size=2>(vi)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top align=left width="50%" colSpan=2><FONT face="Times New Roman" size=2>Approve permissible non-audit services in
      advance.</FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"><FONT face="Times New Roman" size=2><FONT face=wingdings size=2>&#252;</FONT></FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"><FONT face="Times New Roman" size=2><FONT face=wingdings size=2>&#252;</FONT></FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"><FONT face="Times New Roman" size=2><FONT face=wingdings size=2>&#252;</FONT></FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-RIGHT: #000000 2pt double; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-LEFT: #000000 2pt double; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=left width="1%"><FONT face="Times New Roman" size=2>(vii)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top align=left width="50%" colSpan=2><FONT face="Times New Roman" size=2>Review all fees paid to external
      auditors.</FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"><FONT face=Wingdings size=2>&#252;</FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"><FONT face=Wingdings size=2>&#252;</FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"><FONT face=Wingdings size=2>&#252;</FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"><FONT face=Wingdings size=2>&#252;</FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-RIGHT: #000000 2pt double; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-LEFT: #000000 2pt double; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=left width="1%"><FONT face="Times New Roman" size=2>(viii)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top align=left width="50%" colSpan=2><FONT size=2 face="Times New Roman">Review
      performance against audit proposal plan.</FONT> &nbsp;</TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"><FONT face="Times New Roman" size=2><FONT face=wingdings>&#252;</FONT></FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-RIGHT: #000000 2pt double; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-LEFT: #000000 2pt double; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=left width="1%"><FONT face="Times New Roman" size=2>(ix)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top align=left width="50%" colSpan=2><FONT face="Times New Roman" size=2>Discuss in private with the external
      auditors matters affecting the conduct of their audit and other corporate
      matters.</FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"><FONT face="Times New Roman" size=2><FONT face=wingdings>&#252;</FONT></FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"><FONT face="Times New Roman" size=2><FONT face=wingdings>&#252;</FONT></FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"><FONT face="Times New Roman" size=2><FONT face=wingdings>&#252;</FONT></FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"><FONT face="Times New Roman" size=2><FONT face=wingdings>&#252;</FONT></FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-RIGHT: #000000 2pt double; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-LEFT: #000000 2pt double" vAlign=top noWrap align=left width="1%"><FONT face="Times New Roman" size=2>(x)</FONT></TD>
    <TD vAlign=top align=left width="50%" colSpan=2><FONT face="Times New Roman" size=2>Receive a report from the
      external auditor with respect to:</FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-RIGHT: #000000 2pt double; BORDER-LEFT: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD></TR>
  <TR style="PADDING-TOP: 6pt" vAlign=bottom>
    <TD style="BORDER-LEFT: #000000 2pt double" vAlign=top noWrap align=left width="1%"><FONT face="Times New Roman" size=2></FONT></TD>
    <TD vAlign=top align=left width="2%"><FONT size=2 face="Times New Roman">(a)</FONT></TD>
    <TD vAlign=top align=left width="48%"><FONT face="Times New Roman" size=2>all critical accounting policies and
      practices;</FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid" vAlign=top noWrap align=center width="4%"><FONT face="Times New Roman" size=2><FONT face=wingdings>&#252;</FONT></FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-RIGHT: #000000 2pt double; BORDER-LEFT: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD></TR>
  <TR style="PADDING-TOP: 6pt" vAlign=bottom>
    <TD style="BORDER-LEFT: #000000 2pt double" vAlign=top noWrap align=left width="1%"><FONT face="Times New Roman" size=2></FONT></TD>
    <TD vAlign=top align=left width="2%"><FONT size=2 face="Times New Roman">(b)</FONT></TD>
    <TD vAlign=top align=left width="48%"><FONT face="Times New Roman" size=2>all alternative treatments of
      financial information within GAAP that have been discussed with
      management, implications of their use and the external auditors&#146;
      &#147;preferred treatment&#148;;</FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid" vAlign=top noWrap align=center width="4%"><FONT face="Times New Roman" size=2><FONT face=wingdings>&#252;</FONT></FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid" vAlign=top noWrap align=center width="4%">&nbsp;</TD>
    <TD style="BORDER-LEFT: #000000 1pt solid" vAlign=top noWrap align=center width="4%">&nbsp;</TD>
    <TD style="BORDER-LEFT: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid" vAlign=top noWrap align=center width="4%">&nbsp;</TD>
    <TD style="BORDER-LEFT: #000000 1pt solid" vAlign=top noWrap align=center width="4%">&nbsp;</TD>
    <TD style="BORDER-LEFT: #000000 1pt solid" vAlign=top noWrap align=center width="4%">&nbsp;</TD>
    <TD style="BORDER-RIGHT: #000000 2pt double; BORDER-LEFT: #000000 1pt solid" vAlign=top noWrap align=center width="4%">&nbsp;</TD></TR>
  <TR style="PADDING-TOP: 6pt" vAlign=bottom>
    <TD style="BORDER-LEFT: #000000 2pt double" vAlign=top noWrap align=left width="1%"><FONT face="Times New Roman" size=2></FONT></TD>
    <TD vAlign=top align=left width="2%"><FONT size=2 face="Times New Roman">(c)</FONT></TD>
    <TD vAlign=top align=left width="48%"><FONT face="Times New Roman" size=2>any other material written
      communications between the auditor and management;</FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid" vAlign=top noWrap align=center width="4%"><FONT face="Times New Roman" size=2><FONT face=wingdings>&#252;</FONT></FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-RIGHT: #000000 2pt double; BORDER-LEFT: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD></TR>
  <TR style="PADDING-TOP: 6pt" vAlign=bottom>
    <TD style="BORDER-LEFT: #000000 2pt double" vAlign=top noWrap align=left width="1%"><FONT face="Times New Roman" size=2></FONT></TD>
    <TD vAlign=top align=left width="2%"><FONT size=2 face="Times New Roman">(d)</FONT></TD>
    <TD vAlign=top align=left width="48%"><FONT face="Times New Roman" size=2>the internal quality-control
      procedures of the external auditors;</FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid" vAlign=top noWrap align=center width="4%"><FONT face="Times New Roman" size=2><FONT face=wingdings>&#252;</FONT></FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-RIGHT: #000000 2pt double; BORDER-LEFT: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD></TR>
  <TR style="PADDING-TOP: 6pt" vAlign=bottom>
    <TD style="BORDER-LEFT: #000000 2pt double" vAlign=top noWrap align=left width="1%"><FONT face="Times New Roman" size=2></FONT></TD>
    <TD vAlign=top align=left width="2%"><FONT size=2 face="Times New Roman">(e)</FONT></TD>
    <TD vAlign=top align=left width="48%"><FONT face="Times New Roman" size=2>any material issues raised by the
      most recent internal quality-control review of the external auditors&#146;
      firm, or by an inquiry or investigation by governmental or professional
      authorities, within the preceding five years, respecting one or more
      independent audits carried out by such firm, and any steps taken to deal
      with any such issues; and</FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid" vAlign=top noWrap align=center width="4%"><FONT face="Times New Roman" size=2><FONT face=wingdings>&#252;</FONT></FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-RIGHT: #000000 2pt double; BORDER-LEFT: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD></TR>
  <TR style="PADDING-TOP: 6pt" vAlign=bottom>
    <TD style="BORDER-LEFT: #000000 2pt double; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=left width="1%"><FONT face="Times New Roman" size=2></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top align=left width="2%"><FONT size=2 face="Times New Roman">(f)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top align=left width="48%"><FONT face="Times New Roman" size=2>all relationships between the external auditors and the
      Corporation, as detailed in &#167;(i) under Section F &#150; Independence of
      External Auditors.</FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"><FONT face="Times New Roman" size=2><FONT face=wingdings>&#252;</FONT></FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-RIGHT: #000000 2pt double; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD></TR></TABLE><BR>
<P align=center><FONT face="Times New Roman" size=2>61</FONT></P>
<HR align=center width="100%" noShade SIZE=2>

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<TABLE style="PADDING-RIGHT: 2pt; PADDING-LEFT: 2pt; PADDING-BOTTOM: 2pt; PADDING-TOP: 2pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-TOP: #000000 2pt double; BORDER-LEFT: #000000 2pt double; BORDER-BOTTOM: #000000 1pt solid; text-align: center" width="100%" bgColor=#c0c0c0 colSpan=14><B><FONT face="Times New Roman" size=2>Committee Timetable</FONT></B></TD></TR>
  <TR>
    <TD style="BORDER-LEFT: #000000 2pt double; BORDER-BOTTOM: #000000 1pt solid" vAlign=top align=left width="52%" bgColor=#c0c0c0 colSpan=2><STRONG><FONT size=2 face="Times New Roman">Agenda Items</FONT></STRONG></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%" bgColor=#c0c0c0><STRONG><FONT size=2 face="Times New Roman">J</FONT></STRONG></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%" bgColor=#c0c0c0><STRONG><FONT size=2 face="Times New Roman">F</FONT></STRONG></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%" bgColor=#c0c0c0><STRONG><FONT size=2 face="Times New Roman">M</FONT></STRONG></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%" bgColor=#c0c0c0><STRONG><FONT size=2 face="Times New Roman">A</FONT></STRONG></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%" bgColor=#c0c0c0><STRONG><FONT size=2 face="Times New Roman">M</FONT></STRONG></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%" bgColor=#c0c0c0><STRONG><FONT size=2 face="Times New Roman">J</FONT></STRONG></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%" bgColor=#c0c0c0><STRONG><FONT size=2 face="Times New Roman">J</FONT></STRONG></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%" bgColor=#c0c0c0><STRONG><FONT size=2 face="Times New Roman">A</FONT></STRONG></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%" bgColor=#c0c0c0><STRONG><FONT size=2 face="Times New Roman">S</FONT></STRONG></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%" bgColor=#c0c0c0><STRONG><FONT size=2 face="Times New Roman">O</FONT></STRONG></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%" bgColor=#c0c0c0><STRONG><FONT size=2 face="Times New Roman">N</FONT></STRONG></TD>
    <TD style="BORDER-RIGHT: #000000 2pt double; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%" bgColor=#c0c0c0><STRONG><FONT size=2 face="Times New Roman">D</FONT></STRONG></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-LEFT: #000000 2pt double; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=left width="1%"><FONT face="Times New Roman" size=2>(xi)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top align=left width="51%"><FONT face="Times New Roman" size=2>Resolve all disagreements between management and the external
      auditors regarding financial reporting</FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"><FONT face="Times New Roman" size=2><FONT face=wingdings>&#252;</FONT></FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"><FONT face="Times New Roman" size=2><FONT face=wingdings>&#252;</FONT></FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"><FONT face="Times New Roman" size=2><FONT face=wingdings>&#252;</FONT></FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-RIGHT: #000000 2pt double; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-LEFT: #000000 2pt double; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=left width="1%"><FONT face="Times New Roman" size=2>(xii)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top align=left width="51%"><FONT face="Times New Roman" size=2>Ensure that the audit partners representing the external
      auditors meet the rotation requirements set out by the U.S. Securities and
      Exchange Commission and by any other applicable Canadian or U.S.
      securities regulatory authority or stock exchange.</FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"><FONT face="Times New Roman" size=2><FONT face=wingdings>&#252;</FONT></FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-RIGHT: #000000 2pt double; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-LEFT: #000000 2pt double; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=left width="1%"><B><I><FONT face="Times New Roman" size=2>E)</FONT></I></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top align=left width="51%"><B><I><FONT face="Times New Roman" size=2>Treasury</FONT></I></B></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-RIGHT: #000000 2pt double; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-LEFT: #000000 2pt double; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=left width="1%"><FONT face="Times New Roman" size=2>(i)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top align=left width="51%"><FONT face="Times New Roman" size=2>Review and approve the Treasury Policy.</FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"><FONT size=2 face="Times New Roman"><FONT face=wingdings>&#252;</FONT></FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-RIGHT: #000000 2pt double; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-LEFT: #000000 2pt double; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=left width="1%"><FONT face="Times New Roman" size=2>(ii)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top align=left width="51%"><FONT face="Times New Roman" size=2>Review the Quarterly Treasury Report.</FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"><FONT size=2 face="Times New Roman"><FONT face=wingdings>&#252;</FONT></FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"><FONT size=2 face="Times New Roman"><FONT face=wingdings>&#252;</FONT></FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"><FONT size=2 face="Times New Roman"><FONT face=wingdings>&#252;</FONT></FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"><FONT size=2 face="Times New Roman"><FONT face=wingdings>&#252;</FONT></FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-RIGHT: #000000 2pt double; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-LEFT: #000000 2pt double; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=left width="1%"><FONT face="Times New Roman" size=2>(iii)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top align=left width="51%"><FONT face="Times New Roman" size=2>Review and approve the Foreign Exchange Policy.</FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"><FONT size=2 face="Times New Roman"><FONT face=wingdings>&#252;</FONT></FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-RIGHT: #000000 2pt double; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-LEFT: #000000 2pt double; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=left width="1%"><B><I><FONT face="Times New Roman" size=2>F)</FONT></I></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top align=left width="51%"><B><I><FONT face="Times New Roman" size=2>Independence of
      External Auditors</FONT></I></B></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-RIGHT: #000000 2pt double; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-LEFT: #000000 2pt double; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=left width="1%"><FONT face="Times New Roman" size=2>(i)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top align=left width="51%"><FONT face="Times New Roman" size=2>Receive from the external auditors, on a periodic basis, a
      formal written statement delineating all relationships between the
      external auditors and the Corporation consistent with ISB No. 1.</FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%">&nbsp;</TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"><FONT face="Times New Roman" size=2><FONT face=wingdings>&#252;</FONT></FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%">&nbsp;</TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-RIGHT: #000000 2pt double; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-LEFT: #000000 2pt double; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=left width="1%"><FONT face="Times New Roman" size=2>(ii)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top align=left width="51%"><FONT face="Times New Roman" size=2>Review and actively discuss with the Board of Directors, if
      necessary, and the external auditors, on a periodic basis, any disclosed
      relationships or services between the external auditors and the
      Corporation or any other disclosed relationships or services that may
      impact the objectivity and independence of the external
auditors.</FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"><FONT face="Times New Roman" size=2><FONT face=wingdings>&#252;</FONT></FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%">&nbsp;</TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%">&nbsp;</TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-RIGHT: #000000 2pt double; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-LEFT: #000000 2pt double; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=left width="1%"><FONT face="Times New Roman" size=2>(iii)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top align=left width="51%"><FONT face="Times New Roman" size=2>Recommend, if necessary, that the Board take action to
      satisfy itself, of the external auditors&#146; independence.</FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"><FONT face="Times New Roman" size=2><FONT face=wingdings>&#252;</FONT></FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%">&nbsp;</TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%">&nbsp;</TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%">&nbsp;</TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%">&nbsp;</TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%">&nbsp;</TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%">&nbsp;</TD>
    <TD style="BORDER-RIGHT: #000000 2pt double; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-LEFT: #000000 2pt double; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=left width="1%"><FONT face="Times New Roman" size=2>(iv)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top align=left width="51%"><FONT face="Times New Roman" size=2>Ensure that the Corporation does not hire as the
      Corporation&#146;s CEO, CFO, Controller or chief accounting officer any person
      who was employed by the Corporation&#146;s external auditors and who
      participated in any capacity in the audit of the Corporation during the
      one-year period preceding the initiation of the current audit</FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"><FONT face="Times New Roman" size=2><FONT face=wingdings>&#252;</FONT></FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"><FONT face="Times New Roman" size=2><FONT face=wingdings>&#252;</FONT></FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"><FONT face="Times New Roman" size=2><FONT face=wingdings>&#252;</FONT></FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"><FONT face="Times New Roman" size=2><FONT face=wingdings>&#252;</FONT></FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-RIGHT: #000000 2pt double; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-LEFT: #000000 2pt double; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=left width="1%"><B><I><FONT face="Times New Roman" size=2>G)</FONT></I></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top align=left width="51%"><B><I><FONT face="Times New Roman" size=2>Internal Audit
      and Controls</FONT></I></B></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-RIGHT: #000000 2pt double; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-LEFT: #000000 2pt double; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=left width="1%"><FONT face="Times New Roman" size=2>(i)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top align=left width="51%"><FONT face="Times New Roman" size=2>Ensure that the Corporation has appropriate systems of
      internal control.</FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"><FONT face="Times New Roman" size=2><FONT face=wingdings>&#252;</FONT></FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"><FONT face="Times New Roman" size=2><FONT face=wingdings>&#252;</FONT></FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"><FONT face="Times New Roman" size=2><FONT face=wingdings>&#252;</FONT></FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"><FONT face="Times New Roman" size=2><FONT face=wingdings>&#252;</FONT></FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-RIGHT: #000000 2pt double; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD></TR></TABLE><BR>
<P align=center><FONT face="Times New Roman" size=2>62</FONT></P>
<HR align=center width="100%" noShade SIZE=2>

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<TABLE style="PADDING-RIGHT: 2pt; PADDING-LEFT: 2pt; PADDING-BOTTOM: 2pt; PADDING-TOP: 2pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-RIGHT: #000000 2pt double; BORDER-TOP: #000000 2pt double; BORDER-LEFT: #000000 2pt double; BORDER-BOTTOM: #000000 1pt solid; text-align: center" width="100%" bgColor=#c0c0c0 colSpan=14><B><FONT face="Times New Roman" size=2>Committee Timetable</FONT></B></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-LEFT: #000000 2pt double; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=left width="52%" bgColor=#c0c0c0 colSpan=2><B><FONT face="Times New Roman" size=2>Agenda Items</FONT></B></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%" bgColor=#c0c0c0><STRONG><FONT size=2 face="Times New Roman">J</FONT></STRONG></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%" bgColor=#c0c0c0><B><FONT face="Times New Roman" size=2>F</FONT></B></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%" bgColor=#c0c0c0><B><FONT face="Times New Roman" size=2>M</FONT></B></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%" bgColor=#c0c0c0><B><FONT face="Times New Roman" size=2>A</FONT></B></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%" bgColor=#c0c0c0><B><FONT face="Times New Roman" size=2>M</FONT></B></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%" bgColor=#c0c0c0><B><FONT face="Times New Roman" size=2>J</FONT></B></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%" bgColor=#c0c0c0><B><FONT face="Times New Roman" size=2>J</FONT></B></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%" bgColor=#c0c0c0><B><FONT face="Times New Roman" size=2>A</FONT></B></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%" bgColor=#c0c0c0><B><FONT face="Times New Roman" size=2>S</FONT></B></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%" bgColor=#c0c0c0><B><FONT face="Times New Roman" size=2>O</FONT></B></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%" bgColor=#c0c0c0><B><FONT face="Times New Roman" size=2>N</FONT></B></TD>
    <TD style="BORDER-RIGHT: #000000 2pt double; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%" bgColor=#c0c0c0><B><FONT face="Times New Roman" size=2>D</FONT></B></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-LEFT: #000000 2pt double; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=left width="2%"><FONT face="Times New Roman" size=2>(ii)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top align=left width="50%"><FONT face="Times New Roman" size=2>Review quarterly the internal auditors&#146; report on the
      adequacy of the internal controls, policies and procedures.</FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"><FONT face="Times New Roman" size=2><FONT face=wingdings>&#252;</FONT></FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"><FONT face="Times New Roman" size=2><FONT face=wingdings>&#252;</FONT></FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"><FONT face="Times New Roman" size=2><FONT face=wingdings>&#252;</FONT></FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"><FONT face="Times New Roman" size=2><FONT face=wingdings>&#252;</FONT></FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-RIGHT: #000000 2pt double; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-LEFT: #000000 2pt double; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=left width="2%"><FONT face="Times New Roman" size=2>(iii)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top align=left width="50%"><FONT face="Times New Roman" size=2>Annually review and approve internal audit plan</FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"><FONT size=2 face="Times New Roman"><FONT face=wingdings>&#252;</FONT></FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-RIGHT: #000000 2pt double; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-LEFT: #000000 2pt double; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=left width="2%"><B><I><FONT face="Times New Roman" size=2>H)</FONT></I></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top align=left width="50%"><B><I><FONT face="Times New Roman" size=2>Related Party
      Transactions</FONT></I></B></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-RIGHT: #000000 2pt double; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-LEFT: #000000 2pt double; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=left width="2%"><FONT face="Times New Roman" size=2>(i)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top align=left width="50%"><FONT face="Times New Roman" size=2>Review and approve the Corporation&#146;s related party
      transactions over US$60,000.</FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"><FONT face="Times New Roman" size=2><FONT face=wingdings>&#252;</FONT></FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"><FONT face="Times New Roman" size=2><FONT face=wingdings>&#252;</FONT></FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"><FONT face="Times New Roman" size=2><FONT face=wingdings>&#252;</FONT></FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"><FONT face="Times New Roman" size=2><FONT face=wingdings>&#252;</FONT></FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-RIGHT: #000000 2pt double; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"><FONT face="Times New Roman" size=2><FONT face=wingdings>&#252;</FONT></FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-LEFT: #000000 2pt double; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=left width="2%"><FONT face="Times New Roman" size=2>(ii)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top align=left width="50%"><FONT face="Times New Roman" size=2>Review a summary of the Corporation&#146;s related party
      transactions to ensure that such transactions are consistent with the
      terms and conditions previously approved by the Committee.</FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%">&nbsp;</TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"><FONT face="Times New Roman" size=2><FONT face=wingdings>&#252;</FONT></FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"><FONT face="Times New Roman" size=2><FONT face=wingdings>&#252;</FONT></FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"><FONT face="Times New Roman" size=2><FONT face=wingdings>&#252;</FONT></FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"><FONT face="Times New Roman" size=2><FONT face=wingdings>&#252;</FONT></FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-RIGHT: #000000 2pt double; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"><FONT face="Times New Roman" size=2><FONT face=wingdings>&#252;</FONT></FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-LEFT: #000000 2pt double; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=left width="52%" colSpan=2><B><I><FONT face="Times New Roman" size=2>I) </FONT></I></B><B><I><FONT face="Times New Roman" size=2>Other</FONT></I></B></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-RIGHT: #000000 2pt double; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-LEFT: #000000 2pt double; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=left width="2%"><FONT face="Times New Roman" size=2>(i)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top align=left width="50%"><FONT face="Times New Roman" size=2>Annually review management&#146;s compliance with the
      Corporation&#146;s Code of Ethics &amp; Workplace Guidelines and Corporate
      Watch Policy.</FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%">&nbsp;</TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%">&nbsp;</TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%">&nbsp;</TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%">&nbsp;</TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%">&nbsp;</TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%">&nbsp;</TD>
    <TD style="BORDER-RIGHT: #000000 2pt double; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"><FONT face="Times New Roman" size=2><FONT face=wingdings>&#252;</FONT></FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-LEFT: #000000 2pt double; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=left width="2%"><FONT face="Times New Roman" size=2>(ii)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top align=left width="50%"><FONT face="Times New Roman" size=2>Annually review the Corporation&#146;s Code of Ethics &amp;
      Workplace Guidelines and Corporate Watch Policy, with any recommended
      changes being forwarded to the board for approval</FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%">&nbsp;</TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%">&nbsp;</TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%">&nbsp;</TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-RIGHT: #000000 2pt double; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"><FONT face="Times New Roman" size=2><FONT face=wingdings>&#252;</FONT></FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-LEFT: #000000 2pt double; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=left width="2%"><FONT face="Times New Roman" size=2>(iii)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top align=left width="50%"><FONT face="Times New Roman" size=2>Annually review the succession plans for the Corporation&#146;s
      CFO and Controller.</FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-RIGHT: #000000 2pt double; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"><FONT face="Times New Roman" size=2><FONT face=wingdings>&#252;</FONT></FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-LEFT: #000000 2pt double; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=left width="2%"><FONT face="Times New Roman" size=2>(iv)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top align=left width="50%"><FONT face="Times New Roman" size=2>Annually review the audit of expense reports of the Chair of
      the Board of Directors and the CEO.</FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"><FONT face="Times New Roman" size=2><FONT face=wingdings>&#252;</FONT></FONT></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-RIGHT: #000000 2pt double; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-LEFT: #000000 2pt double; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=left width="2%"><B><I><FONT face="Times New Roman" size=2>J)</FONT></I></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top align=left width="50%"><B><I><FONT face="Times New Roman" size=2>Performance
      Evaluation</FONT></I></B></TD>
    <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD>
    <TD style="BORDER-RIGHT: #000000 2pt double; BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=center width="4%"></TD></TR>
  <TR vAlign=bottom>
    <TD NOWRAP STYLE="border-left: #000000 2pt double; border-bottom: Black 2pt double; vertical-align: top; text-align: left; width: 2%"><FONT face="Times New Roman" size=2>(i)</FONT></TD>
    <TD STYLE="border-bottom: Black 2pt double; vertical-align: top; text-align: left; width: 50%"><FONT face="Times New Roman" size=2>Review annual evaluation of the Committee&#146;s
      performance.</FONT></TD>
    <TD NOWRAP STYLE="border-left: #000000 1pt solid; border-bottom: Black 2pt double; vertical-align: top; text-align: center; width: 4%"></TD>
    <TD NOWRAP STYLE="border-left: #000000 1pt solid; border-bottom: Black 2pt double; vertical-align: top; text-align: center; width: 4%"><FONT face="Times New Roman" size=2><FONT face=wingdings>&#252;</FONT></FONT></TD>
    <TD NOWRAP STYLE="border-left: #000000 1pt solid; border-bottom: Black 2pt double; vertical-align: top; text-align: center; width: 4%"></TD>
    <TD NOWRAP STYLE="border-left: #000000 1pt solid; border-bottom: Black 2pt double; vertical-align: top; text-align: center; width: 4%"></TD>
    <TD NOWRAP STYLE="border-left: #000000 1pt solid; border-bottom: Black 2pt double; vertical-align: top; text-align: center; width: 4%"></TD>
    <TD NOWRAP STYLE="border-left: #000000 1pt solid; border-bottom: Black 2pt double; vertical-align: top; text-align: center; width: 4%"></TD>
    <TD NOWRAP STYLE="border-left: #000000 1pt solid; border-bottom: Black 2pt double; vertical-align: top; text-align: center; width: 4%"></TD>
    <TD NOWRAP STYLE="border-left: #000000 1pt solid; border-bottom: Black 2pt double; vertical-align: top; text-align: center; width: 4%"></TD>
    <TD NOWRAP STYLE="border-left: #000000 1pt solid; border-bottom: Black 2pt double; vertical-align: top; text-align: center; width: 4%"></TD>
    <TD NOWRAP STYLE="border-left: #000000 1pt solid; border-bottom: Black 2pt double; vertical-align: top; text-align: center; width: 4%"></TD>
    <TD NOWRAP STYLE="border-left: #000000 1pt solid; border-bottom: Black 2pt double; vertical-align: top; text-align: center; width: 4%"></TD>
    <TD NOWRAP STYLE="border-right: #000000 2pt double; border-bottom: Black 2pt double; border-left: #000000 1pt solid; vertical-align: top; text-align: center; width: 4%"></TD></TR></TABLE><BR>
<P align=center><FONT face="Times New Roman" size=2>63</FONT></P>
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<DOCUMENT>
<TYPE>EX-99.4
<SEQUENCE>5
<FILENAME>exhibit99-4.htm
<DESCRIPTION>CERTIFICATIONS PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002
<TEXT>

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<P align=center><B><FONT face="Times New Roman" size=2>Certification Pursuant to Section
302<BR>of the Sarbanes-Oxley Act of 2002</FONT></B></P>
<P align=left><FONT face="Times New Roman" size=2>I, </FONT><B><FONT face="Times New Roman" size=2>John
W. Sheridan, </FONT></B><FONT face="Times New Roman" size=2>certify that:</FONT></P>
<TABLE cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD vAlign=top noWrap><FONT size=2 face="Times New Roman">1.</FONT></TD>
    <TD vAlign=top noWrap></TD>
    <TD width="100%" colSpan=3><FONT size=2 face="Times New Roman"><FONT face="Times New Roman">I
      have reviewed this annual report on Form 40-F of Ballard Power Systems
      Inc.;</FONT></FONT></TD></TR>
  <TR>
    <TD vAlign=top noWrap></TD>
    <TD vAlign=top noWrap></TD>
    <TD width="100%" colSpan=3>&nbsp; </TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>2.</FONT></TD>
    <TD vAlign=top noWrap></TD>
    <TD width="100%" colSpan=3><FONT face="Times New Roman" size=2>Based on my knowledge,
      this report does not contain any untrue statement of a material fact or
      omit to state a material fact necessary to make the statements made, in
      light of the circumstances under which such statements were made, not
      misleading with respect to the period covered by this report;</FONT></TD></TR>
  <TR>
    <TD colSpan=5>&nbsp; </TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>3.</FONT></TD>
    <TD vAlign=top noWrap></TD>
    <TD width="100%" colSpan=3><FONT face="Times New Roman" size=2>Based on my knowledge,
      the financial statements, and other financial information included in this
      report, fairly present in all material respects the financial condition,
      results of operations and cash flows of the issuer as of, and for, the
      periods presented in this report;</FONT></TD></TR>
  <TR>
    <TD colSpan=5>&nbsp; </TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>4.</FONT></TD>
    <TD vAlign=top noWrap></TD>
    <TD width="100%" colSpan=3><FONT face="Times New Roman" size=2>The issuer&#146;s other
      certifying officer and I are responsible for establishing and maintaining
      disclosure controls and procedures (as defined in Exchange Act Rules
      13a-15(e) and 15d-15(e)) and internal control over financial reporting (as
      defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the issuer and
      have:</FONT></TD></TR>
  <TR>
    <TD colSpan=5>&nbsp; </TD></TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>a)</FONT></TD>
    <TD vAlign=top noWrap></TD>
    <TD width="100%"><FONT face="Times New Roman" size=2>Designed such disclosure controls
      and procedures, or caused such disclosure controls and procedures to be
      designed under our supervision, to ensure that material information
      relating to the issuer, including its consolidated subsidiaries, is made
      known to us by others within those entities, particularly during the
      period in which this report is being prepared;</FONT></TD></TR>
  <TR>
    <TD colSpan=5>&nbsp; </TD></TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>b)</FONT></TD>
    <TD vAlign=top noWrap></TD>
    <TD width="100%"><FONT face="Times New Roman" size=2>Designed such internal control
      over financial reporting, or caused such internal control over financial
      reporting to be designed under our supervision, to provide reasonable
      assurance regarding the reliability of financial reporting and the
      preparation of financial statements for external purposes in accordance
      with generally accepted accounting principles;</FONT></TD></TR>
  <TR>
    <TD colSpan=5>&nbsp; </TD></TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>c)</FONT></TD>
    <TD vAlign=top noWrap></TD>
    <TD width="100%"><FONT face="Times New Roman" size=2>Evaluated the effectiveness of
      the issuer&#146;s disclosure controls and procedures and presented in this
      report our conclusions about the effectiveness of the disclosure controls
      and procedures, as of the end of the period covered by this report based
      on such evaluation; and</FONT></TD></TR>
  <TR>
    <TD colSpan=5>&nbsp; </TD></TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>d)</FONT></TD>
    <TD vAlign=top noWrap></TD>
    <TD width="100%"><FONT face="Times New Roman" size=2>Disclosed in this report any
      change in the issuer&#146;s internal control over financial reporting that
      occurred during the period covered by the annual report that has
      materially affected, or is reasonably likely to materially affect the
      issuer&#146;s internal control over financial reporting; and</FONT></TD></TR>
  <TR>
    <TD colSpan=5>&nbsp; </TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>5.</FONT></TD>
    <TD vAlign=top noWrap></TD>
    <TD width="100%" colSpan=3><FONT face="Times New Roman" size=2>The issuer&#146;s other
      certifying officer and I have disclosed, based on our most recent
      evaluation of internal control over financial reporting, to the issuer&#146;s
      auditors and the audit committee of the issuer&#146;s board of directors (or
      persons performing the equivalent functions):</FONT></TD></TR>
  <TR>
    <TD colSpan=5>&nbsp; </TD></TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>a)</FONT></TD>
    <TD vAlign=top noWrap></TD>
    <TD width="100%"><FONT face="Times New Roman" size=2>All significant deficiencies and
      material weaknesses in the design or operation of internal control over
      financial reporting which are reasonably likely to adversely affect the
      issuer&#146;s ability to record, process, summarize and report financial
      information; and</FONT></TD></TR>
  <TR>
    <TD colSpan=5>&nbsp;&nbsp;&nbsp; </TD></TR>
  <TR>
    <TD></TD>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>b)</FONT></TD>
    <TD vAlign=top noWrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD width="100%"><FONT face="Times New Roman" size=2>Any fraud, whether or not
      material, that involves management or other employees who have a
      significant role in the issuer&#146;s internal control over financial
      reporting.</FONT></TD></TR></TABLE>&nbsp;<BR>
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="30%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="100%" colSpan=2><FONT face="Times New Roman" size=2>Date: February 23, 2012</FONT></TD></TR>
  <TR>
    <TD width="1%"></TD>
    <TD width="99%">&nbsp;&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%"><FONT size=2 face="Times New Roman">By:</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="99%"><FONT face="Times New Roman" size=2>&nbsp; /s/ John W. Sheridan</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="100%" colSpan=2><FONT size=2 face="Times New Roman"></FONT><FONT face="Times New Roman" size=2>Name: John W. Sheridan</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="100%" colSpan=2><FONT face="Times New Roman" size=2>President and Chief Executive
Officer</FONT></TD></TR></TABLE><BR>
<P align=left><FONT face="Times New Roman" size=2>A signed original of this written
statement required by Section 302 has been provided to Ballard Power Systems
Inc. and will be retained by Ballard Power Systems Inc. and furnished to the
Securities and Exchange Commission or its staff upon request. </FONT></P>
<HR align=center width="100%" noShade SIZE=2>

<div style="PAGE-BREAK-BEFORE: always"></div><br>

<P align=center><B><FONT face="Times New Roman" size=2>Certification Pursuant to Section
302<BR>of the Sarbanes-Oxley Act of 2002</FONT></B></P>
<P align=left><FONT face="Times New Roman" size=2>I, </FONT><B><FONT face="Times New Roman" size=2>Tony Guglielmin, </FONT></B><FONT face="Times New Roman" size=2>certify that: </FONT></P>
<P align=left><FONT face="Times New Roman" size=2>
<TABLE cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD vAlign=top noWrap><FONT size=2 face="Times New Roman">1.</FONT></TD>
    <TD vAlign=top noWrap></TD>
    <TD width="100%" colSpan=3><FONT size=2 face="Times New Roman"><FONT face="Times New Roman">I
      have reviewed this annual report on Form 40-F of Ballard Power Systems
      Inc.;</FONT></FONT></TD></TR>
  <TR>
    <TD vAlign=top noWrap></TD>
    <TD vAlign=top noWrap></TD>
    <TD width="100%" colSpan=3>&nbsp; </TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>2.</FONT></TD>
    <TD vAlign=top noWrap></TD>
    <TD width="100%" colSpan=3><FONT face="Times New Roman" size=2>Based on my knowledge,
      this report does not contain any untrue statement of a material fact or
      omit to state a material fact necessary to make the statements made, in
      light of the circumstances under which such statements were made, not
      misleading with respect to the period covered by this report;</FONT></TD></TR>
  <TR>
    <TD colSpan=5>&nbsp; </TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>3.</FONT></TD>
    <TD vAlign=top noWrap></TD>
    <TD width="100%" colSpan=3><FONT face="Times New Roman" size=2>Based on my knowledge,
      the financial statements, and other financial information included in this
      report, fairly present in all material respects the financial condition,
      results of operations and cash flows of the issuer as of, and for, the
      periods presented in this report;</FONT></TD></TR>
  <TR>
    <TD colSpan=5>&nbsp; </TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>4.</FONT></TD>
    <TD vAlign=top noWrap></TD>
    <TD width="100%" colSpan=3><FONT face="Times New Roman" size=2>The issuer&#146;s other
      certifying officer and I are responsible for establishing and maintaining
      disclosure controls and procedures (as defined in Exchange Act Rules
      13a-15(e) and 15d-15(e)) and internal control over financial reporting (as
      defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the issuer and
      have:</FONT></TD></TR>
  <TR>
    <TD colSpan=5>&nbsp; </TD></TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>a)</FONT></TD>
    <TD vAlign=top noWrap></TD>
    <TD width="100%"><FONT face="Times New Roman" size=2>Designed such disclosure controls
      and procedures, or caused such disclosure controls and procedures to be
      designed under our supervision, to ensure that material information
      relating to the issuer, including its consolidated subsidiaries, is made
      known to us by others within those entities, particularly during the
      period in which this report is being prepared;</FONT></TD></TR>
  <TR>
    <TD colSpan=5>&nbsp; </TD></TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>b)</FONT></TD>
    <TD vAlign=top noWrap></TD>
    <TD width="100%"><FONT face="Times New Roman" size=2>Designed such internal control
      over financial reporting, or caused such internal control over financial
      reporting to be designed under our supervision, to provide reasonable
      assurance regarding the reliability of financial reporting and the
      preparation of financial statements for external purposes in accordance
      with generally accepted accounting principles;</FONT></TD></TR>
  <TR>
    <TD colSpan=5>&nbsp; </TD></TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>c)</FONT></TD>
    <TD vAlign=top noWrap></TD>
    <TD width="100%"><FONT face="Times New Roman" size=2>Evaluated the effectiveness of
      the issuer&#146;s disclosure controls and procedures and presented in this
      report our conclusions about the effectiveness of the disclosure controls
      and procedures, as of the end of the period covered by this report based
      on such evaluation; and</FONT></TD></TR>
  <TR>
    <TD colSpan=5>&nbsp; </TD></TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>d)</FONT></TD>
    <TD vAlign=top noWrap></TD>
    <TD width="100%"><FONT face="Times New Roman" size=2>Disclosed in this report any
      change in the issuer&#146;s internal control over financial reporting that
      occurred during the period covered by the annual report that has
      materially affected, or is reasonably likely to materially affect the
      issuer&#146;s internal control over financial reporting; and</FONT></TD></TR>
  <TR>
    <TD colSpan=5>&nbsp; </TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>5.</FONT></TD>
    <TD vAlign=top noWrap></TD>
    <TD width="100%" colSpan=3><FONT face="Times New Roman" size=2>The issuer&#146;s other
      certifying officer and I have disclosed, based on our most recent
      evaluation of internal control over financial reporting, to the issuer&#146;s
      auditors and the audit committee of the issuer&#146;s board of directors (or
      persons performing the equivalent functions):</FONT></TD></TR>
  <TR>
    <TD colSpan=5>&nbsp; </TD></TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>a)</FONT></TD>
    <TD vAlign=top noWrap></TD>
    <TD width="100%"><FONT face="Times New Roman" size=2>All significant deficiencies and
      material weaknesses in the design or operation of internal control over
      financial reporting which are reasonably likely to adversely affect the
      issuer&#146;s ability to record, process, summarize and report financial
      information; and</FONT></TD></TR>
  <TR>
    <TD colSpan=5>&nbsp;&nbsp;&nbsp; </TD></TR>
  <TR>
    <TD></TD>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>b)</FONT></TD>
    <TD vAlign=top noWrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD width="100%"><FONT face="Times New Roman" size=2>Any fraud, whether or not
      material, that involves management or other employees who have a
      significant role in the issuer&#146;s internal control over financial
      reporting.</FONT></TD></TR></TABLE></FONT><FONT face="Times New Roman" size=2></FONT></P>
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="30%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="100%" colSpan=2><FONT face="Times New Roman" size=2>Date: February 23, 2012</FONT></TD></TR>
  <TR>
    <TD width="1%"></TD>
    <TD width="99%">&nbsp;&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%"><FONT size=2 face="Times New Roman">By:</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="99%"><FONT face="Times New Roman" size=2>&nbsp; /s/ Tony Guglielmin</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="100%" colSpan=2><FONT size=2 face="Times New Roman"></FONT><FONT face="Times New Roman" size=2>Name: Tony Guglielmin</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="100%" colSpan=2><FONT face="Times New Roman" size=2>Vice President and Chief Financial
  Officer</FONT></TD></TR></TABLE><BR>
<P align=left><FONT face="Times New Roman" size=2>A signed original of this written
statement required by Section 302 has been provided to Ballard Power Systems
Inc. and will be retained by Ballard Power Systems Inc. and furnished to the
Securities and Exchange Commission or its staff upon request. </FONT></P>
<HR align=center width="100%" noShade SIZE=2>


</BODY>

</HTML>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.5
<SEQUENCE>6
<FILENAME>exhibit99-5.htm
<DESCRIPTION>CERTIFICATIONS PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
<TEXT>

<HTML>
<HEAD>
   <TITLE></TITLE>
</HEAD>

<BODY bgcolor=#ffffff>
<BR>
<P align=center><B><FONT face="Times New Roman" size=2>Section 906
Certification</FONT></B></P>
<P align=center><FONT face="Times New Roman" size=2>Certification Pursuant to<BR>18 U.S.C.
Section 1350</FONT></P>
<P align=center><FONT face="Times New Roman" size=2>As Adopted Pursuant to Section 906 of
the Sarbanes-Oxley Act of 2002</FONT></P>
<P align=left><FONT face="Times New Roman" size=2>In connection with the Annual Report on
Form 40-F of Ballard Power Systems Inc., a corporation organized under the laws
of Canada (the &#147;Company&#148;), for the period ending December 31, 2011 as filed with
the Securities and Exchange Commission on the date hereof (the &#147;Report&#148;), each
of the undersigned officers of the Company certifies, pursuant to 18 U.S.C.
Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of
2002, that:</FONT></P>
<TABLE cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>1.</FONT></TD>
    <TD vAlign=top noWrap></TD>
    <TD width="100%"><FONT face="Times New Roman" size=2>The Report fully complies with
      the requirements of Section 13(a) or 15(d) of the Securities Exchange Act
      of 1934 (15 U.S.C. 78m(a) or 78o(d)); and</FONT></TD></TR>
  <TR>
    <TD colSpan=3>&nbsp;&nbsp; </TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face="Times New Roman" size=2>2.</FONT></TD>
    <TD vAlign=top noWrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD width="100%"><FONT face="Times New Roman" size=2>The information contained in the
      Report fairly presents, in all material respects, the financial condition
      and results of operations of the
Company.</FONT></TD></TR></TABLE>&nbsp;<BR>
<BR>
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="4%"><FONT face="Times New Roman" size=2>Dated: February 23, 2012</FONT></TD>
    <TD noWrap align=left width="10%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="30%"><FONT face="Times New Roman" size=2>/s/
      John W. Sheridan</FONT></TD>
    <TD noWrap align=left width="56%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="4%"></TD>
    <TD noWrap align=left width="10%"></TD>
    <TD noWrap align=left width="86%" colSpan=2><FONT face="Times New Roman" size=2>John W.
  Sheridan</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="4%"></TD>
    <TD noWrap align=left width="10%"></TD>
    <TD noWrap align=left width="86%" colSpan=2><FONT face="Times New Roman" size=2>President and Chief
      Executive Officer (principal executive officer)</FONT></TD></TR>
  <TR>
    <TD width="100%" colSpan=4>&nbsp;</TD></TR>
  <TR>
    <TD width="100%" colSpan=4>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="4%"><FONT face="Times New Roman" size=2>Dated: February 23, 2012</FONT></TD>
    <TD noWrap align=left width="10%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="30%"><FONT face="Times New Roman" size=2>/s/
      Tony Guglielmin</FONT></TD>
    <TD noWrap align=left width="56%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="4%"></TD>
    <TD noWrap align=left width="10%"></TD>
    <TD noWrap align=left width="86%" colSpan=2><FONT face="Times New Roman" size=2>Tony
  Guglielmin</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="4%"></TD>
    <TD noWrap align=left width="10%"></TD>
    <TD noWrap align=left width="86%" colSpan=2><FONT face="Times New Roman" size=2>Vice President and Chief
      Financial Officer (principal financial
officer)</FONT></TD></TR></TABLE><BR>
<HR align=center width="100%" noShade SIZE=2>

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</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.6
<SEQUENCE>7
<FILENAME>exhibit99-6.htm
<DESCRIPTION>CONSENT OF KPMG LLP
<TEXT>

<HTML>
<HEAD>
   <TITLE></TITLE>
</HEAD>

<BODY bgcolor=#ffffff>
<BR>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR>
    <TD width="33%"><IMG src="exhibit99-1x4x1.jpg" border=0></TD>
    <TD width="33%"></TD>
    <TD width="33%" colSpan=2></TD></TR>
  <TR>
    <TD width="33%"></TD>
    <TD vAlign=top width="33%"><STRONG><FONT face=Arial size=1>KPMG
      LLP</FONT></STRONG></TD>
    <TD vAlign=top width="1%"><FONT face=Arial size=1>Telephone&nbsp;&nbsp;
      </FONT></TD>
    <TD vAlign=top width="32%"><FONT face=Arial size=1>(604)
  691-3000</FONT></TD></TR>
  <TR>
    <TD width="33%"></TD>
    <TD vAlign=top width="33%"><STRONG><FONT face=Arial size=1>Chartered
      Accountants</FONT></STRONG></TD>
    <TD vAlign=top width="1%"><FONT face=Arial size=1>Fax</FONT></TD>
    <TD vAlign=top width="32%"><FONT face=Arial size=1>(604)
  691-3031</FONT></TD></TR>
  <TR>
    <TD width="33%"></TD>
    <TD vAlign=top width="33%"><FONT face=Arial size=1>PO Box 10426 777
      Dunsmuir Street</FONT></TD>
    <TD vAlign=top width="1%"><FONT face=Arial size=1>Internet</FONT></TD>
    <TD vAlign=top width="32%"><FONT face=Arial size=1>www.kpmg.ca</FONT></TD></TR>
  <TR>
    <TD width="33%"></TD>
    <TD vAlign=top width="33%"><FONT face=Arial size=1>Vancouver BC V7Y
      1K3</FONT></TD>
    <TD vAlign=top width="1%"></TD>
    <TD vAlign=top width="32%"></TD></TR>
  <TR style="LINE-HEIGHT: normal">
    <TD width="33%"></TD>
    <TD vAlign=top width="33%"><FONT face=Arial size=1>Canada</FONT></TD>
    <TD vAlign=top width="1%"><FONT face=Arial size=1></FONT></TD>
    <TD vAlign=top width="32%"><FONT face=Arial size=1></FONT></TD></TR></TABLE>
<P align=left><U><FONT face="Times New Roman" size=2></FONT></U>&nbsp;</P>
<P align=left><U><FONT size=2 face="Times New Roman"></FONT></U>&nbsp;</P>
<P align=center><U><FONT face="Times New Roman" size=2>Consent of Independent Registered
Public Accounting Firm</FONT></U><FONT face="Times New Roman" size=2> </FONT></P>
<P align=left><FONT face="Times New Roman" size=2>To the Board of Directors of<BR>Ballard
Power Systems Inc.</FONT></P>
<P align=left><FONT face="Times New Roman" size=2>We consent to the inclusion in this annual
report on Form 40-F of:</FONT></P>
<UL style="FONT-SIZE: 10pt; TEXT-ALIGN: justify">
  <LI STYLE="text-align: left"><FONT face="Times New Roman" size=2>our Report of Independent Registered Public
  Accounting Firm dated February 22, 2012 on the consolidated statements of
  financial position of Ballard Power Systems Inc. (the &#147;Company&#148;) as at
  December 31, 2011, December 31, 2010 and January 1, 2010, and the consolidated
  statements of comprehensive loss, changes in equity and cash flows for each of
  the years in the two-year period ended December 31, 2011;<BR>&nbsp;</FONT></LI>
  <LI><FONT face="Times New Roman" size=2>our Report of Independent Registered Public
  Accounting Firm dated February 22, 2012</FONT><B><FONT face="Times New Roman" size=2>
  </FONT></B><FONT face="Times New Roman" size=2>on the Company&#146;s internal control over
  financial reporting as of December 31, 2011, </FONT></LI></UL>
<P STYLE="text-align: left"><FONT face="Times New Roman" size=2>each of</FONT><B><FONT face="Times New Roman" size=2>
</FONT></B><FONT face="Times New Roman" size=2>which is contained in this annual report on
Form 40-F of the Company for the fiscal year ended December 31, 2011.</FONT></P>
<P STYLE="text-align: left"><FONT face="Times New Roman" size=2>We also consent to incorporation by
reference of the above mentioned audit reports in the Company&#146;s Registration
Statements (No. 333-156553 and 333-161807) on Form S-8.</FONT></P><IMG src="exhibitx1x1.jpg" border=0> <BR><FONT face="Times New Roman" size=2>Chartered
Accountants<BR><BR>
Vancouver, Canada<BR>February 23,
2012<BR><BR><BR><BR><BR></FONT><BR><BR><BR>
<DIV align=center>
<TABLE cellSpacing=0 cellPadding=0 width="30%" border=0>

  <TR>
    <TD noWrap width="100%">
      <P align=left><FONT face=Arial size=1>KPMG LLP is a Canadian limited
      liability partnership and a member firm of the KPMG<BR>network of
      independent member firms affiliated with KPMG International
      Cooperative<BR>(&#147;KPMG International&#148;), a Swiss entity.<BR></FONT><FONT face=Arial size=1>KPMG Canada provides services to KPMG
  LLP.</FONT></P></TD></TR></TABLE></DIV><BR>
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end
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
